Automotive Silicone Market, by Application (Interior & Exterior, EDT System, Electrical System, Suspension Systems, Others), Product (Rubber, Adhesives & Sealants, Coatings, Others): Global Opportunity Analysis and Industry Forecast, 2022-2032

Automotive Silicone Overview

Automotive silicone is also known as a specific type of silicone material that is majorly designed for use in automotive applications. Silicone is an adaptable polymer known for its excellent temperature resistance, electrical insulation properties, and durability. In the automotive industry, silicone is majorly used owing to its unique properties and benefits. The temperature resistance property of silicone can withstand extreme temperatures, both high and low, without losing its physical properties. It remains flexible and stable across a wide temperature range, making it suitable for automotive applications that experience heat and cold, such as engine compartments and exhaust systems.

Silicone rubber exhibits resistance to various weather conditions, including sunlight, rain, snow, and ozone. It does not degrade or become brittle when exposed to outdoor elements, making it suitable for exterior automotive parts such as window seals and weatherstripping. In addition, silicone is highly resistant to chemicals, including oils, fuels, solvents, and acids. This resistance ensures that silicone-based automotive components have their integrity and functionality when it contact with numerous automotive fluids, enhancing their durability and longevity. Silicone rubber is relatively easy to process and mold, allowing for the production of complex automotive parts with intricate designs. It can be formed into various shapes and sizes, facilitating efficient manufacturing processes.

Global Automotive Silicone Market Analysis

The global automotive silicone market size was $2,701.4 million in 2022 and is predicted to grow with a CAGR of 8.5%, by generating a revenue of $6,068.1 million by 2032.

Source: Research Dive Analysis

COVID-19 Impact on Global Automotive Silicone Market

The COVID-19 pandemic had both positive and negative impacts on various industries, including the automotive silicone industry. The pandemic caused disruptions in global supply chains, affecting the availability of raw materials, equipment, and components necessary for automotive production. This slowed down the production of automotive globally. The automotive industry experienced a significant decline in demand during the initial stage of the pandemic owing to lockdowns, travel restrictions, and economic instability. Therefore, automotive manufacturers scaled back production, leading to reduced demand for automotive silicone and other related materials.

Governments of various countries implemented stimulus packages to revive their economies during the pandemic. These measures aimed to provide financial relief, facilitate liquidity, and encourage business continuity. Governments offered tax incentives and relief measures to support the automotive industry. For instance, in 2020, China released a package of approximately $1.13 billion to support the auto industry in the country. Governments also provided loans, loan guarantees, and financial assistance programs to help the automotive industry recover.

Rising Focus on the Production of Lightweight and Fuel-efficient Vehicles to Drive the Market Growth

Automotive manufactures are constantly striving to decrease the weight of vehicles in order to enhance fuel efficiency and overall performance. Lightweight materials, such as high-strength steel, aluminum, plastics, and carbon fiber composites, are increasingly being used in vehicle design. Silicone-based materials, like adhesives, silicone foams, and sealants are important to make automotive products lightweight owing to their low density and ability to replace heavier materials. These lightweight silicone materials are opted in various applications, such as seals, gaskets, electrical components, and thermal management systems, to reduce overall vehicle weight. Furthermore, with the growing environmental sustainability and fuel costs, automakers are focused on improving the fuel efficiency of vehicles. The silicone-based technologies contribute to enhancing fuel-efficiency in thermal management, aerodynamics, and powertrain & electrification. Efficient thermal management is critical for enhancing engine performance and fuel efficiency. Silicone-based materials, like coolant hoses and thermal interface materials, are used to govern heat and maintain optimal operating temperatures, supporting improved fuel efficiency. Silicone-based adhesives, sealants, and gaskets are used in powertrain components, including transmissions, engines, and exhaust systems, to enhance performance and reduce energy losses. In addition, with the rise of electric vehicles (EVs), silicone materials are used in battery pack sealing, thermal management, and electrical insulation, thereby supporting the advancement of electrification and improving EV range.

Increasing Regulatory Measures and Environmental Concerns to Restrain the Market Growth

As the automotive industry persists in developing fuel efficiency and reducing emissions, there is a surging demand for sustainable products. While silicone offers numerous advantages like heat resistance, electrical insulation, and durability, it is not considered as a sustainable material. Silicone is extracted from silicon, a non-renewable resource, and its production involves energy-intensive processes. Additionally, silicone products are not easily recyclable, leading to potential waste management challenges. As governments and regulatory bodies implement strict environmental regulations, automotive manufactures may face consequences and can disagree towards using more sustainable materials in comparison to silicone. The development and use of silicone-based products can cause to the emission of volatile organic compounds (VOCs). VOCs are hazardous chemicals that can cause air pollution and have adverse health effects. Strict environmental regulations often set limits on VOC emissions, which can impact the production and use of automotive silicone. Moreover, the surging prominence on sustainability has increased the demand for eco-friendly substitutes to traditional materials, including silicone. The automotive industry is discovering and accepting greener solutions like bio-based polymers and recyclable materials to decrease their environmental footprints. This is expected to restrain market growth during the forecast years.

