Silicone Potting Compounds Market Report
Silicone Potting Compounds Market by Curing Technology (UV Curing, High Temperature or Thermal Curing, and Room Temperature Curing), End-use Industry (Electronics, Automotive, Aerospace, and Others), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021–2028
Global Silicone Potting Compounds Market Analysis
The global silicone potting compounds market accounted for $900.5 million in 2020 and is predicted to grow with a CAGR of 4.5%, by generating a revenue of $1,267.6 million by 2028.
Silicone potting compounds market is gaining huge popularity as they are the frontline of electronics and automotive industries that offers protection against environmental factors such as corrosion due to moisture, water ingress, or protection from caustic chemicals & gases. For instance, electronic device manufacturers that fabricate LEDs into different components need protection from significant environmental, mechanical, and physical impact. Due to these aspects, silicone potting compounds have gained huge popularity as they provide protection against shock, vibration, and offer cushioning effect to various devices.
However, silicone potting compounds are more expensive compared to epoxy and polyurethane coatings. Also, the bonding performance is slightly less compared to other potting compounds, which is anticipated to restrain the silicone potting compounds market size during the forecast period.
Silicone potting compounds show the highest level of flexibility and temperature resistance of up to 200°c degrees. Also, these compounds exhibit excellent water resistance, optical & insulation properties, and adhesion to various materials. Also, these compounds are added with functional fillers to impart thermal, conductive, and magnetic properties. In addition, the color of silicone potting compounds can be customized based on client requirements and it can be transparent, colored, or opaque.
According to regional analysis, the Asia-Pacific silicone potting compounds market accounted for $328.2 million in 2020 and is predicted to grow with a CAGR of 5.2% in the projected timeframe.
Silicone Potting Compounds Overview
Silicone potting compounds also known as silicone encapsulation compounds are used for potting of electronics, automotive, aerospace, industrial, and other components. These compounds prevent short circuits, offer chemical resistance in complex assemblies, provide heat dissipation, and protect against environmental influences. These compounds are soft and highly flexible with high elongation that make them suitable for sensitive components and offer easy repairability.
COVID-19 Impact on the Silicone Potting Compounds Market
The global crisis and uncertainties led by COVID-19 pandemic such as financial crisis and geopolitical disruptions have negatively impacted the potting compounds market growth. For instance, the demand is on decline from various sectors especially the automotive industry that faced drastic decline in sales and demand. This is because silicone potting compounds are widely used in the interior & exterior parts as well as in the engine components of automotive vehicles. In addition, these compounds are also used in industrial & aerospace sector which is struggling to survive the COVID-19 crisis. This has caused significant disruptions in the supply chain and business operations. In addition, reduced cash flow due to delay in the purchases and import-export & travel restrictions have further worsened the situation. In addition, silicone potting compounds manufacturers faced various restrictions to contain the spread of pandemic such as social distancing norms, regular workplace sanitization, and work from home orders due to which the silicone potting compounds manufacturers had to re-organize their on-site work, rationalize headcount, and reframe the customer service operations. All these factors have led to business disruptions and affected the silicone potting compounds market size during the pandemic.
Various company initiatives to deal with the challenges caused by the COVID-19 crisis are protecting the health of employees and society. For instance, in 2020, Henkel, the leading adhesives manufacturer, closely worked with companies operating in medical sector to boost the production of COVID-19 essential medical supplies. For instance, Henkel offered LOCTITE® 3D printed resins to medical companies which helped them in demand swab production. Also, in March 2020, global solidarity program was launched by Henkel that offers practical and financial support to customers, employees, and communities.
Ease of Assembly, UV Resistance, and Repairability Properties to Drive the Market Growth
Silicone potting compounds have unique characteristics over other potting compounds such as epoxies and urethanes. For instance, silicone potting compounds offer ease of repairability as silicone can be easily removed from any part. They offer temperature resistance owing to wide temperature resistance range from 50°F to 400°F. These compounds offer UV resistance especially where electronic devices are exposed to the sunlight directly. Due to this, cracking or yellowing of components is prevented. Silicone potting compounds are safer to the end-users those who want to avoid labor and compliance issues. These compounds are free from shrinkage when cured which saves time in extra preparation and application steps as they do not require fabricators. These potting compounds have fluid-like viscosity due to which they are easy to pot compared to other materials under the same conditions.
To know more about global silicone potting compounds market drivers, get in touch with our analysts here.
