A Detailed Analysis of the Automotive Silicone Market Based on Paced Growth of EV Industry, Swelling Automotive Manufacturing, and Expanding Application in Automotive Components for Enhanced Performance and Durability
Industry: Chemicals and Materials
Published Date: December-2023
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 213
Report ID: PMRREP33616
The global automotive silicone market is forecast to expand at a CAGR of 6.8% and thereby increase from a value of US$2.6 Bn in 2023, to US$4.2 Bn by the end of 2030.
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Attributes |
Key Insights |
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Automotive Silicone Market Size (2023E) |
US$2.6 Bn |
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Projected Market Value (2030F) |
US$4.2 Bn |
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Global Market Growth Rate (CAGR 2023 to 2030) |
6.8% |
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Historical Market Growth Rate (CAGR 2018 to 2022) |
5.6% |
Automotive silicone is an all-encompassing category of polymers that is predominantly made up of hydrogen, oxygen, silicon, and carbon atoms. Silicone materials utilized in the automotive sector are widely utilized due to their extraordinary flexibility, resistance to heat, and durability. In the fabrication of gaskets, seals, tubing, and other components, these materials are frequently employed on account of their exceptional resistance to high temperatures and severe environmental conditions.
Due to its non-reactive characteristics and wide range of substrate compatibility, silicone is a highly suitable material for improving durability and performance in automotive applications. Moreover, automotive silicone finds application in the manufacturing of adhesives, coatings, and lubricants, thereby making a positive contribution to vehicle safety, efficiency, and overall welfare.
Increasing demand for high-performance materials within the automotive industry is a major factor in the automotive silicone market's robust expansion. Automotive silicone has surged in popularity across various sectors, including interiors, exteriors, and undercarriage components, due to its emphasis on sustainability, safety, and comfort.
As a result of the increased demand for lightweight materials and developments in electric and hybrid vehicles, there is a current upswing in innovation. Furthermore, the implementation of rigorous regulations concerning fuel efficiency and emissions is driving the widespread use of automotive silicone in a variety of manufacturing processes, thereby cultivating a dynamic and auspicious market environment.
Advancements in Electric and Hybrid Vehicles
The increasing prevalence of electric and hybrid vehicles is a substantial factor driving the market for automotive silicone. Hybrid and electric vehicles have gained popularity as automakers endeavor to comply with stringent environmental regulations and consumer demand for environmentally friendly alternatives. Automotive silicone is of utmost importance in these cutting-edge vehicles due to its distinctive characteristics that significantly contribute to their dependable and efficient operation.
Silicone-based materials are indispensable in critical components such as connectors, seals, and electric vehicle batteries due to their electrical insulating properties, thermal stability, and resistance to environmental factors. These attributes guarantee the longevity and safety of the components. The concurrent expansion of the global electric and hybrid vehicle market is anticipated to generate a corresponding increase in demand for automotive silicone, which will stimulate innovation and foster market expansion.
Further, the persistent effort of the automotive industry to reduce weight and improve fuel economy is an additional significant factor propelling the automotive silicone market. In addition to its exceptional sealing properties and resistance to high temperatures, the lightweight characteristics of silicone render it an appealing material for vehicle manufacturers aiming to decrease the overall mass of their products. Through the utilization of silicone in a multitude of applications-including gaskets, seals, and components-automakers can attain a reduction in weight without sacrificing performance or safety, including hybrid and internal combustion vehicles.
Aligned with international endeavors to reduce emissions and enhance fuel economy, this focus on lightweighting renders automotive silicone an indispensable facilitator in the progression towards vehicles that are both more environmentally sustainable, and energy efficient. With the ongoing emphasis of automotive manufacturers on fuel efficiency and environmental sustainability, it is anticipated that the need for automotive silicone will increase in significance as a fundamental component of the lightweighting approach.
Challenges Related to Raw Material Availability, and Price Volatility
A significant impediment in the automotive silicone market pertains to difficulties associated with the accessibility and fluctuation of prices of raw materials. Silicones are manufactured using silicon, a critical constituent whose price and supply are susceptible to volatility. The manufacturing process of automotive silicone necessitates a stable raw material supply chain and entails intricate procedures. However, energy price fluctuations, geopolitical tensions, and trade uncertainties can affect the availability and cost of essential basic materials.
These dynamics present difficulties for manufacturers seeking to sustain stable pricing structures and production levels, which may result in escalated operational expenditures and subsequently impact the market competitiveness of automotive silicone products. To ensure the continued expansion of the automotive silicone industry, it is imperative to implement alternative sourcing strategies and strategic supply chain management initiatives to alleviate these obstacles.
The automotive silicone market encounters a notable obstacle in the form of intricate regulatory requirements and compliance concerns that regulate the utilization of materials within the sector. With the heightened focus of governments across the globe on environmental issues and safety protocols, manufacturers are confronted with the formidable task of adhering to an intricate network of regulations about emissions, the toxicity of materials, and safety prerequisites.
To ensure that automotive silicone products adhere to the most recent standards, ongoing investment in research and development and adaptation to these ever-changing and diverse regulatory requirements are necessary. Specifically for smaller manufacturers, the intricacy of compliance may impede market entry and expansion. To effectively navigate these obstacles and sustain a competitive advantage in the ever-changing automotive silicone industry, strategic partnerships and investments in regulatory expertise are required.
Growing Emphasis on Electric and Autonomous Vehicles
The automotive silicone market is poised to benefit substantially from the accelerating trend toward electric and autonomous vehicles. In the wake of the automotive sector's paradigm shift towards more environmentally friendly and intelligent modes of transportation, there is a growing need for sophisticated materials capable of fulfilling the specific demands of electric and autonomous vehicles.
Due to its exceptional electrical insulation capabilities, thermal stability, and resistance to environmental influences, automotive silicone is highly suitable for implementation in batteries, sensors, and electronic components that are vital for the development of electric and autonomous vehicle technologies. By developing silicone-based solutions that are tailored to the particular requirements of these developing automotive technologies, manufacturers can establish themselves as leaders in a rapidly expanding market segment.
Moreover, increasing focus on air quality and interior comfort in automobiles represents an additional viable opportunity for the automotive silicone industry. In response to consumer demand for a pleasant and health-conscious traveling experience, automotive manufacturers are investigating materials that can enhance indoor air quality and promote general wellness.
Silicone-based materials are feasible for utilization in a range of interior components, including seals, gaskets, and adhesives, owing to their reduced volatility and off-gassing. This, in turn, contributes to the maintenance of a more hygienic cabin environment. Manufacturing companies possess the potential to create and distribute silicone solutions that improve the quality of interior environments, tackle issues related to air quality, and correspond with the changing tastes of discerning customers. This would enable them to capitalize on a profitable market segment motivated by the quest for enhanced driving experiences.
Analysts is a bright future for the automotive silicone sector, characterized by consistent expansion and paradigm-shifting patterns. The growing adoption of electric and autonomous vehicles is anticipated to generate significant demand for high-performance materials, including silicone. This is primarily due to the critical function that silicone plays in essential components including batteries, sensors, and electrical systems.
The market will experience continued growth due to the increasing focus on fuel efficiency through lightweighting. Silicone's distinctive characteristics render it an appealing option for reducing the weight of vehicles while maintaining their performance. Furthermore, the market is positioned to gain from the increasing emphasis on air quality, safety, and interior comfort in automobiles, where silicone contributes significantly to a more comfortable and healthy driving experience.
Notwithstanding obstacles such as the availability of raw materials and regulatory complexities, it is expected that strategic collaborations and innovations will alleviate these challenges. In general, the automotive silicone market is positioned for substantial growth in the future years, propelled by advancements in technology, sustainability, and innovation.
Supply-side Dynamics
The automotive silicone market is subject to various dynamic factors that impact the production and availability of silicone-based products on the supply side. The sourcing and accessibility of natural materials are primary determinants. Automotive silicone is predominantly composed of silicon, which is obtained from silica or quartz. Any disturbances or variations in the supply chain of these fundamental materials have the potential to affect the silicone manufacturing process.
Variations in the pricing and accessibility of these critical commodities may be influenced by geopolitical factors, trade policies, and environmental regulations. These elements collectively impact the supply dynamics of the automotive silicone market. Furthermore, the automotive silicone manufacturing processes have an impact on supply-side dynamics. The technological sophistication, process efficiency, and implementation of sustainable practices by manufacturers have a significant impact on the cost structures and overall production capacity.
