Silicone Potting Compounds Market Outlook - 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.
Potting is the process of filling an electronics assembly or component with solid compounds to protect them from the surrounding environment. Potting compounds are widely used to insulate electronic devices and protect them from moisture. In addition, these compounds are remarkable flame retardants with superior shock resistance. Potting process can be performed either manually or by using automated metermix dispense (MMD) equipment. The widely used potting materials include silicone, epoxy, polyurethane, and others. Silicone polymers have a wide operating temperature range; exhibit excellent electrical properties; hardness range; good chemical, humidity, & water resistance; and offers ease-of-use. These compounds have applications across various sectors, such as electrical & electronics, aerospace, industrial, automotive, energy & power, marine, and solar power industries.
The global potting compounds market is driven by growth in the consumer electronics sector in the near future. Thermally conductive potting compounds offer an effective pathway to dissipate the heat from a heat-generating source to a metal enclosure. The additional benefits of these products are excellent electrical insulation, lower shrinkage, thermal shock resistance, and thermal expansion. Furthermore, fast curing time for UV cured silicone potting compounds coupled with high electrical insulation properties and excellent bond strength make it widely applicable for potting of electronic devices. Some of the quick UV curable silicon compounds, such as NOVAGARD Silicones UV cured, can be cured in seconds with lower energy consumption. However, availability of low-cost alternatives such as epoxy resin, polyurethanes may negatively impact the silicone potting compounds market growth. Nonetheless, proliferating demand for electric vehicles is anticipated to create lucrative opportunities for silicone potting compounds market. The wide operating temperature range, shock absorption, and moisture resistance make silicon potting widely accepted in manufacturing of electric vehicle.
The global silicone potting compounds market is segmented on the basis of curing technique, application, end user, and region. On the basis of curing technique, the market is classified into UV curing, thermal curing, and room temperature curing. The application areas of this industry are surface mount packages, beam bonded components, memory devices & microprocessors, capacitors, transformers, cable joints, industrial magnets, solenoids, and others. Based on the end user, the market is classified into electronics, aerospace, automotive, industrial, and others. Based on region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The major players operating in the industry include Henkel AG & Co. KGaA, Dow Silicon Corporation, Novagard Solutions, LORD Corporation, ELANTAS GmbH, Master Bond Inc., MG Chemicals, and Dymax Corporation. These players have adopted product launch, acquisition, and business expansion as their key strategies to increase their silicone potting compounds market shares.
COVID-19 Scenario Analysis:
Transportation restrictions imposed because of COVID-19 outbreak lead to reduced factory output, and disturbed supply chains reduced significant percentage from global economic growth; thus, negatively affecting the market growth.
Extended lockdown slowed down the production of silicon potting products, due to limited resources and longer lead time to replenish raw materials.
In addition, large dependency on Chinese exports for various silicon metals will further influence the market growth. For instance, China is the highest exporter of silicon and silica across the globe, and limited production in China increased the supply demand gap and material price.
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
By Region
Asia-Pacific exhibits CAGR of 5.2% during 2020-2027
Silicone Potting Compounds Market, By Region
Asia-pacific accounted for the highest revenue share in 2019, and is expected to witness highest market growth, owing to the presence of large number of manufacturers in the electrical and electronics sector. China being a prominent exporter of consumer electronics product in large volume will positively fuel the growth of the silicon potting market in the Asia-Pacific region.
By Curing Technology
UV Curing is projected as the most lucrative segment
Silicone Potting Compounds Market, By Curing Technology
The UV curing segment witnessed highest revenue share in 2019, and is expected to witness highest growth during the silicone potting compounds market forecast period, owing to its ability to cure the silicon compound in few seconds, which is time intensive in other curing techniques. UV curing can be achieved in a moment; therefore, it is widely used in silicone potting compounds. In addition, high degree of permanency of the potting compound provides high endurance and resistance to the electronic devices; thus, enhancing the market demand.
By Application
Solenoids is projected as the most lucrative segment
Silicone Potting Compounds Market, By Application
The surface mount packages segment accounted for highest revenue share in 2019, owing to growing application of printed circuit board (PCB) in electronic devices. Furthermore, the solenoids market is expected to witness highest market growth, owing to the growing application in water treatment plants for non-corrosive applications
By End-user
Automotive is projected as the most lucrative segment
Silicone Potting Compounds Market, By End User
The electronics market accounted for the highest revenue share in 2019, owing to rise in demand for consumer electronics and emergence of smart devices. The automotive segment is expected to witness highest market growth, owing to rise in demand for various automotive sensors, actuators, and LED lamps in vehicle electrification; thus, positively impacting the silicone potting compounds market growth.
