April 12, 2024
Silicone Elastomers Market

Silicone Elastomers Market poised to Exhibit Significant Growth Owing to Increasing Demand from end use Industries

The silicone elastomers market has witnessed steady growth over the past few years owed to increasing demand from end-use industries such as automotive, construction, healthcare, and electronics. Silicone elastomers are used in high-quality products such as gaskets, tubes, seals, molded parts, precision skin masks, and baby care products due to their superior properties such as thermal and electrical insulation, durability, flexibility, and resistance to moisture and weathering. These advantages make silicones suitable for high-performance applications where reliability and safety are essential.

The global silicone elastomers market is estimated to be valued at US$ 11.64 Bn in 2024 and is expected to exhibit a CAGR of 14% over the forecast period between 2024 to 2031.

Key Takeaways

Key players operating in the Silicone Elastomers Market Growth are LG Chemicals Ltd. (South Korea), Cabot Corporation (US), Jiangsu Cnano Technology Co., Ltd. (China), Resonac Corporation (Showa Denko K.K.) (Japan), and Arkema S.A. (France). The key players are investing in R&D activities to expand their silicone elastomer product portfolio and strengthening their distribution network across global regions.

The key opportunities in the silicone elastomers market include the growing demand for high-performance and medical-grade silicone and increasing adoption of silicone elastomers in new applications such as 3D printing. The market players are also exploring opportunities in developing economies owing to the growth of end-use industries in regions such as Asia Pacific and Middle East & Africa.

The global expansion of the silicone elastomers market is driven by capacity extensions by the major players across North America, Europe, and the Asia Pacific. For instance, Cabot Corporation expanded its fumed silica production in the US and China in 2020 to cater to the growing demand for silicone elastomers and lithium-ion batteries.

Market drivers

The major market driver for the growth of the silicone elastomers market is the increasing demand from the automotive industry. Silicone elastomers are used in making automotive hoses, gaskets, seals, and door seals owing to their superior resistance to extreme temperatures, ozone, moisture, weather, aging, and overall longevity. The recovery of the global automotive industry from the pandemic downturn and focus on lightweight vehicles are expected to propel the consumption of silicone elastomers in the OEM and aftermarket segments. Moreover, the rising application of silicones in healthcare, consumer goods, and electronics industries will support the market expansion over the forecast period.

PEST Analysis

Political: Key regulations around use of silicone elastomers in different industries like construction, automotive, etc. Regulations may impact demand.

Economic: Global economic growth outlook impacts major end-use industries and hence demand. Fluctuations in crude oil prices affect raw material costs.

Social: Increasing innovation and focus on better experience/comfort in different products drives demand. Aging population trends support demand for medical applications.

Technological: Developments in production processes help reduce costs. Innovation in applications expands addressable market size over time.

The silicone elastomers market in terms of value is concentrated in North America and Europe. North America accounts for the largest share, supported by the presence of major end-use industries like construction, transportation, medical etc. The growing repair and remodelling activities in the US and Canada contribute to consistent demand in the region. Europe is another major regional market driven by the extensive transportation and automotive industries. Stringent regulations around use of silicones in medical and consumer products also drive consumption.

The Asia Pacific region is witnessed as the fastest growing regional market for silicone elastomers. Factors like rapid urbanization, growing population, rising disposable incomes and improving standards of living support the demand from major end-use industries in the region over the forecast period. The construction sector in Asia Pacific especially in China and India as well as the automotive industry across countries like India, Thailand, Indonesia etc. will drive volumes. Government initiatives for infrastructural development and Make in India program and export oriented manufacturing also aid growth.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it