Silicone Market Size

Silicone Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The global silicon market is expected to be valued at about $16.63 billion in 2023, and it is expected to reach $25.4 billion by 2032, at a CAGR of 5.5% from 2024 to 2032. This shows that the demand for silicon products in various industries is very strong, mainly due to the special properties of silicon, such as elasticity, toughness and resistance to high and low temperatures. Industry is in urgent need of high-performance materials, and the silicon market will be further expanded. There are several reasons for this. One is the continuous development of new technology, especially the development of advanced manufacturing methods. Another is the development of the automobile, health and high-tech industries. The last one is the development of green materials. The continuous development of the silicon industry has also led to the development of new products and new applications. The major silicon companies in the world, such as Dow, Wacker, and Momentive, have launched various strategic plans, including joint ventures, research and development, to improve their product offerings and expand their market share. Recent product launches have also focused on green silicon solutions, highlighting the industry's focus on green development, which will also promote market growth.

Regional Market Size

Regional Deep Dive

The Silicone market is growing at a dynamic pace in all regions, driven by a rise in demand from the automobile, construction and health industries. North America is characterised by its advanced manufacturing and focus on innovation, while Europe is characterised by its regulatory and compliance environment. The Asia-Pacific region is characterised by its rapid industrialisation and urbanisation, which is resulting in a growing demand for silicone products. Middle East and Africa are characterised by their growth in the construction industry, while Latin America is characterised by its gradual adoption of silicone technology, influenced by economic recovery and investment in various sectors.

North America

• The United States has introduced a new set of regulations on the use of chemicals, requiring manufacturers to adopt more eco-friendly methods of production. This is expected to improve the market's competitiveness.
• Inc. and Wacker Chemie AG are investing heavily in R & D to develop new high-performance silicone materials for the automotive industry, especially for the electrical vehicles, which are expected to drive the market.
• The development of the medical devices industry in North America, supported by the Food and Drug Administration, is resulting in an increased demand for the material that meets the strict biocompatibility requirements.

Europe

• The European Green Deal, a directive promoting sustainable development, has led to greater investment in bio-based alternatives to silicon. This is reshaping the market.
• In order to take advantage of this opportunity, major players such as Momentive Performance Materials and Elkem Silicones are concentrating on the development of new silicone products that comply with the REACH regulations, thus strengthening their market position in Europe.
• The shift to electric vehicles in the automobile industry has led to a demand for lightweight silicon materials, and the European Battery Alliance is pushing development in this area.

Asia-Pacific

• The rapidly increasing demand for silicon in the construction and electrical industries is a consequence of the rapid industrialization and urbanization in China. The major chemical companies, such as Shin-Etsu, Wacker Chemie and Shin-Etsu, are stepping up their production in the Far East.
• Make in India, the government's flagship program, is encouraging the local manufacture of silicone products, bringing in foreign capital, and promoting innovation.
• In Japan, regulatory changes have increased the use of silicon in food packaging, thereby improving the safety and quality standards, which has further boosted the market.

MEA

• The vision of 2021 for the UAE, with its focus on enhancing the country’s economy, is driving the development of the construction industry. This is resulting in increased demand for silicones in the construction industry, with companies such as BASF and Dow actively participating in the projects.
• Saudi Arabia is experimenting with the use of silicone-based products in enhanced oil recovery, which is expected to create new business opportunities.
• The use of silica in various applications such as in the car and in consumer goods is gaining support from the regulatory authorities in South Africa, and this is expected to spur market growth.

Latin America

• Brazilian economic recovery is increasing investment in the automobile and construction industries, boosting the demand for silicone products, and leading to the expansion of local companies such as Silicones do Brasil.
• A growing number of initiatives in the region are promoting the use of sustainable materials, especially eco-friendly substitutes for silicone in packaging and in the production of everyday goods.
• Foreign silicon production will be encouraged by the state policy of strengthening the domestic production of the silicon industry.

Did You Know?

“Industrial products are not the only products in which it is employed, but kitchenware, sanitary articles and surgical instruments.” — Silicone Industry Association

Segmental Market Size

It is because of the various applications of the material that it is growing at a rapid rate. Demand is also driven by the increasing demand for high-performance materials that are flexible and durable, and by the need for stricter regulations that encourage the use of safer, non-toxic materials. Also, the development of new processes and equipment for the manufacture of silicones, which improves the quality of the products and reduces the cost of the production, is stimulating the market.

At the present time, the use of silicon rubber is in a very advanced stage. The leading companies, such as Dow and Wacker, are constantly increasing their range of products and the range of their applications. The most important areas are North America and Europe, where silicon rubber is used in medical appliances and in the construction of automobiles. In addition, sealants, adhesives and paints are used in the construction and electrical industries. The development of this field is influenced by general trends, such as the demand for environment-friendly materials and the need for a sustainable economy. On the other hand, new developments in the formulation of silicones and in the field of production technology continue to shape the evolution of this field.

Future Outlook

From 2023 to 2032, the global market for silicones is expected to grow at a CAGR of 5.54%. The silicone market is expected to grow due to the increasing use of silicon in various industries such as the automobile, medical, electrical and construction industries. By 2032, penetration of silicon in the automotive and electrical industries is expected to reach about 30%, driven by the development of materials and manufacturing methods.

In view of the fact that the high-performance silicon products market is expected to be dominated by key technological developments, the market is expected to grow at a healthy CAGR of 7.6 per cent from now to 2021. In the coming years, the demand for high-performance silicon products will be boosted by the rising popularity of electric vehicles and the growing emphasis on energy efficiency. In the automobile industry, silicon is used for electrical and thermal insulating, sealing, and vibration damping. In addition, the adoption of silicon-based materials, which are often more sustainable than their alternatives, is encouraged by the regulatory focus on the environment. Also, the integration of silicon into smart devices and wearables is set to increase the demand for high-performance silicon products as consumers turn towards smart, multifunctional, and convenient products.