Silicone Market by Type (Elastomers, Resins, Fluids, Gels), End-Use Industry (Industrial Process, Building & Construction, Personal Care & Consumer Products, Transportation, Electronics, Medical & Healthcare, Energy), & Region - Global Forecast to 2029
The global silicone market size is projected to grow from USD 21.5 billion in 2024 to USD 31.5 billion by 2029, at a CAGR of 8.0% during the forecast period.
The silicone market showcases a dynamic and evolving environment, driven by a variety of industrial and consumer needs. Silicone's distinct characteristics including resistance to heat, flexibility, durability, and chemical stability, make it a highly desirable material across multiple industries, leading to consistent market growth. A key driver of the silicone market is the ongoing industrial expansion in emerging economies such as China and India. With rapid economic growth, these countries are witnessing a surge in infrastructure projects and manufacturing. This leads to heightened demand for silicone, particularly in the construction, automotive, and electronics sectors. Silicone finds extensive use in construction for sealants, gaskets, and adhesives, while in automotive applications, it is vital for electric vehicles and other advanced components. Besides the industrialization trend, technological innovation is also fueling growth in the silicone market. The rise of technologies like 5G, electric vehicles, and the Internet of Things (IoT) has led to an increased demand for high-performance materials that can endure thermal stress and offer reliable electrical insulation. Silicone's distinctive properties meet these requirements, reinforcing its expanding role in the electronics industry. Overall, the silicone market is experiencing growth and opportunity, driven by industrialization, technological innovation, and a focus on sustainability. Although there are challenges, the market's versatility and expanding applications across various industries are likely to maintain its momentum in the years ahead.
Attractive Opportunities in the Silicone Market
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Silicone Market Dynamics
Driver: High demand for silicone in wearable electronics industry
The burgeoning wearable electronics market in India, exemplified by the exponential growth in the production of earphones and smartwatches from negligible levels to USD 961 million in 2022–23, and a projected doubling to USD 2 billion in FY24, is set to be a significant driver for the silicone market. As the Indian government aims for a USD 300 billion electronics manufacturing industry by 2026, wearables are expected to play a pivotal role, contributing USD 8 billion with USD 3 billion earmarked for exports (Source: Invest India). The increasing demand for wearable devices underscores the importance of silicone, which offers essential properties such as flexibility, thermal stability, and durability, making it an indispensable material for components such as flexible circuits, thermal interface materials, and seals. This growth trajectory underscores the integral role of silicone in meeting the evolving demands of the burgeoning wearable electronics market.
Restraint: Stringent regulatory policies
The use of certain silicone products is subject to regulation in various countries, particularly in the personal care, consumer products, and medical and healthcare sectors. For instance, the UK Competent Authorities and the European Chemicals Agency (ECHA) restrict the use of two specific silicone compounds, cyclosiloxanes D4 and D5, capping their concentration in personal care products at 0.1% by weight. These restrictions also apply in Canada and the United States.
In the medical and healthcare industry, silicones must meet strict standards before they can be used. Specifically, only silicones that have received USP Class V and VI approval are considered suitable for medical-grade applications. Companies that produce silicone rubber for medical use in the United States must comply with a variety of regulations, including the Restriction of Use of Hazardous Substances (RoHS), the Dodd-Frank Act, and the US government's International Traffic in Arms Regulations (ITAR). Adhering to these regulations and obtaining the necessary approvals can be a lengthy process, limiting the use of silicones in these industries.
Opportunity: Antimicrobial silicone elastomers for healthcare industry
Medical-grade silicone elastomers are designed to be biocompatible, making them ideal for healthcare applications. Because of their low toxicity, these elastomers are less likely to cause adverse biological reactions and have gained approval for use in food and medical products. However, silicone elastomers used in medical settings can be vulnerable to contamination by bacteria and other microorganisms, leading to issues like foul odors and discoloration in medical devices such as wound drains and catheters. To combat this, biocides are added to help control microbial growth and minimize the risk of infection or contamination. Even with these measures, the rate of hospital-acquired infections (HAIs) is on the rise globally. This trend underscores the need for enhanced preventive strategies to curb infection rates and improve patient safety. In the US, hospitals are compelled to bear the costs of treating HAIs due to the changing health insurance policies. Hence, medical device manufacturers are seeking newer technologies to help reduce microbial growth on their devices by using antimicrobials or biocides. Antimicrobial silicone elastomers are used to enhance the performance of end products by reducing microbial contamination. Hence, the development of these elastomers is expected to fuel market growth.
Challenge: Fluctuating raw material prices
A significant challenge in the global silicone market is the ongoing fluctuation in the prices of raw materials and energy. The rapid increase in the cost of key raw materials like methyl chloride and silicon metal leads to reduced profit margins for silicone producers, which in turn drives up the price of silicone products overall. These rising costs for raw materials are expected to negatively affect the global silicone market, as producers grapple with high and unpredictable feedstock expenses, prompting them to pass on these cost increases to their customers. For example, leading silicone market players such as Wacker and Elkem have recently raised their silicone product prices to offset the elevated costs of raw materials and energy. As a result, the constant volatility in raw material and energy prices has emerged as a significant challenge for silicone industry producers.
ECOSYSTEM
By type, elastomers to have the highest market share in the forecast period.
Elastomers dominate the silicone market primarily due to the demand from a variety of end-use industries. Elastomers, valued for their flexibility, resilience, and durability, are finding significant applications in the silicone market, covering from automotive to healthcare and consumer goods. With the automotive industry's move towards electric and hybrid vehicles, demand for silicone elastomers has increased. These materials are crucial in components like radiator seals, gaskets, and spark plug boots, which must withstand high heat and mechanical stress. As electric vehicles continue to grow in popularity, the importance of reliable insulation and durability in components becomes more pronounced, where silicone elastomers are particularly effective. The healthcare industry is a major factor in the growing demand for elastomers in the silicone market. As medical technology advances, the use of silicone elastomers in medical devices and surgical equipment is expected to rise. This demand encourages further innovation in healthcare-related applications. Additionally, the rising need for high-quality, durable consumer products contributes to the growth of silicone elastomers. The construction industry also plays a role in this expansion, using silicone elastomers in various building applications.
By end-use industry, the industrial process segment to register the highest CAGR in the forecast period.
The industrial process segment stands out as the fastest-growing segment in the silicone market among, building & construction, electronics, personal care & consumer products, transportation, and others due to several key factors. The industrial process end-use industry is experiencing a growing demand for high-performance materials, with silicone at the forefront due to its unique properties. Industrial processes cover a wide range of sectors, including manufacturing, chemical processing, oil and gas, power generation, and food processing. Silicone's heat resistance, chemical stability, flexibility, and durability are crucial for maintaining operational efficiency and safety in these areas. One key driver for silicone's demand in industrial processes is its ability to endure extreme conditions. In chemical processing and oil and gas, for example, equipment often faces high temperatures and corrosive chemicals. Silicone, known for its resistance to these stresses, is used in gaskets, seals, and other components to maintain system integrity. Additionally, the trend towards automation and advanced manufacturing has increased the need for reliable materials. Silicone's excellent electrical insulating properties are vital for the safe operation of automated equipment, reducing the risk of electrical faults.
Asia Pacific dominated the market in 2023.
The Asia-Pacific (APAC) region has emerged as the dominant force in the silicone market among North America, Europe, South America, and the Middle East and Africa due to several key factors.
The rapid industrialization and the growing number of end-use industries are expected to drive the silicone market's growth in the region. In China, the silicone market is expanding quickly, with significant growth anticipated due to rising demand from the healthcare and automotive & transportation sectors. Silicone manufacturers are drawn to this country because it offers strategic benefits, such as cost-effective production, favorable conditions for establishing manufacturing facilities, and the opportunity to cater more effectively to local emerging markets. The strong domestic demand and the easy availability of raw materials and low-cost labor make Asia Pacific a lucrative market for manufacturers, focusing on this region to gain market share and increase profitability. For instance, in July 2022, Wacker Chemie AG (Germany) opened a new production site for silicones in Panagarh, India. This production site will enable the company to strengthen and expand its position in the region. China is the largest market for silicones in Asia Pacific. Due to its rising population and government efforts to increase industrialization in the country, the demand for silicone is high. Low-cost raw materials, labor, and land, coupled with a moderately stringent regulatory framework, have enabled the growth of industrial activities in China. This is driving the silicone market in the country.
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Key Market Players
The silicone market comprises key manufacturers such as Wacker Chemie AG (Germany), Shin-Etsu Chemical Co., Ltd. (Japan), Momentive Performance Materials, Inc. (US), Elkem ASA (Norway), Dow Inc. (US), and others. Expansions, collaborations, and deals were some of the major strategies adopted by these key players to enhance their positions in the silicone market. A major focus was given to the new projects and contracts.
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Report Metric |
Details |
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Market size available for years |
2022–2029 |
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Base year considered |
2023 |
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Forecast period |
2024–2029 |
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Forecast units |
Value (USD million/USD Billion) and Volume (Thousand Tons) |
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Segments Covered |
Type, End-Use Industry, and Region |
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Geographies covered |
North America, Asia Pacific, Europe, Middle East & Africa, and South America |
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Companies covered |
Wacker Chemie AG (Germany), Shin-Etsu Chemical Co., Ltd. (Japan), Momentive Performance Materials Inc. (US), Elken ASA (Norway), and Dow Inc. (US) |
This research report categorizes the silicone market based on type, end-use industry, and region.
