Silicone Market: Emerging Growth Opportunities and Market Analysis (2022-2029)
Silicone Market size was valued at US $17.92 Billion in 2022 and the Silicone Market revenue is expected to grow at 7.23% through 2023 to 2029, reaching nearly US $29.22 Billion. The report analyzes Silicone market dynamics by region, and end-user industries.
Format : PDF | Report ID : SMR_475
Silicone Market Overview:
A silicone, often known as polysiloxane, is a siloxane-based polymer. The most frequent are colourless oils or rubber-like substances. Silicones are used in sealants, adhesives, lubricants, pharmaceuticals, culinary utensils, and thermal and electrical insulation. Some of the most common varieties are silicone oil, silicone grease, silicone rubber, silicone resin, and silicone caulk. Silicone has a number of important qualities, including low chemical reactivity, low toxicity, thermal stability, water repellence, antimicrobial capabilities, and so on. The Silicone Market report's segment analysis is completed on the basis of type, end-use industry and region.
Silicone Market Dynamics:
Versatile properties of Silicone:
Silicones are a very adaptable substance that may be used in a wide range of industries. They have unique characteristics including as durability, Di-electricity, adhesion, foam control, discharge safety, UV stability, glossiness, transparency, radiation resistance, hydrophobicity, heat resistance, and flexibility, which allow them to be used in a range of applications. At temperatures above 100°C, this long-lasting, high-resistance material performs best (the limit of most other rubbers).
Non-toxic silicone rubber is commonly used in the food business. Silicone's remarkable properties make it ideal for steamed or sterilized seals and gaskets. Because of its strong electrical resistance, it is also used in the electrical and electronics sectors.
2021 Silicone Shortage:
The following are the main causes of the Silicone shortage:
Demand: Demand in the silicone market for all kinds is significantly higher than it was a year ago. Demand began to soar in the fourth quarter of 2020 as the global economy opened up. Even when the second and third waves of Covid hit the planet, economies did not collapse as they did in the first and second quarters of 2020. Demand is now about the same as it was before the pandemic, if not slightly higher.
Supply: In the first and second quarters of 2020, most raw material suppliers saw a 15% to 40% reduction in orders/demand. Businesses reduced their stock levels to exceptionally low levels to save money because no one knew how long the pandemic would last. It was not easy to turn on production once demand began to climb.
Manpower: Employees were detained or laid off in the first and second quarters. As demand grew, companies were unable to find the manpower needed to produce the product in time to meet demand. Covid-19's quarantine policies have a significant impact on the workforce. Many companies stated that up to 5% to 10% of their staff were required to be in quarantine for a duration of two to four months. Also, the government's increasing unemployment benefits made returning to work less tempting.
Logistics: Many containers and cargo ships were pulled from the supply chain due to a lack of demand, and logistics companies had the same manpower/supply issues as manufacturers, preventing them from immediately returning these assets to operation. Manpower shortages harmed the ports since there were not enough longshoremen to offload cargo once they arrived at the port.
Pricing: Pricing pressure is an unwelcome side effect. This is true not only of silicones, but of almost any produced product/commodity, including food. Silicone manufacturers have all announced price increases ranging from 5% to 25%, with more hikes planned later in 2021.
Light-weighting is becoming more important to automobile manufacturers:
The rising focus on light-weighting by automotive OEMs has opened up new opportunities for silicone. Silicone is a vital component used to improve the performance of plastic, and the average amount of plastic in an automobile has increased dramatically over time. Also, as automobile components become smaller, silicone compounds in under-the-hood applications are in higher demand. Because of increased silicone consumption per car and rapid vehicle production, the silicone market has a bright future ahead of it. Rising demand for renewable energy, particularly solar and wind, is another important influencing driver for silicone, despite their small share of the market.
Silicone is subject to a number of restrictions imposed by the government:
The vast majority of silicone products are unlimited in their application. Regulatory agencies in some countries, however, have placed restrictions on the use of a few silicone products, particularly in the personal care and consumer goods, as well as the medical and healthcare industries. The European Chemicals Agency (ECHA) and the UK Competent Authorities, for example, have placed limits on the use of two silicone compounds used in personal care, cyclosilicates D4 and D5. These compounds are likely to be restricted to a concentration of 0.1% by weight in personal care products. Also, to the United Kingdom, its usage is restricted in Canada and the United States.