Surging Electric Vehicle (EV) Production to Drive Excellent Opportunities

The need for silicone-based materials is anticipated to increase as the global output of electric vehicles soars. Automotive silicone producers now have the chance to broaden their product lines, provide cutting-edge solutions, and meet the unique requirements of the EV sector. Due to its distinct characteristics and advantages, silicone-based materials are frequently employed in a variety of automobile industry applications and components. Electric vehicles generate heat during operation, particularly in the battery and powertrain systems. Silicone-based thermal management solutions, such as thermal interface materials, gels, and adhesives, can effectively manage and dissipate heat, ensuring optimal performance and safety of EV components. Moreover, silicone materials possess excellent electrical insulation properties, making them suitable for applications like wire and cable insulation, connectors, and gaskets in electric vehicles. As EVs incorporate advanced electronics and electrical systems, the demand for reliable and high-performance electrical insulation materials will increase.

Global Automotive Silicone Market Share, by Type, 2022

Source: Research Dive Analysis

The elastomers sub-segment accounted for the highest market share in 2022. Silicone elastomers are widely used in automotive applications for sealing and gasketing purposes. They provide excellent resistance to extreme temperatures, fluids, and chemicals, making them ideal for creating reliable seals in engines, transmissions, and other automotive components. Elastomers offers the advantage of absorbing sounds, dampen vibrations, and noise. For this reason, they find application in engine mounts, suspension bushings, and body mounts to reduce vibrations and improve overall ride comfort. Furthermore, elastomers offer a high degree of design flexibility, enabling the production of complex shapes and sizes. This property is particularly valuable in automotive applications, where components often require customized shapes to fit specific spaces and perform specific functions. Elastomers are utilized for thermal management in automotive applications. They are used in seals, gaskets, and thermal interface materials to provide effective heat dissipation and insulation, contributing to the overall efficiency and reliability of automotive systems.

Global Automotive Silicone Market Share, by Application, 2022

Source: Research Dive Analysis

The interior & exterior sub-segment accounted for the highest market share in 2022. The rising demand for automotive silicone in interior and exterior applications can be attributed to its unique properties and the increasing focus on comfort, safety, and aesthetics in automobiles. In addition, stringent regulations related to environmental sustainability and fuel efficiency have prompted automakers to adopt lightweight materials like silicone, which contribute to overall weight reduction. In interior applications, silicone finds its usage in gaskets & sealing, trim & dashboard, and adhesives & sealants. Silicone is used in the production of soft-touch dashboard components, instrument panels, and interior trim. It provides a smooth and luxurious feel, improves scratch resistance, and offers resistance to high temperatures. Furthermore, in exterior applications, silicone is primarily used for automotive lighting, weatherstripping & sealing, exterior trim & moldings, paint protection, and exterior gaskets & seals. Silicones are used to create weatherstrips that seal the gaps between doors, windows, hoods, and trunks. In addition, they can act as an adhesive and sealant in windshield installation and glass bonding. It provides excellent adhesion, flexibility, and resistance to UV radiation & temperature extremes.

Global Automotive Silicone Market Size & Forecast, by Region, 2022-2032 ($Million)

Source: Research Dive Analysis

The Asia-Pacific automotive silicone market generated the highest revenue in 2022. The demand for automobiles has increased as a result of the promptly mounting economy and population in Asia-Pacific. With important nations like Japan, South Korea, China, and India in the area, the region has become a substantial center for the production of automobiles. The automotive silicone market in the region has increased as a direct result of the substantial growth in automobile production and demand that has progressed in these countries. The market growth is also attributed to the stringent regulations and standards related to vehicle emissions and safety that have driven the need for high-performance automotive components. In addition, progression in silicone technology, such as the development of self-cleaning and self-healing silicones, have further propelled the market growth. These advanced formulations are expected to offer enhanced performance and durability, addressing the evolving needs of the automotive industry.

Competitive Scenario in the Global Automotive Silicone Market

Investment and agreement are common strategies followed by major market players. For instance, in March 2023, Shin-Etsu Chemical developed a silicone rubber for molding ideal for insulation covering material for onboard high-voltage cable in autos. The KE-5641-U, a new silicone rubber for molding product from Shin-Etsu Chemical, will aid in the resolution of these problems. The high withstand voltage properties of this innovative product ensure exceptional insulation performance even when the high-voltage cable's insulation system covering layers are reduced in thickness. In addition, the thinness of the covering layers results in a considerable improvement in the cable's flexibility, as well as the realization of a high-voltage cable with a smaller diameter and lower weight.

Source: Research Dive Analysis

Some of the leading automotive silicone market players are Shin Etsu, Wacker Chemie, Siltech, Elkem Silicones, Momentive Performance Materials, Primasil Silicones, Dowdupont, Evonik, KCC Corporation, and Henkel AG & Co.