Silicone Market: Global Industry Analysis and Forecast (2023-2029)

Global Silicone Market size was valued at USD 20.33 Bn in 2022 and Silicone Market revenue is expected to reach USD 30.77 Bn by 2029, at a CAGR of 6.1 % over the forecast period.
Global Silicone Market Overview
Silicone is an important component of photovoltaic cells, which are used in solar panels. The growth of solar energy installations contributes to Silicone demand. It is integral to the development of sensors, actuators, and other electronic components used in smart manufacturing, contributing to the Silicone market demand. The semiconductor sector is a large consumer of this component, and any increase in production prices has been affecting semiconductor and integrated circuit manufacture. This can result in higher component costs for electrical gadgets, affecting the entire electronic supply chain.

China's electronics manufacturing sector, which includes consumer electronics, computers, and communication devices, is a major driver of Silicone demand. The country's dominance in electronics manufacturing contributes significantly to its impact in this market. China's government has adopted laws and made strategic investments to help the Silicone sector thrive. It is essential for the development of sensors, actuators, and electronic components in smart manufacturing. The adoption of Industry 4.0 practices and the integration of smart technologies in manufacturing processes contribute to the demand for Silicone. The growing demand for electronic products, renewable energy solutions, and developments in semiconductor technology fuel the Silicone market's overall growth.To know about the Research Methodology :- Request Free Sample Report
Global Silicone Market Dynamics
The growing demand for Silicone in the electronics industry

The increasing demand for Silicone in the electronics industry is attributed to several factors. It is a versatile semiconductor material, that plays a crucial role in the production of various electronic devices. Semiconductor devices are the backbone of electronic gadgets, providing the functionality and processing power required for a wide range of applications, from computing and communication to entertainment and automation. In the Asia-Pacific region, Taiwan is the biggest manufacturer of semiconductors it accounts for over half of global production. They produce around 53% of semiconductors in 2022. TSMC (Taiwan Semiconductor Manufacturing Company) is the world’s largest maker of contract chips and it supplies many of the world's largest electronic companies such as Apple, Qualcomm, and Nvidia. The electronics sector is characterized by ongoing technological breakthroughs, which result in the production of more sophisticated and powerful gadgets. China is the dominant country in the electronics gadgets Industry. A variety of factors Included the dominance of China in the Electronics market such as a big and trained workforce, low labor costs, and robust supply chain infrastructure. China also has several large electronics firms, especially Foxconn, which assembles products for corporations such as Apple. Global smartphone and computer adoption has been a major driver of Silicone consumption.Rising Significance in Solar Energy

The solar industry heavily relies on Silicone for the production of photovoltaic cells used in solar panels. The solar industry demands high-purity Silicone to ensure optimal efficiency in photovoltaic cells. This is typically achieved through the production of polycrystalline or monocrystalline Silicone, with monocrystalline Silicone often favored for higher efficiency. In 2022, solar PV (photovoltaic) generation climbed by a record 270 TWh (up 26%), reaching about 1300 TWh. Again, in the same year, it had the highest absolute generation increase of any renewable technology, exceeding wind for the first time in history. This rate of generation increase corresponds to the level expected from 2023 to 2030 in the Net Zero Emissions by 2050 Scenario. Global solar PV investments in capacity additions increased by over 20% in 2022 and surpassed USD 320 billion, marking another record year. Solar PV comprised almost 45% of total global electricity generation investment in 2022, triple the spending on all fossil fuel technologies collectively. Investment in PV is expected to grow further in the coming years thanks to ambitious government targets, policy support, and increasing competitiveness.
The Installed Capacity of Solar Powerplants across the world




Countries
Capacity (In GW)


China
390 GW


United States
122 GW


India
110 GW


Japan
77 GW


Germany
66 GW


Vietnam
49 GW



The deployment of 5G networks, developments in artificial intelligence (AI), and the growth of Internet of Things (IoT) devices are all creating new opportunities for Silicone.

High-performance Silicone components are crucial for the development of 5G infrastructure, including base stations, antennas, and networking equipment. The advancement of AI relies on specialized processing units, such as Graphics Processing Units (GPUs) and Tensor Processing Units (TPUs). Commercial adoption of 5G wireless communication technology is driving new infrastructure designs for the projected increase in the number of base stations. These units operate at wide frequency ranges and are situated closer together to provide optimal connectivity.

Key trends affecting these designs include the increasing complexity of centralized base stations, many of which will incorporate beamforming massive multiple-input, multiple-output (MIMO) antennas that use not only the low-frequency Sub-6 GHz band but also the high-frequency millimeter wave spectrum. Engineers are designing new 5G base station antennas, circuit boards, and other system components with new high-performance specialty polymers that can deliver steady RF quality, low system cost, and high productivity. In addition to excellent, stable dielectric properties that become more critical at 5G’s high-frequency bands, these polymers offer performance advantages such as thermal and dimensional stability, chemical resistance, inherent flame retardance (FR), and RF transparency.The environmental impact of Silicone production is the major challenge faced by Silicone industries

Traditional Silicone production processes, such as the Siemens process, entail high-temperature reactions that emit greenhouse gases into the atmosphere, principally carbon dioxide (CO2). Silicone production's carbon footprint contributes to climate change and global warming. Silicone production processes generate waste by-products, including silica fume and carbon monoxide. Silicone production may also involve water-intensive processes, contributing to the depletion of water resources in certain regions. The Silicone production industry is facing heightened regulatory pressures as global awareness of environmental sustainability grows, coupled with increasing concerns about climate change. Governments and international organizations are actively pursuing stricter environmental standards and regulations, challenging Silicone producers to adapt to evolving requirements. Silicone producers need to strategically adapt to evolving regulatory requirements by investing in research, technology upgrades, and sustainable practices.

Silicone production may also involve water-intensive processes, contributing to the depletion of water resources in certain regions. Sustainable water management practices are essential to mitigate the environmental impact on local ecosystems. Implementing water-efficient technologies and conservation measures in Silicone production processes helps minimize water consumption. Techniques such as closed-loop systems, water recycling, and process optimization contribute to reducing overall water usage.
Silicone Market Regional Insights
The Asia Pacific area, notably China, has dominated the Silicone sector. China is a vital hub for electronics production, producing a significant share of the world's electronic devices. Silicone is a fundamental material in semiconductor manufacturing, and the demand for electronic gadgets in China has driven significant Silicone consumption. China's rapid industrialization and economic growth have increased the overall demand for Silicone across various sectors, including construction, automotive, and manufacturing.

South Korea dominates the memory chip market, with domestic firms Samsung Electronics and SK Hynix holding close to 70% of the overall market share. South Korea aims to be one of the top three AI powerhouses in the world by 2027. Samsung invested over 300 trillion Korean won ($228) in a new South Korean semiconductor factory. Japan has a well-established semiconductor and electronics industry, which contributes to its production and export of Silicone. Japanese semiconductor businesses are well-known for their technological foresight. They frequently help to develop cutting-edge semiconductor technology such as memory chips, microprocessors, and integrated circuits. Japan has expertise in producing Silicone and semiconductor manufacturing materials such as photoresists or etching gas and remains critical to the fabrication process. Japan also wants to implement stricter export controls for chips and materials needed to make them, especially as they're considered a sensitive industry that enables the manufacturing of equipment for both civilian and military use. To reduce its dependence on China, the United States is now looking to Japan to serve as a manufacturing hub for its high-tech industries.
Silicone Market Segment Analysis
By type, Metallurgical-grade Silicone is primarily used in the production of aluminum alloys and Siliconees. Metallurgical grade Silicone (MG Si, MGS) is another name for Silicone metal. MG Si has a higher purity than ferroSilicone, a typical alloy of iron and Silicone with a Silicone content of 15-90% that is generally utilized in large quantities in steel and cast-iron manufacture. FerroSilicone is produced in 15 countries, with a total annual output of around 7 million metric tons (MT). Norway, the United States, China, Brazil, and France are among the leading producers. Electronic-grade Silicone (EGS), a polycrystalline material of high purity, is the starting material for the preparation of single-crystal Silicone. EGS is made from metallurgical-grade Silicone (MGS) which in turn is made from quartzite, which is a relatively pure form of sand. Electronic-grade Silicone serves as a fundamental material in the production of semiconductors. Its high purity is essential for creating the precise electronic structures needed for semiconductor devices.

