The silicone coatings market is expected to register a CAGR of over 4%, during the forecast period. The major factor driving the market studied is the utilization of silicone coatings on roofs and exterior walls, in the construction industry. A rise in the demand for silicone coatings is also expected, due to its water-resistant tendency being applied in industries like electrical and automotive. On the flip side, the high production cost of raw materials is anticipated to hinder the growth of the market.
- Owing to its properties of moisture, temperature, and corrosion resistance, silicone coating finds wide applications in the building and construction industry.
- Their ability to tolerate extreme temperatures and not break down even under the effect of UV radiation has led them to become a major choice for enhancing the life of roofs, especially those in plants belonging to the oil and gas industry.
- Asia-Pacific region is expected to be the fastest-growing market due to the high demand for silicone coating from various end-user industries.
Key Market Trends
Growing Demand from the Building and Construction Industry
- The major factor driving the growth of the global silicone coating market is growth in the construction industry and thus the need for effective coating products. The silicone coating is used as a layer of protection for the building structures to safeguard the buildings from harsh weather conditions.
- The use of silicone coating for the waterproofing of roofs and for increasing its UV resistance for more durability is further anticipated to boost the market.
- The global expenditure of the construction industry amounted to more than USD 11 trillion in 2019 and is expected to reach around USD 14 trillion by 2025 and thereby ought to surge the demand for silicone coatings.
- Hence, the factors mentioned above are expected to drive the global market for silicone coatings during the forecast period.
Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region is forecast to be the fastest-growing market owing to the large demand from the construction and electronics sectors.
- By the end of 2020, the Asia-Pacific region is projected to account for around 46% of the global construction spending. The further increase in construction spending is expected to boost the demand for silicone coating market.
- The global consumer electronics segment is expected to account for a revenue of around USD 473.3 billion by 2020, out of which approximately USD 253.25 billion is expected to be assembled by China alone. With the growing demand for smart and advanced electronics, the production of electronics is expected to further increase in China.
- Revenue from Japan's consumer electronics segment in 2020 is projected to be USD 17.28 billion and is anticipated to grow at a CAGR of 4.5% during the forecast period reaching a total of about USD 20.62 billion by 2024.
- Indian government has planned to built 100 smart cities across the country fetching an investment of USD 28.18 billion in coming years thereby creating scope for the application of silicone coating market in the region.
- Thus, the rising demand from various industries is expected to drive the silicone coatings market in the region during the forecast period.
The global silicone coating market is partially concentrated, with some of the top players accounting for the major shares of the market. Some of the major companies are Shin-Etsu Chemical Co. Ltd, Elkem Silicones, Momentive, Wacker Chemie AG, and Dow.
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