VANCOUVER, BC, Sept. 23, 2021 /PRNewswire/ -- The global silicone market size reached USD 15.53 Billion in 2020 and is expected to register a significantly steady revenue CAGR during the forecast period, according to latest analysis by Emergen Research.
Increasing construction activities around the globe and rising demand for silicone in the automotive industry are some major factors expected to drive market revenue growth over the forecast period. Increased demand for lightweight automotive parts, as well as increased research and development initiatives to produce more innovative products are factors expected to drive revenue growth of the market going ahead. Lightweight materials are rapidly being utilized to reduce the weight of vehicles to reduce fuel consumption.
Silicone manufacturers are often dealing with high and fluctuating raw material prices, which they pass on to end-users. To compensate for high raw material costs, companies in the silicone market raised the pricing of their silicone products. As a result, fluctuating raw material prices are becoming a major challenge for silicone manufacturers, which is expected to hamper market growth to some extent.
The global silicone market size is expected to expand at a CAGR of 6.8% and increase from USD 15.53 Billion in 2020 to USD 26.09 Billion in 2028. Construction, industrial processes, personal care and consumer goods, automotive & transportation, and electronics are among the end-use industries where silicone is in high demand, which is expected to boost market growth due to rising demand for various products from such industries.
COVID-19 Impact Analysis:
The global lockdown enforced by several countries to combat the spread of COVID-19 has resulted in a decline in silicone use. End-use industries, including automotive and construction, are undergoing a significant decline in sales and manufacturing as a result of government restrictions on transportation and operations. Nevertheless, because of ease of lockdown, manufacturing is expected to continue and silicone demand is expected to increase in the near future.
Current Trends and Innovations:
Increasing R&D activities by key manufacturers in the production of innovative products are expected to provide new revenue prospects for companies operating in the global silicone market. Additionally, rising demand for vehicles and growing popularity of antimicrobial silicone, which is suitable for usage in the food and beverage and healthcare industries, is expected to provide a significant boost to global silicone market growth.
Growing construction industry in countries such as the United Kingdom, Germany, Italy, France, and Spain is expected to boost market growth going ahead. Increasing investment in countries in Europe along with supportive measures including tax reductions, incentives, and subsidies implemented in various countries are expected to boost growth of the market in the region. Additionally, rising use of silicone in the healthcare industry for aesthetic implants, as well as in the energy sector for applications in wind turbines and solar panels is expected to drive market growth during the forecast period.
Some major companies operating in the market include Wacker Chemie AG, Momentive Performance Materials Inc., The Dow Chemical Company, Shin-Etsu Chemical Co., Ltd., Elkem ASA, Evonik Industries AG, KCC Corporation, Silchem Inc., Specialty Silicone Products, Inc., and Elkay Chemicals Pvt. Ltd.
In July 2020, Shin-Etsu Chemical Co., Ltd. created a new form of silicone emulsion that is more effective than earlier products. To conform with the trend in REACH standards, the new silicone emulsions were created with a high degree of purification technology. Simultaneously, silicone emulsions' stability has been increased compared to existing products. Silicone emulsions are products that combine silicone and water with other components by dispersing silicone fluids and silicone resins in water using an emulsification agent (surfactant).
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