Silicone Market, Based on Type:
- Elastomers
- Fluids
- Resins
- Gels & Other Products
Silicone Market, Based on the End-Use Industry:
- Building & Construction
- Transportation
- Personal care & Consumer Products
- Industrial Process
- Electronics
- Medical & Healthcare
- Energy
- Others
Silicone Market, Based on the Region:
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- South America
Recent Developments
- In April 2024, Elkem ASA will showcase its newest innovations, PURESIL ESG 01 and MIRASIL N-DML 15, at NYSCC 2024; the products include a bio-based carrier performance silicone, an elastomeric emulsifier for water-in-silicone (oil) systems, and innovative prototype formulations designed to meet market trends and consumer demands.
- In March 2024, Shin-Etsu Chemical Co., Ltd. developed water-based, fast-curing silicone resin KRW-6000 Series, which is the industry's first silicone resin that innovatively eliminates the need for emulsifiers.
- In March 2024, Elkem ASA unveiled its newest innovation, Silbione RT Gel 4660, at EWMA in London. This silicone gel offers both ease of processing and high performance, ensuring superior outcomes for patients.
- In September 2023, Wacker Chemie AG expanded its specialty silicone manufacturing capacities in China. Around USD 158.73 million has been allocated for the expansion project's investments.
- In September 2023, Shin-Etsu Chemical Co., Ltd. established a sustainable silicone business development department within its silicone division at the head office. The sustainable silicone business development department will oversee the promotion of eco-friendly silicone products. This initiative aligns with the company's recent USD 0.71 billion investment in its silicone business, announced on July 27th, reflecting its commitment to sustainability and innovation.
- In July 2023 Shin-Etsu Chemical Co., Ltd. announced a new USD 0.71 billion investment in its silicone portfolio, a key component of its Functional Materials business segment.
- In February 2023, Momentive Performance Materials, Inc. opened a new manufacturing facility in Rayong, Thailand. This new site will expand Momentive's manufacturing capacity to serve the growing Southeast Asian market demand for specialty silicones in industries such as beauty & personal care, automotive, energy, healthcare, and agriculture.
- In October 2022 Elkem ASA, opened its new specialized facility for producing high-purity medical silicones in York, S.C. This new 18,000 sq. ft. site features state-of-the-art ISO-certified Class 7 and Class 8 clean rooms. It is designed to produce high-purity silicone materials that meet the MedTech and Pharma market requirements.
- In March 2022, Dow Inc. invested in the mobility and transportation market. The company allocated funds at its Jincheon facility in South Korea to advance the development of moldable optical silicone technologies for use in automotive and industrial lighting. Additional investments were also planned for Dow's sites in Midland, Songjiang, and Zhangjiagang.
- In October 2021, Wacker Chemie AG acquired a 60% stake in specialty silane manufacturer SICO Performance Material Co., Ltd. (China). Wacker's partnership with SICO is their strategy to expand the share of high-margin specialties in their silicone business worldwide further.
- In October 2021, Elkem ASA planned to invest in unlocking new specialty silicone supply chains for customers in Europe, the Middle East & Africa, and the Americas. The company will invest around NOK USD 41.4 million to upgrade and debottleneck its silicone upstream plant in Roussillon, France.
- In July 2021, Dow Inc. expanded its production capacity for new silicones, propylene glycol, and specialty materials to address the rising demand for sustainable solutions in a variety of sectors, including mobility, building and infrastructure, consumer electronics, home and personal care, food, pharmaceuticals, and flavor and fragrance markets.
- In January 2021, Momentive Performance Materials, Inc. acquired KCC Corporation's ("KCC") silicone business in Korea and the UK, along with its sales operations in China. This acquisition strengthened Momentive's global reach and expertise in advanced silicones and specialized applications.
Frequently Asked Questions (FAQ):
What are the major drivers driving the growth of the silicone market?
The major drivers influencing the growth of the silicone market are the unique properties of silicone and the high demand for silicone in the wearable electronics industry.
What are the major challenges in the silicone market?
The major challenge is the fluctuating raw material prices.
What are the restraining factors in the silicone market?
The major restraints in the silicone market are stringent regulatory policies.
What is the key opportunity in the silicone market?
Antimicrobial silicone elastomers for the healthcare industry, and growing demand in the transportation industry a major opportunities in the silicone market.
Who are the key players in the global silicone market?
The key players operating in the silicone market are Wacker Chemie AG (Germany), Shin-Etsu Chemical Co., Ltd. (Japan), Momentive Performance Materials Inc. (US), Elken ASA (Norway), and Dow Inc. (US), Evonik Industries AG (Germany), Gelest Inc. (US) amongst others. .
