Abstract
US demand to increase 5% annually through 2010:
Silicone demand in the US is projected to grow 5.0 percent per year to more
than $3.7 billion in 2010. Advances will result from intense product
development activities and a favorable environmental profile compared to
competitive materials. These low volume, relatively high priced materials are
used in an extensive number of applications due to performance characteristics
such as high heat resistance, chemical resistance and water repellence. The
primary restraining factor to greater market penetration remains the high cost
of silicones, which limits their use to applications in which their numerous
performance advantages are indispensable, such as high heat environments.
Industrial markets to remain dominant:
Silicones find use across a broad range of markets that can be categorized as
industrial, consumer, construction and medical. Industrial markets accounted
for nearly 60 percent of all silicone use in 2005. Industrial market gains
will benefit from an acceleration in durable goods production. Silicones are
widely used in aerospace equipment, electronics, industrial machinery and
motor vehicles, among other industrial applications.
Consumer market to spur rapid gains in medical uses:
Consumer markets for silicone will be stimulated by expanding applications in
the formulation of cosmetics and toiletries, as silicones are capable of
providing advanced performance characteristics, such as heat resistance and a
smoother consistency. Construction markets will be driven by an acceleration
in nonresidential building activity, as well as the repair and remodeling of
the large existing housing base. Medical markets are expected to exhibit the
fastest gains based on a growing incidence of medical procedures, promoting
the use of silicone in tubing and other medical devices, and in topical
pharmaceuticals.
US industry concentration:
The silicone industry is concentrated and highly competitive, encompassing
only a handful of producers. All of the leading firms are diversified
suppliers of silicones to the US market, manufacturing a wide range of
silicone products to an array of markets. Because silicones are used in
virtually every sector of the economy, no single firm is able to compete in
every market or in every application.
Study coverage:
This new Freedonia industry study presents historical demand data through 2005
plus forecasts to 2010 and 2015 by product, market and application. The study
also analyzes the US market environment, examining market trends, foreign
trade and pricing considerations. In addition, the study evaluates market
share, assesses restructuring activity and profiles 35 key competitors in the
US industry.
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