Automotive Silicone Market Key Driving Factor - Increasing The Production Of Automobiles

Automotive Silicone Industry Overview

The global automotive silicone market size was valued at USD 5.76 billion in 2017 and is projected to witness a CAGR of 6.4% from 2018 to 2025. Automotive silicones have applications in interior & exterior, electrical systems, and suspension systems of vehicles. Superior characteristics of the product make it highly compatible with rubber, adhesives, sealants, and coatings, which increases their preference over other products. Increasing the production of automobiles is the key driving factor behind the growth of this market.

For instance, according to the International Organization of Motor Vehicle Manufacturers (OICA), the global production of commercial vehicles and cars grew at a CAGR of 2.04% from 2014 to 2017. The production increased by around 2 million units in 2017 from 2016. Automotive silicones help reduce the overall vehicular weight thereby enhancing fuel efficiency and reducing harmful emissions. Thus, strict regulations about harmful emissions are also expected to propel the growth of this market. Growing demand for electronics applications is also expected to fuel the market.

Gather more insights about the market drivers, restrains and growth of the Global Automotive Silicone Market

However, the high production cost of automotive silicones may cause a hindrance to market growth. Silicone rubber is extensively used in vehicle manufacturing, but it's costlier than other types of rubbers, which is also likely to hamper the market growth. Its manufacturing is an energy-intensive process and involves the use of other expensive components as well. However, its high cost is offset by low maintenance and long life. High production costs have resulted in the concentration of the market where a few key manufacturers account for a major industry share.

Also, the industry witnesses the potential threat of new entrants on account of escalating demand for the product in several applications. This makes the competitive rivalry intense in the global market. On the other hand, advancements in technology, modernization, and quick up-gradation have propelled the demand for electronic automotive assistance systems. Thus, the rising usage of these systems is likely to have a positive impact on industry expansion.

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• Adhesives And Sealants Market - The global adhesives and sealants market size was valued at USD 63.79 billion in 2021 and is expected to register a compound annual growth rate (CAGR) of 5.9% from 2022 to 2030. Changes in material consumption patterns, wherein materials, such as aluminum, metal, and paper, are being replaced by highly durable materials. This is anticipated to positively affect the products demand in packaging applications, over the next eight years.

• Liquid Silicone Rubber Market - The global liquid silicone rubber market size was estimated at USD 1.67 billion in 2016, projected to grow at a CAGR of 7.9% from 2017 to 2025. Increasing demand from the medical and automotive industries have emerged to be the key drivers for the overall market during the forecast period. Industries such as automotive and medical are witnessing huge demand owing to its cost-effectiveness, durability, and ability to meet all safety requirements.

Automotive Silicone Market Segmentation

Grand View Research has segmented the global automotive silicone market on the basis of product, application, and region:

Automotive Silicone Product Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

• Rubber

• Adhesives & Sealants

• Coatings

• Others

Automotive Silicone Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

• Interior & Exterior

• Engine & Drive Train (EDT) Systems

• Electrical System

• Suspension System

• Others

Automotive Silicone Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

• North America

• Europe

• Asia Pacific

• Central & South America

• Middle East & Africa

Market Share Insights

• September 2018: Evonik announced that it will be constructing a new silicone production facility in Germany, which is expected to be operational by the end of 2019.

• June 2018: Momentive Performance Materials, Inc. introduced SilGrip PSA810 to its portfolio of pressure-sensitive adhesives.

Key Companies profiled:

Some prominent players in the global automotive silicone market include

• The Dow Chemical Company

• Wacker Chemie AG

• Momentive Performance Materials

• Shin-Etsu Chemical Co., Ltd.

• 3M Company

• Henkel AG & Co. KGaA

• Permatex

• Elkem Silicones

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About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.