The Global Silicone Gel Market to Grow at the Highest Pace Owing To Increasing Demand from Electronics Industry

Silicone Gel Market

Silicone gel is a soft, very low-viscosity, pressure-sensitive adhesive made of polydimethylsiloxane cross-linked polymer and is widely used as sealants, lubricants, medical devices and healthcare products. Silicone gel provides protection from water, chemicals, dust, vibration, thermal shock and extremely high or low temperatures. The increasing demand for silicone gel from electronics industry for manufacturing of smartphones, tablets and other consumer electronics is driving the market growth. Silicone gel is increasingly being used in manufacturing of semiconductors owing to its excellent insulating and protective properties. Medical sector is another major end-use industry for silicone gel where it is utilized to manufacture products such as breast implants, wound care dressings and prosthetics.

The Global Silicone Gel Market is estimated to be valued at US$ 18.88 Bn in 2024 and is expected to exhibit a CAGR of 7.9% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the Global Silicone Gel Market Size are DOW Corning Corporation, Shin-Etsu Chemical Co., Ltd., Wacker Chemie AG, Momentive Performance Materials Inc., Bluestar Silicones, ACC Silicones Ltd., Gelest Inc., KCC Corporation, Nusil Technology LLC., Henkel AG & Co.

The growing application of silicone gel in smartphones, tablets and other consumer electronics is propelling the market growth. Around 50% of total silicone gel produced is consumed by electronics sector.
Technological advancements have improved the formulations of silicone gel to provide better transparency, flexibility and adhesion strength. New silicone gel products are being developed with enhanced protective properties against dust, heat and moisture for automotive and industrial applications.

Market Trends

Growing automotive sector is one of the key trends positively impacting the silicone gel market. Silicone gel is increasingly finding applications as sealants in vehicle manufacturing owing to benefits such as high temperature resistance. Its ability to withstand temperatures up to 250°C makes it suitable for sealing wire harnesses, sensors and electronic modules in modern vehicles.
Miniaturization of electronic devices is another major trend in the market. Manufacturers are developing ultra-thin and flexible silicone gel to accommodate narrow product designs. Water-based silicone gel variants are also gaining popularity due to their environment-friendly production process.

Market Opportunities

Increasing consumption of healthcare devices and medical equipment in emerging nations presents substantial growth opportunities. The rising aging population and healthcare investments will drive the demand for silicone gel in prosthetics, wound care and medical implants production.
Rising penetration of 5G network infrastructure also poses significant opportunities. Silicone gel is used for encapsulation and protection of 5G telecom components operating at high frequencies. This represents a new promising application area over the forecast period.

Impact of COVID-19 on Global Silicone Gel Market Growth

The outbreak of COVID-19 pandemic significantly impacted the growth of global silicone gel market in the initial few months. Globally imposed lockdowns and disrupted supply chains hampered the silicone gel productions across major manufacturing countries. This led to reduced silicone gel availability and delayed various end-use industrial activities that utilize silicone gels. With travel restrictions and halted construction projects, the demand from applications like electronics, medical devices, and construction also witnessed a downfall during the peak pandemic phase. However, as lockdowns eased in later months, producers resumed their operations with revised safety guidelines and alternative supply sources. This aided in reviving the silicone gel production and addressing the accumulating demand from important sectors like healthcare and automobiles that utilize silicone gels. Although the market growth rate slowed down temporarily, industry experts anticipate full recovery by 2022 as vaccination drives progress worldwide and economic activities stabilize gradually.

Europe holds the largest share of global silicone gel market in terms of value. Being one of the largest medical devices and personal care manufacturing hubs, consistent silicone gel demand from Europe sustains its market supremacy. Moreover, presence of prominent silicone gel producers like Wacker Chemie AG and Bluestar Silicones reinforces the market concentration in the region. Asia Pacific exhibits the fastest growth and is projected to take over Europe's leading position by 2025. Accelerating industrialization, rising per capita incomes, and expanding healthcare infrastructures boost the silicone gel adoption in Asia Pacific countries like China, India, Japan, and South Korea. Additionally, strategic investments by international players to establish manufacturing facilities in Asia drive the regional market growth.

While COVID-19 posed short-term challenges, the resilient nature of end-use sectors ensures continued demand for silicone gels going forward. Producers should focus on pandemic-proof supply networks, optimal inventory management, and emphasizing applications related to healthcare, automobiles, and infrastructure to sustain market momentum in the post-COVID phase. Adopting advanced production technologies can further help manufacturers enhance efficiencies and tap emerging opportunities.

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