Liquid Silicone Rubber Market Size & Forecast Report, 2013 - 2025

Industry Insights

The global Liquid Silicone Rubber (LSR) Market is anticipated to reach USD 3.29 billion by 2025, with a CAGR of 7.9% over the forecast period. The growing demand from the automotive and medical sectors has emerged as the crucial driver of the global market shortly.

The liquid silicone rubber possesses superior properties for example ability to withstand very high temperatures, chemical inertness, and electrical resistance. These features have enhanced its broad acceptance across automotive, electrical & electronics, medical, and various other sectors. The increasing elderly population is driving the demand for medical devices and implants in the medical sector.

The applications of LSR are growing in conventional rubber along with areas where conventional rubber had not been used. The LSR technology is experiencing a fast change. Some current applications comprise LED headlights, medical implants & devices, kitchenware, fitness tracker, bakeware, and wiper blades as well as manufacturing drug-eluting devices.

Additional benefits of the material consist of producing lesser waste, high stability in product dimensions, more volume production on account of its low manufacturing costs and short cycle time. As a result, it has substituted materials such as latex, glass, and plastic in numerous industrial and medical applications.

Strict regulatory norms regarding materials to be applied in medical devices and kitchenware is further driving the demand for the global market. In addition, demographics, improving lifestyle and urbanization are boosting the demand for consumer and electronics goods, which in turn is supplementing the market demand.

To accomplish a competitive advantage, the major participants are collaborating with suppliers to achieve modern material technology. The few material innovations consist of silicone materials with optical grade, self-lubricated, antimicrobial, and self-adhesive properties.

Grade Insights

Medical grade is rapidly growing as compared to other grades of liquid silicone rubber. Its widespread application in the manufacturing of oxygen mask instruments, dialysis filters, syringe stoppers, saccules, tracheal tube, and other medical parts on account of its bacterial resistance, transparency, high dielectric strength, high elongation gas permeability, and numerous other unique properties.

Medical grade is the most expensive grade as it requires the completion of numerous regulations to be applied in manufacturing medical devices. It is also substituting latex at a significant rate which was used in implantable devices since long back as it caused opposing reactions in the patient’s body.

In terms of revenue generation, industrial-grade is the largest segment and is applied in industries such as construction, aerospace, electronics, cosmetics, and various other components. It is a suitable material for parts such as keypads, electronic displays, grommets, antennas, and others.

Application Insights

The demand for the material is undergoing rapid growth in the medical industry led by increasing demand for disposable devices and medical implants. Compatibility regarding long-term implantable devices, technological advancements, bacteria, and advent as a drug-eluting product is expected to enhance the material demand in medical sectors. The key application areas consist of cardiology, ophthalmology, bariatric surgery, orthopedics, general surgery, and others. The market participants operating in plastic injection molding have also grabbed prospects of the material intending to cater to the increasing requirements from the medical sector.

The broader applications of LSR in membranes, LED headlights, valves, gaskets, windshields, and other parts are expected to enhance the market demand for the product in automotive applications. The capability of the material to withstand extreme temperatures, cost-effectiveness and durability are grabbing the attention of automotive firms, specifically in the manufacturing of gaskets.

The additional benefits of the product consist of energy-saving, automated process, minimum waste generation, short cycle time, and economies of scale, which is expected to further enhance the usage in the automotive industry over the forecast period. In addition, new trends in the automobile sector are shifting in the way of completely automated vehicles that are equipped with modern technological features, resulting in creating future paths for the LSR market in the upcoming years.

Regional Insights

In terms of revenue generation, North America was the largest market accounting for a share of 37.38% of the global market. The region is the largest consumer of healthcare devices on account of the presence of a speedily aging population. According to the U.S. Department of Health and Human Science, in the year 2014, approximately 14.50% of the total U.S. population was aged beyond 65 years and by the year 2060, it would upsurge by more than twice the current population.

Asia Pacific is expected to witness rapid growth with a CAGR of 8.6% over the forecast period. APAC is experiencing increased demand for LSR for applications in medicine such as medical tapes, APIs, prefilled syringes, prosthetics, and others. Numerous favorable factors such as rapid economic growth and government policies coupled with rising demand in the end-use applications are attracting investments from foreign companies in the region over the forecast period.                                                  

India and China are proving to be vital growth factors for LSR in the APAC region. Setting up of new facilities, technological innovations and increasing applications in the construction sector are further posing rewarding prospects over the forecast period. The companies operating in China are continuously involved in R&D activities to develop modern technology for the material. Rapidly growing electronics and electrical sectors in the region are expected to boost the market demand.

Competitive Insights

The LSR market is highly fragmented in nature. The key players are constantly engaged in mergers & acquisitions to strengthen their market presence and achieve a competitive edge. In the year 2016, Dana Holding Corp. announced the acquisition of Magnum Gaskets, U.S. based manufacturer of gaskets for automobile industries. The acquisition has helped Dana Holding Corp. to widen its customer base in the U.S., specifically in the automobile industry.

The major participants in the market consist of KCC Corp., Stockwell Elastomerics Inc., Shin-Etsu Chemical Co. Ltd., Dow Corning, Laur Silicone, Zhejiang Xinan Chemical Industrial Group Co. Ltd., Wacker Chemie AG, Momentive Performance Materials Inc., and Nusil Technology LLC. The market players are collaborating and entering into partnerships with suppliers of silicone to obtain modern material technology.

Market Segment:

Grade Outlook (Revenue, USD Million; 2013 - 2025)
    • Food
    • Medical
    • Industrial

Application Outlook (Revenue, USD Million; 2013 - 2025)
    • Medical
    • Automotive
    • Consumer Goods
    • Electricals & electronics
    • Others

Regional Outlook (Revenue, USD Million; 2013 - 2025)
    • North America
        • the U.S.
        • Others
    • Europe
        • Germany
        • France
        • the U.K.
        • Others
    • the Asia Pacific
        • China
        • India
        • Japan
        • Others
    • Central & South America
        • Brazil
        • Others
    • Middle East & Africa