Automotive Silicone Market Expected to Reach $6.1 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Automotive Silicone Market," The automotive silicone market size was valued at $2.7 billion in 2022, and is estimated to reach $6.1 billion by 2032, growing at a CAGR of 8.5% from 2023 to 2032.

Automotive silicone is a particular kind of silicone substance that is primarily intended for use in automobile applications. Silicone is mostly utilized in the automotive industry due to its distinct qualities and advantages. The high and low-temperature tolerance of silicone benefits it to tolerate harsh conditions without losing any of its physical characteristics. Automotive silicone is suitable for automotive applications that are exposed to heat and cold, such as engine compartments and exhaust systems because the silicone maintains flexibility and stability over a broad temperature range.

The market for automotive silicone is estimated to escalate owing to the escalating fuel efficiency programs and the demand for lightweight & efficient materials in the automotive sector. The growth of the global automotive silicone market is also anticipated to be progressed by the rise of the automotive sector in countries such as China, South Korea, and India. Moreover, in order to decrease the overall weight of vehicles, these lightweight silicone materials are opted for a variety of applications, including gaskets, seals, thermal management systems, and electrical parts. In addition, automakers are concentrating on increasing the fuel efficiency of automobiles due to the rising prices of gasoline and environmental sustainability.

The suspension of auto production brought on by a broken supply chain is expected to hinder the growth of the automotive silicone market. The entire production process may be hampered by disruptions in the supply of any one product or equipment. Furthermore, different automotive applications requires a certain silicone product, and the absence of a specific type of raw material supply is projected to hinder the automotive silicone market expansion.

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. Moreover, silicone materials have exceptional electrical insulation qualities, which makes them appropriate for uses in electric vehicle connectors, gaskets, and wire and cable insulation. The need for dependable, high-performance electrical insulation materials will rise as EVs incorporate more sophisticated electronics and electrical systems.

The automotive silicone market share is segmented on the basis of type, application, and region. By type, it is classified into elastomers, resins, gels, and others. By application, it is classified into interior & exterior, engines, electrical systems, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and Latin America.

The key players profiled in the automotive silicone market report include Shin Etsu, Wacker Chemie, Siltech, Elkem Silicones, Momentive Performance Materials, Primasil Silicones, Dowdupont, Evonik, KCC Corporation, and Henkel AG & Co.

The report offers a comprehensive analysis of the global automotive silicone market trends by thoroughly studying different aspects of the market including major segments, market statistics, market dynamics, regional market outlook, investment opportunities, and top players working towards the growth of the market. The report also highlights the present scenario and upcoming trends & developments that are contributing toward the growth of the market. Moreover, restraints and challenges that hold power to obstruct the market growth are also profiled in the report along with the Porter’s five forces analysis of the market to elucidate factors such as competitive landscape, bargaining power of buyers and suppliers, threats of new players, and emergence of substitutes in the market.

Impact of COVID-19 on the Global Automotive Silicone Industry

• The COVID-19 pandemic has had a significant impact on various industries, including the automotive industry. Global supply chains were disrupted by the pandemic, which had an impact on the availability and delivery of machinery, equipment, and raw materials for the automobile industry. Due to the resulting operational disruption, automotive silicone firms' projects and production were delayed.
• The automotive sector had a substantial decline in demand during the early stages of the pandemic as a result of lockdowns, travel restrictions, and economic instability. Furthermore, as a result of this, the automotive industry's production was reduced, which reduced the need for automotive silicone and other associated components.
• The economic consequences of the pandemic influenced investment decisions within the automotive industry. Financial constraints and uncertainties affected the allocation of resources for automotive silicone initiatives.

 Key Findings of the Study

• Based on type, the elastomers sub-segment emerged as the global leader in 2022. The gels segment is anticipated to be the fastest growing during the forecast period.
• Based on application, the interior & exterior sub-segment emerged as the global leader in 2022 and the electrical systems sub-segment is predicted to show the fastest growth in the upcoming years.
• Based on region, the Asia-Pacific market registered the highest market share in 2022 and is projected to maintain its position during the forecast period.
• The report provides in depth automotive silicone market analysis.