Automotive Silicone Market by Type (Elastomers, Resins, Gels, Fluids), Application (Interior & Exterior, Engines, Electrical, Tires) and Region (North America, Europe, Asia Pacific, Middle East & Africa, South America) - Global Forecast to 2028
Updated on : June 27, 2024
Automotive Silicone Market
The global automotive silicone market was valued at USD 2.4 billion in 2023 and is projected to reach USD 3.4 billion by 2028, growing at 7.3% cagr from 2023 to 2028. Automotive silicone is indispensable in the industry, offering durable seals, reliable electrical insulation, and efficient thermal management. It enhances vehicle performance, component longevity, and customer satisfaction through its heat resistance and sealing capabilities..
Attractive Opportunities in the Automotive Silicone Market
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Automotive Silicone Market Dynamics
Driver: Growing automotive industry in Asia Pacific
The robust growth of the Asia Pacific automotive industry acts as a major catalyst for driving the expansion of the automotive silicone market. The region's rapid industrialization, urbanization, and improving consumer purchasing power have resulted in a surge in automotive demand. Countries such as China, Japan, India, and South Korea have experienced significant increases in vehicle production and sales, thereby creating favorable conditions for the automotive silicone market to thrive.
Furthermore, the Asia Pacific region is undergoing a significant transition towards more stringent environmental regulations and emission standards. Governments in countries like China and India are actively encouraging the widespread adoption of electric and hybrid vehicles as part of their efforts to mitigate pollution and decrease reliance on fossil fuels. This shift towards electric mobility presents a substantial opportunity for the automotive silicone market. Silicone materials play a crucial role in the production of various components for electric vehicles, including battery systems, charging infrastructure, and thermal management solutions. As the region's automotive industry increasingly embraces electric mobility, the demand for automotive silicone is set to surge.
Additionally, the expanding aftermarket for automotive components in the Asia Pacific region contributes to the growth of the automotive silicone market. The increasing vehicle parc and the need for replacement parts and maintenance create opportunities for silicone-based products. As the demand for quality and durable automotive components rises, silicone materials are increasingly preferred for their performance characteristics and long-term reliability.
Restraint: Growing use of electric vehicles
The growing adoption of electric vehicles, especially in the developed economies of Europe and North America, is restricting the growth of the automotive silicone market. Major players are expanding the production of electric vehicles to meet their rising demand. The electric vehicle models are becoming more affordable, which, in turn, fuels the adoption of these vehicles. The infrastructural developments related to electric vehicle charging stations have also been increasing and are often supported by local governments. This shift to the use of electric vehicles significantly impacts the growth of automotive silicone as the demand for engine components and drive transmission parts is reduced. Automotive silicone manufacturers are negatively impacted by the introduction of electric vehicles as the focus shifts from engine management, emission control, and fuel efficiency to battery-driven vehicles. Therefore, the increase in the adoption of electric vehicles is a major restraint in the growth of the automotive silicone market.
Opportunity: Advancements in automation driving technology
As vehicles become increasingly automated, a wide range of sensors, connectors, and electronic components are required to enable the functionality of autonomous systems. Silicone materials offer unique properties that make them well-suited for these critical applications.
One of the key advantages of silicone materials is their excellent electrical insulation properties. In autonomous vehicles, where numerous sensors and electronic components are integrated, effective insulation is crucial to ensure reliable signal transmission and prevent interference. Silicone materials provide high dielectric strength and low electrical conductivity, minimizing the risk of electrical failures or malfunctions in these sensitive systems.
Moreover, silicone materials offer exceptional temperature resistance, making them suitable for the demanding thermal environments found in autonomous vehicles. Components in close proximity to the engine, exhaust, or braking systems are exposed to high temperatures, and silicone's ability to withstand elevated heat without degradation ensures the long-term reliability and performance of these critical components.
