Conductive silicone market was valued at US$3.600 billion in 2019 and is anticipated to grow at a CAGR of 7.14% over the forecast period to reach US$5.446 billion by 2025. The use of conductive silicone is increasing across various end-use industries owing to high demand for broadband shielding with superior moisture sealing in order to assure both electrical conductivity and sealing reliability. Growing global demand for consumer electronics due to rising disposable income and expanding urbanization is one of the major drivers of conductive silicone market growth. Increasing investments in R&D to develop advanced conductive silicone products and solutions for new applications is further fueling the market growth of these materials. FDA prefers silicone elastomers for applications where consumables are involved since silicone is resistant to many common chemicals and oils. This favorable government regulation is, thus positively impacting the demand for conductive silicone across food and beverage industry. Geographically, APAC will witness the fastest regional market growth during the forecast period owing to booming consumer electronics and automotive industries in the region.
Rising worldwide demand for power generation & distribution is a major factor augmenting the demand for conductive silicone products.
In the International Energy Outlook 2016 (IEO2016) Reference case, world net electricity generation is estimated to increase from 21.6 trillion kWh in 2012 to 25.8 trillion kWh in 2020 due to its rising end-use energy consumption worldwide. Power systems have continued to evolve from isolated, small grids to integrated national markets and even international markets. Rising worldwide demand for power generation & distribution is boosting the demand for conductive silicones. These silicones are used in cable end terminations or silicone rubber connections made at the end of underground high voltage cables insulated with polyethylene, and also as silicone insulators for power lines. Conductive silicones provide benefits such as high electrical resistivity, resistance to environmental degradations, resistance to electrical ageing and hydrophobicity. This results in lower assembly and maintenance costs.
Growing silicone demand per capita in the Asia-Pacific region, continuous expansion and new product development activities undertaken by various companies and the increasing demand for electronic components in power generation and distribution and LED industry fuel the growth of the global conductive silicone market. Others factors include favorable regulatory policies such as FDI (foreign direct investment) and free trade agreement. Silicone elastomers are expected to hold the highest market share owing to its high electrical and thermal conductivity, flexibility and high mechanical strength. The thermal interface materials segment is the fastest-growing application in the global conductive silicone market.
Rising demand for LEDs, growth of consumer electronic industry, and surge in demand for sophisticated electronics are driving silicone elastomer market.
By Type, conductive silicone market has been segmented as Silicone Elastomers, Silicone Gel, Silicone Resin, and others. Silicon Elastomers held the largest share of global conductive silicone market in 2019 of more than 60% and will continue to dominate the conductive silicone market during the forecast period owing to growing consumer electronics industry, rising demand for LEDs and increasing demand for other applications. Silicone Gel segment is anticipated to witness the highest growth during the projected period due to its growing applications such as treatment of burn scars, breast implantation, manufacturing of oily cosmetic products and others. Silicon Resin is also anticipated to witness a considerable growth owing to increasing industrialization and rapid urbanization which drives the construction sector.
By application, the conductive silicone market has been segmented as Thermal Interface Materials (TIM), adhesives and sealants, encapsulants and potting compounds, conformal coatings, and others.
Adhesives and Sealants held the largest share of global conductive silicone market in 2019 and will continue to dominate the application segment throughout the forecast period. This dominance is attributed to rising construction activities, especially in developing economies such as China, India, Brazil, and South Korea coupled with booming automotive industry. Thermal Interface Materials (TIM) are projected to witness the fastest growth at the highest CAGR over the forecast period owing to its growing applications in various sectors such as automotive, media and entertainment, power generation and distribution, and others on account of superior heat dissipation properties. Encapsulants and potting compounds market is also projected to grow considerably especially in the growing global electronics sector.
Communication and Technology application for conductive silicon account for the largest market share owing to increasing number of users of portable electronic devices such as smartphones, tablets, laptops, and the growing internet penetration across the globe.
By end-user industry, global conductive silicone market has been segmented as communication and technology, automotive, energy and power, construction, media and entertainment, and others. Communication and Technology held the largest market share in 2019 with a share of more than 30% and is projected to remain at its position throughout the forecast period owing to high demand for various electronic products including smartphones, laptops and wearables, coupled with high internet penetration and emergence of cloud computing solutions. Automotive is the second fastest growing application segment. Growing world energy consumption due to rising infrastructure and construction activities has further boosted the demand for conductive silicones within energy and power sector which is poised to grow at a healthy CAGR over the forecast period.
By Geography, the Asia Pacific region dominates the conductive silicon market followed by the Americas.
Asia Pacific conductive silicon market growth is driven by the increased demand for conductive silicone for power generation, transportation, consumer electronics and LEDs, construction, photovoltaic, and sustainably energy generation. Electrical & electronics sector in particular has been a major growth driver.The conductive silicon demand has increased in Asia-Pacific as a result ofthe high scale Chinese manufacturing activities, and dominance of Japan in advanced manufacturing sectors like electronics.
While the Americas region is being driven by a robust Information and communication technology (ICT), transport and aerospace sector in North America and healthy mining and oil & gas industry in South America
Major industry players profiled as part of the report are The Dow Chemical Company, Shin-Etsu Chemical Co., Ltd., Wacker Chemie AG, Evonik Industries, Elkem Silicones, and ACC Silicones Ltd among others.
The conductive silicone market has been analyzed through following segments:
· By Type
o Silicone Elastomers
o Silicone Gel
o Silicone Resin
o Silicone Inks and Coatings
· By Application
o Adhesives and Sealants
o Conformal Coatings
· By End-Use Industry
o Consumer Electronics
o Aerospace and Defense
o Medical Device
· By Geography
· North America
· South America
· Middle East and Africa
o Saudi Arabia
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