In the medical and healthcare industry, silicones are only considered medical-grade if they have been approved by the United States Pharmacopeial Convention (USP) Class V and VI. Regulatory authorities must approve all medical-grade silicones before they may be sold. Companies must comply with the Restriction of Hazardous Substances (RoHS), the Dodd-Frank Act, and the US government's International Traffic in Arms Restrictions (ITAR) while producing silicone rubber for the medical business in the United States. All of this legislation, as well as the processes for approving them, take time, which inhibits the silicone market's growth in these industries.
The development of an antimicrobial silicone elastomer:
Medical-grade silicone elastomers have passed biocompatibility tests, making them suitable for usage in the healthcare industry. Because of their low toxicity, silicone elastomers used in medical applications have a low risk of negative biological interactions and have so achieved acceptance in food and medical applications. Bacteria and other microorganisms, on the other hand, can change the properties of silicone elastomers. Biocides are used to attack these germs and prevent the growth of dangerous bacteria that could cause contamination or infection in humans.
Despite all measures, the number of hospital-acquired infections (HAIs) is increasing over the world, necessitating the development of more effective prevention strategies and technology to reduce infection rates. Hospitals in the United States are being required to cover the costs of treating HAIs due to changing health insurance restrictions. As a result, medical device manufacturers are exploring for improved ways to help reduce microbial development on their equipment. This is accomplished by the use of antimicrobials or biocides, as well as other additives.
Antimicrobial silicone elastomers are used to improve final product performance by reducing microbial contamination in the elastomer. Microbial proliferation can cause foul odors, discoloration, and the formation of fungus in a variety of medical device applications, such as wound drains and catheters. Antimicrobial silicone elastomer inhibits the growth of germs in or on the human body. As a result, the development of these elastomers is likely to provide attractive growth opportunities for the silicone market over the forecast period.
Fluctuating prices of the raw materials:
In the global silicone market, the frequent fluctuation of raw material and energy prices is a big issue. Between 2016 and 2018, the significant increase in raw material prices, such as methyl chloride and silicon metal, impacted silicone firms' profit margins indirectly. As a result, the overall cost of silicone products rises. Increasing raw material costs are expected to have a detrimental influence on the global market. Silicone producers are continually confronted with high and fluctuating feedstock costs, which they must pass on to end consumers.
For example, Wacker and Elkem, two major silicone competitors, recently upped the prices of their silicone products to compensate for rising raw material and energy expenses in March 2021. As a result, rising raw material and energy costs have become a major source of concern for silicone producers.
Silicone Market Segmentation:
Based on Type:
In terms of revenue, the elastomers segment was dominating in 2020, accounting for more than xx% of the overall silicone market. The growth of this segment is responsible for increased consumption of numerous things such as voltage line insulators, cooking, baking, and food storage products; undergarments, sportswear, and footwear; electronics; medical equipment and implants; and house gaskets and O-rings.
Silicone elastomers are also used in sealant manufacturing. They are suitable for use in the healthcare industry thanks to their physiological inertness, particularly in blood transfusions, artificial heart valves, and other prosthetic devices.
Silicone Market Regional Insights:
With a market share of more than xx% in 2020, Asia Pacific led the silicone market, followed by North America and Europe. The market is growing thanks to increased demand for silicone from end-use industries such as electronics, building & construction, personal care & consumer goods, and transportation. Several silicone manufacturers, such as Wacker Chemie AG and Shin-Etsu Chemical Co. Ltd., are also establishing or expanding manufacturing facilities in this region to take advantage of low manufacturing and labour costs, as well as high demand from end-use industries, which is driving the region's silicone market growth.
The North American market is seeing a significant increase in output as well as a recovery in economic activity. Because most end-user applications, such as automotive, construction, and industrial operations, are tied to an economy's economic well-being and growth, the market is expected to grow at a moderate rate of xx%.
The Western European market is expected to increase at a slower rate of xx% than the North American market over the forecast period thanks to the region's poor economic growth. However, in terms of absolute demand growth, the European silicone market is likely to surpass the North American market.
