Silicones Market Report 2024, with Competitive Analysis on Industry Players China National Bluestar, Dow Chemical, Dupont, Evonik, Momentive Performance Materials, Shin-Etsu Chemical and Wacker Chemie - ResearchAndMarkets.com

The "Silicones Market 2024-2033" report has been added to ResearchAndMarkets.com's offering.

This industry analyzes the $30 billion global market for silicones. It presents historical demand data (2013, 2018 and 2023) and forecasts (2028 and 2033). Annual historical data and forecasts are also provided for 2020-2027.

This study also evaluates market share and competitive analysis on industry competitors, including China National Bluestar Group (Elkem), Dow Chemical, Dupont, Evonik Industries, Momentive Performance Materials, Shin-Etsu Chemical, and Wacker Chemie.

Global demand for silicones is forecast to grow 3.2% yearly, reaching 3 million metric tons - valued at $29.9 billion - in 2028. Gains will be supported by accelerating construction and manufacturing activity, as well as an improvement in motor vehicle production. The continuing uptake of silicones in lower income countries will also support demand increases. In value terms, gains will be boosted by greater use of better-performing silicones in high-income countries.

Construction & Transportation Markets to Offer Best Opportunities

Significant demand is projected in the construction and transportation sectors. Construction activities are forecasted to accelerate as economies recover post-pandemic, with infrastructure development in growing urban centers of the Asia/Pacific and Africa/Mideast regions boosting the silicone demand.

The transportation sector is also projected to contribute notably to the growth as global vehicle production returns to pre-pandemic magnitudes, stimulated by the rise in vehicle ownership in emerging economies.

China's Demand Gains Driven by Construction & Solar Panels

China remains a market leader in silicone demand, standing to contribute to half of the volume gains on a global scale. This demand is driven by the revitalization of housing construction and advancement in nonresidential building. Additionally, China's thriving solar panel industry is set to accelerate the demand further, meeting global renewable energy requirements.

Market Price Stabilization

Post a volatile period from 2018 to 2023, silicone prices are expected to stabilize, resulting from increased production capacities and improved raw material availability. Future prices should see a modest ascent, as higher-value silicone applications come to prominence, particularly in prosperous countries.

International Trade Dynamics

The international trade of silicones remains substantial with several countries, including China, the US, Germany, and Japan, emerging as key exporters. Notably, Germany serves as a significant exporter relative to its domestic industry size, while other countries serve as the primary net importers of these high-value materials. The global silicone supply chain exhibits complexity as materials traverse international borders numerous times before reaching consumers.

Pricing Trends

Given the multitude of silicone products and applications, pricing is an important competitive factor in the silicones industry. Silicones prices are principally influenced by:

• trends in the global economy
• price fluctuations of raw materials
• trends in the product mix

Raw material costs - primarily silicon metal - have the most substantial effect on silicone pricing, and these costs are in turn influenced by numerous variables, such as:

• weather and climate
• silicone industry supply and demand trends
• global trade issues
• general inflation

While prices vary between countries, general long-term pricing trends tend to follow a consistent global pattern, given the extensive level of international trade in and the commodity nature of many silicone products:

• Prices are highest in North America (particularly Canada and the US), Western Europe, and Japan because these higher income countries tend to use higher quality and more sophisticated silicone products.
• Prices are typically much lower in low-income areas, as industrializing countries use more basic silicone fluids and elastomers.

Average silicone prices also vary between markets, as different applications require different types of silicone products. The transportation, electronic product, and medical and healthcare markets have the highest average prices for silicones due to the higher quality of materials required and the specialized applications in which they are used. The opposite is true of the construction and chemical markets, which use less complex silicones and therefore have the lowest average prices of the major markets.

The silicone products that prevail in each application also affect average pricing for the category. For example, silicone gels are most used in electronic products. However, gels are the most expensive silicone material type, which drives up the average price in electrical and electronic applications.

Global Manufacturing Outlook

Silicones are used in the production of a wide variety of industrial goods including motor vehicles, electrical and electronic equipment, plastics, personal care products and medical instruments and supplies. As a result of this broad usage across multiple sectors, trends in overall manufacturing can provide helpful insights into the outlook for silicones.

Manufacturing value added measures the difference between manufacturers' receipts from sales and their cost of raw materials. It indicates manufacturing's contribution to total economic output and can serve as a proxy for industrial activity in value terms, allowing for cross-country and interregional comparisons. Global manufacturing value added is forecast to rise 3.4% per year through 2028 in inflation-adjusted terms, marking a modest acceleration from the 2018-2023 pace. Manufacturing activity will be driven by improving general economic activity and rising levels of personal income, both of which will spur demand for manufactured products, as well as further resolution of supply line problems and a lack of raw materials.

Manufacturing activity will expand most rapidly in the Asia/Pacific region, particularly in developing economies. Industrial production in India, for example, is expected to rise 6.3% per year through 2028. China will post growth on par with the regional average, as government efforts to rebalance the economy away from manufacturing toward services limits the pace of manufacturing activity. Smaller regional economies such as Indonesia, the Philippines, and Vietnam will see manufacturing activity benefit as wage rates in China rise and make labor-intensive manufacturing more attractive in other countries.

Growth in Central and South American manufacturing will be just below the global average, a notable upswing from the minimal gains seen from 2018 to 2023. Improving economic prospects in some of the region's larger economies will support manufacturing activity.

Sustainability Initiatives

Embracing Sustainability

Sustainability and recycling initiatives are influencing the silicones market landscape. Though silicone recycling is not widespread, new developments and collaborations are emerging, such as partnerships between specialized recycling companies and silicone product manufacturers. Moreover, the establishment of dedicated silicone recycling facilities heralds a more sustainable future for the industry.

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