Silicone Adhesives Market By Type (One Component & Two Component), By Technology (Pressure Sensitive Adhesives (PSA) & Non Pressure Sensitive Adhesives (Non-PSA)), By End-use Industry (Medical & Healthcare (Pharmaceuticals & Medical Devices), Consumer Electronics (Computers, Smartphones, Refrigerators & Others), Transportation Automotive [Passenger Vehicles (PV), Light Commercial Vehicles (LCV) & Heavy Commercial Vehicles (HCV)], Aerospace (Commercial, Military & Others), Marine (Passenger, Cargo & Others) & Locomotive, Building & Construction (Residential, Commercial, Industrial & Infrastructure) & Others), By Geography - Global Opportunity Analysis & Industry Forecast, 2022-2027
Silicone Adhesives Market Overview
The Silicone Adhesives Market size is projected to reach US$3.8 billion by 2027, after growing at a CAGR of 6.1% during the forecast period 2022-2027. Silicone adhesives composed of nanocomposite, silica and more have various performance benefits, including higher flexibility, excellent environmental resistance and more. These benefits make silicone adhesives ideal for various applications, including fabric, medical adhesive and more. The bolstering building & construction industry is the primary factor driving the growth of the silicone adhesives market. According to the Office for National Statistics U.K., in 2020, the construction of private housing in the U.K. was valued at €32,991 million (US$37,682.2 million) and in 2021, it was valued at €38,302.6 million (US$45,302 million), an increase of 16.1%. However, in 2020, COVID-19 led to restrictions associated with the supply chain, logistics and more, which impacted production activities. This negatively impacted the growth of the silicone adhesives industry. In 2021, the governmental measures to resurge the production activities fueled the growth of the silicone adhesives industry. Moreover, the growth of the transport industry is fueling the demand for silicone adhesives. As a result, the Silicone Adhesives market size would grow throughout the forecast period.
Silicone Adhesives Market Report Coverage
The "Silicone Adhesives Market Report–Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Silicone Adhesives Market.
By Type: One Component and Two Component.
By Technology: Pressure Sensitive Adhesives (PSA) and Non Pressure Sensitive Adhesives (Non-PSA).
By End-use Industry: Medical & Healthcare (Pharmaceuticals and Medical Devices), Consumer Electronics (Computers, Smartphones, Refrigerators and Others), Transportation Automotive [Passenger Vehicles (PV), Light Commercial Vehicles (LCV) and Heavy Commercial Vehicles (HCV)], Aerospace (Commercial, Military and Others), Marine (Passenger, Cargo and Others) and Locomotive, Building & Construction (Residential, Commercial, Industrial and Infrastructure) and Others.
By Geography: North America (the USA, Canada and Mexico), Europe (the UK, Germany, France, Italy, the Netherlands, Spain, Russia, Belgium and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia and the Rest of APAC), South America (Brazil, Argentina, Colombia, Chile and the Rest of South America) and the Rest of the World [the Middle East (Saudi Arabia, the UAE, Israel and the Rest of the Middle East) and Africa (South Africa, Nigeria and the Rest of Africa)].
- Asia-Pacific dominated the Silicone Adhesives Market, owing to the growth of the building & construction industry in the region. The city of Hai Phong (Vietnam) plans to build 15 new industrial parks with a total area of more than 6,400 hectares between 2021 and 2025.
- The surging adoption of Silicone Adhesives in the medical & healthcare sector is driving the market growth.
- Additionally, end-use industries such as electronics, aerospace, construction and more are predicted to experience sustainable growth as a result of the growing development in polymer technology with exceptional performance.
- However, the high cost of Silicone Adhesives is expected to restrain the market growth during the projected forecast period.
Figure: Silicone Adhesives Market Revenue Share, by Type, 2021 (%)
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Silicone Adhesives Market Segment Analysis – by Type
The one-component segment held 60% share of the Silicone Adhesives Market in 2021. One-component silicone adhesive requires a humidity range of 5% to 95% and a temperature range of 40°F to 100°F (5°C and 40°C) to cure the adhesive and sealants. Aerospace and aviation applications frequently use one-component silicone adhesive. Additionally, it is frequently used in the transportation industries due to its high flexibility and strong adhesion to a variety of substrates, including metal, plastics and others. Thus, owing to the above-mentioned benefits, the adoption of one-component Silicone Adhesives is growing, which is accelerating market growth.