The objective of the report is to present a comprehensive analysis of the Silicone Market to the stakeholders in the industry. The report provides trends that are most dominant in the Silicone Market and how these trends will influence new business investments and market development throughout the forecast period. The report also aids in the comprehension of the market dynamics and competitive structure of the market by analyzing market leaders, market followers, and regional players.
The qualitative and quantitative data provided in the Silicone Market report is to help understand which market segments, regions are expected to grow at higher rates, factors affecting the market, and key opportunity areas, which will drive the industry and market growth through the forecast period. The report also includes the competitive landscape of key players in the industry along with their recent developments in the Silicone Market. The report studies factors such as company size, market share, market growth, revenue, production volume, and profits of the key players in the market.
The report provides Porter's Five Force Model, which helps in designing the business strategies in the market. The report helps in identifying how many rivals are existing, who they are, and how their product quality is in the Market. The report also analyses if the Silicone Market is easy for a new player to gain a foothold in the market, do they enter or exit the market regularly if the market is dominated by a few players, etc.
The report also includes a PESTEL Analysis, which aids in the development of company strategies. Political variables help in figuring out how much a government can influence the Market. Economic variables aid in the analysis of economic performance drivers that have an impact on the Market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the Silicone Market is aided by legal factors.
Silicone Market Scope:
Silicone Market Scope
Market Size in 2022
USD 17.92 Bn.
Market Size in 2029
USD 29.22 Bn.
By End-use Industry
North America- United States, Canada, and Mexico
Europe – UK, France, Germany, Italy, Spain, Sweden, Austria, and Rest of Europe
Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC
Middle East and Africa - South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa
South America – Brazil, Argentina, Rest of South America
Silicone Market Key Players
- The Dow Chemical Company (United States)
- Wacker Chemie AG (Germany)
- Shin-Etsu Chemical Co. Ltd. (Japan)
- Evonik Industries AG (Germany)
- Elkay Chemicals (India)
- Supreme Silicones (India)
- KCC Corporation (South Korea)
- Elkem ASA (Norway)
- Silchem Inc. (Canada)
- Speciality Silicone Products (United States)
- elest Inc. (United States)
Frequently Asked Questions
The forecast period for the silicone market is 2022-2029.
The volatile price of the raw material is the only key factor expected to hinder the growth of the market during the forecast period.
The Silicone market is expected to grow at a CAGR of 7.23% during the forecast period (2023-2029).
The versatile and unique properties of silicone and its consumption in various end-user industries are the key factors expected to drive the growth of the market during the forecast period.
The Dow Chemical Company (United States), Wacker Chemie AG (Germany), Shin-Etsu Chemical Co. Ltd. (Japan), Evonik Industries AG (Germany), Elkay Chemicals (India), Supreme Silicones (India), KCC Corporation (South Korea), Elkem ASA (Norway), Silchem Inc. (Canada), Specialty Silicone Products (United States), Gelest Inc. (United States), and Others are key players covered.
- Chapter 1 Scope of the Report
Chapter 2 Research Methodology
2.1. Research Process
2.2. Global Silicone Market: Target Audience
2.3. Global Silicone Market: Primary Research (As per Client Requirement)
2.4. Global Silicone Market: Secondary Research
Chapter 3 Executive Summary
Chapter 4 Competitive Landscape
4.1. Market Share Analysis, By Region, 2022-2029(In %)
4.1.1. North America Market Share Analysis, By Value, 2022-2029 (In %)
4.1.2. Europe Market Share Analysis, By Value, 2022-2029 (In %)
