Automotive Silicone Industry Research 2024: Global Market to Reach $3.49 Billion by 2029 - Focus on Durability and Performance, Shift toward Multi-functional Silicones Fueling Growth

In 2023, Asia Pacific dominated the global automotive silicone market and is expected to grow at the fastest CAGR from 2024 to 2029 as the region is home to major automotive manufacturing hubs, particularly in countries like China, Japan, and India, where the demand for vehicles is rapidly increasing.

Dublin, Jan. 13, 2025 (GLOBE NEWSWIRE) -- The "Automotive Silicone Market: Analysis By Product Type, By Application (Interior And Exterior Parts, Electrical System, Engine & Drive Train System, Suspension Systems and Other Applications), By Region Size and Trends - Forecast up to 2029" report has been added to ResearchAndMarkets.com's offering.

The global automotive silicone market in 2023 stood at US$2.34 billion and is likely to reach US$3.49 billion by 2029. The global automotive silicone market is projected to grow at a CAGR of 6.90% during the forecast period of 2024-2029.

Automotive silicone refers to a group of silicone-based materials used in various applications within the automotive industry due to their durability, flexibility, and resistance to extreme temperatures, chemicals, and environmental factors.

The growth of the global automotive silicone market is driven by several key factors, including the increasing demand for lightweight and energy-efficient vehicles, particularly electric vehicles (EVs), where silicone materials are crucial due to their heat resistance and electrical insulation properties. Additionally, the automotive industry's focus on improving safety, comfort, and performance has led to a greater reliance on silicone-based products in applications like gaskets, seals, and coatings. The material's superior properties, such as resistance to extreme temperatures, durability, and flexibility, make it essential for modern vehicle components.

Moreover, stringent environmental regulations and the need to reduce vehicle emissions are pushing automakers to use silicone-based materials to meet higher performance and efficiency standards, further driving the market's growth. Additionally, growth in connected and autonomous vehicles, sustainability and green manufacturing, Asia-pacific as a growth hub, expansion of the aftermarket segment, shift toward multi-functional silicones are propelling the market forward.

In 2023, Asia Pacific dominated the global automotive silicone market and is expected to grow at the fastest CAGR from 2024 to 2029 as the region is home to major automotive manufacturing hubs, particularly in countries like China, Japan, and India, where the demand for vehicles is rapidly increasing.

The shift towards electric vehicles and the rising need for advanced automotive technologies further drive the demand for high-performance silicone materials. Additionally, government initiatives aimed at promoting sustainable transportation and stricter regulations on vehicle emissions encourage manufacturers to adopt innovative materials, boosting the market for automotive silicone in the region. Furthermore, the growing disposable income and changing consumer preferences in emerging markets contribute to the expansion of the automotive sector in Asia Pacific, positioning it for significant growth in the coming years.

Market Segmentation Analysis:

By Product Type: The report has segmented the global automotive silicone market into six segments namely, elastomers, resins, adhesives and sealants, fluids, gels and others.

In 2023, the elastomers segment dominated the market share due to their exceptional flexibility, durability, and resistance to extreme temperatures, making them ideal for a wide range of automotive applications. Elastomers are commonly used in gaskets, seals, hoses, and various other components that require high-performance materials to withstand harsh environmental conditions.

Their ability to maintain stability and functionality under both high heat and cold conditions, along with their longevity and low maintenance, has contributed to their leading market position as automakers continue to prioritize performance and durability in vehicle components. On the other hand, adhesives and sealants segment is expected to grow the fastest during forecasted period due to the increasing demand for lightweight materials and the trend toward vehicle electrification. As automakers strive to reduce vehicle weight to improve fuel efficiency and battery performance in electric vehicles (EVs), adhesives and sealants are being used as alternatives to traditional mechanical fasteners, offering both strength and weight reduction.

By Application: The global automotive silicone market can be divided into five segments, according to application: Interior and Exterior Parts, Electrical Systems, Engine & Drive Train System, Suspension Systems and Others.

Interior and exterior parts segment holds the largest market share in 2023 due to the increasing demand for lightweight, durable, and high-performance materials in vehicle manufacturing. Silicone offers excellent properties such as flexibility, temperature resistance, and weatherproofing, making it ideal for various applications, including seals, gaskets, trims, and interior components like dashboards and seating.