Silicone Adhesives Market Segment Analysis – by End-use Industry
The building and construction segment held the largest share of the Silicone Adhesives Market in 2021 and is expected to grow at a CAGR of 6.3% during the forecast period 2022-2027. Silicone adhesives are used to join a variety of materials, including plastics, metal, glass, granite and concrete. They maintain their bond while absorbing stress from earthquakes and wind. As a result, it is frequently utilized in the building and construction industry. The governmental initiatives for infrastructure development, increasing demand for commercial office space and other factors are vital for the growth of the building and construction activities. In Q3 of 2021, the development of various offices started in Germany, which included Markisches Zentrum Redevelopment (completion year Q4 2023), Minden Headquarters Building (completion year Q3 2024) and others. Hence, the surge in construction activities continues to fuel the demand for silicone adhesives. This factor is accelerating market growth.
Silicone Adhesives Market Segment Analysis – by Geography
Asia-Pacific dominated the Silicone Adhesives Market in 2021 with a market share of up to 43.5%. The boom in the economic expansion of the Asia-Pacific region is augmenting the growth of various industries such as building & construction activities, transport and more. The constantly increasing retail store building construction, ongoing development of commercial centers and other similar variables are driving the growth of the building and construction industry in Asia-Pacific. In 2019, the government of China commissioned 26 infrastructure projects related to rail, road, bridges and more with a projected investment of 981.7 billion yuan (US$142 billion). Therefore, the growth of the building and construction industry in Asia-Pacific is boosting the demand for silicone adhesives. This, in turn, is accelerating the growth of the Silicone Adhesives market size.
Silicone Adhesives Market Drivers
Booming Transport Industry
Silicone Adhesives have several key benefits, including higher durability ensured by strong resistance to climatic extremes and pollution, low surface tension and great elasticity to avoid breaking. As a result, it is utilized in the transport vehicles structure for adherence of metal, plastics and other substrates. The factors such as the increasing adoption of passenger cars, booming transport production and other factors are accelerating the growth of the transport industry. According to the Organisation Internationale des Constructeurs d'Automobiles (OICA), in 2021, global automotive production was 80,145,988 units, an increase of 2% over 2020. Moreover, according to Airbus, the widebody aircraft production in 2018 was 96 units and in 2019, it was 153 units, an increase of 59.4%. Thus, the growth of the transport industry is accelerating the demand for Silicone Adhesives, thereby, driving the market growth.
Growth of the Medical Device Industry
Silicone Adhesives are deployed as medical adhesives in the medical device industry. Silicone adhesives are also used as excipients in transdermal patches. In addition, they are used as skin contact adhesives for prosthetic and wound care device attachment. Factors such as technological improvements in medical equipment and an aging population are accelerating the growth of the medical device industry. According to the International Trade Administration (ITA), Canada is the world's eighth-largest medical device market, valued at around USD$8.6 billion in 2020. Thus, the growth of the medical device industry is boosting the demand for medical adhesives composed of Silicone Adhesives, which, in turn, is driving the market growth.
Silicone Adhesives Market Challenge
Higher Cost Associated with Silicone Adhesives
Silicone Adhesives have the advantage of higher durability. However, the prices of silicone adhesives are increasing due to factors such as a surge in raw materials prices, supply chain disruption, the Russia-Ukraine war impact and others. In May 2022, Shin-Etsu, a leading manufacturer of silicone products, headquartered in Japan, raised the selling prices of its silicone goods by 10%, which also included silicone adhesives. Therefore, the high price associated with silicone adhesives may restrict the growth of the Silicone Adhesives industry in the coming years.
Key Market Players
Technology launches, acquisitions and increased R&D activities are key strategies adopted by players in the Silicone Adhesives Market. The top 10 companies in the Silicone Adhesives market are:
- Arkema (Bostik)
- Avery Dennison Corporation
- Delo Industrial Adhesives LLC
- General Sealants Inc.
- H.B. Fuller Company
- Henkel AG & Co. KGaA
- Illinois Tool Works Inc.
- In October 2021, DAP recently introduced a line of four hybrid sealants to combine the superior qualities of silicone and polyurethane with a special formula for a variety of applications. The main focus of this product launch was to expand its presence in the Silicone Adhesives market.
- In August 2021, a contract was signed for Arkema to purchase Ashland's Performance Adhesives division, a premier provider of high-performance adhesives for industrial applications in the US with a distinctive and cutting-edge product line. The group's goal to dominate the market for pure specialty materials by 2024 is perfectly complemented by this project.
- In January 2021, Momentive Performance Materials Inc. announced its intention to enter a binding agreement to acquire KCC Corporation's Silicones businesses in South Korea and the United Kingdom, as well as its sales operations in China to further strengthen Momentive's global capabilities in advanced silicone and specialized applications.
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