10 September, 2019
RALEIGH, North Carolina, Sep 10, 2019 - The global market for Silicones is expected to grow at a CAGR of 4 - 5 percent to reach 2.5 million MT by 2022, according to Beroe Inc., a procurement intelligence firm. The high demand growth rate for silicones industry is mainly driven by electronics, construction, and automobile sector.
On a global scale, the silicones market has surplus volume with more than half of the capacity concentrated in North America and Europe. In developing regions such as China, India, and LATAM, there is an increasing demand for silicones for manufacturing polyurethane-based products. With an expected 5 percent rise in the global electronics market, the demand for silicones is also expected to increase in the electronics industry globally.
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: live.beroeinc.com
In North America, silicone formulations in energy or medical applications require high amounts of innovation, which are either proprietary or patented. This restricts the entry of the new participants in the silicones industry. On the other hand, the inactive demand in Europe for silicones from construction and other industrial applications has made European silicones a less attractive business opportunity for the new players.
A major constraint for the silicones industry is the growth of the organic personal care industry, which is expected to grow at a significant rate of nearly 9 - 10 percent to reach $9.2 billion by 2021. The organic industry’s growth is mainly strengthened by the long-term benefits offered by the natural ingredients along with the favorable administrative environment.
The research methodology adopted for the report included:
Volatile prices of silicon metal influence the price trends of silicones as it is the primary feedstock in silicone production. The other feedstock is methanol which is used in methylene chloride synthesis. However, the influence of methanol prices on silicones is relatively low.
The report also includes:
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