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Silicone Market New Business Opportunities and Investment Research Report 2027

Author : Ravi Chawat | Published Date : 2021-02-02 

As concerns pertaining to extensive plastic usage and its role in escalating ocean pollution levels continue to rise, the industrial world is rapidly turning to a more eco-friendly and safer alternative; silicone.

Silicones refer to a vast family of high-performance, specialty materials, including silicone fluids, silicone polymers, and reactive silanes, that demonstrate high application potential across myriad industrial and consumer products. The scope of the silicone market is extremely vast and spans several prominent industries including personal care, healthcare, transportation, electronics, aerospace, construction, etc.

Silicones, or polysiloxanes, offer various benefits to the products they are used in. these benefits include high resistance to cold, heat, and UV radiation, as well as enhanced flexibility. Silicones can take many forms, such as liquids, solids, greases, rubber, oil, and semi-viscous pastes, among others.

Rapid shift towards greener technologies in the construction industry will drive silicones market penetration 

Aside from achieving greater heights, the construction industry has progressed in several ways over the years. Over time, buildings have become increasingly energy-efficient, with a marked decline in GHG emissions. Furthermore, modern constructions utilize fewer resources and are made to be more long-lasting and safer, with better temperature, wind, and even earthquake resistance.

As per reports from the European Commission, buildings account for almost 40% of the energy use in Europe. According to an updated Energy Performance of Buildings Directive, the construction domain is essential for achieving sustainability goals mentioned in the directive, in addition to the Paris agreement, the circular economy action plan, and the 2030 climate and energy framework.

While engineering and architectural developments are of great importance, advancements in material science, particularly silicones also play a major role in this regard.

Polysiloxanes contribute significantly to the circular economy, as they allow for the use of lesser materials in the construction process, expanding the building’s lifespan and helping to achieve greater energy efficiency. For instance, the use of silicone sealants for insulated window glazing can facilitate savings of almost 30x more GHG than was emitted during their production. Additionally, the adoption of silicone coatings and additives can also mitigate water ingress by almost 80%, which is a remarkable advancement, given that water intake is one of the most notorious causes for biodegradation in buildings.

Silicones also help buildings achieve the much-coveted net-zero status, in terms of emissions, by replacing conventional materials with building integrated photovoltaic materials that provide renewable energy sources in place of conventional skylights, roofs, or facades.

Diminishing raw material supply and fluctuating costs may hamper industry expansion 

One of the main challenges to global silicone market growth in recent years is the constant fluctuation of energy and raw materials costs. For instance, in 2018, the prices of major raw materials for silicone production, namely methanol and silicon metal, witnessed a surge of nearly 20-25% and 20-30% respectively from the previous year.

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In addition to these price variations, the capacity for key silicone ingredients, like siloxane, has been constrained as various plants faced work stoppages, environmental regulations, and even complete shutdowns, which could assert a negative impact on silicone industry trends.

To illustrate, silicone producer Momentive Performance Materials announced its plan to close its Waterford, New York-based basic chemicals plant, as a part of a corporate overhaul in 2020, which left Dow as the sole producer for raw materials required for silicone sealant, fluid, and elastomer production in the United States.

Rising prevalence of silicone-based cosmetics and personal care products will act as a key silicone market trend

Cosmetic formulations have also undergone significant changes over the years, driven mainly by changes in consumer demand and availability of the ingredients. This was one of the main factors that propelled silicones from their minor role 4 decades ago, to their more prominent presence in the sector at present, with over 50% of newly launched personal care products containing the ingredient.

The silicone industry is a major contributor to personal care, with the product showing robust compatibility with a wide range of formulation ingredients, even plant-based ones, allowing for better formulation flexibility. Silicone-based cosmetic and personal care products such as sun & skincare products, makeup, and body lotions, among others, are gaining rapid traction over the years, owing to the beneficial properties of the ingredient including low toxicity and chemical reactivity. Various advancements in the field of color cosmetics, for example, long-lasting lip glosses have emerged as a result of strong progress in the silicone domain.

In May 2020, Elkem Silicones introduced a new brand of silicones for specialized personal care applications, dubbed PURESIL. The new brand, which was created after the acquisition of Basel Chemie, a Korea-based silicone manufacturer by Elkem, is an addition to the company’s existing silicone product range which already included the brand MIRASIL. The PURESIL™ brand includes two lineups of fluoro-silicone products and PURESILTM elastomer gels, with the latter being intended for use in various sun care, skincare, and color cosmetics, imparting a unique product texture and improving sun protection and moisturization properties.

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About Author

Ravi Chawat

Ravi Chawat

Ravi Chawat holds a bachelor's degree in Electronics and Telecommunication Engineering. He has worked closely with industry specialists from different segments including chemicals, food and beverages, construction and manufacturing & energy and power. Ravi's article concentrates principally on balancing relevant data but never at the expense of making the content engaging. He believes in giving fair-minded information to guide significant business choices. [email protected] | https://twitter.com/RaviChawat

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