Silicone In Electric Vehicles Market Size, Share & Trends Analysis Report By Product (Elastomers, Fluids, Resins), By Charging Type (PHEV, BEV), By Vehicle Type (LMV, CMV), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global silicone in electric vehicles market size was valued at USD 5.58 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 9.3% from 2022 to 2030. Surging demand for electric vehicles is one of the primary growth stimulants for the market. This is further supported by increasing favorable regulations toward reducing greenhouse gas emissions and lowering the impact of air pollution that are influencing the growth outlook for electric vehicles. Different financial measures such as tax incentives, purchase incentives, tax rebates, tax waivers, bonuses, and others also support the rise in electric vehicles.

In addition, electric vehicle rollout plans are also supported by non-financial measures, including fast charging stations available in public areas, free parking, separate lanes for EVs, and other similar measures. These financial and non-financial measures together are expected to drive the growth of electric vehicles, which in turn is projected to drive silicone demand growth in the electric vehicle market over the forecast period. However, silicone substitutes, such as plastics and other types of rubber products used in electric vehicles, may lead to an increase in silicone content in electric vehicles during the forecast period.

Several US states, including New Jersey, California, Washington, and Louisiana, provide tax credits, incentives, and rebates for the purchase of electric vehicles (EVs). New Jersey and Washington are exempt from the tax on the sale and use of electric vehicles, and California is offering discounts on plug-in hybrid electric vehicles (PHEVs) and other zero-emission passenger cars. Tax credit programs being implemented by various US states are likely to boost demand for electric vehicles, which in turn is projected to drive silicon growth in the electric vehicle market during the forecast period.

Electric vehicles (EVs) are expected to be widely used in Europe, Asia-Pacific, and North America due to stringent government initiatives in these regions to curb air pollution. It is predicted that the growing demand for environment-friendly transport will also drive the demand for electric vehicles in the coming years. The growing use of silicone in various electric vehicles such as plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs) is driving the growth of the market.

Product Insights

In terms of revenue, elastomers emerged as the largest product segment and accounted for over 46% of the market share in 2021. Based on type, the market has been divided into elastomers, resins, fluids, and other silicones such as gap fillers, gels, release agents, and oils. Elastomers help protect EV components from battery heat dissipation and shield them from electromagnetic interference. They also provide effective temperature management for the battery, which is one of the main components of electric vehicles.

In 2021, elastomer was the most prominent silicone product segment in the electric vehicle market. The growth of this segment can be attributed to its wide range of applications such as housings, gaskets, and seals, for thermal insulation of various components such as portable control unit (PCU) housing and connector sealing.

Fluids are used as a fan clutch to improve thermal stability and torque transmission in electric vehicles. These fluids are also used to coat high-voltage cables and as tire modifiers. Various fiscal and non-fiscal incentives offered by countries, including Norway, Sweden, the UK, and Germany, are poised to boost the growth of the segment. Resins have beneficial properties including weather resistance, water and fire resistance, and dielectric properties. Due to these properties, silicone resins are used in the impregnation of rolls.

Vehicle Type Insights

The light motor vehicle segment dominated the market and accounted for more than 91.0% of the revenue share in 2021. The transportation industry is in need of a paradigm shift from fossil fuel energy to electric energy. This change is estimated to be supported by government regulations, rising concerns regarding air pollution, a social perspective on pollution control, and technological advancements in the light motor electric vehicle industry. Currently, Asia Pacific is leading the light motor vehicle industry on account of increasing demand for light motor vehicles from emerging economies such as China, India, and others. This is anticipated to render Asia Pacific a promising destination for silicone products in light motor electric vehicles.

Charging Type Insights

The Battery Electric Vehicle (BEV) segment dominated the market and accounted for over 66% of the revenue share in 2021. Silicone provides better heat resistance at both high and low temperatures, compared to other rubbers. It can withstand higher temperature limits of up to 150°C and lower temperature limits of up to -40°C.

The temperature resistance property exhibited by silicone expands its application in Battery Electric Vehicles (BEVs). These useful properties of silicone are likely to drive the demand for it in various vehicle types for use in electric vehicles in the coming years. However, organic rubber substitutes are predicted to pose a threat to silicone demand, which could cause product consumption problems in battery-electric vehicles.

Region Insights

Asia Pacific region dominated the silicone in electric vehicles market and accounted for the largest revenue share of more than 42.0% in 2021. Rapid urbanization in the region has led to an increase in the number of vehicles and increased traffic congestion, which leads to problems of noise and air pollution. These challenges create an urgent need to promote the use of low-emission vehicles such as electric vehicles. Therefore, the rise in electric vehicles may in turn increase the demand for silicone products over the forecast period. The boom of the electric vehicle industry in China, Japan, and other countries, thanks to growing domestic consumption and favorable government policies, is expected to complement the growth of the market in the coming years.

The U.S. is at the forefront of the market in North America. A number of U.S. states, including California, New Jersey, Washington, and Louisiana, are using tax credits, incentives, and rebates to encourage sales of electric vehicles. California offers discounts on Plug-in Hybrid Electric Vehicles (PHEVs) and other zero-emission passenger vehicles. Tax credit programs implemented by various U.S. states are expected to strengthen the electric vehicle market, which in turn will stimulate the growth of the regional market.

Key Companies & Market Share Insights

Companies in the market compete based on the quality of products offered. Leading market players compete based on their product development capabilities and new technologies used in formulations. Fast-changing technological trends in electric vehicle manufacturing are causing silicone manufacturers to adopt innovative methods to produce customized products. Moreover, established players such as Wacker Chemie AG, KCC Corporation, and The Dow Chemical Company are investing in the development of innovative and sustainable solutions for formulating new and advanced products that give them an edge over their competitors.

For instance, in March 2021, The Dow Chemical Company, an American multinational chemical corporation, launched the world’s first low-density liquid silicone rubber for injection modeling formulation and brand owners. Some of the prominent players in silicone in electric vehicles market include:

• Wacker Chemie AG

• Elkem Silicones

• The Dow Chemical Company (formerly Dow Corning)

• H.B. Fuller Company

• Nexeon Limited

• ACC Silicones Ltd.

• KCC Corporation

• Rogers Corporation

• LORD Corporation

• Shin-Etsu Chemical Co., Ltd.

Silicone In Electric Vehicles Market Report Scope

Silicone In Electric Vehicles Market Segmentation

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 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global silicone in electric vehicles market report on the basis of product, vehicle type, charging type, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Elastomers

  • Fluids

  • Resins

  • Others

• Charging Type Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Plugin Hybrid Electric Vehicle (PHEV)

  • Battery Electric Vehicle (BEV)

• Vehicle Type Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Light Motor Vehicle

  • Commercial Motor Vehicle

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa