Automotive Silicone Market Size, Share & Trends Report

Automotive Silicone Market Size, Share & Trends Analysis Report By Product (Rubber, Coatings, Adhesives & Sealants), By Application (Electrical, Suspension, EDT Systems, Interior & Exterior), And Segment Forecasts, 2019 - 2025

  • Published Date: Feb, 2019
  • Base Year for Estimate: 2017
  • Report ID: GVR-1-68038-726-1
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2016
  • Number of Pages: 96

Industry Insights

The global automotive silicone market size was valued at USD 5.76 billion in 2017 and is projected to witness a CAGR of 6.4% from 2018 to 2025. Automotive silicones have applications interior & exterior, electrical systems, and suspension systems of vehicles. Superior characteristics of the product make it highly compatible with rubber, adhesives, sealants, and coatings, which increases their preference over other products. Increasing production of automobiles is the key driving factor behind the growth of this market.

For instance, according to the International Organization of Motor Vehicle Manufacturers (OICA), the global production of commercial vehicles and cars grew at a CAGR of 2.04% from 2014 to 2017. The production increased by around 2 million units in 2017 from 2016. Automotive silicones help reduce the overall vehicular weight thereby enhancing the fuel efficiency and reducing harmful emissions. Thus, strict regulations pertaining to harmful emissions are also expected to propel the growth of this market. Growing demand in electronics application is also expected to fuel the market.

Japan automotive silicone market

However, high production cost of automotive silicones may cause hindrance to the market growth. Silicone rubber is extensively used in vehicle manufacturing, but its costlier than other types of rubbers, which is also likely to hamper market growth. Its manufacturing is an energy-intensive process and involves the use of other expensive components as well. However, its high cost is offset by low maintenance and long life. High production costs have resulted in the concentration of the market where a few key manufacturers account for a major industry share.

In addition, the industry witnesses potential threat of new entrants on account of escalating demand for the product in several applications. This makes the competitive rivalry intense in the global market. On the other hand, advancements in technology, modernization, and quick upgradation have propelled the demand for electronic automotive assistance systems. Thus, rising usage of these systems is likely to have a positive impact on the industry expansion.

Application Insights

Interior & exterior and Engine & Drive Train (EDT) systems are the major applications of the product. The interior & exterior parts comprise various components, such as tires, meters, seat belts, seats, door panels, flooring, airbags, and instrumental panels. The product is widely used in all of these parts in the form of rubber, adhesive, sealant, and coatings.

Characteristics, such as high-temperature resistance, flexibility in cold conditions, compatibility with dyes, and better grip, increase the product usage in this segment. EDT systems was the second-largest application in 2017. The ability to preserve plastics, rubber, and leather makes silicones applicable in lubricants. The lubricants are used in various parts of EDT systems to eliminate squeaks caused by friction. Some other applications for EDT systems include fuel injection and fuel pump seals, manifold gaskets, diaphragms, and plugs and cables.

High-temperature resistance of the product make it ideal in EDT systems. Electrical systems is expected to witness the fastest growth over the forecast period. Good electrical conductivity makes silicones an ideal material in ignition spark plug boots and cables. Growing demand for electronic systems in automotive sector is anticipated to have a positive impact on the segment growth.

Product insights

Based on product, the global market is segmented into rubber, adhesives & sealants, coatings, and others. In terms of revenue, rubber was the largest segment in 2017 and this trend is expected to continue over the forecast period. Silicone rubber is widely used in a wide range of applications, especially in high-temperature applications in vehicles. For instance, it is used in turbocharger hoses where the temperature is around 225°C. The product comes in various formulations for production, curing, and molding, making the processing easier and maintaining high quality standards.

Global automotive silicone market

Hence, despite its high cost, it is extensively used in electronic sealants, tires, and cables. Automotive silicones coatings offer temperature resistance up to 350°C. With appropriate pigments and filler, they can withstand temperature up to 650°C. They also have properties, such as scratch resistance, weathering resistance, slip, leveling, and wetting. Silicone-based coatings are also used in airbags as it protects the airbag fabric from heat. The efficiency and compatibility of the product with different types of substrates are anticipated to further augment its demand.

Regional Insights

Asia Pacific led the market in 2017 and this trend is expected to continue over the forecast period. Rising disposable income, production of vehicles, and population are the factors behind the region’s growth. According to OICA, APAC accounted for a share of 53.5% of the global production of cars and commercial vehicles in 2017. China is the major producer in APAC, followed by Japan and India. The automotive industry holds significant importance in Europe. In 2017, the number of registration for passenger cars increased by 3.4%, crossing the number of 15 million units for the first time in the past 10 years. Thus, rising importance of the industry is a positive sign for the growth of the automotive silicones market in this region.

Germany is the largest market in Europe and is known for its auto exports. Apart from Europe, U.S. is the largest importer of the German-made vehicles followed by Asia. Escalating demand for silicones has propelled its manufacturers to increase their production capacity. For instance, in September 2018, Evonik announced that it will be constructing a new silicone production facility in Germany, which is expected to be operational by the end of 2019. The new plant will focus on producing binders for adhesives and sealants, electronic, and medical applications and fiber composites for the automotive and aerospace industry.

Automotive Silicone Market Share Insights

The market is highly competitive. Some of the key participants include the The Dow Chemical Company, Wacker Chemie AG, Momentive Performance Materials, and Shin-Etsu Chemical Co., Ltd. Companies are focusing more on R&D and new product development activities for strengthening their market position. For instance, in June 2018, Momentive Performance Materials, Inc. introduced SilGrip PSA810 to its portfolio of pressure-sensitive adhesives.

Report Scope

Attribute

Details

Base year for estimation

2017

Actual estimates/Historical data

2014 - 2016

Forecast period

2018 - 2025

Market representation

Revenue in USD million, Volume in Kilotons, and CAGR from 2018 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa

Country scope

U.S., Germany, U.K., China, Japan, India, and Brazil

Report coverage      

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

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Segments Covered in the Report

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

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

    • Rubber

    • Adhesives & Sealants

    • Coatings

    • Others

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

    • Interior & Exterior

    • EDT System

    • Electrical System

    • Suspension Systems

    • Others

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

    • North America

      • U.S.

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • China

      • Japan

      • India

    • Central & South America

      • Brazil

    • Middle East & Africa

Key questions answered by the report
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