Global Automotive Silicone Market By Product Type (Elastomers, Adhesives and Sealants, Resins, Fluids, Gels, and Other Products), By Application, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The Global Automotive Silicone Market size is expected to be worth around USD 6.00 Billion by 2032 from USD 3.3 Billion in 2022, growing at a CAGR of 6.30% during the forecast period from 2023 to 2032.

The automotive Silicone market is a part of the semiconductor market which focuses on developing and producing silicone-based technologies and components for automotive applications which include a variety of products like sensors & microcontrollers. It also includes power management ICs and motor controllers.

The automotive silicone market experienced significant growth over the past few years, due to an increasing demand for electronic systems and features such as ADAS and infotainment, as well as hybrid and electric drivetrains.

The automotive industry is experiencing demand for more advanced & efficient semiconductor technologies as the focus on energy efficiency and environmental sustainability continues to grow. The automotive Silicone market will continue to grow steadily in the next years & there are many opportunities for innovation.

Driving Factors

Pharmaceutical and Food Industry is Expected to Drive the Market Growth

The rising demand for electronic systems in vehicles especially in the areas of safety, connectivity, and autonomous driving. This has led to a growing need for advanced sensors, processors, and other semiconductor technology which can enable these capabilities. The shift to electric & hybrid cars is also driving the demand for power-management ICs & motor controllers.

The demand for in-vehicle entertainment systems and connected vehicles is another factor driving the growth of the Automotive Silicone Market. This is driving the development & production of advanced wireless communication modules, high-speed interfaces, and other semiconductor technologies.

The increasing focus on energy efficiency and environmental sustainability is driving the development & adoption of advanced semiconductor technologies. These technologies enable more efficient thermal & power management solutions. These drivers are expected to continue the growth of the automotive semiconductor market over the next years.

Restraining Factors

High Cost and Industry Ups and Downs Due to Natural Disasters Can Restrain the Market Growth

The high cost of developing automotive silicone components can make it difficult to compete in the market for smaller manufacturers. Another constraint is the complexity of automotive electronics systems which require advanced & sophisticated semiconductor technology which can be difficult to develop & manufacture.

The regulatory environment is also becoming more stringent which driving up compliance costs. The automotive industry is also prone to frequent disruptions like supply chain disruptions & natural disasters. These can cause delays in production or supply chain disruptions which affect the overall growth of the market.

The automotive industry is highly volatile meaning that automotive Silicone producers are subject to the ups and downs of the industry. This can make planning & investing for the long term difficult. While the automotive Silicone market continues to grow rapidly these restraints must be addressed in order to ensure that the market will continue to grow & innovate.

Growth Opportunities

Shift to Electric Vehicles and Increasing Adoption of ADAS Creates Opportunities in the Market

This market has several growth opportunities which include the continued shift to electric & hybrid vehicles which rely heavily upon semiconductor technology. This transition will drive the demand for battery management systems, motor controllers & power management ICs.

The increasing adoption of ADAS technologies & autonomous driving is also creating opportunities for advanced sensor processing units and AI/ML technology. The growing demand for in-vehicle entertainment & connected cars is another area of growth in the automotive Silicone market. This is driving the development of high-speed communication modules, wireless connectivity modules, and advanced infotainment systems.

The trend towards lighter and fuel-efficient cars is also creating opportunities for Silicone technology which enables more efficient thermal management & power management solutions. The increasing demand for enhanced safety systems like lane-departure warning systems, collision-avoidance systems, adaptive cruise control, and other advanced safety features is driving the need to develop advanced sensors & processing abilities. The market for automotive Silicone is expected to grow in the next few years with many opportunities for innovation & research.

Latest Trends

System-On-Chips and ICs are Trending in the Market

The automotive Silicone market is experiencing an increase in demand as electronic systems are increasingly being used in vehicles. The shift to electric & hybrid cars which heavily rely on semiconductor technology is one of the most recent trends in the automotive market.

There is also a growing need for ADAS & autonomous driving technologies which require sophisticated sensors & processor capabilities. Manufacturers are developing new Silicone technology like system-on-chips (SoCs), ICs for power management, and advanced sensors, to meet the demands.

Another emerging trend is the combination of AI & ML in vehicles. This is driving the development of a powerful & efficient processing unit. The automotive Silicone market is expected to grow in the coming year as the demand for advanced vehicle technology continues to rise.

By Product Type Analysis

The Elastomers Segment Holds the Significant Share of the Product Segment in the Automotive Silicone Market.

Based on product type, the market for automotive Silicone is divided into elastomers, adhesives and sealants, resins, fluids, gels, and other products. Among these types, the elastomers segment is dominant in the global automotive Silicone market with a market share of 44.6% in 2022 and a CAGR of 6.7% during the projected period.

Owing to the elastomers are highly resistant to chemicals & fuels commonly found in automotive environments which ensures that engine gaskets & seals maintain their integrity over time. Additionally, Silicone elastomers are used in various other automotive applications like suspension bushings, weather-stripping, and vibration dampeners. The excellent resistance to UV radiation 7 weathering makes Silicone elastomers ideal for use in these applications where durability & longevity are critical.

