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.

Market Synopsis

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.

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.

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.   

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.