RALEIGH, North Carolina, Sept. 10, 2019 /PRNewswire/ — The global market for Silicones is expected to grow at a CAGR of 4 – 5 percent to reach 2.5 million MT by 2022, according to Beroe Inc., a procurement intelligence firm. The high demand growth rate for silicones industry is mainly driven by electronics, construction, and automobile sector.
On a global scale, the silicones market has surplus volume with more than half of the capacity concentrated in North America and Europe. In developing regions such as China, India, and LATAM, there is an increasing demand for silicones for manufacturing polyurethane-based products. With an expected 5 percent rise in the global electronics market, the demand for silicones is also expected to increase in the electronics industry globally.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
In North America, silicone formulations in energy or medical applications require high amounts of innovation, which are either proprietary or patented. This restricts the entry of the new participants in the silicones industry. On the other hand, the inactive demand in Europe for silicones from construction and other industrial applications has made European silicones a less attractive business opportunity for the new players.
A major constraint for the silicones industry is the growth of the organic personal care industry, which is expected to grow at a significant rate of nearly 9 – 10 percent to reach $9.2 billion by 2021. The organic industry’s growth is mainly strengthened by the long-term benefits offered by the natural ingredients along with the favorable administrative environment.
- The demand growth for silicones in North America and Europe will come from personal care and healthcare applications such as aesthetic implants and renewable energy sectors such as windmill and solar utilization.
- Silicones have applications mostly in the industrial processes and construction sectors supported by Consumer Packaged Goods (CPG) industries.
- Continuous innovation in the silicone industry has occurred to cope up with the progress of the divisions such as electronics, healthcare, and CPG.
- In case the siloxane monomer capacity expansions announced by the major suppliers develop as per the scheduled timeline, the silicones market is expected to recapture balanced supply-demand essentials by 2021 – 2022.
- The global base supplier is consolidated among three top suppliers; Dow, Momentive, and Wacker. These three companies hold more than 50 percent of the capacity share.
- Due to the currency devaluation of GBP Post-Brexit, silicone exports are anticipated to increase further from the European plants in the upcoming years, and Europe will remain as the top export-driven economy for the silicone market.
The research methodology adopted for the report included:
- Experts with twenty years of domain experience
- Interaction with buyers
- Inputs from supply chain partners
Volatile prices of silicon metal influence the price trends of silicones as it is the primary feedstock in silicone production. The other feedstock is methanol which is used in methylene chloride synthesis. However, the influence of methanol prices on silicones is relatively low.
The report also includes:
- Value Chain Analysis
- Global Market Outlook –
- Regional Market Outlook (North America, Europe, and APAC)
- Industry Outlook (North America, Europe, and APAC)
- Cost Analysis (North America, Europe, and APAC)
- Key Global and Regional Suppliers
- Key Supplier’s Capability Analysis
- Geographical Footprint
- Supplier Market Share – Global
- Detailed Supplier Profiling of the Top Five Global Suppliers
- SWOT Analysis for the Top Five Global Suppliers
Industry Best Practices:
- Types of Engagement and Sourcing Models
- Contracts Adopted in the Industry
About Beroe Inc.:
Beroe is the world’s leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.
To learn more about Beroe Inc., please visit: http://www.beroeinc.com