Freedonia Market Research Analyzes Silcones Industry

US silicone demand is forecast to advance 4.2 percent per annum through 2012 to $3.9 billion. In volume terms, demand is projected to increase 2.8 percent per annum, reaching 825 million pounds.  Growth will be spurred by ongoing technological advancements and product innovation, which will continue to improve the performance of silicone in a variety of markets and applications.  Gains will also be aided by the rising use of silicone in numerous cosmetic and toiletry products, as well as expanding opportunities in medical applications.  Increases will be somewhat limited, however, by a slowdown in production of machinery and equipment though 2012, as well as the relatively high cost of silicone.  These and other trends, including market share and company profiles, are presented in US Silicones, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

Among the major product segments, silicone fluids are expected to grow at the fastest pace, rising 4.5 percent per year through 2012.  Advances will be buoyed by strong growth in cosmetic and toiletry production, as these fluids tend to improve the performance of products such as antiperspirants, deodorants, eye make-up, foundation, lipsticks and shampoos.  Moderate growth is also expected in industrial and automotive applications, where silicone fluids can be used in greases, lubricants and polishes.  Silicone resins are also projected to expand at a healthy pace, benefiting from strong growth in construction expenditures through 2012, as well as a positive turnaround in motor vehicle production. 

Gains in the relatively small medical market are expected to exceed all other markets, due to silicone’s biocompatibility, low surface tension, chemical and thermal stability, and water-resistant qualities. The increased use of silicone gel-filled breast implants will also stimulate demand in the medical segment, following their reintroduction to the US market in late 2006.  The construction market will benefit from the rising use of higher performing silicone-based sealants/caulks and paints/coatings.

Among the wide range of applications, silicone conditioning agents are expected to post the strongest increases, followed closely by emollients.  Both will benefit from healthy gains in cosmetic and toiletry production, as well as continued advancements in silicone technology.  Lubricant and grease applications are expected to grow at the slowest pace, hampered by a slowdown in the production of machinery and equipment and a declining manufacturing base.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.