RISING DEMAND FOR LIQUID SILICONE RUBBER IN AUTOMOTIVE AND HEALTHCARE SECTOR INFLUENCE THE MARKET GLOBALLY
The automotive sector has witnessed tremendous growth in the last decade and is expected to rise steadily during the forecast period. As per the data of Organisation Internationale des Constructeurs d’Automobiles (OICA), the American countries recorded over ~16.2 million commercial & passenger car production in 2010, and this production rate has grown by more than 23% and registered over ~20 million commercial & passenger production in 2019. The automotive industry in China has been growing rapidly and the country is playing an increasingly important role in the global automotive market. However, the COVID-19 pandemic significantly affected the sector’s growth from 2020 to 2021 due to several factors, such as nationwide lockdowns and a decline in investments. However, the industry is expected to gradually gain its growth rate same as before the emergence of the COVID-19 pandemic by FY 2022–2023. The ease of travel restrictions rises in transportation activities, and mass vaccination program in 2021 have aided the automotive industry, thus fueling automobile sales. Further, as per the report of OICA, the automotive industry has shown positive growth of over ~5% in 2021 compared to 2020.
Numerous companies operating in the automotive market are investing heavily in the automobile manufacturing sector to increase production and sales. For instance, in July 2021, Maruti Suzuki India Ltd. announced an investment worth US$ 2.42 billion in a new manufacturing facility in Haryana, India. The facility is expected to manufacture ~1 million units annually. The surge in automobile manufacturing is boosting the demand for lubricants, thereby driving the market for lubricant additives. Further with the rise in automotive production the demand of liquid silicone rubber is growing tremendously. Liquid silicone rubber is used in diverse range of application in automotive such as, in tire additives, engine gaskets, navigation display, foam padding and others. Moreover, newer applications of liquid silicone rubber are consistently being developed for the automotive industry. Thus, the sales of automobiles is an important indicator of expansion of liquid silicone rubber market.
Increase in rise in chronic illnesses and improvements in active implanted medical devices, is anticipating the demand of liquid silicone rubber. Furthermore, rise in aesthetic surgeries is also drive the demand of medical implants. Medical devices and implants are inserted into the body through surgical procedures and can then be removed depending on the needs of the patient. Medical devices and implants are usually made of body tissues, ceramics, metals, and plastics and help to improve the patient’s quality of life. Currently, increasing incidence of chronic diseases and increasing awareness of health products are positively affecting the demand for implantable medical devices across the globe. Liquid silicone rubber improves quality of medical devices, and their lifetime performance. Medical grade silicone molding is used to manufacture dental and surgical implants. The materials vary in terms of characteristics such as elasticity, strength, hardness and compatibility, and other properties. All these properties are increasing demand. One of the major factors driving the demand for implantable medical devices in India is inflation in disposable incomes along with improved healthcare infrastructure. Apart from this, the growing geriatric population which is more prone to health disorders is contributing to the growth of the market.
In 2022, the Asia Pacific holds the largest market share. The healthcare sector is one of the significantly growing sectors in the region. The medical and pharmaceuticals market, which includes a wide variety of industries, such as medical devices and equipment, has been experiencing growth over the last few years. Thus, stimulating the market demand for liquid silicone rubber in the region. In India, the most prominent application of liquid silicone rubbers is wearables, catheter cavities, and masks, which is a part of the medical and healthcare industry. The overall healthcare industries account for the consumption of liquid silicone rubber in the country.
The most common use of liquid silicone rubbers in the Asia Pacific region is hair oil, shampoos, conditioners, soaps and detergents a component of cosmetics and personal care products. The increasing skin and hair care and emerging skin infections and allergies result in the increasing adoption of cosmetics and personal care products, which is further anticipating lucrative opportunities for the growth of the adoption of liquid silicone rubber. Additionally, the increasing demand for home appliances such as spatulas, bake wear, O-rings, gaskets, and grommets will bolster the growth of the liquid silicone rubber market. All these factors are expected to impact positively on the growth of the liquid silicone rubber market during the forecast period.
Some of the major key players operating in the global liquid silicone rubber market include Avantor, Inc.; Beacon Medtech Solutions; CHT Germany GmbH; Dow; Elkem ASA; KCC Silicone Corporation; Momentive; Shin-Etsu Chemical Co., Ltd.; Stockwell Elastomerics, Inc.; Wacker Chemie AG.
