Automotive Silicone Market

Updated on : December 17, 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

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. 

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