Organo-Modified Siloxane Market

Organo-Modified Siloxane Market Outlook (2024 to 2034)

The global organo-modified siloxane market is projected to be valued at US$ 2.52 billion in 2024. The study done by Fact.MR reveals that the market is forecasted to expand at a CAGR of 4.4% and reach US$ 3.87 billion by the end of 2034.

Organo-modified siloxanes are specialized chemicals used as additives for formulation design in end-use products such as cement, facial cream, coating mixture, and oil repellents. Organo-modified siloxanes come with inherent attributes that can enhance various properties of blended materials, including adhesion, hydrophobicity, chemical resistance, thermal stability, surface properties, viscoelasticity, and more. These compounds are extensively utilized in the construction sector for hydrophobic modification of neutral and natural substrates to mitigate dampness in buildings and architectural designs.

The electronics industry uses organo-modified siloxanes as circuit board coatings, potting compounds, and high-temperature wire insulations. The construction industry is the largest consumer of organo-modified siloxane end-use products, which are mainly in the form of sealants, weatherproofing membranes, and high-performance siloxane coatings.

The skincare industry also relies on siloxane chemistry and is a major end user of organo-modified siloxanes. This chemical is also used in the coating sector, more specifically in the automotive, textile, and paint industries to provide scratch and abrasion resistance, blocking behavior, and slip and haptic attributes. New constituents are being developed based on siloxanes with diverse organically modified groups, offering surface tension reduction and super spreading properties while providing chemical stability at high temperatures and pH.

Report Attributes	Details
Organo-Modified Siloxane Market Size (2023A)	US$ 2.29 Billion
Estimated Market Value (2024E)	US$ 2.52 Billion
Forecasted Market Value (2034F)	US$ 3.87 Billion
Global Market Growth Rate (2024 to 2034)	4.4%
North America Market Share (2024E)	21.7%
East Asia Market Share (2024E)	31%
Key Companies Profiled	Elkem Evonik CHT Silicones BASF Wacker Chemie Munzing Momentive Associated Chemicals Silibase Supreme Silicones

Organo-Modified Siloxane Demand Analysis (2019 to 2023) vs. Market Projections (2024 to 2034)

Organofunctional siloxanes are used as performance additives for improving bulk and surface properties. Growth of the automotive and construction sectors across the globe is boosting the production of organo-modified siloxane. Following are the different organo-modified siloxane market trends forecasted by Fact.MR.

• Short Term (2024 to 2027): Rapid adoption of electric vehicles (EVs) can be attributed to recent advancements in battery technology, as well as the integration of various electrical components in EV systems. These components include the inverter, AC-DC converter, battery management system (BMS), high voltage battery pack, charging system, onboard diagnostics (OBD), electric power steering, electric A/C compressor, and electric water pump. As a result, usage of organo-modified siloxane-based sealant materials is forecasted to increase for high-voltage applications. In the short term, the market is projected to grow significantly due to the integration of more technical equipment in electric vehicles.
• Medium Term (2027 to 2030): Several noteworthy construction projects were to commence in 2023 and are projected to conclude by the end of 2030. These projects include Crossrail 2 in London and the Grand Ethiopian Renaissance Dam in Ethiopia. These upcoming projects are projected to boost the demand for organo-modified siloxane adhesives and sealants. Manufacturers are advised to prioritize expanding their production capacity to meet the expected surge in siloxane applications.
• Long Term (2030 to 2034): In the long term, companies are projected to prioritize the reduction of their carbon emissions to fulfill their environmental obligations. Research and development are projected to play a crucial role in creating infrastructure that supports low-energy and cost-effective production methods while also controlling CO2 emissions. Through investments in sustainable practices, companies are forecasted to create a more resilient and prosperous future. Technological advancements and innovative solutions are projected to be key in achieving this goal.

From 2019 to 2023, the global organo-modified siloxane market size expanded at a CAGR of 3%. According to Fact.MR, a market research and competitive intelligence provider, the market is projected to expand at 4.4% CAGR from 2024 to 2034.

Which Factors are Driving Adoption of Organo-Modified Siloxane?

“Rising Use of Organo-modified Siloxane Additives in Elevating Concrete Performance”

Additives such as organo-modified siloxanes play a crucial role in concrete applications. Growing demand for infrastructure development, encompassing projects like roads, highways, and bridges, as well as commercial and business structures, has led to a rise in the utilization of organo-modified siloxanes.

These additives are designed to reinforce entire structures, serving as hydrophobic agents that protect building surfaces from moisture and weathering. They provide improved thermal stability and greater chemical resistance, and enhance the long-term storage stability of cement.

“Organo-modified Siloxane Serving as Antifoaming Agent in Oil & Gas Processing Chain”

Organo-modified siloxanes are a key component in antifoaming agents used in the oil and gas processing chain. Resistant to chemical corrosion and temperature variations, it effectively mitigates foam formation during channeling. Its usage is notably more efficient than alternatives, providing an enduring reduction in surface tension.

Global oil production, which reached a peak of 95 million barrels per day in 2019, is projected to rise at a 3.8% CAGR through 2030. Leading exporters, including Saudi Arabia, Russia, Iraq, the United States, and Canada, jointly accounting for 24% of global oil production, are projected to be key drivers of market growth throughout the forecasted period.

What is Hindering the Sales Growth of Organo-Modified Siloxane?

“Fluctuating Raw Material Prices and Regulatory Restrictions”

Raw material price fluctuations have a significant impact on the intermediate and end-use costs of organo-modified products. Organo-modified siloxanes usually comprise three primary components: silica stone, methanol derived from natural gas, and an organic compound. The prices of the first two components are inflated due to high demand and low supply from countries that are top exporters of these raw materials. On the other hand, with a steady inflation rate, the prices continue to increase.

• According to Reuters, Russia’s oil and gas exports to other nations are being hampered by the Russia-Ukraine war, which began in early 2022, resulting in a voluntary 300,000 barrels per day supply cut. Due to Germany's extreme reliance on gas and oil imports from Russia, leading to historically high energy prices, inflation, and unemployment, the country's economy is unstable.

Country-wise Insights

What is the Current Status of the Organo-Modified Siloxane Market in Germany?

“Market Benefitting from Strong Focus on Chemical Research and Development”

As per Fact.MR, the organo-modified siloxane market in Western Europe is estimated at US$ 297.5 million in 2024 and is forecasted to expand at a CAGR of 3.8% to reach US$ 433.6 million by 2034-end, which equates to around 9% of the global organo-modified siloxane market share.

Germany is one of the world's top three exporters of chemicals. Key manufacturers such as BASF, Wacker, and Evonik, which are based in Germany, collectively occupied 15% of the market in 2023. These companies have a strong foundation for chemical research and development.

The ongoing Russia-Ukraine war has had a direct impact on Germany's automotive industry. Supply chain issues and a shortage of semiconductors are directly or indirectly affecting market growth in the country.

Category-wise Insights

Why is Solid Organo-Modified Siloxane in High Demand in the Medical Field?

“Biocompatibility of Solid Organo-Modified Siloxane Driving Use in Implants and Prosthetics”

While comb-like structure organo-modified siloxane accounts for a leading market share of 43.1% in 2024, solid organo-modified siloxane is highly sought after in the medical industry for its biocompatibility and tunable properties, making it ideal for use in prosthetics, implants, and drug delivery systems.

Extensive research and development are currently being conducted on the solid form organo-modified siloxanes to reduce production costs and simplify the complex manufacturing process. Some of the major players are actively researching siloxane gels for biomedical applications, such as drug delivery systems and implants. They are also developing flame-retardant siloxane fibers for high-performance textiles.

• Wacker Chemie AG, a German company, excels in research on silanes that can modify and enhance the properties of solid siloxanes.

Companies are also pioneers in developing sustainable production processes for siloxanes. Solid siloxanes are used in a wide range of applications, including elastomeric gaskets, heat-resistant resins, and flame-retardant fibers. The properties of these materials can be precisely tailored through processing, and their robust nature ensures long-lasting performance, thereby driving overall organo-modified siloxane market growth.

Competitive Landscape

Leading companies in the organo-modified siloxane market are Evonik, CHT Silicones, BASF, Wacker Chemie, Munzing, Momentive, Associated Chemicals, and Silibase. To meet the growing demand from clients, key companies are focusing on diversifying their product portfolios, exploring possible mergers with other organizations, and expanding into new regions. They are also developing strategies to create eco-friendly products, investing heavily in research and development for a sustainable future. Through their efforts, several breakthroughs have been made along the way.

Fact.MR has provided detailed information about the price points of key manufacturers of organo-modified siloxanes positioned across regions, sales growth, production capacity, and speculative technological expansion in the recently published report.

Segmentation of Organo-Modified Siloxane Market Study

• By Physical State :

  • Solid
  • Liquid
  • Gel
  • Foam

• By Structure Type :

  • Comb-like Structure
  • Linear Structure
  • Combined Structure
  • Other Structures (Including Branched or Cross-Linked)

• By Application :

  • Adhesives & Sealants
  • Coatings & Paints
  • Personal Care Products
  • Textile & Leather Finishing
  • Biomedical & Healthcare
  • Electronic & Electrical Components
  • Release Agents
  • Fuel & Lubricant Additives
  • Water & Oil Repellents
  • Construction Materials
  • Automotive Applications
  • Others

• By Region :

  • North America
  • Latin America
  • East Asia
  • South Asia & Oceania
  • Europe
  • Middle East & Africa