Silicone Potting Compounds Can Continue to Out-gas After Curing which is Estimated to Restrain the Market Growth
Silicone potting compounds continue to out-gas after curing which leads to deposition of microscopic layers of silicone rubber on adjacent components. This may affect the paint work, solderability, and can interfere with electrical contacts. Also, the bonding performance of these compounds is slightly less compared to epoxy and polyurethane coatings which is a restraining factor.
High Demand from Automotive Industry to Generate Huge Opportunities
Silicone potting compounds are widely used in automotive sector as nowadays automotive vehicles are highly equipped with electronic devices. These devices help in communication, visualization, and entertainment. As these devices need protection from shock, moisture, temperature, and vibration, silicone potting compounds are widely used. Automotive interiors such as head up displays, touchscreen displays, navigation devices, window lifters, seat control, door closing devices, and multimedia electronics widely use silicone potting compounds as they are low odor material, flexible at low temperature, and offer moisture & liquid media protection. In addition, -automotive exteriors such as cameras, antennas, sunroof, tire pressure sensors, and rotary angle sensors use these potting compounds owing to their thermal flexibility, salt spray resistance, protection against UV radiation, and resistance to humidity & temperature variations. These factors are anticipated to drive the silicone potting compounds market share in the upcoming years.
To know more about global silicone potting compounds market opportunities, get in touch with our analysts here.
Silicone Potting Compounds Market
By Curing Technology
Source: Research Dive Analysis
The UV curing sub-type is anticipated to have the dominant market share and generate a revenue of $694.0 million by 2028, growing from $471.5 million in 2020. The UV curing is a photochemical process in which high-intensity ultraviolet (UV) light is used to instantly cure or dry silicone potting compounds. This curing technology has gained huge popularity owing to its application across aerospace, defense, medical & dental devices, electronics, fiber optics, ink-jet printing, and others. This is because UV curing is a constant and high-quality process that offers instant drying and minimizes the shrinkage of the original application. It offers high glass durable coating within short time. UV curing imparts excellent properties to the substrate such as chemical & scratch resistance, faster production speed, modular design, 2D & 3D components can be UV cured, and reduce scrap. These factors are anticipated to drive the UV curing market growth during the analysis timeframe.
Silicone Potting Compounds Market
By End-use Industry
Source: Research Dive Analysis
The electronics sub-segment is anticipated to have the dominant market share and generate a revenue of $727.9 million by 2028, growing from $497.3 million in 2020. Electronics is one of the fastest growing industries owing to wide range of application across industrial, automotive, military, aerospace, and other sectors. To ensure reliability of such critical devices, the potting compounds must offer excellent performance. In this case, silicone potting compounds offer excellent protection against moisture, physical shock, vibration, and high temperature. For instance, electronic devices such as power supplies, switches, sensors, and traffic lights need seal enclosure for smooth operation. In such cases, the use of silicone potting compounds offers protection against physical and mechanical stress, aging, UV exposure, and others. Thus, potting ensures longevity and protects the devices from exposure to dust, extreme temperature, and moisture. These aspects are anticipated to drive the electronics sub-segment growth in the upcoming years.
Silicone Potting Compounds Market
Source: Research Dive Analysis
The Market for Silicone Potting Compounds in Asia-Pacific to be the Most Dominant and Fastest Growing
The Asia-Pacific silicone potting compounds market accounted $328.2 million in 2020 and is projected to grow with a CAGR of 5.2%. Asia-Pacific silicone potting compounds market is driven by the presence of leading electronics manufacturing and consuming countries such as China, India, Japan, South Korea, and others. For instance, Investindia.gov.in, the national investment promotion & facilitation agency, -stated that in 2020-2021, the electronics export in India accounted for $10.6 billion and Indian electronics market was $118 billion in 2020-2021. Also, electronics has been the pillar of Chinese market and the country is world’s leading exporter of electronics. In addition, Japan is well-known for leading electronics manufacturing companies namely Sony, Fujitsu, Hitachi, Fujifilm, Canon, Seiko Group, Yamaha, Mitsubishi Electronics, Nikon, and others. Silicone potting compounds are widely used in electronics devices as they offer protection against mechanical impact, humidity, chemical, and temperature changes. These aspects are anticipated to drive the Asia-Pacific silicone potting compounds market size during the forecast period.
Competitive Scenario in the Global Silicone Potting Compounds Market
Product launch and partnership are common strategies followed by major market players.
Source: Research Dive Analysis
Some of the leading silicone potting compounds market players are Dow Silicones Corporation, Dymax Corporation, Henkel AG & Co. KGaA, Elantas, Master Bond Inc., LORD Corporation, Novagard Solutions, MG Chemicals, CHT Group, and Hernon Manufacturing, INC.
