New product launches and expansions are the key strategies
adopted by the leading market players
Companies have adopted both organic and inorganic growth strategies
such as expansions, mergers, and new product launches to strengthen their
positions in the global silicone gel market. New product launches and expansions
are the key strategies adopted by the industry players to strengthen their
position in the global silicone gel market. These strategies together accounted
for 77.8% of all growth strategies adopted by market players between 2013 and
2016. Companies adopted the new product launch strategy, which accounted for
38.9% share of all market developments, to increase their product portfolio. The
mergers and investments & partnership strategies together accounted for 22.2%
of all the growth strategies in the market.
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The Asia-Pacific and South American regions were the most active, in
terms of strategic initiatives undertaken between 2013 and 2016. Expansion was
the most favored strategy in the Asia-Pacific region between 2013 and 2016. Most
of the companies have established distribution networks and R&D centers in
this emerging market.
The global silicone gel market involves big industry players. Dow
Corning Corporation (U.S.) is the leading player in the global silicone gel market
and accounted for 24.1% market share in 2015. Dow Corning Corporation (U.S.) is
a wholly-owned subsidiary of The Dow Chemical Company. It offers silicone-based products to industries including personal care,
agriculture, electrical & electronics, automotive, textile & leathers,
transportation, paints & coating, and others.
Shin-Etsu Chemical Co. Ltd. (Japan) has gained a strong foothold in
the global silicone gel market. It is focusing on organic growth and has expanded
its silicone business by establishing its plant and a technical center in Japan
in October 2016 and enhanced its presence and operations in the silicone gel market.
Wacker Chemie AG (Germany) captured the third-largest share in the silicone
gel market through various growth strategies, such as expansions and new
product launches, to meet the growing demand from customers. Wacker launched BELSIL
EG 5, a silicone elastomer gel and SILPURAN 2117, which is a high tack silicone
adhesive gel developed for medical applications. Wacker has a good hold in the silicone
gel market and is thriving to become the number one in the same. The company
has expanded its silicone production capacity in South America to cater the
regional demand for silicone-based products.
Increasing demand of silicone gel
in new applications and high growth of electrical & electronics industry is
fueling the growth of the silicone gel market
The global silicone gel market is projected to register a CAGR of 6.9%
in terms of value, from 2016 to 2026. It is expected to reach USD 1.96 billion
by 2026. The silicone gel market is growing due to the increasing demand of
silicone gel in various end-use industries for new applications and the high
growth of electrical & electronics industry which will propel the demand
for silicone gel in the near future. Fluctuation in the raw material price is a
major challenge for the global silicone gel market.
In most of the countries across the globe, silicone gel market is
regulated for breast implant application. In 2013, FDA approved two silicone
gel filled breast implant manufacturers to use more cohesive silicone gel as compared
to their previously approved in 2006. These are approved on the fulfillment of
the condition that the manufacturers conduct a series of post-approval studies
for safety and effectiveness.
In 2015, the electrical & electronics industry dominated the
silicone gel market and is expected to grow at the highest CAGR both in terms
of volume and value. This growth is primarily attributed to the increasing
demand of silicone gel in various applications of protective coating,
encapsulation, and potting agent for sub-industries such as automotive
electronics, LED lighting, high voltage (HV) insulation, and photovoltaic
sectors. In addition, silicone gel increases heat resistance and reliability in
the smaller electronics component and ensures profitability for the
manufacturers. Medical & pharmaceuticals is the second-largest end-use
industry where silicone gel is widely used in the implants and scar treatment
applications. In recent years, consumption of silicone gel in the cosmetics
& personal care and other industries that include agriculture, footwear,
aerospace, and defense has increased at a significant rate.
Globally, APAC is the largest market with respect to demand as well
as product innovation in terms of quality and application development. The
market for silicone gel is expected to grow in APAC as the well-established and most
potential end-use industries of silicone gel are driving the demand in this
region. Increasing demand for silicone gel in the electrical & electronics
and medical & pharmaceuticals end-use industries in China, Japan, and South
Korea is driving the silicone gel market in Asia-Pacific. China dominated the silicone gel market in APAC due to the high
volume requirement of silicone gel in all end-use industries and its low cost
and abundant availability in the country. In addition, factors such as high
demand from end-use industries, competitive manufacturing costs, and high
economic growth rate are driving the silicone gel market in the region.
There are
several companies involved in silicone gel manufacturing such as Dow Corning Corporation
(U.S.), Shin-Etsu Chemical Co. Ltd. (Japan), Wacker Chemie AG (Germany), Momentive
Performance Materials Inc. (U.S.), and Bluestar Silicones (France). Expansions and
new product launches are the major strategies that helped
the companies to enhance their regional reach and their product portfolio of
silicone gel. Mergers, investments & partnerships, and R&D also
contributed toward the growth of the market players between 2013 and 2016.
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