Silicone Elastomers Market Size, Share & Trends Analysis Report By Product (HTV, RTV, LSR), By Application (Consumer Goods, Construction, Automotive & Transportation), By Region (Europe, APAC), And Segment Forecasts, 2022 - 2030

Report Overview

The global silicone elastomers market size was estimated at USD 5.33 billion in 2021 and is projected to grow at a compound annual growth rate (CAGR) of 8.8% from 2022 to 2030. Silicone elastomer is widely utilized in the automotive & construction industry owing to its high strength and moisture resistance property. It can be used in conjugation with numerous materials including glass, concrete, marble, aluminum, steel, and polymers that are used in residential and commercial constructions. Its noise and vibration-dampening ability have driven its usage in building structures. When compared to other elastomers, silicone elastomers offer superior characteristics.

These characteristics make it appealing to a variety of end-use industries. End-use industry criteria are becoming increasingly challenging to satisfy as new applications emerge. End-use industries demand qualities, such as extended lifetime and efficient performance across a wide temperature range, low flammability, low toxicity, low smoke density, oil and fuel resistance, chemical and solvent inertness, and high productivity. Silicone elastomers meet these specifications. The U.S. silicone elastomer market is expected to grow at a significant CAGR during the forecast period owing to ongoing product innovations and technological developments that promote product usage in Electric Vehicles (EVs) and healthcare applications.

A number of states in the U.S., including California, New Jersey, Washington, and Louisiana, offer tax credits, exemptions, and rebates for promoting the procurement of EVs. New Jersey and Washington exempt the sales and use taxes for EVs, while California offers rebates on the purchase and usage of Plug-In Hybrid Electric Vehicles (PHEVs) and other light-duty zero-emission vehicles. These tax incentives implemented by different states of the country are anticipated to contribute to the growth of the EV market in the U.S. from 2022 to 2030. This, in turn, is anticipated to fuel the product consumption for cable insulation in zero-emission vehicles.

The gaskets, seals, and O-rings market in North America is anticipated to grow significantly over the forecast period owing to the stringent implementation of guidelines by the Environmental Protection Agency (EPA) and the increased requirement for reducing hazardous emissions from rotating equipment used in the industrial sector. In addition, steel, automotive, oil & gas, aerospace, and industrial manufacturing sectors require superior sealing solutions to prevent leakage of fluids. End users in the industrial sector focus on enhancing the overall performance of equipment to reduce their operational costs and productivity losses.

These factors are expected to drive the demand for gaskets, seals, and O-rings in North America, thereby positively impacting the growth of the industry growth in the region. In North American countries, policies are being framed to reduce Greenhouse Gas (GHG) emissions from different sources. This is expected to enhance the demand for EVs in the region. For instance, in August 2022, the Government of the U.S. implemented the Inflation Reduction Act as a law to provide tax credits for making the development and purchase of electric vehicles economical in the country. Such initiatives are anticipated to fuel the product demand over the forecast period.

Product Insights

The Liquid Silicone Rubber (LSR) product segment dominated the global industry in 2021 and accounted for the maximum share of more than 61.20% of the total revenue. LSRs are used in high temperatures. Major LSR application includes injection molding. Injection molding application is prevalent across multiple end-use industries, such as automotive, medical equipment, toys, packaging, musical instruments, housewares, consumer goods, storage containers, and furniture. High-Temperature Vulcanize (HTV) is also the key segment of the market. Silicone HTV elastomers can withstand prolonged exposures to higher temperatures.

HTV silicone rubber parts are used in several key components of automotive vehicles owing to their superior oil, heat, and UV resistance. Silicone usage is expected to increase gradually when the automobile engine heats up. It is widely used in various EV applications, such as a sheath heater, PTC heater, turbocharger hose, spark plug boots, muffler hanger, and wire harness connector. HTV silicone rubber products are part two silicone rubber grades, which can be automatically injection molded without secondary processing. They are generally platinum-cured and vulcanized under pressure and heat.

Application Insights

The construction segment dominated the global industry in 2021 and accounted for the maximum share of more than 43.00% of the overall revenue. Silicone elastomers play a significant role in building-site equipment and high-quality prefabricated building elements. The construction industry is expected to comply with strict regulations. These regulations mandate construction firms to utilize high-quality materials since the safety of occupants is a major concern. The construction industry is highly price-sensitive and witnesses strong competition among industry players. To gain a competitive advantage, construction companies include materials that are lightweight and can provide protection to the building structure.