Moreover, the growing emphasis on vehicle aesthetics and comfort, drives manufacturers to utilize silicone materials for their superior performance and longevity in both interior and exterior automotive applications. On the other hand, electrical systems segment is expected to grow the fastest during forecasted period due to the increasing integration of advanced technologies in vehicles, such as electric vehicles (EVs) and smart automotive systems.

As vehicles become more electrified and equipped with sophisticated electronic components, the demand for high-performance silicone materials that can withstand extreme temperatures, humidity, and electrical insulation requirements rises. Silicone's exceptional thermal stability and dielectric properties make it an ideal choice for encapsulating electrical components, improving reliability and safety.

Competitive Landscape and Recent Developments:

The global automotive silicone market is generally considered a fragmented market as market consists of a large number of global, regional, and local players, each offering a variety of silicone products. These players compete on product innovation, quality, and pricing. Some focus on specific silicone applications, such as gaskets and seals, while others supply to a broader range of automotive components. The competitive landscape is marked by intense rivalry among players.

Companies focus on R&D to create innovative technologies, invest in modern production technology, and employ novel marketing techniques emphasizing customer awareness and education. Strategic partnerships, mergers, and acquisitions are common as firms seek to expand their product offerings and market presence.

An example of this in March 2023, Shin-Etsu Chemical developed a silicone rubber formulation suitable for molding, specifically designed to serve as an ideal insulation covering material for high-voltage cables within automobiles. Also, In December 2022, Dow launched silicone rubber series, which can be used across multiple automotive applications such as connector seals, battery vent gaskets and radiator gasket seals for electric and hybrid vehicles, as well as environmental protection seals for autonomous vehicles' lidar and radar housing.

Market Dynamics

Growth Drivers

• Expansion of the Automotive Industry
• Growing Demand for In-Car Electronics
• Rising Demand for Lightweight and Fuel-Efficient Vehicles
• Stringent Environmental Regulations
• Focus on Durability and Performance

Challenges

• Fluctuating Raw Material Prices
• Competition from Alternative Materials

Market Trends

• Shift towards Electric Vehicles (EVs)
• Growth in Connected and Autonomous Vehicles
• Sustainability and Green Manufacturing
• Asia-Pacific as a Growth Hub
• Expansion of the Aftermarket Segment
• Shift toward Multi-functional Silicones

Automotive SiliconeGlobal Market Analysis

Automotive Silicone Market: An Overview

• Automotive Silicone Market by Value
• Automotive Silicone Market by Product Type (Elastomers, Resins, Adhesives and Sealants, Fluids, Gels, and Other Products)
• Automotive Silicone Market by Application (Interior and Exterior Parts, Electrical System, Engine & Drive Train System, Suspension Systems and Other Applications)
• Automotive Silicone Market by Region

Automotive Silicone Market: Product Type Analysis

• Automotive Silicone Market by Product Type: An Overview
• Elastomers Automotive Silicone Market by Value
• Resins Automotive Silicone Market by Value
• Adhesives and Sealants Automotive Silicone Market by Value
• Fluids Automotive Silicone Market by Value
• Gels Automotive Silicone Market by Value
• Others Automotive Silicone Market by Value

Automotive Silicone Market: Application Analysis

• Automotive Silicone Market by Application: An Overview
• Interior And Exterior Parts Automotive Silicone Market by Value
• Electrical Systems Automotive Silicone Market by Value
• Engine & Drive Train System Automotive Silicone Market by Value
• Suspension System Automotive Silicone Market by Value
• Others Automotive Silicone Market by Value

Automotive Silicone Company Profiles: Business Overview, Operating Segments, Business Strategy

• Evonik Industries AG
• The Dow Chemical Company
• Shin-Etsu Chemical Co., Ltd.
• Henkel AG & Co. KGaA
• Elkem ASA
• Wacker Chemie AG
• 3M Company
• KCC Corporation
• Novagard Solutions
• Siltech Corporation

For more information about this report visit https://www.researchandmarkets.com/r/v7s6y1

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