Silicone Fluid Market By Type (Straight & Modified), By Application (Paints & Coatings, Lubricant & Greases, Rubber & Plastics, Defoamers, Hydraulic Fluids, Polishes, Aerosol Sprays & Others), By End-Use Industry (Building & Construction (Residential, Commercial, Industrial & Infrastructural), Personal Care & Beauty (Face Care, Hair Care, Nail Care & Others), Medical & Pharmaceuticals, Automotive [Passenger Vehicles (PVs), Light Commercial Vehicles (LCVs), Heavy Commercial Vehicles (HCVs)], Aerospace (Military, Commercial & Others), Textiles, Electrical & Electronics (Cells, Light Emitting Diodes & Others) & Others), By Geography - Global Opportunity Analysis & Industry Forecast, 2022-2027
Silicone Fluid Market Overview
The Silicone Fluid Market size is estimated to reach US$1.7 billion by 2027, after growing at a CAGR of 4.5% during the forecast period 2022-2027. Silicone Fluid or polydiorganosiloxanes are transparent, odorless and tasteless liquids with electromagnetic characteristics. These fluids have growing applications as anti-foaming agents, additives and others for personal care, automotive, construction and others, thereby having major demand across major end-use sectors. The rapid utilization of silicone fluids, including simethicone in medical & pharmaceutical, is boosting growth scope due to growing medical infrastructure, drug technology and others. According to the International Federation of Pharmaceutical Manufacturers & Associations (IFPMA, the estimated growth of the pharmaceutical sector in North America was 5.4% for 2022. According to International Trade Administration, the worldwide pharmaceuticals market was estimated to grow from US$1 trillion in 2015 to US$1.3 trillion by 2020. In addition, bolstering production and growth scope for the personal care & beauty sector is driving the silicone fluid industry. Moreover, increasing building & construction activities and infrastructural projects are fueling the growth scope for silicone fluids for utilization in building materials, additives, sealants and others. The covid-19 outbreak resulted in major disruption in the Silicone Fluid Market due to disturbance in manufacturing activities, rise in raw material price, supply chain disruption and other lockdown restrictions. However, significant recovery in the major end-use sector is boosting the demand for silicone fluid for a wide range of applicability and utilization in beauty & personal care, automotive, pharmaceutical and others.
Silicone Fluid Market Report Coverage
The “Silicone Fluid Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Silicone Fluid Industry.
- The Asia-Pacific dominates the Silicone Fluid Market, owing to growth factors such as the flourished base for the personal care & beauty sector, initiatives towards construction projects and urbanization, thereby boosting growth in this region.
- The flourishing personal care & beauty sector across the world is propelling the demand for silicone fluid for various applications such as moisturizing creams, hair care products, cosmetics and others, thereby influencing the growth in the Silicone Fluid Market size.
- The advancement and utilization of silicone fluids, including simethicone for the medical sector, is propelling the growth prospects in the silicone fluids industry.
- However, the strict policies and fluctuation in the price of raw materials act as a challenging factor in the silicone fluid industry.
Figure: Silicone Fluid Market Revenue Share, By Geography, 2021 (%)
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Silicone Fluid Market Segment Analysis – by Type
The modified segment held a significant Silicone Fluid Market share in 2021 and is forecasted to grow at a CAGR of 4.8% during the forecast period 2022-2027. The high demand for modified silicone fluid type over the straight type is due to its superior features such as high compatibility with organic substances, emulsifying features anti-static properties and lubricity. Due to such features, the demand for silicone fluid or compounds such as polydiorganosiloxanes and simethicone is rising for applicability in cosmetics, resin modification, textile treatment, waxes, construction and others. In addition, the modified type enhances the functioning of polymeric materials and the creation of new materials across various industries, thereby having rising utilization and growth prospects. Thus, the modified type segment is anticipated to grow rapidly in the silicone fluid industry during the forecast period.
Silicone Fluid Market Segment Analysis – by End-Use Industry
The personal care & beauty segment held a significant Silicone Fluid Market share in 2021 and is forecasted to grow at a CAGR of 5.1% during the forecast period 2022-2027. Silicone Fluid has a flourishing application in the personal care & beauty sector for cosmetic ingredients, creams, shampoo and others due to its excellent features such as anti-foaming agents, physiological inertness, transparency and odorless. The lucrative growth in the personal care & beauty industry is influenced by growth factors such as emphasis on wellness and beauty, changing lifestyles, innovative cosmetics trends, rising disposable income and rapid industrialization. For instance, according to Cosmetics Europe, The Personal Care Association, the cosmetics & personal care sector in Europe had retail sales of US$82 billion in 2021. According to L’OREAL Annual Report 2021, the beauty sector of L’OREAL rose by 8.2% in the year 2021, after a sharp decline of 8% in 2020. With the increase in cosmetics production, the applicability of silicone fluid for various cosmetics & personal care products is rising, which, in turn, is projected to boost the growth prospect for the personal care & beauty industry in the Silicone Fluid Market during the forecast period.