Silicone elastomers provide good acoustic and insulation properties, making them suitable to safeguard taller structures by absorbing stresses and vibration, making them highly effective for vibration management. Silicone elastomers are found in cylinder head gaskets, gearbox gaskets, headlight gaskets, hoses, spark plug boots, diaphragms, connection seals, exhaust hangers, fuel system valves, powertrain applications, and oil-system seals. With increased vehicle manufacturing, the use of a diverse spectrum of silicone elastomers in automotive components may fuel product demand. Silicone elastomers are made conductive by the addition of carbon or other conductive material.

The conductive silicone elastomers are used to eliminate or reduce the RFI/EMI (radio frequency interference and electromagnetic interference) that is often associated with electronics. These interferences can lead to malfunctioning or complete failure of the electronic devices. The electronic conductive silicone elastomer gaskets help attenuate the RFI and EMI emissions from the electronic devices and are applied to enclosure covers to restrict electromagnetic emissions that can interfere with other electronic components. In addition, they are extensively used in high-voltage cable shielding, heater components, and keyboard contact points.

Regional Insights

Asia Pacific dominated the global industry in 2021 and accounted for the maximum share of 56.5% of the overall revenue. The trend is expected to continue even during the forecast period. The Asia Pacific region is mainly driven by the rising product demand from key application sectors, such as automotive, building & construction, and electrical & electronics. Leading multinational corporations have made major investments in the Asia Pacific manufacturing business in recent years. Northeast Asian countries are focusing on fostering economic growth in important areas, such as raw material extraction, manufacturing, and services.

Through the adoption of protectionism, financial investment, and regulatory assistance, governments around the area have converted rural industries into well-equipped world-class manufacturing facilities. The increased demand for lightweight silicones in transportation and construction applications is driving the regional market of Europe. The expansion of the construction industry in several nations, such as the United Kingdom, Germany, Spain, France, and Italy, is likely to boost product demand during the projection period. Increased EU financing and supporting policies, such as tax cuts, incentives, and subsidies, implemented by many governments are projected to help in the growth of the region’s construction sector.

On the other hand, the proliferation of COVID-19 in countries like Italy, Spain, Germany, and France, has restricted product demand, primarily in building and construction, transportation, and consumer goods applications. Moreover, favorable government policies aimed at reducing greenhouse emissions, such as manufacturing zero-emission vehicles by 2040 and extending the Clean Vehicle Retrofit Accreditation Scheme (CVRAS) beyond HGVs, coaches, and buses to include cabs and vans, are further anticipated to propel the product consumption in the automotive industry for the production of lightweight components.

Key Companies & Market Share Insights

The global industry is highly competitive with numerous manufacturers offering customized products in line with the application requirements. The industry is expected to remain innovation and technology-driven owing to the growing application scope of the product across diverse end-use industries. Organizations, such as those issued by the U.S. Food & Drug Administration (FDA), U.S. Environmental Protection Agency (EPA), and Council of Europe (CoE), have laid regulations governing silicone elastomer applications along with production and disposal to closely keep a watch on industry practices. Companies compete based on product quality and the technology used for product manufacturing.

Major players are involved in mergers & acquisitions, expansion of their manufacturing facilities, infrastructural development, investments in R&D facilities, and seeking opportunities to vertically integrate across the value chain. These initiatives help them cater to the increasing global demand, ensure competitive effectiveness, enhance sales & operations, develop innovative products & technologies, bring down production costs, and expand their customer base. For instance, in March 2022, Dow, Inc. announced to invest in global supply capabilities and the development of smarter, safer, and more sustainable technologies. The company started investing in the Jincheon site, in South Korea, to support the development of moldable optical silicone technologies for both automotive and industrial lighting applications. Some prominent players in the global silicone elastomers market include:

• China National BlueStar (Group) Co., Ltd.

• Dow Inc.

• KCC Corp.

• Shin-Etsu Chemical Co., Ltd.

• Wacker Chemie AG

• MESGO S.p.A

• Specialty Silicone Products, Inc.

• Stockwell Elastomerics, Inc.

• Momentive Performance Materials, Inc.

• Reiss Manufacturing, Inc.

• CHT Germany GmbH

Silicone Elastomers Market Report Scope

Global Silicone Elastomers Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2030. For the purpose of this study, Grand View Research has segmented the global silicone elastomers market report on the basis of product, application, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  • High-temperature vulcanize (HTV)

  • Room-temperature vulcanize (RTV)

  • Liquid Silicone Rubber (LSR)

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  • Electrical & Electronics

  • Automotive & Transportation

  • Industrial Machinery

  • Consumer Goods

  • Construction

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • U.K.

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • GCC Countries

    • South Africa