Silicone rubber is an elastomer or rubber-like material that is made of silicone, which in itself is a polymer of silicon, carbon, oxygen, and hydrogen. The properties of silicone rubber make it immensely popular across industries, and treatment of the silicone rubber can further enhance desirable properties. In general, silicone rubbers are stable, non-reactive and can withstand extreme temperatures and environments while maintaining its beneficial properties.
The silicone rubber market is witnessing a massive demand growth rate of 10-20 percent, however, with the lack of announcement of significant capacity additions, the silicone rubber market is expected to remain restricted till 2021. Already, the silicone rubber market is witnessing a supply crunch as the overall global supply is 680,000 metric tons (MT) with a demand of 780,000 MT, despite an estimated capacity of 900,000 MT. The maximum demand is from China, which accounts for 54 percent of the global demand for silicone rubber, followed by Europe for 18 percent of the demand. For more in-depth analysis buy report from Beroe.
Silicone Rubber Market 2019 Global Top Players and Share
- The top global players in the silicone rubber market 2019 are Dow Corning, Wacker, Shin-Etsu, and Blustar. These global players have backward integration leading up to silicon metal and accordingly have full control over the silicone production volume chain. Among these manufacturers, Dow Corning and Wacker have the maximum market share and typically tend towards dictating price movements in the market.
- Another major global player in the silicone rubber market is Momentive, which also has backward integration to siloxanes. However, Momentive has been facing challenges after their Germany plant for siloxane was shut down, resulting in their position weakening in the market. There exists a considerable amount of intra-industry trade among these 5 major silicon rubber suppliers for siloxane monomers.
- China accounts for more than 50 percent of the global demand for silicone rubber, while Europe, North America, and China together account for over 80 percent of the demand. Although China is a major producer of silicone rubber with an installed capacity of 580,000 MTPA and demand of 420,000 MTPA, there have been quality concerns over Chinese produced silicone rubber.
- The automotive industry and electronics are among the two largest end-user industries for silicone rubber. Automotives uses silicone rubber for various applications as it is lightweight and does not add to the weight of the vehicle and reduces fuel consumption. Since silicone rubber is flexible and an excellent insulate, it is widely used in electronics.
Silicone Rubber Market 2019 Trend
- The demand for silicone rubber has been growing at an exponential pace across industries and usages, including use in cookware, baking products, food storage products, apparel such as sportswear and undergarments, footwear, medical devices, and home repair sealants. While there is a great demand for High temperature vulcanized (HTV) silicone rubber, there is an even higher demand for Liquid Silicone Rubber (LSR).
- Silicone rubber is emerging as a popular and more environmentally friendly alternative to plastics which are non-biodegradable. As the restrictions on using plastics increase and consumers become more environmentally conscious, silicone is being used as a replacement for plastic.
- Although there is a massive demand for silicone rubber, the market is facing a supply crunch due to various reasons. Major western manufacturers moved their production activities to China, due to lower cost of production, leaving their original Western plants running at reduced capacity or idling. Meanwhile, the Chinese government conducted environmental regulations that resulted in a temporary shut down or low rate production for many silicone rubber manufacturers. Siloxane monomer shortage further serviced to worsen the supply crunch.
Conclusion
The silicone rubber market is a massive global industry with several top players and ever-increasing market size. The versatile nature of silicone rubber and the potential to further enhance its properties has led to a major demand for silicone rubber that is currently not being met by the existing global supply. The silicone rubber market is expected to grow further in the coming years, especially as it evolves as a suitable replacement for harmful plastics.
