Conductive Silicone Rubber Market Size, Share & Trends Analysis Report By Product (Thermally Conductive, Electrically Conductive), By Application, And Segment Forecasts, 2015 - 2022

Report Overview

The global conductive silicone rubber market size was worth USD 3,486.7 million in 2014. Electronic industry growth, particularly in the Asia Pacific, is expected to fuel the demand for lighting as well as wire applications. In addition, the rising importance of anti-static packaging for dust control during electric charge is expected to augment further industry growth over the next seven years.

Rising demand for lightweight automobile parts owing to improved fuel efficiency and lower emissions is expected to drive the conductive silicone rubber demand. The product is used in manufacturing plastic and rubber modifiers in the interior parts on account of exhibiting superior anti-wear and anti-blocking properties.

Industrial and infrastructure growth in emerging economies including China, India, Brazil, and other North African countries is expected to impact positively market growth. In addition, favorable regulatory policies such as the FDI and the free trade agreement are likely to propel the demand for the compound over the forecast period. The growing use of conductive silicone polymers in manufacturing rings, seals, gaskets, and coupling materials in packaging and oil & gas industries is expected to augment growth.

Rising consumer awareness regarding the benefits of bio-based chemicals as compared to their synthetic counterparts is expected to hamper growth over the next seven years. Furthermore, the rising application scope of silicone in manufacturing lubrication oil and greases is expected to pose a major threat to raw material availability, which in turn is expected to increase the overall product cost over the forecast period.

Market players including Dow, Momentive, Wacker and Shin Etsu are integrated across the entire value chain from raw material suppliers to manufacturing and distributing conductive silicone rubber. The rising application of silicone to manufacture lubricants and greases is expected to reduce the availability of raw material for the production of conductive silicone rubber.

Product insights

Thermally conductive silicone rubber was the largest product segment accounting for 48.4% of the global market volume in 2014. The product finds applications in manufacturing various components used in automotive vehicles, personal computers, and home appliances on account of exhibiting superior heat dissipation properties.

Increasing use of thermally conductive silicone rubber materials in electronic components such as sensors, printed and electric circuit boards on account of exhibiting good flow and processing along with exhibiting high thermal stability is likely to be a favorable factor. In November 2014, Wacker launched a thermally conductive adhesive for electronics applications. The company is manufacturing the conductive silicone-based adhesive, which is branded under the name, SEMICOSIL 975 TC and is aimed at establishing mechanical and thermal connections in electronic components.

Electrically conductive rubber is expected to remain the fastest-growing segment in terms of volume growing at a CAGR of 7.4% from 2015 to 2022. The rising miniaturization of electronic products has led to the need for protecting these parts from Electromagnetic Interference (EMI) and Electrostatic Dissipation (ESD). The increasing use of conductive silicone rubber for ESD and EMI protection is expected to have a positive impact over the forecast period.

Application insights

The Automotive & transportation segment was the second largest application segment and accounted for over 30.5% of the global market volume. The increasing use of conductive silicone rubber for interiors of automobiles owing to its flame and weather resistance properties is expected to have a favorable impact.

It is used in manufacturing a wide range of automotive parts including engine bay components, wiring harnesses, sealants, gaskets, connectors, and spark plugs on account of exhibiting excellent electrical insulation, weather ability, heat and chemical resistance, tear strength, and adhesive properties. These products provide reliable protection against moisture, dirt, and water spray, thus, finding applications in spark plugs.

Lightweight materials are increasingly being used in order to reduce automobile weight which results in decreasing the total fuel consumption of the vehicle. Over the past few years, the automotive industry has started using lighter materials to manufacture vehicles, in accordance with numerous regulations included in the Euro 6 and 7. In addition, Montreal Protocol and Kyoto Protocol also outline norms for emissions from automobiles, which has resulted in increased consumption of lightweight materials.

