World Demand for Silicones to Reach $16.7 Billion in 2015

World demand for silicones will rise 6.2 percent per year to $16.7 billion in 2015 . Advances will represent a notable acceleration from the pace of the 2005-2010 period , in which most developed world markets in North America and Western Europe experienced sluggish increases -- or even declines -- in silicone demand. Going forward, gains will be driven by an improved economic outlook as these regions recover from the global economic recession of 2009. Advances will also be fueled by the increased penetration of high-value silicone materials into emerging applications, particularly in the newly industrialized nations of the world where the use of silicones is not yet mature. Electrical and electronic products will continue to be the leading outlet for silicones, advancing at an above-average pace through 2015 . These and other trends are presented in World Silicones, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

The Asia/Pacific region will remain the largest and fastest-growing outlet for silicones through 2015 . Gains will continue to be driven by the large silicone market in China; although slowing from the nearly 20 percent annual growth seen during the 2005-2010 period, the country will post strong double-digit annual gains going forward. Silicone demand in the region will also benefit from healthy gains in countries such as South Korea, Taiwan and India, although subpar increases in the Japanese market will temper this to some extent. Above-average growth is also forecast for Central and South America, Eastern Europe and the Africa/Mideast region, areas in which silicone demand per capita is currently among the lowest in the world.

North America and Western Europe, the historical centers of the world silicone industry, saw demand severely hampered by the recent economic recession . Through 2015, however, silicone demand is expected to make a solid recovery, fueled in large part by a strong rebound in construction spending and motor vehicle production. As silicones become increasingly mature in these regions, technological advancements and product innovation will become essential to expand the application base for long-term market growth.

Refer your colleagues