Silicones to 2012 (US industry forecasts for 2012 & 2017)

US silicone demand is forecast to grow 4.2 percent per annum through 2012 to $3.9 billion, approximating the gains of the 2002-2007 period. In volume terms, demand is projected to rise 2.7 percent per annum, reaching 825 million pounds in 2012. Growth will be spurred by ongoing technological advancements and product innovation that 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 durable goods production through 2012, as well as the relatively high cost of silicone.

Silicone fluids are expected to post the most rapid gains of all the major product segments 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 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.

Within a 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 through 2012, as well as continued advancements in silicone technology. Lubricant and grease applications are expected to rise at the slowest pace, hampered by a slowdown in the production of machinery and equipment.

Gains in the 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. Construction markets will benefit from the rising use of higher performing silicone-based sealants/caulks and paints/ coatings. Industrial markets are forecast to post below-average growth, primarily resulting from a slowdown in machinery and equipment production through 2012.

Silicones is a new Freedonia industry study which presents historical demand data (1997, 2002, 2007) as well as forecasts for 2012 and 2017 by product, market, and application. The study also considers market environment factors, evaluates company market share and profiles 37 US industry competitors.