Silicone Coating Market Size, Share & Trends Analysis Report By Product (Silicone Additives, Water Repellents, Silicone Polymers, 100% Silicone), By Application (Construction, Consumer Goods, Transportation), And Segment Forecasts, 2020 - 2025

Industry Insights

The global silicone coating market size was valued at USD 7.3 billion in 2019 and is expected to be growing at a compound annual growth rate (CAGR) of 6.3% during the forecast period. Increasing coating demand from consumer goods and construction are likely to drive industry growth. Increasing use of environment - friendly and energy saving products is expected to spur the market growth further.

The silicone coating industry is highly competitive owing to the presence of a vast number of market players striving to offer product differentiation for various applications. Companies are carrying out research & development activities for developing new and innovative products as product differentiation is the key factor for businesses to sustain the competition. Technological breakthroughs, innovations, and studies carried out for expanding the product’s application scope are projected to foster the demand over the forecast period.

Rising utilization of conformal coatings in various sectors such as defense, automotive, industrial, and building & construction is anticipated to push the manufacturers towards backward integration in the value chain over the coming years. Higher integration across the value chain components is likely to result in time reduction for transforming raw materials into finished products and in gaining cost advantage. Integration of processes from inbound logistics to after sales services are expected to become the new trend in silicone market. This will lead to improved quality and low cost products which will ensure optimum performance and provide maximum lifetime value.

Silicone manufacturers are expanding their production capacity and infrastructure with an aim to cater to the growing market requirements. Moreover, the key coating industry players are indulged in acquisitions and partnerships to ensure uninterrupted raw material supply. Acquisitions and joint ventures are an integral part of this industry and help companies to strengthen their market position.

Silicone Coating Market Trends

Silicone coating finds applications in industries such as construction, consumer goods, automotive, and manufacturing, which are critical to economic development. Infrastructure and capital projects are driving construction segment, which is expected to boost the demand for silicone coating over the coming years.

Government initiatives, such as the provision of subsidies, increasing foreign investments, trade promotion, and supportive policies, to strengthen manufacturing industry are projected to augment the product demand over the forecast period. “Belt and Road” initiative in China, “Make in India” initiative in India, and “Buy American, Hire American” initiative in the U.S. are expected to generate numerous opportunities and create a supportive environment for manufacturing, infrastructure, and consumer goods industries in the coming years. The estimated growth in key end-use industries is likely to boost the market development of silicone coating.

Automakers are focusing on increasing the fuel efficiency and driving comfort along with reducing the carbon emissions. Growing application scope of silicone coating in automotive owing to their application benefits is increasing the utilization of silicone coating products in automotive sector across the globe.

Retail sales of consumer goods are primarily driven by the rise in demand for electrical & electronics, food & beverages, and clothing. Increase in overall disposable income across the globe, which is enabling consumers to spend on their desired products, and the increase in standard of living have led to the demand for convenience, shopping, and specialty products globally. The growing consumer goods market, which is a significant user of silicone coating, emerged as the major factor boosting silicone coating market across the globe.

Fluctuation in crude oil prices is adversely affecting the chemical, and paint & coating market. The major product in silicone coating market is 100% silicone. The coatings primarily consist of phenyl, and ethyl silicone. Fluctuation in prices of raw materials is adversely affecting the market by creating a situation of uncertainty in raw material procurement as well as in demand and supply of the finished product.

Product Insights

100% silicone emerged as the largest product segment and accounted for more than 33% of the market in 2016. Its properties such as light weight, high tensile strength, clarity for transparency, and electromechanical resistance results in its suitability for various high heat applications such as exhaust stacks, furnaces, wood - burning stoves, lighting fixtures, and barbeque grills. Apart from heat resistant coatings, it is also used as abrasion resistant and food contact release coatings.

Silicone water repellent coating is the fastest growing product segment owing to its applicability over various surfaces and applications. In building facades, trapped moisture behind or within the substrates adversely affects longevity, degrades living comfort, and increases heating cost & thus the carbon dioxide emission.

Water repellency results in hydrophobicity which inhibit water from roaming through the substrate, thus provide moisture resistance to buildings. On account of excellent weather resistant characteristics, low heat conductivity, excellent shock resistant properties, this product segment is expected to gain popularity over the forecast period.

Silicone water repellent does not require solvents, thus contains very low volatile organic compounds (VOC), thereby making it suitable for energy - efficient buildings and indoor air quality improvement. Moreover, the rising demand for green buildings is expected to create high growth potential for this product segment over the next nine years.

Application Insights

Consumer goods sector emerged as the largest application segment and accounted for over 30% of the market share in 2016. Silicone offers excellent gloss retention property which makes it a suitable choice for coating household appliances and jewelry. Moreover, the growth of the consumer goods sector is directly proportional to the consumers buying power. Thus increasing disposable income results in more spending on product & services which act as a driving force behind growing consumer goods market.