Challenge: Supply chain challenges in automotive silicone market
The automotive silicone market supply chain involves multiple stakeholders, including raw material suppliers, silicone manufacturers, and distributors. Disruptions in any part of this supply chain can have significant consequences for the availability and timely delivery of silicone products to automotive manufacturers.
One of the key challenges is the limited availability of specific silicone grades. Different automotive applications may require specialized silicone formulations with specific properties or performance characteristics. If certain silicone grades are not readily available, it can lead to delays in production or compromise on the desired quality of automotive components.
Moreover, the automotive silicone market may face dependence on a few suppliers for critical raw materials or specialized silicone grades. This dependency increases the risk of supply chain disruptions if a supplier faces production issues, capacity constraints, or other unforeseen challenges. Any disruption in the supply chain can create delays, shortages, or increased costs, affecting the overall operations and growth of the market.
Automotive Silicone Market Ecosystem
Source: Secondary Research, Interviews with Experts, and MarketsandMarkets Analysis
"Interior & exterior application was the largest segment for automotive silicone market in 2022, in terms of value."
Automotive silicone finds versatile application in interior and exterior automotive components. It is used in airbag covers and membranes, providing flexibility and durability for reliable safety deployment. Silicone exhaust hangers offer excellent heat resistance and vibration damping. Exterior trims benefit from silicone's weather resistance and aesthetic appeal. Headlamp seals ensure water and dust protection. Silicone hoses provide flexibility and resistance to extreme temperatures. Interior trims, shock absorbers, grommets, and membranes all benefit from silicone's reliable performance and longevity.
"Electrical application was the second largest application for automotive silicone market in 2022, in terms of value."
Automotive silicone is a vital component in the automotive electrical segment, providing reliable power transmission, exceptional damping, and insulation properties. It is extensively used in ignition cables, spark plug boots, and high-tension (HT) cables, ensuring seamless electrical connectivity and protection from heat and environmental elements. Automotive silicone enhances power transfer efficiency, optimizes electrical system performance, and safeguards against voltage disturbances or leakage. With its outstanding properties, automotive silicone is instrumental in maintaining dependable and efficient electrical systems, contributing to overall vehicle reliability and performance.
"Asia Pacific was the largest market for automotive silicone in 2022, in terms of value."
Asia Pacific was the largest market for global automotive silicone market, in terms of value, in 2022. China is the largest market in Asia Pacific. It is projected to witness the highest growth during the forecast period considering of high usage of automotive silicone in the region for various automotive application.
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Automotive Silicone Market Players
The key players in this market The Dow Chemical Company (US), Wacker Chemie AG ( Germany), Momentive (US), Shin-Etsu Chemical Co. Ltd. (Japan), Elkem ASA (Norway), Evonik Industries AG (Germany), Gelest Inc.(US), Henkel (Germany), Primasil Silicones (UK), and Slitch Corporation (Canada).Continuous developments in the market—including new product launches, mergers & acquisitions, agreements, and expansions—are expected to help the market grow. Leading manufacturers of automotive silicone have opted for new product launches to sustain their market position.
Automotive Silicone Market Report Scope
|
Report Metric |
Details |
|
Market Size Value in 2023 |
USD 2.4 billion |
|
Revenue Forecast in 2028 |
USD 3.4 billion |
|
CAGR |
7.3% |
|
Years considered for the study |
2020-2028 |
|
Base Year |
2022 |
|
Forecast period |
2023–2028 |
|
Units considered |
Volume (Kiloton); Value (USD Million/Billion) |
|
Segments |
Type, Application, and Region |
|
Regions |
Asia Pacific, North America, Europe, Middle East & Africa, and South America |
|
Companies |
The Dow Chemical Company (US), Wacker Chemie AG ( Germany), Momentive (US), Shin-Etsu Chemical Co. Ltd. (Japan), Elkem ASA (Norway), Evonik Industries AG (Germany), Gelest Inc.(US), Henkel (Germany), Primasil Silicones (UK), and Slitch Corporation (Canada). |
This report categorizes the global automotive silicone market based on type, application, and region.
