Silicone Potting Compounds Market - Forecast(2024 - 2030)

Silicone Potting Compounds Market Market Overview

Silicone potting compounds market size is forecast to reach US$1.3 billion by 2030, after growing at a CAGR of 3.8% during 2024-2030, owing to the increasing usage of silicone polymers based potting compounds over the polyester system, epoxy, polyurethane resin counterparts in various end-use industries such as automotive, aerospace, electronics, and more. Silicones are also suitable materials for potting delicate surface mount devices due to their elasticity and low modulus, which helps to prevent thermal expansion and contraction, and is expected to increase the market demand. 

The rapid growth of the electrical & electronics industry has increased the demand for silicone potting compounds; thereby, fueling the market growth. Furthermore, the flourishing aerospace industry is also expected to drive the silicone potting compounds industry substantially during the forecast period.

Silicone Potting Compounds Market Report Coverage

The report: “Silicone Potting Compounds Market – Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the silicone potting compounds Industry.

Key Takeaways

• Asia-Pacific dominates the silicone potting compounds market, owing to the increasing electrical & electronics industry in the region.
• Metermix dispenses equipment is widely utilized for processing single and two-component materials such as epoxies and polyurethane resins, and silicone polymers. It then offers solid solutions for a wide range of applications such as bonding, sealing, potting, encapsulation, reaction injection molding, and more.
• Silicone potting compounds possess extensive characteristics such as wide operating temperature range, excellent electrical properties, hardness range, good chemical, humidity, & water resistance, offers ease-of-use, and more. These properties of silicone potting compounds are projected to increase market growth.

Silicone Potting Compounds Market Segment Analysis – By Curing Technique

The UV curing segment held the largest share in the silicone potting compounds market in 2023 up to 48%, owing to its ability to cure the silicon compound in few seconds, which is time-intensive in other curing techniques. UV curing can be done in a moment; it is also commonly used in compounds for silicone potting. In addition, the high degree of permanency of the potting compound provides electronic devices with high resilience and resistance, thus increasing consumer demand. All these extensive characteristics of coated glass are the key factors anticipated to boost the demand for coated glass in various regions during the forecast period.

Silicone Potting Compounds Market Segment Analysis – By Application

The surface-mount packages segment held the largest share in the silicone potting compounds market in 2023, owing to the growing application of printed circuit boards (PCB) in electronic devices. The silicone potting compound gives protection from chemicals, humidity, dust, and bumps. In addition, it donates flame retardant and excellent electrical insulation properties, an additional benefit for onboard applications like trains, automotive, marine transportation, which is the major driving factor for the advanced glass market during the forecast period. Furthermore, the solenoids market is expected to witness the highest market growth, owing to the growing application in water treatment plants for non-corrosive applications.

Silicone Potting Compounds Market Segment Analysis – By End-Use Industry

The electrical & electronics segment held the largest share in the silicone potting compounds market in 2023 and is growing at a CAGR of 6.4% during 2024-2030, owing to the rise in demand for consumer electronics and the popularity of smart devices. Within the electronics sector, silicone polymers potting compounds are primarily used to fabricate capacitors, memory devices, solenoids, transformers, and more, over its counterparts such as polyester systems, epoxy, and polyurethane resin. Furthermore, government policies that are thriving in the electrical and electronics industry are expected to propel the market forward. For instance, in December 2023, MSTECH Europe announced an investment of $6.5 million to fuel growth of electronics industry in Barcelona, Spain. Such investments drive the silicone potting compounds market.

Silicone Potting Compounds Market Segment Analysis – By Geography

Asia-Pacific region held the largest share in the silicone potting compounds market in 2023 up to 36%, owing to the increasing demand for silicone potting compounds from the electrical and electronics industry in the region. According to the Ministry of Industry and Information Technology, China's fixed-asset investment in the electronic information manufacturing sector grew 17.3% year-on-year during the first two months of 2023. India and Japan signed a memorandum of cooperation in July 2023, to collaborate in the fields of semiconductor design, manufacturing, research, talent development, and strengthening the chip supply chain. The agreement aims to foster government-to-government as well as industry-to-industry collaboration. According to data from the Trade Ministry released in January 2024, US$18.8 billion in foreign investments was poured into South Korea in 2023, up 3.4% from 2022, with the electronics sector accounting for $3 billion of the total. Thus, the expanding electronics industry is anticipated to drive the silicone potting compounds market in the APAC region during the forecast period.

Silicone Potting Compounds Market Drivers

Increasing Automotive Production

There is an increasing demand for silicone potting compounds from the automotive sector, owing to the rise in demand for various automotive sensors, actuators, and LED lamps in vehicle electrification. According to the International Trade Administration (ITA), China is the world's largest vehicle sector, with the Chinese government expecting vehicle production to surpass 35 million by 2025. According to the 2022 report released by the OICA, China, U.S., Japan, India, and Germany are ranked among the world’s largest car markets. At about 23.56 million units, China remained the largest market for passenger car sales in 2022. India was the only country in the top five worldwide markets to have double-digit growth (28%). Thus, increasing automotive production will require more silicone potting compounds for manufacturing various automotive components, which will act as a driver for the silicone potting compounds market during the forecast period.    

Flourishing Aerospace Industry 

For decades, the durability of silicone and its high-temperature tolerance has made it a reliable alternative, and it is still one of the most powerful materials used in aerospace production today. Silicones bind various materials together, seal joints, electronic coat and encapsulate, and isolate and protect sensitive equipment from extreme temperatures and exposure to weather. Thus, there is an increasing demand for silicone potting compounds from the aerospace sector. According to Boeing’s 2023 Commercial Market Outlook (CMO), Boeing expects the global aircraft fleet to almost double over the next 20 years, from about 24,500 jets in 2022 to 48,600 by 2042. In its 2023 Global Services Forecast (GSF), Airbus predicted 40,850 deliveries, up from 39,490 in its previous 20-year forecast issued in 2022. Hence, the flourishing aerospace industry acts as a driver for the silicone potting compounds market.

Silicone Potting Compounds Market Challenges

Availability of Low-Cost Alternative

The availability of low-cost alternatives such as epoxy resin, polyurethanes may negatively impact the silicone potting compound's market growth during the forecast period. Silicone resins tend to be more costly than epoxies or polyurethane resins, but are found to be used at high or medium continuous operating temperatures (-50 to 200 °C). Although there are some benefits to silicone potting compounds, polyurethanes tend to perform better for many applications. 

The primary benefit of silicone potting compounds is the high thermal tolerance of the material (over 160 ° C) thus providing a soft polymer. However, it should be noted that the thermal range of polyurethane can comfortably withstand the working temperatures of many industrial electronics, and its lower cost makes it a better choice for a broader range of applications. which is limiting the market growth. Thus, these factors are hampering the silicone potting compounds market growth during the forecast period.

Market Landscape

Top 10 players in the silicone potting compounds market are

1. Henkel AG & Co. KGaA
2. Dow
3. 3M
4. Momentive Performance Materials Inc
5. ELANTAS GmbH
6. Master Bond Inc.
7. MG Chemicals
8. Dymax Corporation
9. H.B Fuller
10. LORD Corporation