Automotive Silicone Resins are Expected to Fastest Grow in the Automotive Silicone Market in Forecasted Period.

Automotive Silicone resins have experienced rapid growth in recent years with a CAGR of 6.8% because of unique properties & performance advantages over traditional resins. Owing to their exceptional thermal stability & resistance to high temperatures these can withstand temperatures of up to 300°C which makes them ideal for use in high-temperature applications like engine coatings & exhaust systems.

Additionally, automotive Silicone resins offer excellent adhesion to various substrates which includes plastics, metals, and ceramics which makes them ideal for use in adhesives & encapsulates.

By Application Analysis

The Interior and Exterior Segment Accounted for the Largest Revenue Share in the Automotive Silicone Market in 2022.

Based on application, the market is divided into interior and exterior parts, engine & drive train systems, electrical systems, suspension systems, and other applications. Among these types, the interior and exterior parts segment is expected to be the most lucrative in the global automotive Silicone market, with the largest revenue share of 37.5% & a projected CAGR of 6.5% during the forecast period.

Due to the automotive interior silicone is commonly used for the production of dashboard components, seals, gaskets, and other critical components. Silicone offers excellent resistance to heat, UV radiations, and chemicals which makes it ideal for use in these applications. In automotive exteriors, Silicone is commonly used in weather-stripping, seals, and gaskets to prevent water & air from entering the vehicle’s interior.

Automotive Silicone Key Market Segments

Based on Product Type

• Elastomers
• Adhesives And Sealants
• Resins
• Fluids
• Gels
• Other Products

Based on Application

• Interior And Exterior Parts
• Engine & Drive Train System
• Electrical System
• Suspension Systems
• Other Applications

COVID-19 Impact Analysis

Supply Chain Disruptions, Decrease in Consumer Demand Impacted Negatively

The pandemic caused global supply chains to be disrupted which resulted in delays & shortages of automotive Silicone components. This was due in part to the closure of manufacturing facilities & logistical challenges caused as a result of travel restrictions & lockdowns.

The pandemic has also led to a decrease in consumer demand which has resulted in lower production & sales volumes. This led to a decline in demand for automotive components like sensors & processor units which are used in vehicle production.

The pandemic has also brought to light the importance of electronic systems, especially in areas like remote connectivity, telematics, and ADAS. This has led to increased investment in these technologies which is expected to drive the growth of the automotive Silicone market in the long term.

The pandemic also has accelerated the adoption and use of digital channels & e-commerce in the automotive industry which created new opportunities to develop Silicone technologies that allow seamless connectivity & communication between cars and the digital world.

Regional Analysis

Asia-Pacific Accounted for the Largest Revenue Share in Automotive Silicone Market in 2022.

APAC will be the dominant region in the global automotive Silicone market. It is expected that Asia-Pacific will have the highest revenue share at 45.7%. APAC should also register a CAGR of 7.2% over the forecast period. Owing to the availability of low-cost raw materials & labor coupled with the increasing domestic demand for cars, makes this region an attractive investment destination for automotive Silicone manufacturers.

Europe is expected as the Fastest Growing Region in the Projected Period in the Automotive Silicone Market.

Europe is expected as fastest growing region in the forecast period in the automotive Silicone market with a CAGR of 7.6%. The region has invested heavily in the research & development of advanced automobile technologies which include electric vehicles & autonomous driving. These are gaining rapid popularity among consumers.

This has led to a surge in the demand for automotive systems & components which includes Silicone chips. Europe has some strictest regulations on safety & emissions standards in the world which has forced automakers to adopt new technologies.

Key Regions and Countries Covered in this Report

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Market Share & Key Players Analysis

Henkel AG & Co. KGaA is the leading industry player, followed by 3M Company, Elkem ASA, and ACC Silicones Ltd. A growing concern for the environment has led to major players working continuously on developing biodegradable polymers.

The majority of global companies are expected to increase their product offerings in Asia Pacific, Central & South America, and North America due to the high growth potential of these regions owing to the expansion of the sector. The automotive Silicone industry is growing in Asia Pacific, Europe, and Central & South America. This is due to the increasing industrialization and urbanization, the rising population, the improving living standards, and the rising disposable income.

Market Key Players:

• 3M Company
• Henkel AG & Co. KGaA
• Permatex Canada Inc.
• Elkem ASA
• Basildon Chemicals
• Specialty Silicone Products Inc.
• Dow Inc.
• ACC Silicones Ltd.
• Wacker Chemical AG
• Shin-Etsu Chemical Co.
• Laur Silicone Inc.
• CSL Silicones Inc.
• Other Key Players

Recent Developments:

• In May 2022, Dow launched a new SALISTIC MS-5002 Silicone moldable. The product is Liquid Silicone Runner LSR & has a very low mold fouling rate for faster cycle times. The product is used to produce high-quality optics for automotive adaptive beams (ADB).
• In October 2021, Wacker acquired 60% of SICO Performance Materials, a Chinese manufacturer of specialty silanes. This will help Wacker to strengthen its Silicone business and foothold in Asia-Pacific.

Report Scope: