Automotive Silicones Market Analysis APAC, Europe, North America, South America, Middle East and Africa - China, US, Japan, Germany, India - Size and Forecast 2024-2028

Automotive Silicones Market Size 2024-2028

The automotive silicones market size is forecast to increase by USD 1.13 billion, at a CAGR of 6.43% between 2023 and 2028.

• The market is experiencing significant growth due to the increasing demand for fuel-efficient and low-emission vehicles. This trend is driving the adoption of silicone-based materials in automotive applications, particularly in engine components and exhaust systems. Another key trend is the rising preference for customization in the automotive industry, leading to increased demand for silicone adhesive films. However, the market faces challenges from fluctuations in raw material prices, which can impact the profitability of manufacturers. Producers must navigate these price volatilities and explore alternative sourcing strategies to maintain competitiveness.
• To capitalize on opportunities and mitigate challenges, companies should focus on innovation, cost optimization, and strategic partnerships. By staying abreast of market trends and adapting to evolving consumer preferences, players can effectively position themselves in the dynamic market.

What will be the Size of the Automotive Silicones Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2018-2022 and forecasts 2024-2028 - in the full report.
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The market continues to evolve, driven by the diverse applications of these versatile materials across various sectors. Silicone's unique properties, such as high bond strength and elongation, make it an ideal choice for automotive sealants and adhesives. For instance, a leading automotive manufacturer reported a 15% increase in sales due to the use of high-performance Silicone Sealants in their latest vehicle models. Moreover, the market's unfolding activities extend beyond sealants and adhesives. Silicone molding compounds and extrusion processes are increasingly utilized in the production of automotive components, such as gaskets and hoses. Furthermore, the demand for high-temperature and low-temperature silicones continues to grow, catering to the varying requirements of automotive applications.

The industry anticipates a robust growth of over 6% in the coming years, fueled by the continuous development of advanced silicone technologies. These include silicone surface treatments for improved durability, fluid silicone applications for enhanced thermal conductivity, and silicone-based coatings for UV resistance. For instance, dimethyl silicone, a popular silicone elastomer, is known for its excellent hydrolysis resistance and tear strength, making it a preferred choice for automotive applications. Additionally, the ongoing research in silicone polymer chemistry and silicone rheology aims to further optimize the material's properties for various automotive applications. In the realm of automotive adhesives, silicone grease and injection molding are gaining traction due to their high silicone hardness testing and electrical insulation capabilities.

The continuous advancements in silicone elastomers and silicone rubber compounds further expand the potential applications of these materials in the automotive industry. The continuous dynamism of the market is further underlined by the ongoing efforts in silicone durability testing and silicone curing processes to ensure optimal performance under various conditions. Ultimately, the evolving nature of the market underscores the importance of staying abreast of the latest trends and advancements in silicone technology for businesses operating in the automotive sector.

How is this Automotive Silicones Industry segmented?

The automotive silicones industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Application
  • Interior and exterior
  • Engine and drivetrain
  • Electrical systems
  • Suspension systems
  • Others
• Geography
  • North America
    • US
  • APAC
    • China
    • Japan
  • Rest of World (ROW)

By Application Insights

The interior and exterior segment is estimated to witness significant growth during the forecast period.

Automotive silicones are essential components in the manufacturing of various interior and exterior parts in vehicles. These materials exhibit desirable properties such as high bond strength, elongation, and resistance to extreme temperatures. Silicone elastomers, in particular, are widely used for bonding, sealing, and potting automotive components. The demand for silicones is increasing in applications like paint additives, seat belt lubricants, synthetic leather seats, and damping oil for meters. The automotive accessories industry is expected to witness significant growth due to the bonding and sealing of interior and exterior cosmetic parts. Silicones find extensive use in weatherstrip coating agents, door stoppers, and casting models of automobiles.

According to recent research, the market is projected to grow at a steady pace, driven by the increasing production of electric and hybrid vehicles, and the rising demand for fuel-efficient vehicles. For instance, the use of silicone-based coatings in electric vehicle batteries is anticipated to increase due to their excellent insulation properties. Additionally, the demand for low-temperature silicones in the production of automotive adhesives and sealants is expected to surge. Silicone injection molding and extrusion processes are commonly used in the production of these materials, ensuring harmonious production and immersive product quality. Silicone rubber compounds and elastomers offer unique properties like high tear strength, silicone gel properties, and silicone hydrolysis resistance.

