Silicone demand stood at 7.21 Million Tonnes in 2020 and is forecast to reach 11.21 Million Tonnes by 2030, growing at a healthy CAGR of 4.55% until 2030.
Silicones are polymers manufactured by polymerizing siloxanes which are monomers containing silicon atoms connected by oxygen, carbon and hydrogen atoms. They are of several types including elastomers, resins, fluids, and gels. Silicones have many properties including durability foam control, adhesion, UV stability, discharge safety, transparency, glossiness, radiation resistance, heat resistance, and flexibility. Due to these properties, Silicones find applications in several end use industries such as building and construction, industrial processes, personal care and consumer products, electronics, transportation, medical and healthcare, energy, etc. Increasing demand from the industries such as Construction and electronics is projected to drive the demand for Silicones over the forecast period. Demand growth from other sectors like the personal care and consumer products as well as medical and healthcare sector is also expected to fuel the market for Silicones in the up coming years. Moreover, stringent regulatory policies regarding the use of Silicones might hinder the demand growth during the forecast period.
In 2020, the spread of COVID-19 in major global economies caused nationwide lockdowns which had an impact on several industries. Construction and electronics were among the most affected industries during the pandemic. This had an impact on the demand for Silicone in the first half of 2020. The demand for Silicone fell during the coronavirus pandemic. However, a surge in the demand for Silicones was observed in the latter half of 2020, after the relaxation in lockdown and resumption of industrial operations with full efficacy.
Region wise, the Asia Pacific region holds the major share of global demand for Silicone due to the increasing demand of application industries such as construction, electronics, personal care, etc. Moreover, increasing population and per capita income in emerging economies like India and china coupled with the growing number of products using Silicone is another factor influencing demand growth in the Asia Pacific region.
