According to a new report published by Allied Market Research, titled, “Silicone Potting Compounds Market by Curing Technique, Application, and End User: Opportunity Analysis and Industry Forecast, 2020–2027," the global silicone potting compounds market size was valued at $931.2 million in 2019, and is projected to reach $1,247.2 million by 2027, registering a CAGR of 4.0% from 2020 to 2027.
Silicone potting compounds are one-part or two-part liquid components, which are widely used in electronics and electrical devices to shield them from different environmental conditions, such as heat and water.
They provide protection from moisture and also offer flame retardant, heat dissipation, and resistance from shock. The market has witnessed significant growth in the recent past due to growth in the electronics and electrical sectors across the globe. In addition, these compounds are used as durable dielectric insulation and stress releasing shock and vibration absorbers over a wide range of temperature and humidity.
The factors that drive the growth of the global silicone potting compounds include growth in the consumer electronics, aerospace, and industrial sectors. In addition, growth of the energy and power sector is also anticipated to surge the demand for silicone potting compounds in the near future. The major challenge for end users in this industry is to select a silicon potting compound that addresses all the needs of a specific application without harming the electronics.
The UV curing technique accounted for half of the silicone potting compounds market share in 2019, and is expected to maintain its dominance during the forecast period. This is mainly attributed to their remarkable properties such as high-speed of curing at low temperatures and cost-effective processing.
The electronics end user dominated the market in terms of revenue, in 2019, owing to increase in demand for miniaturization of electronic devices across various end-use industries such as transportation and consumer electronics.
Asia-Pacific accounted for more than half of the market share of the global silicone potting compounds market, and are expected to maintain this trend during the forecast period due to widespread developments in the electronics sector, especially in China, India, and other developing economies.
Prominent players have adopted product launch, acquisition, and business expansion as their key strategies to sustain the intense competition in this market. The key players profiled in the report include Henkel AG & Co. KGaA, Dow Silicon Corporation, Novagard Solutions, LORD Corporation, ELANTAS GmbH, Master Bond Inc., MG Chemicals, and Dymax Corporation.
COVID-19 Scenario Analysis:
- Restrictions on transportation and cross border transactions may negatively impact the market growth. The government constrained the import and export of goods for last few months; thus, diminishing the market growth for silicone potting compounds in global market
- Extended lockdown slowed down the production of silicon potting products, due to limited resources and longer lead time to replenish raw materials.
- Furthermore, due to social distancing norms during COVID-19, manufacturing firms are working with limited workforce; thus, negatively impacting the production process.
- However, implementation of IOT and automation may reduce the need of labors wherever possible and increase operational efficiency. The automated packaging involving smart robots can reduce the workers on shop floors; thus, maintaining social distancing norms
Key findings of the study:
- UV curing segment is projected to grow at the highest CAGR of approximately 4.3%, in terms of revenue, during the forecast period.
- By application, the surface mount packages segment is expected to dominate the market during the forecast period.
- By end user, the electronics segment dominated the market with highest revenue shares in 2019.
- Based on region, Asia-Pacific dominated the market with highest revenue shares of $388.9 million in 2019.
- A comprehensive analysis of the factors that drive and restrain the market growth is provided.
- The qualitative data in this report aims at the market dynamics, trends, and developments in the industry.