23 April, 2021
RALEIGH, North Carolina, Apr 23, 2021 - The global silicone market is expected to witness an annual growth of 3.5-4 percent, says Beroe Inc.
Major suppliers in the silicone industry include North America, Europe, and Asia-Pacific, each supplying 20 percent, 30 percent, and 45 percent respectively to the global silicone market. Asia Pacific regions are witnessing a growth in manufacturing electronics and CPG. Besides this, there is a rise in demand for healthcare appliances as well as renewable energy. All these form the key demand drivers.
Owing to the lack of significant capacity extensions by major silicone suppliers, the risk of supply shortage will persist in the long term. There will be a surge in the demand for silicones in developing nations like India, China, LATAM, and others. It will be for manufacturing the polyurethane-based product in the construction and automotive sectors. Other driving factors include the infrastructural growth and increase in auto sales.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE.Ai: https://www.beroeinc.com/beroe-live-ai/
The price of silicone feedstock is high in regions like Europe and North America and medium in Asia-Pacific, with the annual growth rate being 3-3.5 percent, 3.5-4 percent, and 4.5-5 percent respectively. COVID-19 moderately affected the silicones market. Operating rates of the suppliers fell in the Q2 of 2020. The demand and supply got better in 2020's Q3.
China forms the major silicone consumer in the world, constituting 65 percent of the total consumption. Since the U.S. or Europe has huge domestic capacities, the bulk purchasers of silicones prefer engaging with the suppliers based in these regions.
The silicone market share in North America is 20 percent and the demand growth rate is 4 percent CAGR. Demand is driven here by medical, renewable energy applications such as aesthetic implants, windmill shafts, and solar power cells. Upcoming Silicone plant expansion in Thailand, Korea, and China will increase imports from APAC regions. It will be a cheaper option for North American CPG buyers.
Europe constitutes 30 percent of the capacity market share for silicone. The mature western European market led to stagnant downstream demand from the industrial applications and construction segments. Trade surplus makes Europe a net exporter of silicone to areas with high demand such as APAC, LATAM, and the Middle East.
The APAC market share capacity constitutes 45 percent and is expected to have a demand growth rate of 5.5 percent CAGR. Over 50 percent of the global demand for silicone is from the APAC in the construction and transportation industries. Large volumes of silicones are exported to the U.S., European market, Middle East, LATAM, and several APAC countries which have a supply deficit.
The liquid silicone rubber market size is gradually increasing as it is replacing the high consistency rubber in certain downstream applications. There will be a rise in the 0.65 and 1 cSt silicone fluid demand trend because of the strict regulatory environment for cyclic siloxanes. In the near future demand will be driven in the healthcare space for silicones as they will be used for carrying medical marijuana and cannabis oil for transdermal patches.
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions — leading to lower costs, greater profits, and reduced risk. Beroe has been providing these services for more than 15 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies. For more information about Beroe Inc., please visit https://www.beroeinc.com/.
LiVE Event: Category Management For Procurement Professionals