Production method innovations, including progress in environmentally sustainable synthesis processes and high-precision molding methodologies, have the potential to bolster the resilience of supply chains and optimize cost efficiency. In addition, advancements in silicone production can be propelled by strategic collaborations and partnerships among suppliers, manufacturers, and research institutions. This can guarantee a consistent and effective provision of automotive silicone products, which is crucial to satisfy the expanding demands of the automotive sector. In the light of the ongoing evolution of the market, the significance of supply-side dynamics will persist, requiring industry stakeholders to adopt a proactive stance to effectively navigate obstacles and exploit prospects for long-term, sustainable expansion.
Which is the Commanding Product Type Category?
Elastomers Lead by Product Type, Profits Expected from Flexible and Temperature-Resistant Components
The product type segment is segmented into elastomers, adhesives and sealants, resins, and fluids. The greatest market segment within the automotive silicone industry consists of elastomers. The high demand for elastomers is driven by their extensive application in the production of gaskets, seals, and other components that require exceptional flexibility, resilience, and resistance to high temperatures. Due to these characteristics, elastomers are indispensable for improving the performance and durability of a variety of automotive components.
On the flipside, the sector exhibiting the most rapid expansion is adhesives and sealants. The surge in demand is propelled by the expanding emphasis on lightweighting and the rising necessity for efficient bonding solutions in automotive assembly. By aiding in weight reduction while maintaining structural integrity, adhesives, and sealants support the industry's efforts to improve fuel efficiency and promote sustainability.
What is the Dominant Application Segment?
Increased Utilization in Electronic Components Upholds Prominence of Electrical Systems
The application segment is bifurcated into interior and exterior parts, engine and drive train systems, electrical systems, and suspension systems. The automotive silicone market is dominated by the interior and exterior parts sector. The growing utilization of silicone in the production of automotive components such as gaskets, seals, and interior elements is motivated by its capacity to improve overall performance, heat resistance, and durability across a wide range of environmental conditions. This contributes to the safety and longevity of both interior and exterior automotive parts.
On the other hand, the electrical system is the sector with the highest rate of growth. The increasing prevalence of electrical propulsion in vehicles is leading to a heightened need for silicone in various sectors, including electronic components, connectors, and wiring. Silicone's resistance to extreme temperatures and superior electrical insulating properties are significant factors driving its expansion into the electrical systems of contemporary vehicles.
Which is the Leading End-use Industry?
Aftermarket All Set for Rapid Expansion While OEMs Maintain a Dominant Share
The segment is sub-categorized into OEM, and aftermarket. The OEM sector holds the greatest share of the silicone automotive market. The direct incorporation of automotive silicone materials into the manufacturing processes of OEMs contributes to the prominence of these companies by ensuring that vehicles are released with silicone components that enhance performance and are of superior quality. Optimal manufacturers place a high value on silicone due to its dependability, longevity, and capacity to adhere to rigorous industry benchmarks; consequently, this sector experiences consistent expansion.
In contrast, the aftermarket sector of the automotive silicone industry is expanding at the quickest rate. The aftermarket is experiencing growth due to the expanding utilization of automotive silicone for replacement and repair applications. The aftermarket sector is propelled by the increasing need for silicone-based components to ensure the sustained functionality of aging and maintenance-required vehicles. The expanding aftermarket market share of automotive silicone is influenced by various factors, including the demand for repairs, enhancements, and customization options.
North America's Market Thrives on Attention to Vehicle Efficiency and Sustainability
North America dominates the automotive silicone market due to its strong automotive sector, rigorous safety standards, and increasing emphasis on electric and autonomous vehicles. Due to the region's strong dedication to technological progress, and the increasing need for high-performance materials, automotive silicone is positioned as a crucial element in improving the safety, efficiency, and sustainability of vehicles. Additionally, the region's focus on producing high-end automobiles that integrate cutting-edge technologies contributes to the increased need for automotive silicone.
East Asia Sees Robust Growth
The automotive silicone market is experiencing the most rapid growth in East Asia, which can be attributed to the rapid expansion of the automotive industry in countries including China, Japan, and South Korea. Automotive silicone is in greater demand due to the concurrent increase in automotive manufacturing activities and the rising production of electric vehicles.