Equipment & machinery operating at extreme temperatures require heat barrier coatings to perform at optimum levels. Increasing focus on thermal insulation to improve the operating efficiency is expected to trigger the product demand from industrial applications. It is mainly used in boilers, heavy–duty press, pipes & tanks carrying high temperature liquids & solutions, chimney and other equipment exposed to high heat.

Building & construction is a major application segment of silicone coating which is anticipated to grow at the fastest CAGR over the forecast period. Infrastructure development and emphasis on green buildings coupled with VOC regulations are creating high demand for environment - friendly coatings

Moisture absorption in buildings results in corrosion and higher emission of carbon dioxide, thus increasing the greenhouse gas release. Any small gap between paint and the substrate results in moisture absorption. Silicone in coating form acts as a sealant on the substrate and forms a layer which provides electromechanical and weather resistance.

Advancements in automobile technology coupled with increasing disposable income and standard of living are projected to drive the automotive and transportation industry. Infrastructure development, combined with the growing population in developing nations such as India and China is anticipated to create a high growth potential for automotive manufacturers. Economies such as China, India, Brazil, and South Africa are expected to grow exponentially over the next few years.

Regional Insights

The silicone coating is widely used in industrial and automotive applications owing to its excellent properties such as resistance from heat, dust, moisture, weather, electricity along with superior hydrophobicity. Low-cost labor and raw materials coupled with the presence of various application and end-use industries in the Asia Pacific are driving demand in this region.

China and India occupy significant market shares in the global manufacturing sector and are also leading automotive producers. Developing economies such as India, Indonesia and China are expected to witness strong economic growth over the coming years.

Presence of a massive population coupled with rising disposable income and supportive government policies such as subsidies, promotion of foreign direct investment, etc. is attracting global formulators and distributors to shift their base in the Asia Pacific region. Moreover, the presence of a large number of silicon manufacturers in the region is expected to act as a competitive advantage to the companies.

North America emerged as the largest market for silicone coating, and it is expected to grow at an estimated CAGR of 3.6% by revenue over the forecast period. The demand for silicone coating in North America is anticipated to grow owing to the presence of significant manufacturing and automotive markets.

Growing automobile production in Mexico and U.S focus on increasing domestic production to develop its industrial sector is projected to provide a significant growth potential to the silicone coating market across the region. 

Stringent emission and environmental regulations on reducing pollution and saving the scare resources is shaping this market towards the use of green products, which is likely to develop environment-friendly silicone coating market over the coming years.

Growing automotive production and investments in defense & aerospace are projected to enhance demand for this product across the globe. Stringent environmental regulations in Europe and the U.S. have forced the automotive manufacturers to incorporate renewable, energy-efficient and environment-friendly products & solution in motor vehicle production.

Massive investments undertaken in developing the infrastructure, with emphasis on building & construction sectors in the Middle East and Asia Pacific, is expected to boost demand over the coming years. Green building initiatives, especially in Europe is anticipated to propel the demand for environment-friendly water-born solvent less silicone coating.

Saudi Arabia is one of the major economies in MEA and considered as a foundation of regional stability. The region enjoys advantages such as an abundance of natural resources, various incentives for global companies, and a supportive business environment which allows complete foreign ownership in a wide variety of sectors.

Silicone Coating Market Share Insight

Most of the key players have integrated their raw material production and distribution operations to maintain product quality. This provides companies a competitive advantage in the form of cost benefits, thus increasing the profit margin. Companies are undertaking research & development activities to develop new products to sustain market competition and changing end-user requirements.

Some of the modern technologies include solventless, solvent-based, water-based, and powder-based coatings. Solventless technology is gaining popularity owing to the stringent emission and environmental regulations and awareness towards using energy-efficient products and solutions.

The demand for silicone coating based on solventless technology is primarily coming from North America and Europe. Various predominant rules & regulations such as green building code, Euro 6, Federal Standards, German Renewable Energy Act (EEG), ASTM standards, and Weatherization Assistance Program (WAP) is leading the market towards solventless coating.

Research activities focused on new materials, with enhanced properties, are projected to gain in popularity in this industry. Some of the prominent companies manufacturing these products include Shin - Etsu Chemical Co., Ltd., Wacker Chemie AG, DOW Corning Corporation, and Momentive Performance Materials Inc.

Silicone Coating Market Report Scope

Global Silicone Coating Market Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub - segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global silicone coating market on the basis of product, application, and region:

• Product Outlook (Revenue, USD Million, 2014 - 2025)

  • Silicone Additives

  • Silicone Water Repellents

  • Silicone Polymers

  • 100% Silicone

• Application Outlook (Revenue, USD Million, 2014 - 2025)

  • Building & Construction

  • Consumer Goods

  • Automotive & Transportation

  • Industrial Application

  • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

  • Europe

    • Germany

    • UK

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

  • Middle East & Africa