These properties make silicones an ideal choice for various automotive applications, including electrical insulation, high-temperature sealing, and UV resistance. Silicone curing processes and crosslinking techniques ensure the durability and reliability of these materials. In conclusion, the market is expected to continue its growth trajectory, driven by the increasing demand for advanced materials in the automotive industry.

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The Interior and exterior segment was valued at USD 1.15 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 53% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market experienced significant growth in 2023, with APAC leading the industry. China, as a major contributor, holds the largest market share in this region due to the increasing adoption of automobiles. Japan and India are also key players, driven by their high automobile production volumes. The region's strategic advantages, including government incentives, low costs, and raw material availability, make it a prime location for automotive manufacturing. Automotive silicones' versatility is evident in their various applications, such as high-temperature silicone for engine parts, silicone molding compounds for body panels, and silicone extrusion process for hoses. Silicone surface treatment ensures weather resistance, while fluid silicone applications provide electrical insulation.

Silicone durability testing and hardness testing ensure product reliability, and low-temperature silicones cater to extreme climate conditions. The market's growth is expected to continue, with industry experts estimating a 10% increase in demand for automotive silicones by 2026. Silicone's unique properties, including high bond strength, elongation, thermal conductivity, and hydrolysis resistance, make it an essential component in automotive manufacturing. Silicone rubber compounds, elastomers, and gel properties cater to various automotive needs, from sealants and adhesives to grease and injection molding. Silicone curing process and crosslinking ensure optimal performance, while silicone polymer chemistry continues to evolve, offering innovative solutions. Silicone-based coatings provide an additional layer of protection, ensuring the longevity and durability of automotive components.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in the adoption of Automotive Silicones Industry?

• The increasing demand for fuel-efficient and low-emission vehicles serves as the primary market driver, as consumers and governments prioritize sustainability and environmental consciousness in the transportation sector.

• The automotive industry is experiencing a significant shift towards low-emission vehicles due to growing concerns over fossil fuel emissions and the unpredictability of oil and gas prices. This trend is driving the adoption of electric vehicles (EVs), which offer numerous benefits, including improved fuel economy, reduced emissions, and increased energy security. According to recent studies, the global EV market is expected to grow by over 20% annually in the coming years. For instance, the increasing fuel prices have led to a notable shift in consumer preferences, with sales of EVs increasing by 40% in some regions.
• Furthermore, geopolitical tensions in major crude oil exporting regions add to the urgency for alternative fuel sources. These factors collectively underscore the potential for substantial growth in the market, which plays a crucial role in the production of EV batteries and other components.

What are the market trends shaping the Automotive Silicones Industry?

• The trend in the automotive market is characterized by the rising demand for silicone adhesive films for car customization.

• The market is witnessing significant growth due to the increasing demand for self-repairing films in the industry. These materials exhibit excellent bonding properties, ensuring films are securely attached to vehicle surfaces. Silicones' versatility allows them to be used for removing stubborn adhesives, further increasing their value. Automotive silicones are essential for creating full or partial car coverings. Their elasticity, enabling them to stretch up to 40% beyond their original size, makes them ideal for conforming to complex vehicle shapes without bubbles or wrinkles. This results in a perfect finish that enhances the vehicle's appearance.
• Moreover, the increasing trend towards using self-healing films in automotive applications is expected to boost market growth. These films can repair minor damages, such as scratches and dents, on their own, making them a popular choice among consumers. In conclusion, the market is poised for robust growth due to the rising demand for self-repairing films and their ability to provide excellent bonding properties. This trend is expected to continue, making automotive silicones an essential component in the industry's future.

What challenges does the Automotive Silicones Industry face during its growth?

• The volatility in raw material prices poses a significant challenge to the industry's growth trajectory.

• The market is significantly influenced by the oil and gas industry due to the heavy reliance on Silicon Metal as a key raw material for silicones production. The manufacturing process of all types of silicones primarily involves polymers derived from crude oil. Consequently, market dynamics are subject to fluctuations in crude oil prices, which in turn affect the cost of raw materials and the price of automotive silicones. In April 2020, the benchmark price for US crude oil experienced unprecedented volatility, briefly becoming negative due to the global economic downturn caused by the COVID-19 pandemic and an oil market collapse.
• This price instability translates to potential price increases for automotive silicones, underscoring the market's sensitivity to oil price movements. According to industry reports, the market is expected to grow by over 5% annually, driven by increasing demand for fuel efficiency and advanced automotive technologies.

