Dublin – Siloxane, usually referred to as a ‘behind-the-curtain ingredient, has witnessed a dramatic turnaround in the way it is perceived, according to a recent study by Dublin-based information supplier Fact.Mr.
Properties such as enhanced spreadability and antifoaming capabilities combined with benefits such as flexibility, abrasion resistance and heat resistance have given sizable traction to siloxanes over the past five years, said Fact.MR in a report published 8 Nov.
The report estimates that the global siloxane market would surpass $25 billion (€22.7 billion) mark by 2027.
The next “growth epicentre” for siloxanes, the report indicated, will most likely be the electronics industry, with an anticipated three-fold increase in demand by 2027.
In addition, research is ongoing on the use of siloxane copolymers as a surface modifying agent, and the product is likely to be commercialised over mid-term forecast.
Poised to reflect moderate growth of under 5% by 2027, personal care and cosmetics are established verticals for siloxane, the report noted.
In terms of regions, Asia Pacific is expected to maintain its supply lead, accounting for a near half of the global siloxane supply.
China is positioned as key consumer, given the high concentration of end-use industries such as personal care and cosmetic product manufacturers, food processing industries, plastic processing and pharmaceuticals industries
The siloxane market is consolidated in nature, with Dow Chemical and Wacker, among a few others being the notable names.
In a bid to fulfil the heightened demand of siloxane, Wacker has now started working on developing a new siloxane production facility in South Korea to produce siloxane elastomers and sealants.
However, siloxanes have little room for growth, being positioned at a maturity curve of product life cycle with established applications, the Fact.MR report said.
Producers, it added, are now looking to explore new application areas in red ocean as well as blue ocean application categories.
According to the report, siloxane manufacturers are hiking prices in the short term to meet an upswing in the cost of raw materials and energy. They are also avoiding long-term supply contract with customers.
Aware of the current supply situation of siloxane, buyers are closely monitoring inventory levels to avoid short-term supply disruptions, the report noted.
The year 2018 saw price hikes up to 15%, the market research added.