Porter’s Five Forces Analysis for the Global Silicone Potting Compounds Market:
- Bargaining Power of Suppliers: The bargaining power of suppliers is moderate as number of raw material suppliers is high and product differentiation is low. Also, switching cost is low due to which buyers can easily switch to other suppliers to procure necessary raw materials required for silicone potting compounds.
Thus, the bargaining power of suppliers is moderate.
- Bargaining Power of Buyers: The bargaining power of buyers is high as purchase quantity is high. This is because silicone potting compounds are widely used across various industry segments majorly electronics, automotive, industrial, aerospace, and others.
Thus, buyer’s bargaining power will be high.
- Threat of New Entrants: The threat of new entrants is moderate owing to the presence of large number of well-established players in the market. Also, the initial capital required for manufacturing of silicone potting compounds is significantly high as they have to adhere to various safety regulations.
Thus, the threat of the new entrants is moderate.
- Threat of Substitutes: The threat of substitute is high owing to the presence of alternative potting compounds such as epoxy and polyurethane potting compounds.
Thus, the threat of substitutes is high.
- Competitive Rivalry in the Market: Top companies operating in this market are focusing on adopting various growth strategies such as product launch and partnerships to acquire large number of customers.
Therefore, competitive rivalry in the market is high.
Historical Market Estimations
Base Year for Market Estimation
Forecast Timeline for Market Projection
North America, Europe, Asia-Pacific, LAMEA
Segmentation by Curing Technology
Segmentation by End-use Industry
Key Companies Profiled
Q1. What is the size of the global silicone potting compounds market?
A. The size of the global silicone potting compounds market was over $900.5 million in 2020 and is projected to reach $1,267.6 million by 2028.
Q2. Which are the major companies in the silicone potting compounds market?
A. Dow Silicones Corporation, Dymax Corporation, and Henkel AG & Co. KGaA are some of the key players in the global silicone potting compounds market.
Q3. Which region, among others, possesses greater investment opportunities in the near future?
A. The Asia-Pacific region possesses great investment opportunities for investors to witness the most promising growth in the future.
Q4. What will be the growth rate of the Asia-Pacific silicone potting compounds market?
A. Asia-Pacific silicone potting compounds market is anticipated to grow at 5.2% CAGR during the forecast period.
Q5. What are the strategies opted by the leading players in this market?
A. Product launch and partnership are the two key strategies opted by the operating companies in this market.
Q6. Which companies are investing more on R&D practices?
A. Elantas, Master Bond Inc., and LORD Corporation are the companies investing more on R&D activities for developing new products and technologies.
1.2.Real time insights and validation
1.4.Assumptions and forecast parameters
2.2.Curing Technology trends
2.3.End-use Industry trends
3.1.Market segmentation & definitions
3.2.1.Top investment pockets
3.2.2.Top winning strategies
3.3.Porter’s five forces analysis
3.3.1.Bargaining power of consumers
3.3.2.Bargaining power of suppliers
3.3.3.Threat of new entrants
3.3.4.Threat of substitutes
3.3.5.Competitive rivalry in the market
3.8.Market value chain analysis
4.Silicone Potting Compounds Market, by Curing Technology
4.1.1.Key market trends, growth factors, and opportunities
4.1.2.Market size and forecast, by region, 2020-2028
4.1.3.Market share analysis, by country, 2020 & 2028
4.2.High Temperature/Thermal Curing
4.2.1.Key market trends, growth factors, and opportunities
4.2.2.Market size and forecast, by region, 2020-2028
4.2.3.Market share analysis, by country, 2020 & 2028
4.3.Room Temperature Curing
4.3.1.Key market trends, growth factors, and opportunities
4.3.2.Market size and forecast, by region, 2020-2028
4.3.3.Market share analysis, by country, 2020 & 2028
5.Silicone Potting Compounds Market, by End-use Industry
5.1.1.Key market trends, growth factors, and opportunities
5.1.2.Market size and forecast, by region, 2020-2028
5.1.3.Market share analysis, by country, 2020 & 2028
5.2.1.Key market trends, growth factors, and opportunities
5.2.2.Market size and forecast, by region, 2020-2028
