The Automotive Silicone Market Projected to Grow at a CAGR of 8.5% and Generate a Revenue of $6,068.1 million by 2032Download Sample Reports Overview
The global automotive silicone market is predicted to be valued at $6,068.1 million by 2032, surging from $2,701.4 million in 2022, at a noteworthy CAGR of 8.5%.
Impact Analysis of COVID-19 on the Automotive Silicone Market
The COVID-19 pandemic has had both positive and negative impacts on the automotive silicone market. The pandemic led to disruptions in global supply chains, affecting the availability of raw materials and components necessary for automotive silicone manufacturing. This disruption caused delays in project timelines and slowed down the growth of the automotive market. Moreover, due to lockdowns, travel bans, and economic unpredictability, the automotive industry saw a sharp fall in demand during the pandemic's early stages. In addition, because of this, the production of the automotive industry was hampered, which decreased the need for automotive silicone and other related components. During the pandemic, various countries adopted stimulus plans to boost their economies. These plans were intended to ease financial burdens, promote liquidity, and support ongoing corporate operations. Governments provided tax breaks and other assistance programs to encourage the automotive sector. To aid the automobile sector, governments also offered loans, loan guarantees, and financial support programs.
Global Automotive Silicone Market Analysis
A specific kind of silicone substance that is primarily intended for use in automobile applications is referred to as automotive silicone. A versatile polymer called silicone is well-known for its high levels of durability, electrical insulation, and temperature tolerance. Silicone is mostly used in the automotive industry due to its distinct qualities and advantages. Silicone has the ability to survive temperature extremes, both high and low, without altering its physical characteristics. It is appropriate for automotive applications that undergo heat and cold, such as engine compartments and exhaust systems, as it maintains flexibility and stability over a broad temperature range.
In order to increase fuel efficiency and overall performance, automakers are constantly working to reduce the weight of their vehicles. In the design of vehicles, lightweight materials including aluminum, high-strength steel, carbon fiber composites, and plastics are being utilized more. Silicone-based materials, including silicone foams, adhesives, and sealants, play a significant role in the effort to make automotive parts lighter due to their low density and capacity to replace heavier materials. These thin silicone materials are used in a variety of applications, including seals, gaskets, electrical parts, and thermal management systems, to lighten the total weight of vehicles.
The automotive silicone market growth is expected to be hampered by the interruption in automotive production due to supply chain disruption. Disruptions in any single raw material availability may hamper the entire production process. In addition, different automotive applications may need particular silicone products and the unavailability of particular kind of raw material supply is anticipated to hamper the market expansion in the upcoming years.
In the areas of thermal management, aerodynamics, powertrain & electrification, and fuel efficiency, silicone-based solutions help to improve these areas. Enhancing engine performance and fuel efficiency depend heavily on effective heat management. Thermal interface materials and coolant hoses, both of which employ silicone as a basic material, are used to regulate heat and keep engines running at their ideal temperatures, which increases fuel economy. Silicone-based sealants, adhesives, and gaskets are utilized in powertrain parts, such as engines, transmissions, and exhaust systems, to improve performance and decrease energy losses. The development of electrification and the expansion of EV range are further supported by the use of silicone materials in electrical insulation, battery pack sealing, and thermal management.
The need for silicone-based materials is anticipated to increase as the production of electric vehicles soars on a global scale. This offers a chance for producers of automotive silicone to broaden their product lines, provide creative solutions, and meet the unique requirements of the EV market. The global market for automotive silicone has a sizable opportunity due to the rising production of electric vehicles (EVs). The strong electrical insulating qualities of silicone materials also make them ideal for use in electric vehicle connectors, gaskets, and wire and cable insulation. Electrical insulating materials that are dependable and high performing will become more in demand as EVs include more sophisticated electronics and electrical systems.
Global Automotive Silicone Market, Segmentation
The automotive silicone market is segmented on the basis of type, application, and region.
The type segment is classified into elastomers, resins, gels, and others. Among these, the gels sub-segment is anticipated to be the fastest growing during the forecast period. A special sealant for electrical potting and encapsulating is silicone gel. Silicone gel is ideal for potting and encapsulating a wide range of components, including semiconductors, insulated-gate bipolar transistor (IGBTs), automotive ECU modules, IC chips, weighing sensors, waterproof connectors, junction box enclosures, cable splice kits, and electrical insulation. All these factors are predicted to drive the segment growth in the upcoming years.
The application segment is further classified into interior & exterior, engines, electrical systems, and others. Among these, the electrical systems application sub-segment is predicted to have the fastest growth during the forecast period. The surging production and demand for electric vehicles is expected to accelerate the demand for electrical systems in the automotive industry. The automotive silicone industry has a sizable opportunity due to the rise in electric vehicle (EV) production across the globe. Due to their distinct characteristics and advantages, silicone-based materials are frequently used in a variety of automobile parts and applications. The battery and powertrain systems in particular produce heat while an electric car is in operation. Silicone-based thermal management products, such as adhesives, gels, and thermal interface materials, can efficiently manage and dissipate heat, assuring the best performance and security of EV parts.
The automotive silicone market in LAMEA is projected to show the fastest growth during the forecast period. EVs are becoming more popular in several passenger automobile markets in Latin America. Brazil and Mexico have higher EV sales but lower market shares due to their larger market sizes. Mexico is the single country in Latin America that is a participant of the Zero-Emission Vehicle Transition Council (ZEVTC), an international council determined on enhancing political cooperation on the transition to zero emission vehicles (ZEVs). The adoption of electric passenger cars is still in its beginning stage in Latin America, as it is in other emerging regions. Significant EV players are attempting to enter the Brazilian market. For instance, the Chinese manufacturer BYD Co. Ltd. stated in November 2022, that it would start selling two new electric vehicle models in Brazil, relying on favorable political and environmental changes in the region's largest auto market.
Key Players in the Global Automotive Silicone Market
Some of the leading automotive silicone market players are Shin Etsu, Wacker Chemie, Siltech, Elkem Silicones, Momentive Performance Materials, Primasil Silicones, Dowdupont, Evonik, KCC Corporation, and Henkel AG & Co.