Silicone Resins Market Expected to Reach $1.5 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Silicone Resins Market," The silicone resins market was valued at $0.9 billion in 2021, and is estimated to reach $1.5 billion by 2031, growing at a CAGR of 4.4% from 2022 to 2031.

The elements silicon and oxygen are the building blocks of a synthetic substance known as silicone resin. It has a wide range of applications and can be found in things such as coatings, elastomers, sealants, and adhesives, among others. The longevity and excellent thermal stability of silicone resins make them a key component of the industry. They are also resistant to the effects of weathering and chemicals, and they may be sculpted into intricate shapes.

Silicone is used in the rapidly expanding automobile industry as a lubricant for the components of the brakes and as insulation for the wires that connect the spark plugs in order to prevent sparks and misfires. Sheets of silicone are utilized in the production of gaskets for automobile engines, while silicone rubber is utilized in the production of airbag sealants. Silicones used in the automotive industry contribute to overall vehicle weight reduction, which in turn helps reduce hazardous emissions and improves fuel efficiency. The overall demand for automotive silicones may be driven by factors such as the rise in the manufacturing of automobiles as well as the increasingly rigorous environmental rules regarding dangerous emissions.

However, this could be a barrier to expansion for the industry as a whole, because of the high manufacturing costs caused by high processing and raw material costs. Several nations' increased emphasis on infrastructure development has resulted in an increase in the number of construction-related projects. In addition to this, there is a growth in demand for silicone resins in commercial and industrial applications. These reasons are driving global silicone resins market sales prospects. In addition, there is a notable increase in demand for silicone resigns in the automotive industry. This factor is driving the expansion of the market. The U.S and Canada have revised their emission reduction goals to prioritize the phased elimination of greenhouse gases.

The U.S has pledged to cut greenhouse gas emissions by between 50 and 52 % below the levels that they were at in 2005 by 2030, as stated in a declaration that was made during the Leaders' Summit on Climate Change. A power sector devoid of carbon emissions is the target for 2035. The U.S of America has set a goal to have zero net emissions of carbon dioxide by 2050. The electrification of buildings, the reduction of carbon emissions from transportation, and the improvement of industrial operations are three further goals. New targets for the reduction of emissions of greenhouse gases have also been established in Canada. The previous target was to reduce emissions by 30%, while the new goal is to lower them by between 40% and 45% from 2005 levels by 2030. The implementation of stricter rules in the U.S. and Canada will have an effect on the usage of silicone resins in a variety of industries, which will, in turn, have an impact on the demand.

The global silicone resins market is segmented into type, end-use industry, and region. Depending on the type, the market is classified into methyl silicone resins, methyl phenyl silicone resins, and others. On the basis of end-use industry, it is categorized into building & construction, electrical & electronics, paints & coatings, adhesives & sealants, and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

The major players operating in the global silicone resins market are BRB International, Dow Inc., Elkay Chemicals Private Limited, Elkem ASA, Evonik Industries AG, Genesee Polymers Corporation, Kaneka Corporation, Momentive, Primasil, Savitri Chemicals, Shin-Etsu Chemical Co., Ltd, Siltech Corporation, Sinicon Plastics Inc, Supreme Silicones India Pvt Ltd, and Wacker Chemie AG. Other players operating in the market are Adhis S.A.S, Bluestar Silicones, and Alchemie Ltd.

Key findings of the study

• The report outlines the current silicone resin market trends and future scenarios of the market from 2022 to 2031 to understand the prevailing opportunities and potential investment pockets.
• The market size is provided in terms of revenue and volume.
• On the basis of type, the methyl phenyl silicone resins segment is expected to grow at a CAGR of 4.9%, in terms of revenue, during the forecast period.
• Depending on the end-use industry, the automobile segment is expected to grow at a CAGR of 5.5%, in terms of revenue, during the forecast period.
• Region-wise, Asia-Pacific garnered highest share of 42.5% in 2021 in terms of revenue, and is expected to continue its dominance during the forecast period.

COVID-19 impact analysis on the silicone resins market

• As a result of months of consumer lockdown and the shutdown of foreign supply networks and retail firms, purchase and consumption patterns have shifted considerably across several sectors. This has negatively damaged the global market for silicone resins.
• Extended lockdowns in wealthy market economies and domestic societal estrangement have intensified the negative effect on emerging market economies.
• The prolonged shutdown also harmed the construction and automotive sectors. Import/export of key silicon-based coating has had an impact on the paints and coatings business, thereby influencing the global silicone resins market.
• However, after the pandemic, as the demand will return to normal after the restrictions were lifted, participants in this market have explored measures to minimize the pandemic's impact on their business.