Key Benefits For Stakeholders
- This report provides an extensive analysis of the current silicone potting compounds market trends and emerging estimations & dynamics of the global silicone potting compounds market.
- In-depth analysis of the key segments of the market is provided in the report for the period of 2019 to 2027.
- Competitive intelligence of leading manufacturers and distributors of silicone potting compounds assists in understanding the competitive scenario across geographies.
- Comprehensive analysis of factors that drive and restrain the silicone potting compounds market growth is included in the study.
- Extensive analysis of the silicone potting compounds market is conducted by following key product positioning and monitoring the top competitors within the market framework.
- The key market players are profiled and their strategies are thoroughly analyzed to get a competitive outlook of the industry.
Key Market Segments
By Curing Technique
- UV Curing
- Thermal Curing
- Room Temperature Curing
By Application
- Capacitors
- Transformers
- Cable Joints
- Industrial Magnets
- Solenoids
- Others
- Surface Mount Packages
- Beam Bonded Components
- Memory Devices & Microprocessors
- Others
By End User
- Electronics
- Aerospace
- Automotive
- Industrial
- Others
By Geography
- North America
- U.S.
- Canada
- Mexico
- Others
- Europe
- UK
- Germany
- France
- Spain
- Italy
- Others
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Others
- LAMEA
- Brazil
- Saudi Arabia
- South Africa
- Others
Silicone Potting Compounds Market Report Highlights
| Aspects | Details |
 By Curing Technique |
|
 By Application |
|
 By End User |
|
 By Region |
|
 Key Market Players | MG CHEMICALS, HENKEL AG & CO. KGAA, HERNON MANUFACTURING INC., NOVAGARD SOLUTIONS, ELANTAS GmbH, CHT SILICONES, MASTER BOND INC., DYMAX CORPORATION, DOW SILICONES CORPORATION, LORD CORPORATION |
Analyst Review
According to the opinions of various CXOs of leading companies, the silicone potting compounds market is driven by the growing consumer electronics sector and an increasing demand to miniaturize electronic devices in various end-user industries. Moreover, the Asia-Pacific region is projected to register a robust growth, significantly from the emerging economies such as China, India, and Indonesia as they have huge potential with regards to the adoption of silicone potting compounds due to supportive policies that are aimed to develop the transportation sector. However, the selection of a perfect silicone potting compound according to the application is a major challenge for end users.
Silicone potting compounds market worth is $1,247.2 million in 2027.
Major players operating in the industry include Henkel AG & Co. KGaA, Dow Silicon Corporation, Novagard Solutions, LORD Corporation, ELANTAS GmbH, Master Bond Inc., MG Chemicals, and Dymax Corporation.
Increase in demand for automotive industries is expected to provide lucrative opportunities in the market. In addition, development of electric vehicles is further anticipated to boost the growth of the automotive industry, owing to increase in demand for fuel-efficient, high-performance, and low-emission vehicles.
Silicone potting compounds market is in expansion phase. The demand for silicone potting compounds is comparatively high in the transportation and electronics sectors owing to their remarkable properties offered that meet the requirements of these industries.
Product launch, acquisition, and business expansion are the key growth strategies of silicone potting compounds industry players.
Growth in consumer electronics industry, rise in demand in aerospace and industrial sector are the factors boosting the silicone potting compounds market growth.
Automotive end user segment would steer the silicone potting compounds market ahead.
Surface Mount Packages and solenoids are expected to drive the adoption of Silicone Potting Compounds.
• Extended lockdown slowed down the production of silicon potting products due to limited resources and longer lead time to replenish raw materials. • In addition, large dependency on Chinese exports for various silicon metals will further influence the market growth. For instance, China is the highest exporter of silicon and silica across the globe, and limited production in China increased the supply demand gap and material price. • 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 labour’s wherever possible and increase operational efficiency. The automated packaging involving smart robots can reduce the workers on shop floors; thus, maintaining social distancing norms.
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