4.1.3. Asia Pacific Market Share Analysis, By Value, 2022-2029 (In %)
4.1.4. South America Market Share Analysis, By Value, 2022-2029 (In %)
4.1.5. Middle East and Africa Market Share Analysis, By Value, 2022-2029 (In %)
4.2. Market Dynamics
4.2.1. Market Drivers
4.2.2. Market Restraints
4.2.3. Market Opportunities
4.2.4. Market Challenges
4.2.5. PESTLE Analysis
4.2.6. PORTERS Five Force Analysis
4.2.7. Value Chain Analysis
4.3. Global Silicone Market Segmentation Analysis, 2022-2029 (Value US$ BN)
4.3.1. Global Market Share Analysis, By Type, 2022-2029 (Value US$ BN)
4.3.2. Global Market Share Analysis, By End-use Industry, 2022-2029 (Value US$ BN)
188.8.131.52. Building & Construction
184.108.40.206. Personal Care & Consumer Products
220.127.116.11. Medical & Healthcare
18.104.22.168. Industrial Processes
22.214.171.124.5. Sport Equipment
4.4. North America Silicone Market Segmentation Analysis, 2022-2029 (Value US$ BN)
4.4.1. North America Market Share Analysis, By Type, 2022-2029 (Value US$ BN)
4.4.2. North America Market Share Analysis, By End-use Industry, 2022-2029 (Value US$ BN)
126.96.36.199. Building & Construction
188.8.131.52. Personal Care & Consumer Products
184.108.40.206. Medical & Healthcare
220.127.116.11. Industrial Processes
18.104.22.168.5. Sport Equipment
4.4.3. North America Market Share Analysis, By Country, 2022-2029 (Value US$ BN)
4.5. Europe Silicone Market Segmentation Analysis, 2022-2029 (Value US$ BN)
4.5.1. Europe Market Share Analysis, By Type, 2022-2029 (Value US$ BN)
4.5.2. Europe Market Share Analysis, By End-use Industry, 2022-2029 (Value US$ BN)
4.5.3. Europe Market Share Analysis, By Country, 2022-2029 (Value US$ BN)
22.214.171.124. Rest Of Europe
4.6. Asia Pacific Silicone Market Segmentation Analysis, 2022-2029 (Value US$ BN)
4.6.1. Asia Pacific Market Share Analysis, By Type, 2022-2029 (Value US$ BN)
4.6.2. Asia Pacific Market Share Analysis, By End-use Industry, 2022-2029 (Value US$ BN)
4.6.3. Asia Pacific Market Share Analysis, By Country, 2022-2029 (Value US$ BN)
126.96.36.199. South Korea
188.8.131.52. Rest Of APAC
4.7. South America Silicone Market Segmentation Analysis, 2022-2029 (Value US$ BN)
4.7.1. South America Market Share Analysis, By Type, 2022-2029 (Value US$ BN)
4.7.2. South America Market Share Analysis, By End-use Industry, 2022-2029 (Value US$ BN)
4.7.3. South America Market Share Analysis, By Country, 2022-2029 (Value US$ BN)
184.108.40.206. Rest Of South America
4.8. Middle East and Africa Silicone Market Segmentation Analysis, 2022-2029 (Value US$ BN)
4.8.1. Middle East and Africa Market Share Analysis, By Type, 2022-2029 (Value US$ BN)
4.8.2. Middle East and Africa Market Share Analysis, By End-use Industry, 2022-2029 (Value US$ BN)
4.8.3. Middle East and Africa Market Share Analysis, By Country, 2022-2029 (Value US$ BN)
220.127.116.11. South Africa
18.104.22.168. Rest Of ME&A
Chapter 5 Stellar Competition Matrix
5.1. Global Stellar Competition Matrix
5.2. North America Stellar Competition Matrix
5.3. Europe Stellar Competition Matrix
5.4. Asia Pacific Stellar Competition Matrix
5.5. South America Stellar Competition Matrix
5.6. Middle East and Africa Stellar Competition Matrix
5.7. Key Players Benchmarking
5.7.1. Key Players Benchmarking By Type, Pricing, Market Share, Investments, Expansion Plans, Physical Presence and Presence in the Market.
5.8. Mergers and Acquisitions in Industry
5.8.1. M&A by Region, Value and Strategic Intent
Chapter 6 Company Profiles
6.1. Key Players
6.1.1. The Dow Chemical Company (United States)
22.214.171.124. Company Overview
126.96.36.199. Source Portfolio
188.8.131.52. Financial Overview
184.108.40.206. Business Strategy
220.127.116.11. Key Developments
6.1.2. Wacker Chemie AG (Germany)
6.1.3. Shin-Etsu Chemical Co. Ltd. (Japan)
6.1.4. Evonik Industries AG (Germany)
6.1.5. Elkay Chemicals (India)
6.1.6. Supreme Silicones (India)
6.1.7. KCC Corporation (South Korea)
6.1.8. Elkem ASA (Norway)
6.1.9. Silchem Inc. (Canada)
6.1.10. Specialty Silicone Products (United States)
6.1.11. Gelest Inc. (United States)
6.2. Key Findings