Electronics & Electrical segment is expected to remain the fastest-growing application segment in terms of volume growing at a CAGR of 8.3% from 2015 to 2022. It finds application as adhesives, sealants, and coatings of wires & cables along with acting as an anti-static packaging agent for electronic components. Industrial machines, such as hydraulic packaging machines, incorporate the use of the compound as sealants and gaskets accounting for 15.0% of the market volume in 2014. Other properties such as resistance to weathering, ozone, moisture, and UV radiation, offered by conductive silicon rubber are expected to increase its applications for manufacturing internal and external components of consumer electronic goods, power distribution, and transmission devices

Construction applications consumed over 200 kilotons of global demand in 2014. The compound is used in construction coating agents for waterproofing mortar, metal surfaces, and concrete. These rubbers maintain elasticity over a wide range of temperatures and exhibit UV and ozone resistance properties. The increasing use of these rubber compounds for waterproofing, flame resistant, and airtight gaskets in the construction industry is expected to have a positive impact on growth over the next seven years.

Regional insights

The Asia Pacific was the largest region accounting for 54.4% of the global volume in 2014. Robust electronics industry manufacturing in Taiwan, Japan, China, Korea, and India is likely to be a favorable factor over the next seven years.

Supportive government regulations, such as the Draft National Chemical Policy by the Government of India in February 2014, are intended for increasing the country’s chemical output from 3% in 2014 to 6% by 2020. This policy is expected to open new opportunities for manufacturers in the future, thus, enabling easy access to raw materials for conductive silicone rubber production.

North America accounted for 17.84% of the global conductive silicone rubber market in 2014. Expansion of shale deposits in North America due to advancements in hydraulic fracturing is likely to drive the demand for conductive silicone rubber-based gaskets and sealants for oil & gas machinery.

Europe's market was valued at over USD 750 million in 2014, and it is expected to present a lucrative opportunity in light of rising expenditure in the healthcare industry toward the innovation of biocompatible medical devices such as medical sensors. The robust manufacturing base of the automobile in countries of Germany, France, and Italy is expected to drive the market over the forecast period.

In 2014, GM and Ford restructured their operations in Europe and planned to launch new products. In the same year, Opel announced the launch of 27 models and 17 new engines between 2014 and 2018. These developments and new launches are likely to augment the market demand over the forecast period.

Key Companies & Market Share Insights

Major manufacturers include Wacker, Shin Etsu, Momentive, Dow Corning, Saint-Gobain, China National BlueStar (Group) Co., Ltd., Western Rubber & Supply, KCC Corporation, Mesgo SpA, Jan Huei Industry Co., Ltd., and Reiss Manufacturing, Inc. Manufacturers are expected to opt for forwarding integration in light of rising application scope of conductive silicone rubber. Growing demand for silicone in lubricants and greases is expected to induce price hikes for the market players in the future.

Reiss Manufacturing, Jan Huei, China Blue Star, KCC, and Western Rubber Supply are some of the key conductive silicone rubber manufacturers in the market which procure raw materials from the above-mentioned companies for producing different grades. Industry participants have formed strategic partnerships with compounders and contract manufacturers, which convert the conductive silicone rubber into sheets, films, and numerous compounds. In addition, some distributors and market players sell their product offerings through web portals including Alibaba. Buyers present in the automotive, electronics, industrial, food & beverage, and healthcare sectors are using conductive silicone rubber to manufacture different products.

Conductive Silicone Rubber Market Report Scope

Segments covered in the report

This report forecasts revenue and revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2015 to 2022. For this study, Grand View Research has segmented the global conductive silicone rubber market on the basis of product, application, and region.

• Product Outlook (Volume Kilo Tons; Revenue, USD Million, 2012 - 2022)

  • Thermally Conductive

  • Electrically Conductive

  • Others

• Application Outlook (Volume Kilo Tons; Revenue, USD Million, 2012 - 2022)

  • Automotive & Transportation

  • Electrical & Electronics

  • Industrial Machines

  • Others

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

  • North America

    • U.S.

  • Europe

    • Germany

  • Asia Pacific

    • China

  • Latin America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia