Silicone Adhesives Market
Silicone Adhesives Market By Type (Plating Chemicals, Cleaning Chemicals, Conversion Coating Chemicals), By Technology (PSA, Non-PSA), By End User (Electrical & Electronics, Automotive & Transportation, Building & Construction) & Region - Forecast to 2020-2030
Silicone Adhesives Market: About the Report
While growth projections by Fact.MR remain positive, the silicone adhesives market might face challenges owing to restrictions imposed amid the COVID-19 crisis. Decelerating sales in the construction sector as a result of the pandemic will continue posing a threat.
Contrary to this, rising production of electronic vehicles in Europe, China, and the United States will give tailwinds to growth amid the crisis. The report has also identified Asia Pacific as a key market for silicon adhesives. While the automotive sector is a key end user, especially for application in EVs that need to be light weight, usage of silicone adhesives in the medical sector is expected to surge considerably in future.
Silicone Adhesives Market Overview
Despite stagnancy in developed countries, overall growth projections for the silicone adhesives market remain positive. Because the construction sector has continued to remain a leading end user, growth in the near-term assessment period might be hampered since operations within the industry have been hindered during the COVID-19 crisis.
Nonetheless, application of silicone adhesives will consistently rise because of their excellent conductive properties, especially in the electronics sector. With production of electric vehicles picking up pace in the automotive sector, the silicone adhesives market will have lucrative prospects to capitalize on.
According to Fact MR, the silicone adhesives market is likely to reach US$ 770 Mn by 2022.
Demand from Automotive Sector to Remain Key Growth Driver
Use of silicone adhesives in the automotive sector dates back to the industry itself. Structural fiber-reinforced plastic bonding, structural metal bonding, interior trim, exterior trim, and glass bonding are a few applications of silicone adhesives in the automotive sector.
While the industry remains a key end user, setbacks witnessed during the COVID-19 outbreak will cause significant disruptions in the silicone adhesives market. As per the International Organization of Motor Vehicle Manufacturers (OICA), growth forecasts will remain bleak as the industry faces unprecedented challenges amid the pandemic.
Contrary to this, surging production of electric vehicles (EVs) will create growth opportunities. According to the International Energy Agency (IEA), sales of electric cars topped 2.1 million in 2019, which represented 6% rise as compared to the previous year. While the ongoing pandemic is likely to affect EV production as well, the impact is likely to be comparatively lesser.
IEA has predicted sales to account for nearly 3% of global car sales in 2020. This outlook is underpinned by implementation of favorable policies in Europe and China, which will augur well for the silicone adhesives market too.
Government Support to Enable Growth
Government funding will continue creating growth opportunities for the market. Time and again policy-makers from different countries have prioritized technological advancements. Stimulus and incentives allotted to various industries have helped them gain momentum, which have subsequently aided the overall expansion of the silicone adhesives market size.
For instance, according to the Wall Street Journal (WSJ), the U.S. government spent a US$ 116 billion on research & development (R&D) initiatives in 2017. More recently, the U.K. launched the Sustainable Innovation Fund as a part of a £550m package to support innovative small enterprises during the COVID-19 crisis.
Such initiatives undertaken to create a conducive environment for industrial growth are expected to create opportunities for the expansion of the silicone adhesives market as well.
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Regional Outlook on Silicone Adhesives Market
Asia Pacific, according to Fact MR, will continue dominating the silicone adhesives market share through the forecast period. Despite witnessing a temporary period of lull due to the unprecedented COVID-19 outbreak, recovery of China’s GDP will offer lucrative prospects for growth over the coming years.
According to the International Monetary Fund (IMF), China’s economy is expected to grow 1.9% in 2020. Also, growth exhibited by the country is forecast to accelerate at 8.2% next year, thanks to faster-than-expected economic recovery. This is indicative of the conducive environment for industries to recover, which will invariably give tailwinds to growth registered by the silicon adhesives market.
Growth in North America and Europe will however remain sluggish. According to IMF, the U.S. economy is expected to contract 4.3% in 2020, and Britain has even dire forecasts. This could limit expansion prospects for the market in both regions
Silicone Adhesives Market Insights by Type
Based on type, the silicone adhesives market can be segmented into one-component and two-component adhesives. Among these two varieties, the one-component segment is forecast to register growth at a higher rate. Strong adhesion, high flexibility, and applications in glass, metals, plastic, rubbers, and others will drive growth of the segment.
Silicone Adhesives Market Insights by End Use
Automotive and transportation, construction, electrical and electronics, and medical industries are among the leading end users of silicone adhesives. Among these, growth prospects within the medical sector is expected to surge considerably over the coming years. Rising incidence of wound infections, besides increasing awareness about advanced technologies, will fuel demand in the medical sector.
Silicone Adhesives Market Insights by Technology
In terms of technology, the silicone adhesives market can be bifurcated into pressure sensitive adhesives (PSAs) and non-PSAs. Demand for pressure sensitive adhesives will continue rising through the forecast period, due to applications in safety labels for power equipment. Rising demand from the electrical and electronics industry will continue aiding growth of this segment.
Silicone Adhesives Market – Competitive Landscape
The silicone adhesives market is partially consolidated in nature. Companies operating here are largely focusing on product innovation to offer exceptional performance in silicone adhesives.
For instance, H.B. Fuller added Advantra Warrior™ to its portfolio. The manufacturer touts this hot melt adhesive line to be versatile. Especially because of its unique polymer technology, it exhibits unparalleled resistance to extreme temperature. The company intended to offer Advantra Warrior™ as an ideal solution for the packaging sector.
Dow also introduced a silicone adhesive solution called DOWSIL™ EA-4700 CV. This adhesive has the ability of curing in room temperature, and at an impressive speed. These adhesives are innovated to offer excellent adhesion to plastics and metals used in electronics assembly.
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The Analyst’s Viewpoint
“Demand for silicone adhesives will rise in response to increasing demand for lightweight vehicles. Use of silicone adhesives has helped the automotive industry reduce the weight of vehicles produced while ensuring improved mechanical performance and weather resistance. The International Energy Agency has forecast the number of electric vehicles on road to reach 125 million by the end of 2030. This is indicative of lucrative prospects for the growth of the sealant adhesives market over the coming years.”
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COVID-19 Impact on Silicone Adhesives Market
Supply chain disruptions witnessed in the manufacturing sector are expected to hamper growth of the silicone adhesives market. This trend is likely to continue for some time as forecasts for many industries across the world remain bleak in the short term.
Nonetheless, recovery of China’s economy, as highlighted by IMF, which also is a major manufacturing hub, is indicative of the market’s growth potential for 2021 onwards. As per a recent survey conducted by the Electronics Components Industry Association (ECIA), consistent improvements are noticed in general business metrics.
The survey has presented a picture of renewed optimism for the electronics supply chain. This, in turn, presents prospects for the expansion of the silicone adhesives market in the near future, and the electronics industry remains one of the chief end users.
Key Segment: Silicone Adhesives Market
Fact.MR’s research study assesses the global silicone adhesives market in terms of type, technology, end user, and region. This report presents extensive market dynamics and trends associated with different segments of the market, and their influence on the growth prospects of the global silicone adhesives market.
- Automotive & Transportation
- Electrical & Electronics
- North America
- Latin America
- East Asia
- South Asia
- OceaniaMiddle East & Africa (MEA)
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Is the market research conducted by Fact.MR?
Yes, the report has been compiled by expert analysts of Fact.MR, through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to a research analyst.
What research methodology is followed by Fact.MR?
Fact.MR follows a methodology that encompasses the demand-side assessment of the market, and triangulates the same through a supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions.
What are the sources of secondary research?
Fact.MR conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.
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Fact.MR speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, and industry experts. For a full list of primary respondents, please reach out to us.
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