The global automotive silicones market is expected to reach USD 5.84 billion by 2025
The growing awareness about lightweight materials used in automotive production is expected to drive the demand for silicones.
Automotive silicones are being used in a host of applications on account of their favorable properties such as resistance to corrosion, chemicals, heat and ultraviolet rays. Their ability to reduce the overall weight of the vehicle by the application in specific parts of the vehicle is expected to drive their market growth over the forecast period.
The industry is dominated by Asia Pacific due to the presence of a large number of automotive parts manufacturers and production facilities of silicone in countries such as China, Japan and India. Major automobile manufacturers such as Toyota, General Motors and Volkswagen are outsourcing their spare parts manufacturing operations to Asia Pacific on account of the low price of silicones.
Further key findings from the report suggest:
Resins are the fastest growing segment and are anticipated to witness a CAGR of over 8.5%, in terms of volume, from 2016 to 2025 on account of their effective binding ability on vehicle surfaces and high protection of the automotive finishes
The interior and exterior parts was the largest application with a market share of over 35% in 2015 on account of the rapidly increasing application scope of lightweight materials in automotive body manufacturing
The demand in Asia Pacific was valued atover USD 900.0 million in 2015 on account of significantly growing vehicle equipment manufacturing in China and India
The market is highly consolidated with a few major companies dominating the industry. The key manufacturers include Wacker Chemie and Dow Corning.
The industry participants are now establishing alliances with OEM manufacturers to strengthen their market position. Industry players are also investing heavily in R&D to develop sustainable products that provide them with a competitive edg e in the future.