Silicone Market Size, Share & Trends Analysis Report By Product (Fluids, Gels, Resins, Elastomers), By End-use (Industrial Processes, Construction, Electronics), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global silicone market size was valued at USD 14.7 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 3.7% from 2020 to 2027. The market is expected to be driven by the rising demand from the end-use segments, such as construction, personal care, and consumer goods, and industrial processes. Chemical stability and consistent performance of silicones over a wide temperature range are expected to be the vital properties of the product that are driving its demand in the aforementioned industries. Moreover, increasing the adoption of silicone-based products in the emerging markets, such as electric vehicles, renewable energy, and electronics, is expected to boost market growth over the forecast period.

The growing demand for lightweight materials in the automotive industry and increasing R&D activities for product innovation are projected to propel overall industrial growth in the years to come. For instance, over the past few years, lightweight materials are increasingly being used to reduce automobile weight, which results in decreasing the overall fuel consumption. High thermal stability associated with silicone fluids is estimated to boost industrial growth in the years to come.

Moreover, the rising demand for ultra-pure silicone in various end-use industries is expected to present a significant growth opportunity over the forecast period.  Ultra-pure silicone is a highly processed silicone material with negligible amounts of impurities. These materials are widely used in photovoltaic power generation, solar panel, and nano-electronics as these applications require a high level of material purity. In addition, ultra-pure silicone is extensively used in the medical industry for applications, such as medical tubing and valves, membranes, respiratory masks, and instrument handles.

The growing electric and electronics industry, coupled with the emergence of small-scale electrical component manufacturers, electronic goods producers, and a versatile manufacturing landscape that is supported by the governments of various countries, such as China and India, is expected to increase the demand for ultra-pure silicone. In addition, high demand for medical devices and equipment, such as ventilators, needle-free valves, and respiratory masks, owing to the rising health issues caused by the ongoing COVID-19 pandemic is expected to boost the demand for ultra-pure silicone material in the coming years. Companies such as Wacker Chemie AG and Dow Inc. are engaged in the production of ultra-pure silicone for the medical applications.

End-use Insights

The industrial processes segment led the market and accounted for more than 25.0% share of the global revenue in 2019. Growing demand for silicone as antifoaming agents and lubricants in offshore drilling and paper production, industrial coatings, and paint additives is projected to boost the demand for silicone over the forecast period.

Furthermore, increasing natural gas production in North America, shale gas exploration in the U.S., growing drilling activities in countries, including China, the U.S., Brazil, and India, coupled with the capacity expansion of the oil & gas industries in the Organization of the Petroleum Exporting Countries (OPEC), are expected to augment the demand for silicone over the forecast period.

Silicones are widely used in the building and construction industry owing to their high strength and moisture resistance properties. They can be used in conjugation with numerous materials used for residential and commercial constructions, including glass, concrete, marble, aluminum, steel, and polymers. Rapidly growing urbanization, rising population, and industrial growth have resulted in the increasing need for construction and infrastructure development across the globe.

Moreover, numerous initiatives by various governments, such as China’s plan to invest USD 142 billion in 26 infrastructure projects in 2019 and India’s Housing for All and Smart Cities projects to provide housing to its population and develop infrastructure connecting rural and urban areas, are expected to accelerate the growth of the construction industry. These factors are likely to significantly boost the demand for silicones in the construction end-use segment over the forecast period.

Product Insights

The elastomers segment led the market and accounted for 41.4% share of the global revenue in 2019. This growth can be attributed to the rising demand for lightweight automobile parts for improved fuel efficiency and fewer emissions. Silicone elastomers are further categorized into Room Temperature Vulcanization (RTV), Liquid Silicone Rubber (LSR), and High-temperature Vulcanizing (HTV).

The rising penetration of HTV silicone elastomers in the electric vehicle industry has increased considerably over the past few years owing to their lightweight, robust performance, high resistance to corrosion, and efficiency. Besides, HTV silicone elastomers components offer durability, improved vehicle economy, and help in extending the life of electric vehicles. This is expected to fuel the demand for HTV silicone elastomers in electric vehicles, especially passenger and commercial vehicles, over the forecast period.

The gels segment is expected to witness significant growth over the forecast period. Their superior water repellence, high dielectric strength, and excellent ability to dampen mechanical vibrations are increasing their adoption in potting and encapsulation of electronic equipment, including LEDs and solar devices. Moreover, the growing personal care industry owing to the increasing aging population and rising concerns over appearance is expected to fuel the demand for silicone gels over the forecast period.

Regional Insights

The Asia Pacific dominated the market and accounted for over 43.0% share of the global revenue in 2019. The positive outlook towards the electronics industry of China, India, Japan, and South Korea is expected to promote the usage of silicone as an electroactive polymer. Furthermore, improving the automotive sector in China and India on account of low manufacturing cost, coupled with the favorable regulations aimed at promoting investments in electric vehicles and renewable energy, is expected to fuel silicone demand over the forecast period.

Europe emerged as the second-largest regional market in 2019. Improving the automotive sector in Germany, the U.K., France, and Italy post-Eurozone crisis on account of new product launches by Volkswagen and Mercedes are fueling the market growth in the region. However, high manufacturing in Europe owing to increasing utility expenditure is expected to reduce the manufacturing practices in the electronics and textile industries, which will, in turn, reduce the silicone consumption in the near future.

However, lockdown imposed by various governments in the countries, including India, the U.S., and China, to contain the spread of COVID-19 has led to a decline in the consumption of silicone. The end-use industries, such as automotive and construction, are witnessing a sharp decline, in terms of demand and production, owing to the several restrictions on movement and operations imposed by the government. This is anticipated to hamper the regional silicone demand in the last two quarters of 2020.

Key Companies & Market Share Insights

The global market is found to be significantly fragmented owing to the presence of a large number of manufacturers across the globe. Companies in the market compete on the basis of quality products offered and technology used for the production of silicone. Mergers & acquisitions, capacity expansions, and new product developments are some of the popular strategies adopted by a majority of the players operating in the global market.

For instance, in September 2020, Shin-Etsu Chemical Co., Ltd. invested USD 1.04 billion in the expansion of production capacity of silicone monomers and other silicone products, which is expected to be completed by March 2021. This investment is intended to cater to the growing demand for silicones in various applications. Some of the prominent players in the silicone market include:

• Shin-Etsu Chemical Co., Ltd.

• Wacker Chemie AG

• Evonik Industries AG

• Elkay Chemicals Pvt. Ltd.

• Supreme Silicones

• Dow Inc.

• KCC CORPORATION

• Elkem ASA

• Silchem Inc.

• Specialty Silicone Products, Inc.

Silicone Market Report Scope

Segments Covered in the Report

This report forecasts volume and revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global silicone market report on the basis of product, end use, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Fluids

    • Straight Silicone Fluids

    • Modified Silicone Fluids

  • Gels

  • Resins

  • Elastomers

    • High-Temperature Vulcanized (HTV)

    • Liquid Silicone Rubber (LSR)

    • Room Temperature Vulcanized (RTV)

  • Others

    • Adhesives

    • Emulsions

• End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Electronics

  • Transportation

  • Construction

  • Healthcare

  • Personal Care & Consumer goods

  • Energy

  • Industrial Processes

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • The U.K.

    • France

    • Russia

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia