The global market for silicone gel is expected to register a CAGR of over 5% during the forecast period. The major factor driving the market studied is increasing demand for cosmetics and personal care industry. On the flip side, high manufacturing cost and unfavorable conditions arising due to the COVID-19 outbreak are hindering the growth of the market.
-The electrical and electronics industry is expected to dominate the demand for the market studied over the forecast period.
-The Asia-Pacific region represents the largest market and is also expected to be the fastest-growing market over the forecast period owing to the increasing consumption from countries, such as China, India, and Japan.
Key Market Trends
Increasing demand from Electrical & Electronics Industry
- Silicone gel is used in the electrical and electronic industry for potting and encapsulating applications.
- Silicone gel provides vibration and thermal shock protection. It also provides protection from moisture, dust, and other environmental contaminants.
- Silicone gel is used to encapsulate electronic components, junction boxes, power modules and LED’s, owing to its excellent electrical properties, dielectric strength, and resistivity.
- The global electronics industry is growing rapidly across the world, over the past few years, owing to the consistently increasing demand for electronics devices.
- According to the German Electrical and Electronic Manufacturers’ Association (ZVEI), the global electronics and electric market is expected to grow to approximately EUR 4.7 trillion by the end of 2020.
- Asia is expected to register the fastest growth of 4% in 2020, with China leading the market with a growth rate of more than 5%. Countries in North America and Europe is expected to register a growth rate of around 2% during the same period.
- Therefore, the growing electrical industry across the globe is expected to boost the demand for silicone gel during the forecast period.
Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region is expected to account for the largest market for the silicone gel over the forecast period.
- The electronics manufacturing market in Asia-Pacific is expected to grow rapidly during the upcoming years due to the presence of a large number of OEMs in the region. Low cost and the availability of raw materials, coupled with cheap labor, is driving the growth of the sector.
- China has the world’s largest electronics production base. The country not only serves the domestic demand for electronics but also exports electronic output to other countries.
- With the increase in the disposable incomes of the Chinese middle-class population and the rising demand for electronic products in the countries importing electronic products from China, the production of electronics is estimated to grow further, during the forecast period.
- China is becoming the largest market in terms of cosmetics and skin care products, globally. Beauty sector in the country has witnessed a growth of around 5% in the past ten years.
- The Indian electronics industry is one of the fastest-growing industries, globally. In India, the National Policy on Electronics 2019 aims to promote domestic manufacturing and export in the entire value-chain of Electronics System Design and Manufacturing (ESDM) to achieve a turnover of USD 400 billion by 2025.
- Cosmetics and personal care industry is also one of the promising sectors of India. According to India Brand Equity Foundation, the beauty, cosmetic, and grooming market is currently worth over USD 7 billion and is expected to reach USD 20 billion by 2025.
- Hence, the growing end-user industries are expected to boost the demand for silicone gel in the Asia-Pacific region over the forecast period.
The global silicone gel market is partially fragmented in nature. The major companies of the market studied include ACC Silicones LTD, Elkem Silicones, Dow, Wacker Chemie AG, and Shin-Etsu Chemical Co. Ltd, among others.
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