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The study involved four major activities for estimating the current global size of the silicone market. Exhaustive secondary research was conducted to gather information on the market, the peer market, and the parent market. The next step was to validate these findings, assumptions, and sizes with the industry experts across the value chain of silicone through primary research. Both the top-down and bottom-up approaches were employed to estimate the overall size of the silicone market. After that, market breakdown and data triangulation procedures were used to determine the size of different segments and sub-segments of the market.
Secondary Research
In the secondary research process, various secondary sources such as Hoovers, Factiva, Bloomberg BusinessWeek, and Dun & Bradstreet were referred to, to identify and collect information for this study on the silicone market. These secondary sources included annual reports, press releases & investor presentations of companies, white papers, certified publications, articles by recognized authors, regulatory bodies, trade directories, and databases.
Primary Research
Various primary sources from both the supply and demand sides of the silicone market were interviewed to obtain qualitative and quantitative information. The primary sources from the supply-side included industry experts, such as Chief Executive Officers (CEOs), vice presidents, marketing directors, sales professionals, and related key executives from various leading companies and organizations operating in the silicone industry. The breakdown of the profiles of primary respondents is as follows:
Breakdown of Primary Interviews
Notes: Companies are classified based on their revenue–Tier 1 = >USD 7 billion, Tier 2 = USD 500 million to USD 7 billion, and Tier 3 = <USD 500 million.
Others include sales, marketing, and product managers.
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Market Size Estimation
Both the top-down and bottom-up approaches were used to estimate and validate the global size of the silicone market. These approaches were also used extensively to estimate the size of various dependent segments of the market. The research methodology used to estimate the market size included the following details:
- The key players were identified through extensive secondary research.
- The industry’s supply chain and market size, in terms of value, were determined through primary and secondary research processes.
- All percentage shares, split, and breakdowns were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
- The research includes the study of reports, reviews, and newsletters of key industry players, along with extensive interviews with key officials, such as directors and marketing executives.
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Data Triangulation
After arriving at the overall market size from the estimation process explained above, the total market was split into several segments and sub-segments. The data triangulation and market breakdown procedures were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics for all segments and sub-segments of the silicone market. The data was triangulated by studying various factors and trends from both the demand- and supply-side.
In addition, the market size was validated by using both the top-down and bottom-up approaches. Then, it was verified through primary interviews. Hence, for every data segment, there are three sources—top-down approach, bottom-up approach, and expert interviews. The data were assumed to be correct when the values arrived at from the three sources matched.
Market Definition
Silicones are high-performance specialty polymers comprising siloxane. They are produced by reacting silicon and methyl chloride and treating the reaction product with water. They have unique properties among all polymers due to the presence of organic groups with a chain of inorganic atoms. They have high heat and oxidative stability; outstanding low-temperature flexibility; and resistance to various chemicals, weathering, ozone, and ultraviolet (UV) sunlight.
Silicones are used in various end-use industries due to their high heat resistance and eco-friendly nature. They exist in various forms, ranging from fluids, resins, and gels to tough, stiff, and strong elastomers. These are stable and inert compounds widely used in almost all modern end-use industries, including building & construction, transportation, personal care & consumer products, electronics, medical & healthcare, industrial process, and energy.
Key Stakeholders
- Silicone Manufacturers
- Silicone Traders, Distributors, Contractors, and Suppliers
- End-use Industry Participants of Different Segments of the Silicone Market
- Government and Research Organizations
- Associations and Industrial Bodies
- Research and Consulting Firms
- R&D Institutions
- Environmental Support Agencies
- Investment Banks and Private Equity Firms
Research Objectives
- To estimate and forecast the silicone market, in terms of value and volume
- To provide detailed information about the major factors (drivers, restraints, opportunities, and challenges) influencing the market growth
- To define, describe, and forecast the market size, based on type, end-use industry, and region
- To forecast the market size along with segments and submarkets, in key regions: North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America along with their key countries
- To strategically analyze micro markets, with respect to individual growth trends, prospects, and their contribution to the total market
- To analyze growth opportunities in the market for stakeholders and provide details on the competitive landscape for market leaders
- To strategically profile key players and comprehensively analyze their market shares and core competencies
- To analyze competitive developments, such as merger & acquisition, expansion & investment, agreement, and new product development in the silicone market
Available Customizations
With the given market data, MarketsandMarkets offers customizations according to client-specific needs.
The following customization options are available for the silicone report:
Product Analysis
- Product matrix, which offers a detailed comparison of the product portfolio of companies
Regional Analysis
- Further analysis of the silicone market for additional countries
Company Information
- Detailed analysis and profiling of additional market players (up to five)
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