5.2.3.Market share analysis, by country, 2020 & 2028
5.3.1.Key market trends, growth factors, and opportunities
5.3.2.Market size and forecast, by region, 2020-2028
5.3.3.Market share analysis, by country, 2020 & 2028
5.4.1.Key market trends, growth factors, and opportunities
5.4.2.Market size and forecast, by region, 2020-2028
5.4.3.Market share analysis, by country, 2020 & 2028
6.Silicone Potting Compounds Market, by Region
6.1.1.Key market trends, growth factors, and opportunities
6.1.2.Market size and forecast, by Curing Technology, 2020-2028
6.1.3.Market size and forecast, by End-use Industry, 2020-2028
6.1.4.Market size and forecast, by country, 2020-2028
220.127.116.11.Market size and forecast, by Curing Technology, 2020-2028
18.104.22.168.Market size and forecast, by End-use Industry, 2020-2028
22.214.171.124.Market size and forecast, by Curing Technology, 2020-2028
126.96.36.199.Market size and forecast, by End-use Industry, 2020-2028
188.8.131.52.Market size and forecast, by Curing Technology, 2020-2028
184.108.40.206.Market size and forecast, by End-use Industry, 2020-2028
6.2.1.Key market trends, growth factors, and opportunities
6.2.2.Market size and forecast, by Curing Technology, 2020-2028
6.2.3.Market size and forecast, by End-use Industry, 2020-2028
6.2.4.Market size and forecast, by country, 2020-2028
220.127.116.11.Market size and forecast, by Curing Technology, 2020-2028
18.104.22.168.Market size and forecast, by End-use Industry, 2020-2028
22.214.171.124.Comparative market share analysis, 2020 & 2028
126.96.36.199.Market size and forecast, by Curing Technology, 2020-2028
188.8.131.52.Market size and forecast, by End-use Industry, 2020-2028
184.108.40.206.Market size and forecast, by Curing Technology, 2020-2028
220.127.116.11.Market size and forecast, by End-use Industry, 2020-2028
18.104.22.168.Market size and forecast, by Curing Technology, 2020-2028
22.214.171.124.Market size and forecast, by End-use Industry, 2020-2028
126.96.36.199.Market size and forecast, by Curing Technology, 2020-2028
188.8.131.52.Market size and forecast, by End-use Industry, 2020-2028
6.2.10.Rest of Europe
184.108.40.206.Market size and forecast, by Curing Technology, 2020-2028
220.127.116.11.Market size and forecast, by End-use Industry, 2020-2028
6.3.1.Key market trends, growth factors, and opportunities
6.3.2.Market size and forecast, by Curing Technology, 2020-2028
6.3.3.Market size and forecast, by End-use Industry, 2020-2028
6.3.4.Market size and forecast, by country, 2020-2028
18.104.22.168.Market size and forecast, by Curing Technology, 2020-2028
22.214.171.124.Market size and forecast, by End-use Industry, 2020-2028
126.96.36.199.Market size and forecast, by Curing Technology, 2020-2028
188.8.131.52.Market size and forecast, by End-use Industry, 2020-2028
184.108.40.206.Market size and forecast, by Curing Technology, 2020-2028
220.127.116.11.Market size and forecast, by End-use Industry, 2020-2028
18.104.22.168.Market size and forecast, by Curing Technology, 2020-2028
22.214.171.124.Market size and forecast, by End-use Industry, 2020-2028
126.96.36.199.Market size and forecast, by Curing Technology, 2020-2028
188.8.131.52.Market size and forecast, by End-use Industry, 2020-2028
6.3.10.Rest of Asia Pacific
184.108.40.206.Market size and forecast, by Curing Technology, 2020-2028
220.127.116.11.Market size and forecast, by End-use Industry, 2020-2028
6.4.1.Key market trends, growth factors, and opportunities
6.4.2.Market size and forecast, by Curing Technology, 2020-2028
6.4.3.Market size and forecast, by End-use Industry, 2020-2028
6.4.4.Market size and forecast, by country, 2020-2028
18.104.22.168.Market size and forecast, by Curing Technology, 2020-2028
22.214.171.124.Market size and forecast, by End-use Industry, 2020-2028
126.96.36.199.Market size and forecast, by Curing Technology, 2020-2028
188.8.131.52.Market size and forecast, by End-use Industry, 2020-2028
184.108.40.206.Market size and forecast, by Curing Technology, 2020-2028
220.127.116.11.Market size and forecast, by End-use Industry, 2020-2028
7.1.Dow Silicones Corporation
7.1.2.Operating business segments
7.1.5.Key strategy moves and development
7.2.2.Operating business segments
7.2.5.Key strategy moves and development
7.3.Henkel AG & Co. KGaA
7.3.2.Operating business segments
7.3.5.Key strategy moves and development
7.4.2.Operating business segments
7.4.5.Key strategy moves and development
7.5.Master Bond Inc.
