Silicone Elastomer Market Expected to Reach $7.3 Billion by 2030

According to a new report published by Allied Market Research titled, “Silicone Elastomer Market by Product Type and End-Use Industry: Global Opportunity Analysis and Industry Forecast, 2021–2030”, the silicone elastomer market size was valued at $6.9 billion in 2020, and is projected to reach $7.3 billion by 2030, growing at a CAGR of 6.0% from 2021 to 2030.

Silicone elastomer is an inorganic synthetic rubber produced by cross-linking silicone-based polymers in the presence of catalysts. Owing to its unique combination of mechanical and chemical qualities, silicone elastomer is regarded as a chemical bridge between inorganic and organic polymers. It has good weatherability. It is flame retardant, high heat & cold resistant, chemical resistant, and is stable.

The surge in demand from automobile industry drives the silicone elastomer market. In 2021, the global car sales increased to roughly 66.7 million vehicles, up from around 63.8 million in 2020, and nearly 6.5 million new passenger plug-in electric vehicles were registered globally. This is up from the 3.1 million units sold in 2020 by 108%. In addition, over the last five years, the pace of motorization in Asia-Pacific has steadily increased. South Korea, China, Japan, India, and Indonesia are among the major contributors to the region's growth. India's yearly vehicle production reached $2.3 million in the first half of 2021, up from $1.2 million in the first half of 2020, according to the International Organization of Motor Vehicle Manufacturers. By the end of 2021, India is predicted to be the world's third-largest passenger vehicle market. According to Trading Economics, car sales in China grew 12.8% year over year in September 2020, hitting 2.5million. Thus, rise in demand for motor vehicles across the globe is anticipated to drive the demand for silicone elastomer market.

However, fluctuating raw material prices hinders the silicone elastomer market, while increase in demand for silicone elastomer from developing countries, such as Brazil, China, India, and South Africa is projected to provide lucrative opportunity for the silicone elastomer market.

On the basis of product type, the liquid silicone rubber (LCR) segment is estimated to witness the highest CAGR during the forecast period. LCR silicone rubbers have a wide range of applications due to their outstanding properties such as strong siloxane bond strength, electrical conductivity, radiation resistance, steam resistance, flame retardance, oil resistance, and severe temperature resistance. Owing to these properties, LCR is widely used in automobile, electronics, and healthcare industry.

On the basis of end-use industry, the automotive segment dominated the silicone elastomer market. Silicone elastomers are easy to process and generally maintain their elastomeric properties in extreme hot and cold environments and can also be used in a variety of sealing, bonding, and insulating applications. Owing to these advantageous properties, silicone elastomers are extensively utilized in the automotive industry. In addition, rapid development of the automotive sector and the increase in vehicle production in major regions drive the demand for silicone elastomer market in automobile industry.

On the basis of region, the silicone elastomer market share is analyzed across four major regions, which include North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific accounted for the dominant silicone elastomer market share in 2020, and is anticipated to maintain its dominance during the forecast period. North America is closely following Asia-Pacific and held the second largest market share in 2020. Surge in reconstruction activities and growth in demand for the silicone elastomer in the automotive industry drives the growth of regional silicone elastomer market.

Key players operating in silicone elastomer market are ICM Products Group, Elkem AS, KCC Corporation, The Dow Chemical Company, Mesgo S.p.A., Momentive Performance Materials Inc., Reiss Manufacturing, Inc., Shin-Etsu Chemical Co., Ltd., Specialty Silicone Products Inc., and Wacker Chemie AG (Wacker).

Other players in the value chain of the silicone elastomer market include Stockwell Elastomerics, Inc., Innovative Silicones, Universal Rubber Mfg nv, Cauchos Pedro Romero S.L., ZhongshanTinhou Plastic Industrial Co., Ltd., SF Composites, HuzhouLongtong Chemical Co., Ltd., HsuanHau Enterprise Co., Ltd., Shenzhen Inno Silica Co., Ltd., HÜBERS, ShenZhenLiYaTe Technology Co., Ltd. (LiYaTe), Intek Adhesives Ltd., and 2D Chemical Ltd

Covid-19 Impact On The Market

• The Covid-19 pandemic impacted the silicone elastomers industry through the supply chain disruption. Silicone elastomer manufacturers had to develop an effective supply chain in response plan to mitigate risk and prepare for any interruptions that the coronavirus outbreak was causing. 
• Owing to the closure of non-essential industries, manufacturing facilities such as car manufacturing plants were shut down in 2020. According to the International Organization of Motor Vehicle Manufacturers, worldwide car production dropped by 16% in 2020. Owing to the impact of the COVID-19 pandemic, Toyota Motor Corporation's global car production in 2020 was down 12.6%. As a result, demand for silicone elastomers such as polysiloxane, liquid silicone rubber, fluorosilicone rubber, and others has decreased dramatically, lowering the market revenue for silicone elastomers in 2020.

Key Findings Of The Study

• The silicone elastomer market size is provided in terms of $million and kilotons.
• By product type, the liquid silicone rubber segment emerged as the global leader by acquiring around 47.7% market share in 2020 in terms of revenue.
• On the basis of end-use industry, the automotive segment emerged as the most lucrative industry, registering 19.0% market share in 2020 in terms of revenue.
• Region wise, Asia-Pacific is the major consumer of silicone elastomer among other regions. It accounted for around 47.7% of the global market share in 2020 as a result of rapid growth in the automotive and electronics sector across the region.