Silicone Market Size, Share & Trends Analysis Report By Product (Fluids, Gels, Resins, Elastomers), By Application (Electrical & Electronics, Transportation, Personal Care & Pharma, Construction, Textile), And Segment Forecasts, 2019 - 2025

Industry Insights

The global silicone market size was valued at USD 14.17 billion in 2018 and is estimated to expand at a CAGR of 4.5% from 2019 to 2025. Rising product demand from the electronics sector, owing to its high thermal stability and resistance to weathering, ozone, moisture, and UV radiation, is estimated to drive the market. Moreover, 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. The elastomers sector is estimated to expand at a CAGR of 4.3% over the forecast period owing to the high resistance of elastomers towards extreme temperatures (between -55 °C to +300 °C).

However, high production cost of silicone elastomers, owing to high raw material and processing costs, is estimated to hamper the market growth. Focus on research & development to increase the applications of silicone in various end-use industries and incorporation of enhanced technology through the deployment of fillers are estimated to offer new growth opportunities for the market over the forecast period.

The increasing importance of green chemicals for reducing carbon emissions is a major trend driving the overall market. Furthermore, silicone industry participants are forming alliances with healthcare companies for the development of silicone-based wearable devices. This will help boost the market expansion over the coming years.

Product Insights

Based on the product, the silicone market is segmented into fluids, gels, resins, and elastomers. The elastomers sector accounted for the largest market share of 42.6% in 2018 and is estimated to maintain its dominance over the forecast period. This growth can be attributed to the rising demand for lightweight automobile parts for improved fuel efficiency and fewer emissions. The U.S. FDA has stated silicone elastomers as Generally Recognized As Safe (GRAS) in food and food packaging. Properties, such as extreme temperature resistance, durability, and biocompatibility of elastomers make them suitable for surgical and medical applications as well.

Fluids are expected to be the second-largest segment over the forecast period on account of excellent thermos-oxidative resistance, shear stability, and low volatility and surface tension of fluids. These fluids are exclusively used in manufacturing hydraulic oils, transformer oils, damping fluids, heat-resistant lubricants, and release agents. Increasing application of polyesters and epoxy resins in the formulation of composites used in aerospace and automotive industries is estimated to promote the use of silicone for enhancing the thermal properties in finished products. Resins segment is projected to witness relatively sluggish growth.

Application Insights

On the basis of application, the silicone market is categorized into electrical & electronics, transportation, construction, personal care & pharmaceuticals, and textiles. The construction sector accounted for the largest market share. It is estimated to expand further at a CAGR of 4.2% over the forecast period due to high product demand on account of its high strength and moisture resistance. The global construction market is estimated to be led by the U.S., China, and India owing to the growing population along with rapid industrialization in these countries.

Transportation is the second-largest sector and is estimated to witness a healthy growth rate from 2019 to 2025 owing to the technological enhancement and increasing automobile production. The electrical and electronics segment is estimated to register the highest CAGR of 5.6% over the forecast period. In the U.S., the electrical and electronic market is estimated to witness a CAGR of 5.0% over the forecast period owing to the rising use of enhanced technologies, such as 4K Ultra HD and smart home technology.

Regional Insights

Asia Pacific was the largest market in 2018. The positive outlook towards the electronics sector in China, Japan, South Korea, and Vietnam is estimated to boost product usage as an electroactive polymer. Moreover, the rapidly developing automotive sector in China and India along with low manufacturing costs is estimated to fuel the regional market. Europe was the second-largest market in 2018 owing to well-established automotive sectors in Germany, U.K., France, and Italy. The increasing importance of heat transfer fluids in boilers application in major markets of Germany, France, and U.K. will boost the regional market further.

The emergence of Mexico as an automotive manufacturing hub is expected to have a positive impact on the North America regional market. Rising demand for minimally invasive surgeries and the presence of sophisticated healthcare infrastructure in this region is estimated to be favorable factors for the market growth. Middle East & Africa is also estimated to expand at a lucrative CAGR over the projected period owing to rapid industrialization in the region. Extensive crude oil production in Chile, Brazil, and Venezuela is estimated to promote market growth in Latin America.

Silicone Market Share Insights

Prominent companies in the market are Shin-Etsu, Ashland, Momentive, Kemira, Dow Corning, Evonik, and Wacker Chemie. These companies focus on R&D for the development of silicone-based products that can be used as an alternative to other polymers and metals. Industries that are producing silicon raw material usually produce its elastomers as well. Further, it helps companies integrate their businesses in a cost-effective way and shields them from raw material procurement hassles. Asia Pacific countries including China and India are estimated to remain a key center for manufacturers owing to low production cost and positive outlook towards electronics and automotive sectors. Moreover, the rising importance of e-commerce portals for ensuring the supply of finished goods by offering benefits, such as price discounts and timely delivery, is estimated to promote the purchase of silicone through website forums such as IndiaMart, Alibaba, and Made-In-China.

Report Scope

Segments Covered in the Report

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 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global silicone market report on the basis of product, application, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • Elastomers

    • High Temperature Vulcanized (HTV)

    • Liquid Silicone Rubber (LSR)

    • Room Temperature Vulcanized (RTV)

    • Others

  • Fluids

    • Straight

    • Modified

  • Resins

  • Gels

  • Others

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • Construction

  • Transportation

  • Electrical & Electronics

  • Textiles

  • Personal Care & Pharmaceuticals

  • Others

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

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • Russia

    • France

    • Spain

  • Asia Pacific

    • China

    • Japan

    • Australia

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia