Asia Pacific Silicones Market Key Insights:
- Silicone Types – Elastomers, Fluids, Gels, and Resins
- Feedstock – Silicon Metal, Methanol and Hydrochloric Acid
- Market Performance & Price Trends 2018
- Price Analysis & Outlook 2019-2024
- Demand by Application & Country
- Capacity Addition & Plant Turnarounds
Asia Pacific Silicones Market Outlook
The Asia Pacific silicones market is expected to reach a volume of about 2 million metric tons by 2024, registering a CAGR of nearly 5% during the forecast period of 2019-2024. Asia Pacific is expected to lead the regional markets globally during the forecast period. A growing electronics industry along with the increasing standards of living in India, Japan, Korea, China and Taiwan will drive the market growth.
Properties and Applications
Silicones are polymers with repeating units of siloxane or chain of alternating silicon and oxygen atoms. Due to its molecular structure, it is imbued with properties such as water resistance, tensile strength, high binding capacity, and transparency, among others. Silicones can be categorized as:
Due to their versatile properties and shape, silicones find applications across industries such as transportation, electronics, construction, health care, and textiles. With the rising construction activities in the continent, the construction industry is expected to flourish in the coming years, providing further impetus to the Asia Pacific silicones market. The market is especially growing in China where the government is investing extensively in infrastructure programs.
Asia Pacific Silicones Market Analysis
Asia Pacific was the largest silicones market in 2016 due to the shifting of the production facilities by large players from North America and Europe to Asia. The key factors behind the shifting of production facilities included cheap labour, greater availability of raw materials and more market penetration opportunities in end-use businesses such as building and construction, transportation, personal care and consumer products, industrial process, electronics, medical and healthcare, energy, etc.
India and China are expected to maintain their positions as major manufacturing hubs due to low costs of manufacturing and openness towards electronics and automotive industries. China saw significant growth in the silicone market in 2016 and 2017. While several producers had to shut down units or cut output due to environmental regulations in 2017, such shutdowns corrected demand-supply patterns.
China remains the largest market for silicones in terms of value. It will continue to be one of the fastest developing markets in the world. Over the last ten years, there has been a rapid rise of domestic-based silicone manufacturers in China which has affected global markets significantly. It is a key market in the region followed by India and accounted for over half the global demand of silicones in 2017.
China is also the leading importer of silicones. A greater portion of silicones manufactured within the country is used to meet domestic demand. Even with growing demand in China, most Chinese silicones buyers tend to buy from global rather than local players. This is due to a slower technological innovation in the industry in China. However, the tools for future innovations are there with China.
Asia Pacific silicones market will continue to grow the fastest due to acceleration in price growth. With China producing more high-value goods, the manufacturing of lower-valued products would move to India and Southeast Asia. Construction, electronics, medical/personal care and transportation would be primary markets for silicones. Adhesives would drive growth in the construction sector while greater applications for liquid silicone rubber would drive growth in the medical segment.
The report by EMR provides a detailed analysis of the silicones markets in China, India and South East Asia. The report also analyses the types of feedstock for Asia Pacific silicones market.
The report analyses the following key players in the global and Asia Pacific silicones market, looking into their market share, capacity and latest developments like plant turnarounds, expansions of capacity, and mergers and acquisitions:
- Elkem Silicones
- Dow Chemical Company
- Wacker Chemie AG
- Shin-Etsu Chemical Co., Ltd
- Momentive Performance Materials Inc.
- Evonik Industries AG
- KCC (South Korea)
- Herrman (China)
- Dallan (China)
- Hubei Bluesky New (China)
- Supreme Silicones (India)
- Elkay Silicones (India)
EMR’s comprehensive report gives an in-depth insight into the price trends, trade data and the various components of the value chain. It also analyses the market according to Porter’s five forces.