Global Liquid Silicone Rubber Market 2024–2033

Reports Description

As per the current market research conducted by CMI Team, the global Liquid Silicone Rubber Market is expected to record a CAGR of 8.5% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 1,289.80 million. By 2032, the valuation is anticipated to reach USD 1,977.65 million.

LSR (Liquid Silicone Rubber) can undergo sterilization through steam autoclaving, ethylene oxide (ETO), gamma, and e-beam techniques, making it a suitable material for the production of medical equipment, including organ parts and prostheses, that meet stringent safety requirements. This factor, combined with the significant increase in organ failure cases due to the growing elderly population and the prevalence of chronic diseases, contributes to a positive market outlook.

Additionally, there is a significant need to minimize the risk of contamination and enhance the safety of medical devices, further driving the demand for LSR.

Moreover, the automotive industry extensively utilizes LSR for the manufacturing of small and intricate elastomeric parts at high speed and optimal productivity. This is in line with the increasing global vehicle sales, which contributes to market growth. Furthermore, LSR is gaining traction across various industries such as aerospace, construction, electronics, and food and beverage (F&B), where it is used as adhesives, sealants, potting materials, coatings, lubricants, and encapsulating compounds. Furthermore, the emerging trend of industrial automation, along with the growing demand for precision manufacturing, is expected to fuel market growth.

Liquid Silicone Rubber Market – Significant Growth Factors

The liquid silicone rubber market is driven by several significant growth factors, including:

• Increasing Demand from Medical and Healthcare Industries: Liquid silicone rubber finds extensive applications in the medical and healthcare sectors due to its unique properties such as biocompatibility, sterilizability, and chemical resistance. The rising demand for medical equipment, devices, and implants, coupled with the growing aging population and prevalence of chronic diseases, drives the market growth.

• Growing Automotive Industry: Liquid silicone rubber is widely used in the automotive industry for various applications such as gaskets, seals, electrical connectors, and components requiring high durability and temperature resistance. The expanding automotive sector, driven by increasing vehicle production and technological advancements, contributes to market growth.

• Advancements in Material Technology: Continuous research and development activities have led to advancements in liquid silicone rubber formulations, resulting in improved properties and performance characteristics. Enhanced material properties, including flexibility, heat resistance, and chemical stability, have widened the application scope of liquid silicone rubber, driving its market growth.

• Increasing Demand in Electronics and Electrical Industry: Liquid silicone rubber is used in the electronics and electrical industry for applications such as insulation, sealing, and encapsulation of electronic components. With the rapid growth of the electronics sector and the increasing demand for durable and reliable electronic devices, the demand for liquid silicone rubber is experiencing significant growth.

• Growing Demand in Consumer Goods and Personal Care Products: Liquid silicone rubber is utilized in various consumer goods and personal care products due to its versatility, soft-touch feel, and hypoallergenic properties. The increasing consumer preference for high-quality and safe products, along with the rising disposable income, drives the demand for liquid silicone rubber in this sector.

• Regulatory Standards and Safety Compliance: Liquid silicone rubber complies with stringent regulatory standards and certifications, making it a preferred choice in industries with strict safety and quality requirements. Adherence to regulatory guidelines ensures the reliability and safety of the end products, further boosting the market growth.

• Sustainable and Eco-Friendly Solutions: Liquid silicone rubber is considered an environmentally friendly material as it can be recycled and has a low carbon footprint. The growing emphasis on sustainability and eco-friendly practices across various industries drives the demand for liquid silicone rubber as a preferred choice for sustainable solutions.

These significant growth factors collectively contribute to the expansion of the liquid silicone rubber market.

Liquid Silicone Rubber Market – Mergers and Acquisitions

The liquid silicone rubber market has witnessed several mergers and acquisitions, which have influenced the industry landscape. Some notable mergers and acquisitions in the market include:

• Momentive Performance Materials Acquisition by SJL Partners LLC: In 2018, SJL Partners LLC acquired Momentive Performance Materials, a leading manufacturer of silicone and specialty materials, including liquid silicone rubber. This acquisition aimed to strengthen Momentive’s position in the liquid silicone rubber market and expand its product offerings.

• DowDuPont Merger: The merger of Dow Chemical Company and DuPont in 2017 resulted in the formation of DowDuPont, a major player in the chemical industry. DowDuPont offers a wide range of silicone-based products, including liquid silicone rubber, catering to various industries. This merger enhanced the market presence and capabilities of DowDuPont in the liquid silicone rubber market.

• Acquisition of Wacker Silicone Elastomers Business by Elkem ASA: Elkem ASA, a global silicone and silicon materials producer, acquired the silicone elastomers business of Wacker Chemie AG in 2019. This acquisition expanded Elkem’s product portfolio in liquid silicone rubber and strengthened its position in the market.

• Acquisition of BlueStar Silicones by Elkem ASA: Elkem ASA acquired the silicone business of BlueStar Silicones in 2019, including its liquid silicone rubber offerings. This acquisition allowed Elkem to broaden its product range and market reach in the liquid silicone rubber segment.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

Liquid Silicone Rubber Market – Significant Threats

The liquid silicone rubber market is not immune to certain threats and challenges. Some significant threats to the market include:

• Intense Competition: The liquid silicone rubber market is highly competitive, with numerous manufacturers and suppliers operating in the industry. The presence of multiple players intensifies competition, leading to price fluctuations, margin pressures, and increased marketing efforts to differentiate products. Intense competition can impact market share and profitability for individual companies.

• Raw Material Price Volatility: Liquid silicone rubber is derived from various raw materials, including silicones and additives. The prices of these raw materials can be subject to volatility due to factors such as supply-demand imbalances, fluctuations in energy costs, and geopolitical factors. Sudden price increases or supply disruptions can affect the profitability of market players.

• Technological Advancements and Substitutes: The liquid silicone rubber market faces the risk of technological advancements and the emergence of alternative materials or manufacturing processes. New materials or technologies that offer similar or improved properties at a lower cost could pose a threat to the market, leading to a shift in customer preferences.

• Regulatory and Compliance Challenges: The liquid silicone rubber market is subject to various regulations and standards related to safety, health, and environmental protection. Compliance with these regulations can be complex and costly for manufacturers. Changes in regulatory requirements or the introduction of new regulations can pose challenges and increase compliance costs.

• Economic and Market Volatility: The liquid silicone rubber market is influenced by economic conditions and market trends. Economic downturns, geopolitical tensions, and market uncertainties can impact the demand for products and investments in various industries, including automotive, healthcare, and electronics. Such volatility can affect the growth prospects of the liquid silicone rubber market.

• Intellectual Property Infringement: Companies in the liquid silicone rubber market face the risk of intellectual property infringement, including unauthorized use or imitation of proprietary formulations, designs, or manufacturing processes. Such infringement can impact the competitiveness and profitability of market players, necessitating legal actions to protect their intellectual property rights.

Report Scope

Category-Wise Insights

By Grade Type:

In 2023, the medical grade liquid silicone rubber market generated USD 347.5 million in revenue, and it is projected to exhibit a compound annual growth rate (CAGR) of 9.6% over the forecast period. Medical grade LSR is utilized in the production of various devices that contribute to improving life expectancy by reducing pain and enabling the manufacture of artificial joints and pacemakers.

The application of medical grade LSR extends to the manufacturing of rings, gaskets, stoppers, closures, catheters, cushioning pads, and liquid feeding bottles. Food grade liquid silicone rubber finds widespread use in the manufacturing of kitchenware and bakeware due to its resistance to bacteria, odorlessness, hydrophobic properties, and lack of taste interference.

It is employed in the production of various products such as plastic spatulas, knife grips, oven mitts, whisks, spoons, and other utensils, as well as sippy cups, O-rings, gaskets, seals, baking molds, ice cube trays, bottle dispensers, baby products, and toys. With its high versatility and resistance to extreme temperatures, the application of food grade LSR is expanding in the manufacturing of kitchen tools.

By Application Type:

In 2023, the automotive industry witnessed a revenue of USD 656.0 million from the utilization of Liquid Silicone Rubber (LSR), and it is projected to experience a Compound Annual Growth Rate (CAGR) of 9.2% over the forecast period. The lightweight nature of components produced using LSR contributes to improved fuel efficiency in vehicles. Additionally, these components play a vital role in reducing the emission of harmful air pollutants such as CO2 and NO2.

Liquid silicone rubber finds various automotive applications, including the manufacturing of gaskets, LED headlights, windshield wiper blades, harness components, membranes, valves, seals, dampers, and other related parts.

Liquid Silicone Rubber Market – Regional Analysis

Regional analysis of the liquid silicone rubber (LSR) market reveals significant growth and opportunities in various parts of the world. Here is an overview of the regional analysis:

North America:

• North America has a well-established automotive industry, which drives the demand for LSR.
• Stringent regulations regarding fuel efficiency and emissions control create a favorable market for LSR applications.
• The United States and Canada are the major contributors to the LSR market in this region.

Europe:

• Europe is another prominent market for LSR, driven by the presence of leading automotive manufacturers.
• The European Union’s strict emission standards and focus on sustainable transportation contribute to the demand for LSR.
• Germany, France, Italy, and the United Kingdom are key countries in the European LSR market.

Asia Pacific:

• Asia Pacific is a rapidly growing market for LSR, fueled by the booming automotive sector in countries like China and India.
• Rising disposable incomes, urbanization, and increasing demand for electric vehicles drive the LSR market in this region.
• China, Japan, South Korea, and India are major contributors to the Asia Pacific LSR market.

Latin America:

• Latin America exhibits considerable potential for LSR market growth due to the expanding automotive industry.
• Brazil, Mexico, and Argentina are the key countries contributing to the demand for LSR in this region.

Middle East and Africa:

• The Middle East and Africa region show emerging opportunities for the LSR market due to the growing automotive sector.
• The presence of luxury car manufacturers and increasing investments in automotive manufacturing infrastructure drive LSR demand.
• United Arab Emirates, Saudi Arabia, and South Africa are among the prominent markets in this region.

List of the prominent players in the Liquid Silicone Rubber Market:

• Avantor Inc.
• Beacon Medtech Solutions
• Dow Inc.
• MOMENTIVE
• Wacker Chemie AG
• CHT Germany GmbH
• Elkem Asa
• KCC Silicone Corporation
• Shin Etsu Chemical Co. Ltd.
• Stockwell Elastometrics Inc.
• Others

The Liquid Silicone Rubber Market is segmented as follows:

By Grade Type

• Food Grade
• Industrial Grade
• Medical Grade
• Others

By Technology

• Liquid Injection Molding System
• Other Molding Processes

By End-use Industry

• Consumer Goods
• Electrical and Electronics
• Construction
• Automotive
• Healthcare
• Other Applications

By Region

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America