Silicone wafers are thin slices of semiconductor material, typically used as a substrate for microelectronics and integrated circuits. Elkem Silicone Materials is one of the world’s leading suppliers of metallurgical Silicone with three production plants in Norway. High-performance Silicone refers to Silicone materials engineered for advanced applications demanding enhanced properties such as conductivity and durability. High-performance Silicone is integral to semiconductor manufacturing processes, especially in the production of advanced nodes for integrated circuits. In the renewable energy sector, high-performance Silicone is employed in power electronics for efficient energy conversion and management.
Silicone Market Competitive Landscape
The competitive landscape of the Silicone market is Rapid and shaped by the presence of key players, their strategies, and the developing global demand for Silicone-based products. Asian companies, especially those in China and South Korea, have become major players in the Silicone market. Companies like China National Offshore Oil Corporation (CNOOC) and Samsung Electronics have a significant impact on the Silicone market Growth. Sustainability has become a key focus in the Silicone market. Companies are adopting environmentally friendly production practices, and some are investing in the development of sustainable Silicone alternatives.

1. Wacker Chemie AG, a Siliconee manufacturer, declared an investment of USD 160.34 million (EUR 150 million) in September 2023 to increase its Siliconee production facilities in China. The plant can produce Siliconee fluids, Siliconee emulsions, and Siliconee elastomer gels.

2. Elkem ASA declared the launch of their new specialized facility on Timberland Court in October 2022. The new 18,000-square-foot facility manufactures high-purity medical Siliconee products for the MedTech and Pharma markets.

3. Shin-Etsu Chemical Co., Ltd. declared the development of a new thermal interface Siliconee rubber sheet series for use in electric vehicle (EV) components in April 2022. These thermal interface Siliconee materials can be employed as heat dissipation measures for electric car component components with growing high voltage needs.

New technologies like Silicone carbide and gallium nitride are likely to replace Silicone in some applications. This development is projected to open up new chances for companies developing new technology. Sustainability has become a key focus in the Silicone market. Companies are adopting environmentally friendly production practices, and some are investing in the development of sustainable Silicone alternatives.
Silicone Market Scope: Inquiry Before Buying



Silicone Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
US $ 20.33 Bn.


Forecast Period 2023 to 2029 CAGR:
6.1%
Market Size in 2029:
US $ 30.77 Bn.


 Segments Covered:
by Type
Metallurgical
Electronic
Solar
Chemical


by Raw Material
Silicon
Oxygen


by Application
Industrial Process
Building & Construction
Personal Care & Consumer Product
Transportation




Silicone Market by Region:
North America (United States, Canada, and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria, and the Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan, and the Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria, and the Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Key Manufacturer in the  Silicone Market
1. Elkay Chemicals
2. Supreme Siliconees
3. Shin-Etsu Chemical Co., Ltd.
4. Silchem Inc.
5. Silteq Ltd
6. Amul Polymers
7. Wacker Chemie AG
8. Specialty Siliconee Products, Inc.
9. Illinois Tool Works Inc.
10. Evonik Industries AG
11. Hutchinson
12. Kemira Oyj
13. Dow Inc.
14. Nano Tech Chemical Brothers Private Limited
15. Elkem ASA
16. Silico
FAQs:
1. What is the study period of the market?
Ans. The Global Silicone Market is studied from 2017-2029.

2. What is the growth rate of the Silicone Market?
Ans. The Silicone Market is growing at a CAGR of 6.1 % over the forecast period.

3. What is the market size of the Silicone Market by 2029?
Ans. The market size of the Silicone Market by 2029 is expected to reach USD 30.77 Bn.

4. What is the forecast period for the Silicone Market?
Ans. The forecast period for the Silicone Market is 2022-2029.

5. What was the market size of the Silicone Market in 2022?
Ans. The market size of the Silicone Market in 2022 was valued at USD 20.33 Bn.