The silicone elastomers market is witnessing significant growth owing to growing applications in construction, automotive and healthcare industries. Silicone elastomers have excellent properties such as high tensile strength, compressive strength and flexibility which make them suitable for applications where resistance to extreme temperatures is required. These elastomers are extensively used in sealants, adhesives and coatings in various end-use industries. The global automotive production has increased significantly over the past few years with more than 90 million vehicles manufactured annually as per OICA data. This rising automotive manufacturing is a key driver for the growth of silicone elastomers market.

The Global silicone elastomers market is estimated to be valued at US$ 11.64 Bn in 2024 and is expected to exhibit a CAGR of 14% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the Silicone Elastomers Market Size are LG Chemicals Ltd. (South Korea), Cabot Corporation (US), Jiangsu Cnano Technology Co., Ltd. (China), Resonac Corporation (Showa Denko K.K.) (Japan), and Arkema S.A. (France). LG Chemicals and Cabot Corporation are among the leading manufacturers of silicone elastomers globally.

The demand for silicone elastomers is growing across industries like automotive, healthcare and construction due to their excellent elastic properties and resistance to extreme temperatures. In the automotive industry, silicone elastomers find wide usage in sealing, bonding and insulating applications.

Geographically, the Asia Pacific region dominated the global silicone elastomers market in 2021 led by China, Japan and India. Growing construction activities and rising automotive production in APAC countries is driving the regional market growth. Key players are expanding their manufacturing facilities in the region to leverage growth opportunities.

Market drivers

The silicone elastomers market growth is driven by rising construction activities globally. According to United Nations data, the global construction industry is expected to grow by 85% to reach $15.5 trillion by 2030. Silicone elastomers have high popularity for sealants, sealers, adhesives and coatings in construction industry due to their temperature and weather resistance capabilities. Other major driver is increasing penetration of electric vehicles. Many automakers are actively investing in EV production to meet sustainability goals. This rising demand for EVs will boost the silicon elastomers consumption in automotive industry over coming years.

The current geopolitical instability is negatively impacting the growth of the Silicone Elastomers market. The ongoing Russia-Ukraine war and economic sanctions imposed on Russia by Western countries has disrupted global supply chains and increased the prices of key raw materials like silicone metal. Russia is a major supplier of specialty gases and metals required for the production of silicone elastomers. Restrictions on trade with Russia have constrained the supply of these inputs, putting upward pressure on manufacturing costs. Rising energy prices are adding to the cost burden of silicone elastomer producers who rely heavily on natural gas and crude oil derivatives in production. As conflicts and political uncertainties continue in Europe and other parts of the world, manufacturers may increasingly shift to alternative sourcing options or invest in developing new synthesis routes that rely less on Russian/CIS region suppliers to mitigate supply risks. This would require significant Research and Development expenditures over the next few years to identify technically and commercially viable substitutes. Going forward, silicone elastomer companies will need to closely monitor geopolitical developments impacting critical raw material supply and energy markets to formulate appropriate risk management strategies. They may also explore opportunities in regions relatively insulated from current geopolitical disruptions to diversify their manufacturing footprint.

The Asia Pacific region currently accounts for the largest share of the global Silicone Elastomers market in terms of value. This is attributed to the large concentration of silicone elastomer production capacities and end-use industries in China, South Korea, Japan, and other Asian economies. China, in particular, dominates Asia Pacific consumption due to its sizeable chemical and manufacturing sectors. North America is another major regional market centered around the United States. Looking ahead, the Silicone Elastomers market in Central and Eastern European nations is projected to witness the fastest value growth during the forecast period. This is mainly fueled by ongoing investments to boost domestic production of silicone materials across industries like automotive, consumer goods and medical devices in countries such as Poland, Hungary and Czech Republic.

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