Silicone Market Analysis

Silicone Market Analysis

Fluids segment was valued at over USD 7 billion in 2021 and is expected to grow at a CAGR of over 6% from 2022 to 2030. The massive share can be attributed to their properties, which include high compressibility and no coagulation under pressure. They are suitable for a wide range of applications across multiple industries, majorly in personal care since they have significantly higher compressibility than synthetic lubricants or insulating oils made from petroleum. Manufacturers are continuously involved in the development and launch of new fluid products with advanced properties. For instance, in May 2021, Shin-Etsu Chemical Co., Ltd. developed KF-4422, a new type of volatile silicone fluid. This fluid possesses a unique characteristic called volatility, which gives the end-user a light and pleasant sensory experience. Superior solubility with substances such as UV absorbers and hydrocarbons provides further benefits. These properties are expected to further drive the silicone industry growth during the forecast period.
 

Silicone market from industrial process application segment is expected to exceed USD 7.5 billion by 2030. This growth is primarily attributed to an increase in the demand for silicone in a wide range of industrial applications including industrial coatings, paper manufacturing, offshore drilling, additives, sealants, acoustic & vibration insulation, seals & gaskets, thermal insulation, sealing profiles, and protection & safety, among others. Silicone is widely used in the oil & gas sector owing to its properties such as increased efficiency, quality, and reliability. The Middle East oil & gas sector has seen a significant transformation in recent years and as a result, investments in the region are now dispersed among various projects including LNG and specialized offshore projects. For instance, in November 2017, partners of Zakum Development Company (ZADCO) aims to expand its production from 750,000 barrels per day to 1,000,000 barrels per day. The expansion is expected to be completed by 2024.
 

Europe silicone market surpassed USD 4 billion in 2021 and is expected to register over 5% CAGR between 2022 and 2030. The regional product demand is projected to increase over the forecast period owing to the rising construction sector and projects in several economies including the UK & Germany, among others. Additionally, the market is anticipated to rise over the projected period due to silicone's expanding use in aesthetic implants in the healthcare sector. Moreover, Europe is one of the leading cosmetics & personal care markets across the globe. According to Cosmetics Europe, in 2021, the retail sales of cosmetics & personal care in Europe stood around USD 83 billion and are growing at a considerable rate. This factor provides new opportunities for silicone business expansion in the near future.