Market ReportsNewsrss6

Global silicones market forecast at $22 billion by 2026

Albany, NY – The global silicones market was valued at around US$ 13,700 Mn in 2017 and is anticipated to expand at a CAGR of more than 5.0% from 2018 to 2026, according to a new report by Transparency Market Research (TMR) titled ‘Silicones Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2018–2026.’

Several countries in Asia Pacific are leading manufacturers and exporters of electric and electronic products. China’s share of the global export of Information and Communication Technology (ICT) goods stands at approximately 31%. Electronic products account for more than 50% share of exports in the Philippines. Electric machinery and equipment rank among the top exports of Thailand. Malaysia’s manufacturing efforts are focused on the semiconductor ecosystem. Production of electronics and hardware is still at the nascent stage in India. On the other hand, Indonesia is a major consumer of electric and electronic products in ASEAN. Silicones are primarily employed in products such as television sets, refrigerators, and mobile phones. Silicones is used in these products in the form of fluids, elastomers, and resins.

Supply and prices of raw materials of silicones depend upon several factors such as currency exchange rates, environment protection measures, and energy costs. China is an important manufacturer and provider of raw materials in the silicones market. However, often, market players based in the country are unable to meet the environment protection regulations. Hence, they need to frequently stop production during government investigation and restart it once it is over. This creates temporary shortage of raw materials in the market, resulting in increased prices. Companies manufacturing silicones bear some portion of increased raw material prices, while the rest is passed on to customers. However, these shortages of raw materials and associated rise in prices of silicones are difficult to predict. As a result, silicone manufacturers are unable to take pre-emptive actions or secure themselves against the shortage of supply. This adversely affects the ability of silicone manufacturers to plan for long-term.

The transportation industry comprises segments such as automobiles, marine vessels, aircraft, railways, and other modes of transport such as bicycles and drones. The industry has been expanding consistently. It provides stable revenue generation opportunities. The transportation industry accounted for more than 10% share of demand for silicones in 2017. Consumption of silicones in the industry is expected to increase at a rapid pace, as new applications of silicones are being consistently developed. Silicones are used in the manufacture of a wide range of components such as airbags, ignition coils, engine seals, gaskets, turbocharge hosing, radiator seals, and hoses in car or automobile manufacturing; windscreens, deck cleats, storage hatches, bilge pump seals, and hull/deck seals in marine vessel manufacturing; and instrument seals and electronic component potting, sealants for in-flight entertainment systems, lighting, overhead bins, fuel tanks, and hydraulic gear boxes in aircraft manufacturing.

Key players operating in the global silicones market include Wacker Chemie AG, DowDuPont, Momentive Performance Materials Inc., Evonik Industries, and Shin-Etsu Chemical Co. Ltd. These companies constitute around 50% share of the market. Local and regional players in various countries capture the rest of market share. Companies are focusing on expanding their geographical footprint through organic sales, distribution channels, and e-commerce.