The robust economic expansion and expanding middle-class demographic in East Asia contribute to a rise in automobile ownership, which in turn stimulates the automotive silicone market in the region. East Asian automotive silicone market expansion is accelerated by the emphasis on technological innovation and the implementation of silicone for lightweighting initiatives.
Intense rivalry exists among key participants in the automotive silicone market as they vie for market share and innovation leadership, constituting a competitive landscape. Prominent entities in the industry, including Henkel AG & Co. KGaA, 3M Company, Permatex, Elkem ASA, Basildon Chemicals, Specialty Silicone Products, Inc., Dow, ACC Silicones Ltd., Wacker Chemie AG, and Shin-Etsu Chemical Co, are presently involved in intensive research and development to unveil innovative silicone-based solutions that address the ever-changing requirements of the automotive sector. These businesses frequently prioritize product durability, sustainability, and performance enhancements to obtain a competitive edge.
Strategic collaborations and partnerships hold significant prominence within the competitive environment, as organizations strive to achieve synergies that expand their geographical presence and product portfolios. Moreover, mergers and acquisitions are of paramount importance as they enable organizations to solidify their market positions and capitalize on their complementary capabilities. In addition, the competitive landscape necessitates a concerted effort to enhance manufacturing capabilities and establish a resilient supply chain to satisfy the growing need for automotive silicone.
With the increasing recognition of environmental sustainability in the automotive sector, firms are placing greater emphasis on the advancement of silicone solutions that are favorable to the environment. This has resulted in heightened competition within the market. In the ever-changing automotive silicone industry, success is achieved through a persistent pursuit of technological innovations, product differentiation, and strategic partnerships; this characterizes the competitive environment.
New Product Launch or New Project Launch
In July 2023, Henkel will introduce BERGQUIST Gap Filler TGF 2900 LVO, a low-volatile silicone-based gap filler consisting of two components. Designed for automotive electronic components, it provides exceptional performance and expedites processing times.
Market Impact: The Automotive Silicone Market is positively impacted by Henkel's introduction of BERGQUIST Gap Filler TGF 2900 LVO, a high-performance, low-volatile silicone-based gap filler designed for automotive electronic components. This innovation effectively responds to the industry's need for sophisticated materials, thereby enhancing the effectiveness and dependability of electronic systems and promoting technological progress in the market.
(Source: Henkel)
Dow made an announcement in October 2022 regarding the introduction of its inaugural recyclable silicone self-sealing tire solution. The solution has been effectively implemented in the recently introduced B-SEALS by Bridgestone, which is a tire sealant technology that is recyclable. Dow's new SiLASTIC™ SST-2650 Self-sealing Silicone satisfies the sustainability and high-performance requirements of self-sealing tire manufacturers, while also providing passengers and drivers with a safer, more durable, and lighter alternative.
Market Impact: Dow's unveiling of SiLASTIC™ SST-2650, the inaugural recyclable silicone self-sealing tire solution, signifies a substantial progression within the automotive silicone industry. This innovation is in line with the increasing focus of the industry on sustainability. It provides a superior solution for self-sealing tires that improves their durability, safety, and environmental impact. As a result, it contributes to the market's progression towards more environmentally friendly and inventive technologies.
(Source: Dow)
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Details |
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Forecast Period |
2023 to 2030 |
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Historical Data Available for |
2018 to 2022 |
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Market Analysis |
US$ Million for Value |
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Key Regions Covered |
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Key Countries Covered |
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Key Market Segments Covered |
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Report Coverage |
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Customization & Pricing |
Available upon request |
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By Application:
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The market for automotive silicone is anticipated to grow at a CAGR of 6.8% during the projected period.
The automotive silicone market size is valued at US$2.6 Bn as of 2023.
The US currently holds the largest market value share as of 2023.
Some of the prominent players in the market are Henkel AG & Co. KGaA, 3M Company, Permatex, Elkem ASA, Basildon Chemicals, Specialty Silicone Products, Inc., Dow, ACC Silicones Ltd., Wacker Chemie AG, and Shin-Etsu Chemical Co.
The aftermarket segment is expected to grow at the fastest pace during the forecast period.
