Market Overview:
Silicone elastomers are a class of polymers that have properties of both rubber and plastic. They possess high temperature resistance, low compression set, greater flexibility, and superior resilience. These elastomers find widespread applications in transportation, industrial processes, medical, and consumer goods. In the transportation industry, silicone elastomers are preferred for seals, gaskets and hoses due to their heat and chemical resistance. They are also used in medical devices and implants owing to their biocompatibility.
Market key trends:
Growing demand for vehicles across the globe is a major factor driving the growth of the silicone elastomers market. According to International Organization of Motor Vehicle Manufacturers (OICA), over 93 million vehicles were produced globally in 2019. Silicone elastomers are extensively used to manufacture automotive parts that require resistance to heat, oils and fuels. Another key trend is the increasing usage of silicone elastomers in 3D printing applications as they possess properties suitable for the process. Their ability to withstand high temperatures without deterioration makes them suitable for additive manufacturing of complex parts. Rapid industrialization and infrastructure development are also contributing to the rising demand for silicone elastomers for various industrial process equipment and machinery.
Porter’s Analysis
Threat of new entrants: Silicone elastomers require high investment in technology and R&D. Established brands have strong brand recognition and distribution network which make it difficult for new players to enter.
Bargaining power of buyers: There are numerous manufacturers of silicone elastomers providing variety of products. Buyers can negotiate on price.
Bargaining power of suppliers: Major raw materials required are silicon metal and other chemicals. Large suppliers have advantage of economies of scale.
Threat of new substitutes: Silicone elastomers face competition from other materials like natural and synthetic rubbers but silicones have superior properties which restrict substitutions.
Competitive rivalry: The market is dominated by few large players. Intense competition on pricing and new product development.
Key Takeaways
The global Silicone Elastomers Market Demand is expected to witness high growth, exhibiting CAGR of 7.4% over the forecast period, due to increasing usage of elastomers in various industries like automotive, medical, consumer goods etc.
The Asia Pacific dominated the global silicone elastomers market in 2020 with a share of over 35%, due to high automotive production, expanding consumer goods sector and growth in medical devices industry in China and India. North America and Europe are also significant markets backed by escalating demand from various end-use industries.
Key players operating in the silicone elastomers market are Dow Inc. (US), Wacker Chemie AG (Germany), Momentive Performance Materials Inc. (US), Shin-Etsu Chemical Co., Ltd (Japan), China National Bluestar (Group) Co., (China), Reiss Manufacturing Inc. (US), and CHT Germany GmbH (Germany). The market is highly consolidated with top players accounting for over 65% share. Companies focus on new product launches, capacity expansions and mergers to strengthen their market position.
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