Based on type, the automotive silicone market has been segmented as follows:
- Elastomers
- Gels
- Resins
- Fluids
Based on application, the automotive silicone market has been segmented as follows:
- Interior & exterior
- Engines
- Electrical
- Tires
Based on region, the automotive silicone market has been segmented as follows:
- Asia Pacific
- Europe
- North America
- Middle East & Africa
- South America
Recent Developments
- In March 2023, Shin-Etsu Chemical developed a silicone rubber formulation suitable for molding, specifically designed to serve as an ideal insulation covering material for high-voltage cables within automobiles
- In December 2022, Dow launched liquid silicone rubber series, which can be used across multiple automotive applications such as connector seals, battery vent gaskets and radiator gasket seals for electric and hybrid vehicles, as well as environmental protection seals for autonomous vehicles’ lidar and radar housing
- In May 2022, Dow launched new SALISTIC MS-5002 moldable silicone. The product is Liquid Silicone Runner (LSR) and has very low mold fouling for faster cycle times. The product is used for high quality optics in automotive adaptive driving beam (ADB).
- In July 2022, Wacker is undertaking a project to expand its site in Charleston and is preparing for the construction of new silicone production facilities. The estimated capital expenditures for the extensive expansion project, which is expected to span multiple years, surpass the amount of USD200 million
- In July 2022, In Panagarh, India, Wacker has inaugurated a newly established production facility for silicones. This plant will specialize in the manufacturing of silicone rubber and ready-to-use silicone compounds intended for applications in electromobility, medical technology, and electrical transmission and distribution
- In october 2022, Dow launched world’s first recyclable silicone self-sealing tire solution. This new solution has been successfully utilized in Bridgestone’s released B-SEALS, a recyclable tire sealant technology.
Frequently Asked Questions (FAQ):
What is the expected growth rate of the automotive silicone market?
The forecast period for the automotive silicone market in this study is 2023-2028. The automotive silicone market is expected to grow at a CAGR of 7.3%in terms of value, during the forecast period.
Who are the major key players in the automotive silicone market?
The Dow Chemical Company (US), Wacker Chemie AG ( Germany), Momentive (US), Shin-Etsu Chemical Co. Ltd. (Japan), Elkem ASA (Norway), Evonik Industries AG (Germany), Gelest Inc.(US), Henkel (Germany), Primasil Silicones (UK), and Slitch Corporation (Canada) are the leading manufacturers of automotive silicone
What are some of the strategies adopted by the top market players to penetrate emerging regions?
The major players in the market use expansion, acquisitions, and joint venture, as important growth tactics.
What are the drivers and opportunities for the automotive silicone market?
Growing automotive industry in Asia Pacific is driving the market during the forecast period. Advancements in automation technology acts as an opportunity during the forecast period.
Which are the key technology trends prevailing in the automotive silicone market?
The key technologies prevailing in the automotive silicone market include self-healing silicone, and silicone hydrogel coatings. .
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The study involved four major activities in estimating the market size of the automotive silicone market. Exhaustive secondary research was done to collect information on the market, the peer market, and the parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, the market breakdown and data triangulation procedures were used to estimate the market size of the segments and subsegments.
Secondary Research
In the secondary research process, various secondary sources have been referred to for identifying and collecting information for this study. These secondary sources include annual reports, press releases, investor presentations of companies, white papers, certified publications, trade directories, certified publications, articles from recognized authors, gold standard and silver standard websites, and databases.
Secondary research has been used to obtain key information about the value chain of the industry, monetary chain of the market, the total pool of key players, market classification and segmentation according to industry trends to the bottom-most level, and regional markets. It was also used to obtain information about the key developments from a market-oriented perspective.
Primary Research
The automotive silicone market comprises several stakeholders in the value chain, which include raw material suppliers, manufacturers, and end users. Various primary sources from the supply and demand sides of the automotive silicone market have been interviewed to obtain qualitative and quantitative information. The primary interviewees from the demand side include key opinion leaders in end-use sectors. The primary sources from the supply side include manufacturers, associations, and institutions involved in the automotive silicone industry.