7.5.2.Operating business segments
7.5.5.Key strategy moves and development
7.6.2.Operating business segments
7.6.5.Key strategy moves and development
7.7.2.Operating business segments
7.7.5.Key strategy moves and development
7.8.2.Operating business segments
7.8.5.Key strategy moves and development
7.9.2.Operating business segments
7.9.5.Key strategy moves and development
7.10.Hernon Manufacturing, INC.
7.10.2.Operating business segments
7.10.5.Key strategy moves and development
Potting is the process of filling an electronics component or assembly with solid compounds in order to protect them from the surrounding environment. These compounds are extensively used to protect electronic devices from moisture and insulate them. Besides, potting compounds are superior shock resistant and remarkable flame retardants. The widely used potting materials include epoxy, polyurethane, silicone, and others. Among these, silicone polymers exhibit excellent electrical properties, have a wide operating temperature range, good chemical, hardness range, humidity, & water resistance, and also offers ease-of-use.
Silicone potting compounds have applications across various sectors, such as aerospace, electrical & electronics, industrial, energy & power, automotive, solar power, and marine industries. The demand for shield sensitive components is rising from various industries, such as automotive, communications, and computing, which is predicted to drive the growth of the global silicone potting compounds market in the upcoming future. In addition, the demand for silicone potting compounds is projected to increase in the near future, due to the expansion of the electronics industry across the globe.
COVID-19 Impact on Silicone Potting Compounds Market
The outbreak of COVID-19 across the globe has unfavorably impacted the global silicone potting compounds market growth. The decrease in the growth of the market is majorly owing to the declining demand from various sectors, especially the automotive industry which witnessed fall in sales & demand. This is mainly because silicone potting compounds are broadly used in the engine components and exterior & interior parts of automotive vehicles. Besides, the aerospace & industrial sector struggled to survive during the period of crisis, which has disrupted the global market growth. Furthermore, travel restrictions in import & export and reduced cash flow owing to the delay in purchases have further worsened the situation.
Silicone Potting Compounds Market Trends and Developments
The companies operating in the global industry are adopting several growth strategies and business tactics such as partnerships, collaboration, business vs expansion, and product launches to obtain a leading position in the global industry, which is predicted to drive the global silicone potting compounds market growth in the upcoming years.
For instance, in January 2019, Intertronics, the supplier of adhesives, sealants, coatings, and equipment to customers with high-performance, high technology assembly applications, introduced a low viscosity silicone sealant ‘SilGel 612’ from WACKER. The properties of SilGel 612 make it a good sealant for electronic product manufacturers, mostly for encapsulating and potting electronic sensors, control units, and printed circuit boards.
In March 2022, Shin-Etsu Silicones of America, Inc., the global chemical company that specializes in silicone products, introduced their UV-Activated Dual-Cure Silicone Series including KER-4410 and KER-4440 as the focal points in order to advance silicones for LiDAR and related automotive sensor applications. Silicone compounds featuring a main chain of siloxane bonds provide distinct advantages as compared to epoxy alternatives including stress releasing, cold resistance, heat stability, no curing shrinkage, and radical/addition polymerization.
Forecast Analysis of Global Market
The global silicone potting compounds market is projected to witness an exponential growth over the forecast period, owing to the unique characteristics of silicone potting compounds over potting compounds, such as urethanes and epoxies. Conversely, the high costs and less bonding performance associated with silicone potting compounds as compared to epoxy & polyurethane coatings is expected to hamper the market growth in the projected timeframe.
The increasing popularity of silicone potting compounds due to growing usage in the automotive and electronics industries and the unique characteristics of these compounds like protection against environmental factors, including water ingress, corrosion due to moisture, or protection from caustic gases & chemicals are the significant factors and silicone potting compounds market trends estimated to bolster the growth of the global market in the coming future. According to a latest report published by Research Dive, the global silicone potting compounds market is expected to garner $1,267.6 million during the forecast period (2021-2028). Regionally, the Asia-Pacific market is estimated to be most dominant by 2028, owing to the presence of leading electronics consuming and manufacturing countries in the region, such as India, China, South Korea, Japan, and others.
The key players functioning in the global market include Dow Silicones Corporation, Henkel AG & Co. KGaA, Dymax Corporation, Elantas, LORD Corporation, Master Bond Inc., Novagard Solutions, CHT Group, MG Chemicals, and Hernon Manufacturing, INC.