Complete Study on Global Conductive Silicone Market by Knowledge Sourcing Intelligence
Conductive Silicone Market is projected to witness a compound annual growth rate of 8.07% to reach a total market size of US$3.997 billion in 2021, from US$2.508 billion in 2015. Growing silicone demand per capita in the Asia-Pacific region, continuous expansion and new product development activities undertaken by various companies and the increasing demand for electronic components in power generation and distribution and LED industry fuel the growth of the global conductive silicone market. Other factors include favorable regulatory policies such as FDI (foreign direct investment) and free trade agreement. Silicone elastomers are expected to hold the highest market share owing to its high electrical & thermal conductivity, flexibility, and high mechanical strength.
The thermal interface materials segment is the fastest-growing application in the global conductive silicone market. However, raw material price and increasing awareness for bio-based chemicals as a substitute are the major factors that are likely to restrain the market growth during the forecast period. APAC region, currently, holding the largest market share, is also expected to exhibit high growth, in terms of value during the forecast period. This high growth rate is due to increasing demand from end-use industries such as power generation & distribution, photovoltaic and LED.
Rising Demand For Power Generation and Distribution
World net electricity generation is estimated to increase from 21.6 trillion kWh in 2012 to 25.8 trillion kWh in 2020 (Source: International Energy Outlook 2016) due to its rising end-use energy consumption worldwide. Power systems have continued to evolve from isolated, small grids to integrated national markets and even international markets. Rising worldwide demand for power generation & distribution is boosting the demand for conductive silicones. These silicones are used in cable end terminations or silicone rubber connections made at the end of underground high voltage cables insulated with polyethylene, and also as silicone insulators for power lines. Conductive silicones provide benefits such as high electrical resistivity, resistance to environmental degradations, resistance to electrical aging and hydrophobicity. This results in lower assembly and maintenance costs.
Driver - Increasing Awareness For BioBased Chemicals
Increasing awareness for bio-based chemicals will also hinder the growth of the global conductive market during the forecast period. Due to stringent environmental regulations and growing concern regarding environmental sustainability, there is a huge demand for bio-based chemicals and products that can replace a wide variety of petroleum-based products. There is a high rate of investment in the R&D activities in order to create bio-derived drop-in replacements and alternatives for harmful chemicals on which nearly every industry depends. Furthermore, government policies including grants & loans for the construction of biorefineries and tax incentives for setting up of bio-farms for the production of these bio-based chemicals are also strengthening the growth of bio-based chemicals over petroleum-based chemicals.
Global Conductive Silicone Market Forecast by Type
Global Conductive Silicone Market has been segmented by type as silicone elastomers, silicone gels, silicone resins, and others. Silicone elastomers account for the largest share of the global conductive silicone market with the highest market size of US$X.XX billion in 2015, owing to their superior resistance to extreme temperatures and harsh weather conditions. Electronics is the largest end-user industry of silicone elastomers, contributing to this growth significantly. Increasing demand for advanced healthcare facilities drives the demand for silicone elastomers for a wide variety of medical devices such as implants and diagnostic devices. The growing global rubber industry owing to the booming automotive industry and increasing construction and manufacturing activities will further propel the growth of silicone elastomers market worldwide. Silicone gels are also widely used in electronics, automotive, and medical applications and growing end-user industries will bolster their demand in the coming years. Furthermore, augmenting demand for advanced ceramics will boost the demand for silicone gels in order to incorporate certain powdery additives such as non-reinforcing fillers to achieve better thermal conductivity. We have covered all segments in-depth analysis like market share, size, forecast, trends in the market research report.
Silicone resins are projected to grow at the highest CAGR of X.XX% during the forecast period due to its increasing applications in a wide range of industries. The growing plastic industry is also escalating the demand for silicone resins to be used as release agents and as binders for organic fillers. The growing global construction sector also contributes to this growth significantly as silicone resins are primarily used as hydrophobic agents for building protection and as binders in paints and plasters for building facades. High demand for smartphones, tablets, wearables and other consumer electronic devices will also augment the demand for silicone resins from the consumer electronics industry in the coming years.
Global Conductive Silicone Market Share by Geography
By geography, the global conductive silicone market has been segmented as the Americas (North America, South America), Europe Middle East and Africa (Europe, MEA), and the Asia Pacific. Asia Pacific accounted for the largest market size of conductive silicone in 2015 which was US$X.XX billion and is the fastest-growing market for conductive silicones, growing at the highest CAGR of X.XX% during the forecast period. China dominates the APAC market for conductive silicones owing to the matured consumer electronics industry in the country.
Rapid economic expansion coupled with the development of IT and communications and power industries is augmenting the demand for conductive silicones for thermal interface material, adhesives and sealants, and encapsulants in the region. Moreover, increasing manufacturing activities in emerging economies such as China, India, and South Korea along with supportive government policies and initiatives will propel the market growth in the forthcoming years.
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