Dimethyl Silicone Market Size Projection (2024 – 2030)

The Dimethyl Silicone Market, valued at USD 6.05 billion in 2023, is forecasted to ascend to USD 12.44 billion by 2030, demonstrating a robust Compound Annual Growth Rate (CAGR) of 10.85% from 2024 to 2030. This upward trajectory is primarily attributed to the significant surge in industrial activities worldwide.

Overview of Dimethyl Silicone Industry:

Dimethyl Silicone represents a category of silicone fluids characterized by their non-corrosive, non-toxic, odorless, and transparent liquid form. It stands as one of the fundamental types of silicone fluids renowned for its chemical inertness, high electrical insulation properties, as well as its resistance to weathering, thermal stability, and hydrophobic nature. With a functional temperature range of -50°C to 200°C, it finds versatile applications across various sectors.

The escalating demand for specialized products within diverse industries, coupled with intensified regulatory oversight throughout the value chain encompassing raw materials, manufacturing processes, and distribution of silicone products, is expected to influence price fluctuations across different end-use sectors over the forecast period.

The burgeoning requirement for lightweight automotive components alongside heightened research and development endeavors aimed at innovating new products are anticipated to underpin overall industrial expansion in the foreseeable future. The integration of lightweight materials for automotive applications aims to mitigate fuel consumption by reducing vehicle weight, a trend further bolstered by the high thermal stability offered by silicone fluids.

Moreover, the expanding utilization of silicone in textiles, paper, leather goods, packaging, labels, and airbags is poised to propel market demand in the coming years. In these applications, silicone serves as a solvent, adhesive, wetting agent, and anti-foaming agent, enhancing product performance and functionality. Particularly within the textiles sector, silicone finds multifaceted applications spanning yarn production, fabric treatment, and finishing processes, offering benefits such as lubrication, foam control, softening, and hydrophobic surface treatments. The increasing adoption of conductive silicone rubber in anti-slip treatments within textile manufacturing, owing to its commendable electrical and chemical resistance properties, is expected to significantly contribute to segmental growth throughout the forecast period.

Impact of COVID-19 on Dimethyl Silicone Market:

The COVID-19 pandemic has precipitated operational disruptions across governments and private enterprises globally, leading to constrained capacities and complete cessation of activities in numerous instances. Manufacturing operations have been severely impacted due to raw material shortages, labor shortages, and logistical constraints, thereby impeding the Dimethyl Silicone market.

The pandemic has exerted substantial strain on the global economy, manifesting in hampered manufacturing and demand dynamics, supply chain disruptions, and adverse financial ramifications for businesses.

Market Drivers:

Exceptional Properties of Silicone Driving Market Growth:

The remarkable attributes of polyether-modified silicone, including water solubility, dispersing and emulsifying capabilities, and its efficacy in stabilizing water-oil systems, are pivotal in augmenting its demand across diverse industries such as agrochemicals, textiles, cosmetics & personal care, and plastic processing.

Rising Disposable Income Fostering Market Expansion:

Shifts in consumer lifestyles, coupled with escalating per capita income levels, and the availability of advanced skincare and haircare products such as sun care formulations, moisturizers, cosmetics, and hair conditioners, are driving the global cosmetic industry. This trend is expected to fuel demand for polyether-modified silicone within the cosmetic sector throughout the forecast period.

Market Restraints:

The Existence of Market Alternatives Restricting Growth:

The presence of alternative products in the market poses a restraint to market expansion. Consumers often opt for cheaper alternatives, thereby hindering the growth potential of the Dimethyl Silicone market.

Dimethyl Silicone Market - By Product:

Options include:

• Liquids
• Gels
• Resins
• Others

The elastomers category spearheaded the market, capturing the largest revenue share, exceeding 41.0% in 2020. Silicone elastomers, composed of a blend of linear polymers, a crosslinker, reinforcing agents, and a catalyst, are vulcanized silicone-based polymers. These elastomers are further categorized as Room Temperature Vulcanization (RTV), Liquid Silicone Rubber (LSR), and High-Temperature Vulcanizing (HTV), based on the primary straight-chain molecule and processing temperature. The surge in demand for lightweight automotive components, which enhance fuel efficiency and reduce emissions, is anticipated to propel the demand for elastomers in the market during the forecast period. Additionally, the increased adoption of HTV silicone elastomers in the electric vehicle sector, owing to their lightweight nature, robust performance, high resistance to corrosion, and efficiency, has witnessed significant growth. Moreover, HTV silicone elastomers contribute to durability, enhanced vehicle economy, and extension of the lifespan of electric vehicles, particularly in passenger and commercial vehicles, which is poised to further drive their demand over the forecast period.

The fluids segment represents the second-largest sector and is projected to experience a revenue-based Compound Annual Growth Rate (CAGR) of 4.2% from 2021 to 2028. Silicone fluids, characterized by their clarity, odorlessness, and transparency, exhibit exceptional thermos-oxidative resistance within a temperature range spanning from -60 degrees to +300 degrees Celsius. Moreover, these products boast superior shear stability, minimal volatility, low surface tension, and exhibit excellent water repellency. The escalating demand for cosmetics due to increasing awareness regarding personal care, coupled with the rising utilization of silicone in paints and coatings as additives, is expected to drive the demand for silicone fluids during the forecast period.

Dimethyl Silicone Market - By End-User:

End-user segments include:

• Electronics
• Transportation
• Construction
• Others

In terms of end-users, the industrial processing segment dominated the silicone market, capturing the largest revenue share, surpassing 25.0% in 2020. The growing demand for silicone as lubricants in offshore drilling, industrial coatings (as paint additives), and antifoaming agents is anticipated to augment the demand for silicone over the forecast period.

Silicone plays a crucial role in enhancing the performance of paints and coatings by imparting several attributes such as increased durability and resistance to chemicals, corrosion, and thermal stress, thereby reducing maintenance costs or unforeseen maintenance requirements for industrial infrastructure and machinery.

Revenue-wise, construction emerges as the second major application segment and is expected to witness a CAGR of 4.0% from 2021 to 2028. Silicones find extensive application in the building and construction industry owing to their moisture resistance, high strength, and versatile properties. These materials are utilized in residential and commercial constructions involving materials such as glass, concrete, marble, aluminum, steel, and polymers. Factors such as rapid urbanization, industrial growth, and population expansion have led to a surge in the demand for building and infrastructure development globally. For instance, in 2019, China announced investments totaling approximately USD 142.0 billion across 26 infrastructure projects. These factors are anticipated to significantly bolster the demand for silicones in the construction sector over the forecast period.

Dimethyl Silicone Market - By Region:

Regions include:

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East
• Africa

Geographically, Europe emerged as the second-largest market in 2020 and is poised to witness a revenue-based CAGR of 3.4% from 2021 to 2028. The burgeoning construction sector in several European countries including the U.K., Germany, Spain, France, and Russia is expected to drive product demand over the forecast period. Enhanced investments from the European Union (EU) coupled with supportive measures such as tax incentives, subsidies, and breaks implemented by various governments are anticipated to bolster the growth of the construction sector in the region. Furthermore, the increasing adoption of silicone in the healthcare sector for aesthetic implants and in the renewable energy sector for applications in solar panels and wind turbines is expected to further fuel market growth during the forecast period.

However, the imposition of lockdowns by numerous governments worldwide to contain the spread of COVID-19 has led to a downturn in silicone consumption. End-use industries such as automotive and construction have witnessed a sharp decline in demand and production due to restrictions on movement and operations imposed by governments. Nonetheless, with the easing of lockdown measures, manufacturing is anticipated to resume, and demand for silicone is expected to rebound.

The Asia Pacific region dominated the market, capturing the largest revenue share of over 44.0% in 2020. The significant market share of the region can be attributed to the presence of numerous large, medium, and small-sized market players. The relocation of production facilities by market players from Europe and North America to Asia, driven by factors such as abundant raw material availability, cost-effective labor, and increased market penetration opportunities in end-use industries including transportation, construction, industrial processing, personal care, consumer goods, electronics, healthcare, and energy, is anticipated to propel regional silicone production over the forecast period.

Dimethyl Silicone Market Share - By Companies:

Key players include:

1. DowDupont
2. Shin-Etsu Chemical Co., Ltd
3. KCC Basildon
4. MBI Silicons, LLC.
5. Runhe Chemical Industry
6. Jiangxi Tianshneg Material Ltd
7. Others

In August 2020, Wacker Chemie AG extended its partnership with H.M. Royal, a distributor of specialty chemicals and ingredients, for the distribution of SILPURAN, a Liquid Silicone Rubber (LSR) and High Consistency Rubber (HCR), specifically designed for medical applications.

The market is highly competitive, owing to the presence of numerous participants. While global players like Dow Chemicals and Holland Chemicals command substantial market shares, several regional-level players operate across key growth regions, particularly in North America.

RECENT NOTABLE EVENTS IN THE GLOBAL DIMETHYL SILICONE MARKET:

• Product Launch: In May 2021, Shin-Etsu Chemical Co., Ltd introduced a new volatile silicone fluid named KF-4422, intended for use in various personal care products.

• Acquisition: In April 2020, KCC Corporation finalized the acquisition of Momentive, a US-based global silicone manufacturer. Through this acquisition, KCC established a high value-added business focusing on silicone, which became a significant component of the company’s core business.