Primary interviews were conducted to gather insights such as market statistics, data of revenue collected from the products and services, market breakdowns, market size estimations, market forecasting, and data triangulation. Primary research also helped in understanding the various trends related to technology, raw material, application type, end-use industries, and region. Stakeholders from the demand side, such as CIOs, CTOs, and CSOs were interviewed to understand the buyer’s perspective on the suppliers, products, component providers, and their current usage of automotive silicone and outlook of their business which will affect the overall market.
The breakdown of profiles of the primary interviewees is illustrated in the figure below:
Note: Tier 1, Tier 2, and Tier 3 companies are classified based on their market revenue in 2022 available in the public domain, product portfolios, and geographical presence.
Other designations include consultants and sales, marketing, and procurement managers.
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|
Company Name |
Designation |
|
The Dow Chemical Company |
Individual Industry Expert |
|
Wacker Chemie AG |
Sales Manager |
|
Momentive |
Director |
|
Henkel |
Marketing Manager |
|
Evonik Industries AG |
R&D Manager |
|
|
|
Market Size Estimation
The top-down and bottom-up approaches have been used to estimate and validate the size of the automotive silicone market.
- The key players in the industry have been identified through extensive secondary research.
- The supply chain of the industry has been determined through primary and secondary research.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
- All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
- The research includes the study of reports, reviews, and newsletters of the key market players, along with extensive interviews for opinions with leaders such as directors and marketing executives.
Automotive Silicone Market: Bottom-Up Approach
Note: All the shares are based on the global market size.
Source: Secondary Research, Interviews with Experts, and MarketsandMarkets Analysis
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Automotive Silicone Market: Top-Down Approach
Data Triangulation
After arriving at the total market size from the estimation process explained above, the overall market has been split into several segments and sub-segments. To complete the overall market engineering process and arrive at the exact statistics for all the segments and sub-segments, the data triangulation and market breakdown procedures have been employed, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand and supply sides. Along with this, the market size has been validated by using both the top-down and bottom-up approaches and primary interviews. Hence, for every data segment, there have been three sources—top-down approach, bottom-up approach, and expert interviews. The data was assumed correct when the values arrived from the three sources matched.
Market Definition
Automotive silicone is a preferred material in the automotive industry due to its exceptional strength, resistance, and durability. It offers high-temperature resistance and excellent weathering resistance, significantly extending the lifespan of automotive components. It finds extensive use in various automotive applications, including interior and exterior parts, engines, electrical systems, tires, and more. The ability of automotive silicone to withstand abrasion, rain, wind, salt, UV radiation, and chemicals makes it the preferred choice for automotive manufacturers, ensuring reliable performance and longevity in challenging environments.
Key Stakeholders
- Senior Management
- End User
- Finance/Procurement Department
- R&D Department
Report Objectives
- To define, describe, and forecast the size of the automotive silicone market, in terms of value and volume.
- To provide detailed information regarding the major factors (drivers, opportunities, restraints, and challenges) influencing the growth of the market
- To estimate and forecast the market size based on type, application, and region.
- To forecast the size of the market with respect to major regions, namely, Europe, North America, Asia Pacific, Middle East & Africa, and South America, along with their key countries
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and their contribution to the overall market
- To analyze opportunities in the market for stakeholders and provide a competitive landscape of market leaders.
- To track and analyze recent developments such as expansions, new product launches, partnerships & agreements, and acquisitions in the market.
- To strategically profile key market players and comprehensively analyze their core competencies.
Available Customizations
Along with the given market data, MarketsandMarkets offers customizations according to the company’s specific needs. The following customization options are available for the report:
Regional Analysis
- Further breakdown of a region with respect to a particular country or additional application
Company Information
- Detailed analysis and profiles of additional market players
Generating Response ...
Growth opportunities and latent adjacency in Automotive Silicone Market