Silicone In Electric Vehicles Market Size, Share & Trends Analysis Report By Product (Elastomers, Fluids, Resins), By Region (North America, Europe, APAC, CSA, MEA), And Segment Forecasts, 2018 - 2025

Report Overview

The global silicone in electric vehicles  (EV) market size was valued at USD 971.8 million in 2017. It is likely to witness a CAGR of 8.1% from 2018 to 2025. Surging demand for electric vehicles is one of the primary growth stimulants for the market. This is further supported by different types of financial measures, such as tax incentives and purchase incentives, taken by governments worldwide to boost the sales of electric vehicles  (EV). Increasing efforts by regulatory bodies to reduce greenhouse gas emissions and lower the impact of air pollution are helping the market gain significant momentum.

EV sale plans are also supported by non-financial measures including free parking, faster-charging stations available at public places, and separate driving lanes. These financial and non-financial measures together are expected to work in favor of the market during the forecast period. However, the strong presence of substitutes for silicones, such as plastics and other types of rubber products used in electric vehicles, is estimated to challenge the growth of the market during the forecast period.

Electric vehicles are anticipated to be widely used in Europe, Asia Pacific, and North America on account of stringent government initiatives in these regions to curb air pollution. Spiraling demand for pollution-free transport is also projected to fuel the demand for EVs over the coming years. Increasing use of silicone in a variety of electric vehicles such as battery electric vehicles  (BEVs) and plug-in hybrid electric vehicles  (PHEVs) is escalating the growth of the market.

Wacker Chemie AG, Elkem Silicones, H.B. Fuller Company, KCC Corporation, and Shin-Etsu Chemical Co., Ltd. are some of the silicone manufacturers. The fragmented nature of the market makes this industry highly competitive. Product innovations by manufacturers to serve the end-use industry and offering tailored solutions are among the key strategies adopted by prominent industry participants to stay competitive in the market.

Type Insights

Based on type, the market has been segmented into elastomers, fluids, resins, and other silicones such as gels, gap fillers, release agents, and oil. Elastomers enable the protection of components of electric vehicles from dissipating battery heat and shield them from electromagnetic interference. They also enable effective thermal management of the battery, which is one of the essential components of an EV.

Elastomer was the most prominent product segment in the silicone in the electric vehicles market in 2017. The growth of the segment can be attributed to its broad range of applications such as seals, housing, and gaskets for thermal insulation of various components such as connector sealing and portable control unit  (PCU) housing.

Fluids are used as fan coupling to improve heat resistance and torque transmission applications in EVs. These fluids are also used to provide coatings for high voltage cables and as modifiers in tires. Various fiscal and non-fiscal incentives offered by different countries including Norway, Sweden, U.K., and Germany are poised to contribute to the growth of the segment. Resins exhibit beneficial properties including weatherability, water resistance, and flame retardancy, along with dielectric properties. Silicone resins find use in coil impregnation owing to these properties.

Regional Insights

In 2017, Asia Pacific was the leading regional market, which accounted for over 42.0% of the overall revenue.  Rapid urbanization in the region is leading to an increase in the number of vehicles, intensifying traffic congestions, which are leading to problems of air and noise pollution. These problems are creating a high need for promoting the use of low-emission vehicles such as electric vehicles. Therefore, the rising number of electric vehicles is, in turn, likely to fuel the demand for silicone products over the forecast period. Booming EV industry in China, Japan, and other countries owing to growing domestic consumption and favorable government policies is expected to supplement 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 states in the U.S., including California, New Jersey, Washington, and Louisiana, are using tax credits, exemptions, and rebates to propel sales of electric vehicles. California offers rebates for plug-in hybrid electric vehicles  (PHEVs) and other light-duty zero-emission vehicles. Tax incentive programs implemented by different states in the U.S. are estimated to bolster the market for electric vehicles, which, in turn, is anticipated to stoke the growth of the regional market.

Key Companies & Market Share Insights

Manufacturers such as Wacker Chemie AG, Elkem Silicones, ACC Silicones Ltd, Rogers Corporation, and Shin-Etsu Chemical Co., Ltd. provide silicone in elastomers, fluids, resins, gels, oil, and other forms. International players are focusing on expanding their product portfolio to cater to customers as per their wide range of requirements. Therefore, competitive rivalry is projected to intensify over the coming years.

Some of the high-application elastomers are high-temperature‑vulcanizing silicone  (HTR), room temperature vulcanizing silicone  (RTR), and liquid silicone rubber  (LSR). Most of the major manufacturers are focusing on strengthening their silicone elastomer product portfolio to cater to the demand from the electric vehicle industry. For instance, Wackier Chemie AG in October 2016 developed ELASTOSIL LR 3072/50, a liquid silicone rubber, which finds applications in automotive electronics and electrical systems such as engine compartments.

Fast-changing technological trends in electric vehicle manufacturing are causing silicone manufacturers to adopt innovative methods to produce customized products. This offers an opportunity for manufacturers to provide application-specific products and gain a competitive edge in the market and expand their market share. 

Silicone in Electric Vehicle Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional & country levels and provides an analysis of 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 silicone in the electric vehicles market report on the basis of product and region:

• Type Outlook  (Revenue, USD Million, 2014 - 2025)

  • Elastomers

  • Fluids

  • Resins

  • Others

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

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • The U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa