Silanes Market

The market for silanes is approximated to be USD 2.9 billion in 2022, and it is projected to reach USD 3.9 billion by 2027 at a CAGR of 6.2%. Silanes, also known as silicon hydrides, are compounds formed by covalent bonds between hydrogen and silica. Silanes are manufactured by reacting magnesium silicide with acids or by reducing silicon chlorides with lithium aluminum hydride. Silanes mainly function as coupling agents and surface modifiers. They are available in two types: functional and non-functional groups. The ability of functional silanes to react with inorganic and organic materials and that of non-functional with inorganic materials makes them useful in applications such as crosslinking agents, adhesion promoters, surface modifiers, coupling agents, and dispersing agents. Silanes act as an important part of the rubber & plastics sector, especially the tire industry. The major applications of silanes also include fiber treatment, adhesives & sealants, and paints & coatings.

Silanes Market Dynamics

Driver: Increasing focus on fuel efficiency and regulatory compliance.

• The new generation automotive industry focuses on improving fuel efficiency and, simultaneously, road safety are increasingly using silanes to reduce rolling resistance and improve traction on wet or slippery surfaces. The OEMs are increasing use of plastics, fiber-reinforced plastics/composites, and silanes-reinforced tires to meet the fuel standards set by the US federal agencies and the EU. Therefore, silane consumption in plastics, rubber, and fiber treatment is expected to increase significantly during the forecast period.

Restraint: Growing demand for paper and other environment-friendly packaging materials

• Environment-friendly packaging materials, such as paper and jute, are available in the market as potential substitutes for plastic packaging, which is one of the major application of silanes. The increasing demand for these materials and consumer preference to replace plastic with paper and glass are restraining the use of plastics in the packaging industry. Paper packaging that replaces plastics most often uses multi-layered material that includes metallic foil and plastic in addition to paper. These factors will which decreases demand for silanes in the plastic packaging industry.

Opportunities: Emerging applications in pharmaceuticals, cosmetics, and semiconductor industries

• The silanes market will expand along with silanes innovation and advancement, which will open up lucrative business opportunities for both established and emerging market players. These advancement leads to new emerging applications of silanes in the pharmaceuticals and cosmetics industries. The discovery of new applications by cosmetics & personal care companies in hair care are expected to create opportunities for silane manufacturers.

Challenges: High cost of production

• The major challenge faced by silanes market is its cost of production. But now manufacturers are working on developing solutions to minimize the cost of production by implementing new technologies and reducing the cost of raw materials. Currently, the switching cost for silanes is very high, which deters its use in many end-use industries. For example, silica-silanes technology-based tires are 65% more expensive than carbon black. Therefore, green tires produced using silica-silanes technology contribute 28%–30% to the overall cost of the tire industry. However, industry leaders like Dow Inc. and Evonik Industries are making continuous efforts to minimize the prices of silanes

By End Use Industry, building & construction accounted for the highest CAGR during the forecast period

Demand for silanes to be driven by increasing investment in major infrastructure projects across the world especially in asia pacific region. Building & construction is a major end user of silanes. Silanes are widely used in buildings for the protection of the building environment from deterioration. This sector includes coating materials for construction areas such as food & beverage production facilities, hospitals, pharmaceutical manufacturing areas, and kitchens. Because of advancements in silanes coatings making it suitable for various infrastructure construction.

By Type, mono/chloro silanes segment accounted for the highest CAGR during the forecast period

The growing demand for home appliances and flat panel displays in countries such as China, India, Korea and Taiwan is expected to drive the demand for mono/chloro silanes during the forecast period. The demand for PV solar energy is growing significantly owing to its ability to produce electricity without pollution or emission. Regulatory support and government initiatives also drive the demand for solar energy in these countries. The rise in demand for solar energy is expected to drive the demand for silanes in ICs, flat panel displays and PV applications.

By Application, fiber treatment segment accounted for the highest CAGR during the forecast period

The rising building & construction and infrastructure industries in Asia and Middle East are expected to drive the demand for glass fibers. The semiconductor and electronics industries are also providing high growth potential owing to the growing need for miniaturization and expanding electronics and automation industry in the region, especially in China, India, South Korea and Taiwan. Silanes composities are lightweight, low maintenance, and higher chemical and heat impact resistance, these properties of silanes is helping to replace traditional materials in automotive and building & construction industries, thus driving the silanes market.

Asia Pacific is projected to account for the highest CAGR in the silanes market during the forecast period

The major silanes markets in Asia Pacific are India, China, Japan, Malaysia, Thailand, South Korea and Taiwan. In China and India, the demand for silanes is expected to increase because of the growing automotive and building & construction industries. The expansion of the Asian economy and consumers' purchasing power have significantly fueled the Asian automotive industry, increasing the use of silanes in rubber and plastics applications. Further, the demand for silanes in this region is also driven by the growing manufacturing and packaging industries. India in Asia Pacific region accounted for highest CAGR in the silanes market, followed by China, Thailand and South Korea, during the forecast period.

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Silanes market comprises major manufacturers such Evonik Industries (Germany), Shin-Etsu Chemical Co. Ltd (Japan), Momentive Performance Materials Holdings LLC (US), Dow Inc. (US), and Wacker Chemie AG (Germany) were the leading players in the silanes market. Expansions, acquisitions, joint ventures, and new product developments are some of the major strategies adopted by these key players to enhance their positions in the silanes market.

Major Market Developments

• In October 2021, WACKER acquired a 60-percent stake in SICO Performance Material Co., Ltd., a specialty silane manufacturer.
• In January 2021, Momentive Performance Materials, Inc. acquired KCC Corporation’s (“KCC”) Silicones business – in Korea and the UK, as well as its sales operations in China.
• In November 2020, Momentive Performance Materials Inc. announced the sale of its Consumer Sealants Business to Henkel Corporation.
• In April 2020, Bluestar Elkem Silicones acquired Polysil, a leading Chinese silicone elastomer and resins material manufacturer.

Critical questions the report answers:

• What are the major drivers driving the growth of the silanes Market?
• What are the major challenges in the silanes Market?
• What are the restraining factors in the silanes Market?
• What is the key opportunity in the silanes Market?
• What are the end-use industries where silanes are used?

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