The global liquid silicone rubber market is estimated to witness a healthy growth, at an estimated CAGR of over 4.5%, over the forecast period. The major factors driving the growth of the market studied are increasing demand from the medical devices industry and food packaging industry.
- Slowdown in the automotive production is likely to hinder the market growth in the coming years.
- Increasing adoption in the electronics sector is likely to create opportunities for the market in the coming years.
- Asia-Pacific region is expected to dominate the market. North America is likely to witness highest CAGR during the forecast period.
Key Market Trends
Increasing Demand from Healthcare and Medical Devices
- Medical devices are one of the major end-users of the liquid silicone rubber market. Owing to its purity, chemical, and physical resistance, flexibility and sterilization properties, the demand for liquid silicone rubber is on the rise in the medical devices industry.
- Currently, liquid silicone rubber has its application in medical cables, medical textile coatings, respiratory masks, medical tubing, catheters, and other medical devices market.
- The Chinese government has increased its focus on biomedical and high-end medical device manufacturing, under the “Made in China 2025” plan. According to this plan, it intends to raise the domestic content of core components and materials to 40% by 2020 and 70% by 2025. This is expected to boost the demand for liquid silicone rubber.
- The Asia-Pacific region is expected to be the fastest-growing market for medical devices. This is fueled by the increasing public expenditure on health in countries, like India and Bangladesh, and ASEAN countries. Furthermore, the rise in insurance coverage in the area gives impetus to the tertiary healthcare facilities in the region. This is expected to increase medical device production.
- Owing to all the aforementioned factors, the market for liquid silicone rubber is likely to grow during the forecast period.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific region accounted for the largest share of the regional market for liquid silicone rubber. Owing to the presence of largest consuming countries such as China and India, the demand for liquid silicone rubber in the region is growing at a significant rate.
- The Chinese automotive manufacturing industry is the largest in the world.The industry is witnessing a decline due to the production decline. Furthermore, with a weak economic forecast, the production is expected to fall further. Thus, the demand for liquid silicone rubber is expected to remain weak from the automotive sector.
- However, the Chinese government’s push to encourage sales in electric vehicles is expected to push the demand for liquid silicone rubber in the country, during the forecast period.
- China’s economy is slowly moving from an investment-driven economy to a consumption- driven economy. This is on the back of increasing consumption from the lower-tier cities in the country. This is expected to increase the demand for consumer goods, like child-care products, etc. This has been driving the demand for liquid silicone rubber in the country.
- All these factors are expected to show an impact on the liquid silicone rubber market in the region during the forecast period.
The liquid silicone rubber market is partially consolidated in nature. Some of the major players in the market include Dow, Wacker Chemie AG, Shin-Etsu Chemical Co., Ltd., KCC Corporation, and Jiangsu Tianchen New Materials Co., Ltd, among others.
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