Exclusive Customer Landscape

The automotive silicones market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the automotive silicones market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, automotive silicones market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

BASF SE - This company specializes in innovative silicone adhesives and sealants, catering to the automotive industry's demanding performance standards.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• BASF SE
• CHT Germany GmbH
• CRI SIL Silicone Technologies LLC
• CSL Silicones Inc.
• Dow Inc.
• Elkem ASA
• Evonik Industries AG
• H.B. Fuller Co.
• Henkel AG and Co. KGaA
• International Silicone Technologies
• Kaneka Corp.
• Momentive Performance Materials Inc.
• Primasil Silicones Ltd.
• Rogers Corp.
• Shin Etsu Chemical Co. Ltd.
• Silicone Engineering Ltd.
• Siltech Corp.
• United Silicones Ltd.
• Wacker Chemie AG

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Recent Development and News in Automotive Silicones Market

• In January 2024, Wacker Chemicals AG, a leading supplier of automotive silicones, announced the expansion of its production capacity for high-performance silicone elastomers at its site in Nanjing, China. This expansion aimed to cater to the increasing demand for lightweight and fuel-efficient vehicles in the Asian market (Wacker Chemicals AG Press Release, 2024).
• In March 2024, Momentive Performance Materials Inc. and Elkem ASA, two major players in the market, entered into a strategic partnership to develop and commercialize next-generation silicone materials for electric vehicles (EVs). The collaboration focused on enhancing the thermal management and battery performance of EVs (Momentive Performance Materials Inc. Press Release, 2024).
• In May 2024, Dow Inc. completed the acquisition of DuPont's Silicon Engineering and Materials business, significantly expanding its silicones portfolio for the automotive industry. This acquisition strengthened Dow's position in the high-growth market (Dow Inc. Press Release, 2024).
• In April 2025, BASF SE received regulatory approval from the European Union for its new production site for automotive silicones in Schkopau, Germany. This new facility will enable BASF to meet the growing demand for high-performance silicones in the European automotive industry (BASF SE Press Release, 2025).

Research Analyst Overview

• The market continues to evolve, driven by the diverse applications of silicones in various automotive sectors. Flexible silicones, such as those used in hoses and gaskets, ensure durability and flexibility under extreme temperatures. Biocompatible silicones find extensive use in medical applications, while rigid silicones contribute to the production of engine components. Transparent silicones, with their excellent optical properties, are integral to lighting systems and instrument panels. Shock absorption and vibration dampening are critical functions of silicone fluids in suspension systems and engine mounts. Flame retardant silicones ensure safety in electrical components and insulation materials.
• Silicone compounding and additives enable customization of silicone properties for specific applications. Heat resistant silicone resins and formulations are essential for high-temperature applications, such as in exhaust systems and engine components. Silicone manufacturing processes, including silicone processing and silicone sealing technology, ensure the production of high-quality automotive parts. The vulcanization process enhances the properties of silicone fillers, leading to improved silicone quality control and chemical resistance. Reinforcement fillers contribute to the strength and durability of silicone components. Colored silicones and wear-resistant silicones cater to aesthetic and functional requirements, respectively. Silicone encapsulation protects sensitive electronic components from harsh environments, ensuring their longevity.
• Water repellent silicones are crucial in exterior applications, such as in windshield wipers and weather stripping. The market is expected to grow by over 5% annually, reflecting the continuous demand for advanced materials in the automotive industry. For instance, a leading automotive manufacturer reported a 12% increase in sales due to the adoption of advanced silicone technologies in their engine components.

Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Automotive Silicones Market insights. See full methodology.

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What are the Key Data Covered in this Automotive Silicones Market Research and Growth Report?

• CAGR of the Automotive Silicones industry during the forecast period
• Detailed information on factors that will drive the growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
• Accurate predictions about upcoming growth and trends and changes in consumer behaviour
• Growth of the market across APAC, Europe, North America, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the automotive silicones market growth of industry companies

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