Silicone Fluid Market Segment Analysis – by Geography
The Asia-Pacific held the largest Silicone Fluid Market share in 2021 up to 48.8%. The lucrative growth for silicone fluid in this region is influenced by the established base for the personal care & beauty sector, flourishing production base for construction and rapid urbanization. The personal care & beauty industry is significantly growing in APAC owing to growth factors such as a rise in beauty and hygiene trends, changing lifestyles and increasing demand for color cosmetics in APAC. For instance, according to the International Trade Administration (ITA), the beauty and personal care sector in Thailand increased from US$6.2 billion in 2018 to US$8.0 billion in 2022, marking a projected growth rate of 7.8% from 2019 to 2022. According to the India Brand Equity Foundation (IBEF), the beauty and cosmetics sector in India is projected to reach US$20 billion by the year 2025. With the production and consumption of cosmetics & personal care, the utilization of silicone fluid for cosmetics & personal care in creams, lipsticks, gels, shampoo and others is growing, which, in turn, is projected to boost the growth prospects in the Asia-Pacific region during the forecast period.
Silicone Fluid Market Drivers
Rapid Growth of the Automotive Industry :
Silicone Fluid or polydiorganosiloxanes has major demand in the automotive industry for a wide range of applicability in hydraulic fluids, anti-foaming agents, lubricants & greases, plastic additives, upholstery, water repellent screens and others. The lucrative growth of the automotive industry is influenced by growth factors such as rising public transportation, demand for fuel-efficient and vehicle electrification and rising income levels. For instance, according to the European Automobile Manufacturer Association, South America car production grew by 11% while US car production grew by 3.1% in 2021. According to the Society of Indian Automobile Manufacturers (SIAM), the production of passenger vehicles, commercial vehicles, three-wheelers, two-wheelers and quadricycles increased from 22,655,69 units in 2020-21 to 22,933,230 units in 2021-22 in India. International Organization of Motor Vehicles Manufacturers (OICA), the global production of passenger cars increased from 55,834,456 units in 2020 to 57,054,295 units in 2021. With an increasing automotive vehicle production and demand, the applicability of silicone fluid or high-heat resistant compounds such as polydimethylsiloxane and others for heating medium, additives, waxes and others is rising, which, in turn, boosting its demand and driving the silicone fluid industry.
Flourishing Growth of the Building & Construction Industry:
Silicone Fluid has significant applications in the building & construction industry for building material additives, adhesives, paint & coatings and others. The building & construction sector experiences lucrative growth owing to growth factors such as rising government for infrastructural projects and residential housing and urbanization. For instance, according to European Construction Industry Federation (FIEC), construction activity increased by 10.3% in volume in France for the year 2021 compared to 2020. According to World Bank data, the growth of the construction sector in the South Asia region is 6.6% in 2022. United States Census Bureau, the total construction spending in the US increased from a seasonally adjusted annual rate of US$1.62 million in May 2021 to US$1.77 million in May 2022. With the robust production and growth in building & construction, the demand for silicone fluid for applicability facades, building materials and others is growing, which, in turn, is driving the silicone fluid industry.
Silicone Fluid Market Challenges
Stringent Regulatory Policies and Increase in Raw Material Price:
Silicone Fluid products, majorly used in the personal care & beauty sector face some regulations. The usage of silicone fluids products such as cyclosiloxanes D4 and D5 is restricted by UK Authorities and European Chemicals Agency (ECHA). In addition, the continuous fluctuations in the price of raw materials also act as a challenging factor for silicone fluids. Raw materials such as silicon metal and methyl chloride have noticed a significant rise in prices. In addition, many manufacturers are increasing the prices of silicone products due to volatile raw material costs, energy shortages and production costs. For instance, Wacker Chemie, a leading manufacturer of silicone products announced an increase in global prices of silicone between 10% and 20% in April 2021. Hence, the continuous increase in raw material price and strict regulations for its usage acts as a major growth restraining factor, thereby the silicone fluids industry anticipates a major challenge.
Silicone Fluid Industry Outlook
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Silicone Fluid Market. The top 10 companies in the Silicone Fluid Market are:
- KCC Corporation
- Shin-Etsu Chemical
- Wacker Chemie
- Gelest Incorporated
- Quantum Silicones
- Clariant International Limited
- Saint Gobain
- In March 2021, Shin-Etsu Chemical Co. Ltd. developed the latest volatile silicone fluids named KF-4422 for applicability in the personal care sector, thereby offering growth scope in the market.
- In March 2021, Elkem ASA started the workshop for the production of low-viscosity silicone fluids for the personal care sector and textiles & leathers in APAC, hence, boosting the product portfolio and expansion of the portfolio.
- In March 2020, Dow Chemical Company expanded the production of silicone intermediate and downstream portfolio. It ranges from silicone fluids to adhesives at the Zhangjiagang site, thereby leading to expansion in the business.
Report Code: CMR 0178
Report Code: CMR 1145
Report Code: CMR 0236
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