Automotive Silicone Market Report

Automotive Silicone Market Analysis By Product (Elastomers, Adhesives & Sealants, Resins), By Application (Interior & Exterior Parts, Engine & Drive Train System, Suspension System, Electrical System), By Region, And Segment Forecasts, 2014 - 2025

Published: February 2015  |  75 Pages  |  Format: PDF  |  Report ID: GVR-1-68038-726-1

Industry Insights

The global automotive silicone market size was valued at USD 2.60 billion in 2015 and is expected to grow rapidly on account of rising automobile production in developing economies such as India, Vietnam and Brazil. Automotive manufacturers worldwide are focused on increasing fuel efficiency of vehicles which is expected to boost the demand for these materials.

Silicone are one of the fastest growing products around the world and their demand in the automotive sector is expected to grow rapidly due to rising investment by the manufacturers in novel products and technologies. Moreover, increasing focus on utilization of high performance materials by the OEM’s is expected to facilitate the growth of automotive silicone market over the forecast period.

Germany automotive silicone market, by product, 2014 - 2025 (USD Million)

Germany automotive silicone market

The demand for the product in Germany is expected to grow on account of high concentration of OEM manufacturers such as Robert Bosch, Continental AG and Schaefller AG in the country. The OEM’s in Germany are responsible for more than 50% of the total demand for vehicle spare parts in Europe.

The new emission regulations being adopted around the world are expected to place an extra emphasis on utilization of lightweight materials in major automotive components. The CAFÉ standards for reduction of the fuel consumption from 27 mpg to 25 mpg by 2025 and the EU mandate to reduce the CO2 emissions from 123.4 g/km to 95 g/km by 2020 is expected to augment the demand for automotive silicone.

Product Insights

The product segments in the market comprise of elastomers, adhesives & sealants and resins. Elastomers are the dominant product segment in the market owing to awide range of applications including spark plug boots, connector seals, airbags, intake manifold gaskets, turbo charges hoses, and silicone wiper blades. The high strength and ease of application are the major factors driving the demand.

The adhesives and sealants are the fastest growing product segments with a market share of 26.1% in 2015. They are majorly used as fillers in automotive paints as they increase the viscosity of the blends and also act as crosslinkers and catalysts. The multi-functionality of these products is anticipated to have a positive impact on the growth over the forecast period.

Application Insights

The application segment was dominated by interior & exterior parts and engine & drive train parts. These parts are the major weight components that increase the fuel consumption of the vehicles. Lightweight and high chemical resistance of silicone are likely to fuel its demand in these applications.

Global automotive silicone market, by application, 2015 (%)

Global automotive silicone market

The high electrical resistivity of these materials is expected to boost their demand. The rising focus on infotainment and in-car electronic displays is expected to have a positive impact on the demand for silicone in electrical systems application. Extensive R&D and innovations in the in-dash display monitors and responsive touch screens in vehicles are expected to develop new opportunities for the market over the coming years.

Regional Insights

The major regional markets include North America, Asia Pacific, and Europe with Asia Pacific accounting for a share of over 35% in 2015. The market is driven by high concentration of OEM manufacturers such as Takata Corporation in Japan and CITIC Dicastal Co. in China. The growing automotive manufacturing in India and China is expected to boost the market growth over the forecast period.

The demand in Europe is expected to witness a moderate growth with a CAGR of over 6% on account of slowdown in the automobile industry in this region. Germany has been spearheading the demand for automotive silicone in this region. The presence of a large number of automotive component manufacturers and its close proximity to Poland which is the biggest automobile market in Eastern Europe is likely to augment the demand in Germany.

The North American market is expected to grow at a slower pace due to sluggish passenger vehicle production in the region. The rise in imports from Asia Pacific and Europe is responsible for low growth rates in North America.

Competitor Insights

The industry is highly consolidated as manufacturers such as Wacker Chemie and Dow Corning are responsible for more than 40% of the overall market share. The other manufacturers in this market are Momentive Performance Materials, Bluestar Silicone, Shin-Etsu, ACC Silicone Europe, Bostik, Specialty Silicone Products Inc., CSL Silicone and Laur Silicone.

Joint ventures and partnerships are prevalent in the market owing to high capital requirements. These joint ventures and partnerships have enabled the market to grow at a faster rate than the automobile industry. In January 2013, Dow Corning established a tie up with suppliers in order to understand their needs and direct the new product development efforts in the company accordingly.

Report Scope

Attribute

Details

Base year for estimation

2015

Actual estimates/Historical data

2014 - 2015

Forecast period

2016 - 2025

Market representation

Volume in Kilo Tons; Revenue in USD Million & CAGR from 2016 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America & MEA

Country scope

U.S., UK, Germany, Japan, China, India, Brazil

Report coverage

Revenue forecast, company share, competitive landscape, growth factors and trends

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Segments covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the automotive silicone market on the basis of product, application, and region:

  • Product Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

    • Elastomers

    • Adhesives & Sealants

    • Resins

    • Others

  • Application Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

    • Interior & Exterior Parts

    • Engine & Drive Train System

    • Electrical System

    • Suspension System

    • Others

  • Regional Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S.

    • Europe

      • Germany

      • UK

    • Asia Pacific

      • China

      • India

      • Japan

    • Central & South Africa

      • Brazil

    • Middle East & Africa

Key questions answered by the report
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