Silicone Market Expected to Reach $39.4 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Silicone Market," The silicone market was valued at $18.8 billion in 2022, and is estimated to reach $39.4 billion by 2032, growing at a CAGR of 7.7% from 2023 to 2032.

Silicone is a synthetic polymer composed of silicon, oxygen, carbon, and hydrogen atoms, typically derived from sand or quartz. It is renowned for its remarkable versatility and unique properties, making it a valuable material in various industries. Silicone exhibits excellent heat resistance, retaining its stability and flexibility over a wide temperature range, from extreme cold to high heat. It is also known for its superb electrical insulation properties, making it a preferred choice in electronics and electrical applications.

The increase in demand in the healthcare and medical devices sector is poised to be a substantial driver for the silicone market. Silicone's unique properties, including biocompatibility, durability, and flexibility, make it a preferred material for a wide range of medical applications.

Silicone is extensively used in the fabrication of medical implants, tubing, gaskets, seals, and various other critical components. With the global population aging and the continuous advancement of medical technology, the demand for silicone in this sector is expected to soar. In addition, silicone's ability to withstand sterilization processes and maintain its integrity in contact with bodily fluids further enhances its appeal to medical device manufacturers.

The cost of raw materials used in silicone production indeed poses a significant challenge to the silicone market. Silicones, which are synthesized from silicon metal and methyl chloride, are highly dependent on the availability and pricing of these raw materials. Silicon metal, for example, is susceptible to price fluctuations influenced by factors such as supply chain disruptions, global demand, and energy costs.

Such volatility in raw material costs has a cascading effect on the entire silicone industry. When the cost of raw materials rises, silicone manufacturers find it challenging to maintain competitive pricing for their products. As a result, end users in various industries, such as automotive, electronics, construction, and healthcare, might seek alternative materials to reduce production costs.

The unique properties of silicone such as flexibility, thermal stability, and electrical insulation capabilities, play a pivotal role in various components of consumer electronic devices. As consumer electronics continue to advance, silicone applications have expanded to include protective coatings, seals, gaskets, and adhesives for smartphones, tablets, wearables, and other gadgets. These materials not only enhance the durability and performance of devices but also provide water resistance and protection against dust and shock, which are crucial in consumer electronics.

Furthermore, the emergence of new technologies such as 5G, IoT (Internet of Things), and electric vehicles (EVs) has led to increased demand for thermal management solutions. Silicone-based thermal interface materials (TIMs) are being extensively used to dissipate heat efficiently, thereby extending the lifespan and performance of electronic components, especially in power-hungry applications like EV batteries. Thus, the increasing demand from the consumer electronics industry offers lucrative opportunities for the silicone market.

The silicone market is segmented on the basis of type, end-user industry, and region. By type, the market is divided into elastomers, fluids, resins, gels, and others. On the basis of the end-user industry, it is categorized into building & construction, medical, transportation, personal care & consumer goods, energy, electrical & electronics, paper, textile, and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

On the basis of type, the silicone market is categorized into elastomers, fluids, resins, gels, and others. Elastomers is projected to be the fastest-growing segment and have garnered the highest share of the silicone market.

On the basis of the end-user Industry, the silicone market is classified into building and construction, medical, transportation, personal care and consumer goods, energy, electricals and electronics, paper, textile, and others. Electricals and electronics is projected to be the fastest-growing segment and building and construction has garnered the highest share in the silicone market. Region-wise, Asia-Pacific is projected to register robust growth during the forecast period.

The major players operating in the global silicone market are Dow Inc., Wacker Chemie AG, Momentive Performance Materials, Evonik Industries AG, KANEKA CORPORATION, Arkema, BASF SE, Shin-Etsu Chemical Co., Ltd., Elkem ASA, and KCC Silicone Corporation.

Other players include Avantor, Inc., Siltech Corporation, Gelest, Inc., Saint-Gobain Performance Plastics, 3M, Specialty Silicone Products, Inc., Applied Silicone Corporation, CHT Germany GmbH, ACC Silicones Ltd., Silicone Engineering Ltd.

Key Findings Of The Study

• On the basis of type, the elastomers segment is expected to grow at a CAGR of 8.0%, in terms of revenue, during the forecast period.
• Depending on the end-user Industry, the electricals and electronics segment is expected to grow at a CAGR of 9.1%, in terms of revenue, during the forecast period.
• Region-wise, Asia-Pacific garnered the highest share in 2022 in terms of revenue.