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DESCRIPTION
Silicones Market Global Size:
Silicone is in constant demand across a range of end-use industries, including consumer products, automobiles, electronics, personal hygiene, healthcare, and construction, which propelled a global capacity of 3.23 MMT and demand of 2.62 MMT in the year 2023. Also, as per ELINT Market Research, this industry is projected to experience a 3.5-4.5% rise in demand from 2023–2026. Moreover, it is anticipated that ongoing technology advancements and constant product inventions will encourage silicone’s use in worldwide emerging economies.
Market Definition:
Silicones are versatile polymers that emanate from oxygen, carbon, and hydrogen atoms; hence, they provide characteristics like heat antagonism, elasticity, inferior toxicity, and high strength. These handy qualities cause the global silicone procurement market intelligence to grow steadily and healthily in the years to come. Further, stakeholders operate in this industry investing in making silicon’s broad range of applications, cutting-edge goods, and eco-friendly materials.
Silicones Market Drivers:
- Increasing CPG Manufacturing in APAC –
Asia-Pacific regions are constantly investing in the manufacturing of CPG (consumer packaged goods) and electronics products, which propelled a need for silicone-based materials and also drove industry expansion.
- Rise of Healthcare Sector –
Silicon works as a crucial material in the healthcare sector to produce medical devices and packaging pharmaceutical goods due to its handy features like resilience, longevity, moisture resistance, and more.
- Awareness About Renewable Energy Sources –
Presently, the focus on renewable energy sources in various territories is increasing, which caused the silicon requirement, since it is a sustainable component that assists in solar panel manufacturing, air turbine coatings, battery storage tools, etc.
Silicones Market Challenges:
- Transportation Problems of Silicone Products –
Silicon procurement intelligence companies operating in a global market encounter major challenges due to disruptions in the transportation of silicone products across various international regions. This issue costs more to manufacturers and suppliers.
- Lower Silicon Production in China –
China is known as a significant hub for silicone manufacturing facing a reduced count of goods due to factors like strict regulatory standards and economic transitions. This production decrease is also coupled with a lack of raw materials such as siloxane monomers and OH polymers.
Silicones Market Opportunities:
- Vast Silicon Demand in Medicine Sector –
One of the key opportunities that organizations encounter is the use of silicones in a wide range of applications in the medical sector like artificial legs, transplants, packaging, machines, etc.
- Lightweight Materials Need in the Automotive and Sports Goods Industry –
Automotive and sporting goods sectors require silicon in huge amounts to manufacture lightweight materials; this way manufacturers want to fulfill consumer demand for fuel-efficient vehicles and speedy sporting supplies.
Silicones Procurement Market Segmentation:
- Product Type –
The foremost segmentation factor for the international silicone industry is various product types such as polyurethane, fluids, adhesives, gels, and more.
- Diverse Manufacturing Methods –
Silicon-based goods are manufactured by different approaches like banishment, molding, compressing, etc., which help companies produce quality products.
Major Supply Markets and Impactful Cost Components in the Silicones Market:
Some of the prominent regions emerged as leading suppliers in the international silicone market, which are making a substantial contribution to the total market share. These countries include North America with a 26% share, Europe with a 27% stake, and APAC with a 43% share. Hence, all of these territories own a robust presence of established silicone manufacturers, which are working hard to meet the diverse needs of various industries.
Moreover, in the context of impactful cost components like raw material, labor, regulatory standards, transportation, etc., these similar countries show varied dynamics. For example, North America bears an important portion of the expenses, contributing around 45% of the total expenditures. On the other hand, the Europe region’s impacts on costs account for approximately 34%, and the Asia-Pacific territory contains the biggest proportion of costly components, at almost 52%. Therefore, these cost components assist diverse nations in determining the overall remuneration and pricing layouts for their silicon products.
Price Drivers in the Silicones Market:
As per Elint’s procurement market analysis, the significant price drivers of global silicones include supply stabilization and weak demand; where supply stabilization assists in evaluating the balance between silicon production capacity and market requirements that can impact pricing levels. While weak demand restricts the market’s ability to contain excess silicon supply and aggravates pricing pressures. Thus, to increase requests and lessen selling stress, market players may use pricing techniques including discounts, advertising, and packaging.
Types of Engagement in the Silicones Market:
Various countries comprise varied engagement models in the silicon sector; the foremost country is North America which employs contract-based engagement. Thus, stakeholders make long-term agreements for the delivery of silicon supplies. Further, Europe utilizes spot or contract-based engagement methods, which offer flexibility for immediate purchases of products at persisting market prices. Similarly, APAC also functions on a spot engagement strategy; so buyers can adjust their procurement strategies in favor depending on market conditions.
Supplier and Buyer Powers in the Silicon Market:
In the global silicone market, key regions such as North America and Europe exhibit high supplier powers; it implies that these countries contain designated industry participants who also own control over supply pricing and contract terms. Contrarily Asia-Pacific holds somewhat medium supplier power, which means here, suppliers possess a noteworthy influence on costs, however, due to fierce competition, their silicon supply capacity gets lower compared to other regions. On the flip side, all of these prominent territories comprise medium buyer powers. Hence, purchasers can negotiate their terms at some level to obtain silicon procurement intelligence tools, but kind of get dominated by suppliers.
Contract Period in the Silicon Market:
Silicon manufacturers and their consumers employ contracts typically for 1 to 2 years duration, where they keep track of quarterly price revisions. This agreement provides stability and flexibility to both parties; so they can foster long-term relationships.
Leading Suppliers in the Silicon Market:
The industry frontrunners of silicon market that are delivering high-purity silicon product to worldwide businesses and imndustries comrise AB Specialty Silicones, Grant Industries, ICM, Avantor (NuSil), Jeen International, Basildon (KCC Group), Calsil Silicones, BRB Silicones, Wacker, Elkem (Bluestar) Silicones, Shandong Dongyue, Silok Chemical, Wynca Chemical, Jiangsu Hongda New Material, Jiangsu Tian Chen New Material.
