Liquid Silicone Rubber Market - Forecasts from 2022 to 2027
The liquid silicone rubber market was valued at US$2.326 billion in 2020 and is expected to grow at a CAGR of 8.63% over the forecast period to reach a total market size of US$4.153 billion by 2027.
Liquid silicone rubber is a high-purity, two-component platinum-cured silicone that is ideal for the manufacture of technical items that require strength, resistance, and high quality. LSRs are vicious yet pumpable polymers that are primarily produced by liquid injection moulding (LIM).
LSR has many advantages depending on the application or industrial use. For starters, it is extremely biocompatible, which implies that it may be utilised in components that come into contact with humans, such as organ parts or prostheses. Second, it is extremely long-lasting, ensuring long-term stability and chemical resistance. Third, it can withstand a broad range of temperatures, from -60°C to +250°C, while maintaining its high-performance mechanical characteristics at all times. Fourth, because of its electrical characteristics, it is suitable for insulation and precise conductivity protection. Finally, it is transparent and can be tinted to match any colour needed, including human skin tones.
LSR is also regarded as the material of choice for sectors like automotive and medical devices, where tiny and complicated elastomeric components must be manufactured at high speed and with maximum productivity. Liquid Injection Molding of LSRs becomes one of the most efficient processes for fabricators in such circumstances.
In the short term, the key drivers driving the market growth include rising demand from the medical devices and food packaging industries. On the other hand, a slowdown in automobile manufacturing is expected to hamper market development in the coming years. In the coming years, the industry is anticipated to benefit from increased usage in the electronics sector.
The Asia-Pacific region will dominate the regional market for liquid silicone rubber. The demand for liquid silicone rubber in the area is rapidly increasing due to the presence of the world's major consumers, such as China and India. According to the Organisation Internationale des Constructeurs d'Automobiles (OICA), China is the global leader in automaking. . However, the country's automobile manufacturing has been steadily declining over the past three years. In 2019, the country manufactured 2,57,20,665 cars. In 2020, the country produced 25,225,242 automobiles, a 2% decrease from 2019. According to the Indian Brand Equity Foundation (IBEF), Indian cosmetics and toiletry exports grew by 5.62 % to USD 1,444.15 million between April 2019 and January 2020. In 2020, the Indian medical device industry was valued at Rs. 77,539 crore (US$ 11 billion). From 2020 to 2025, the market is anticipated to grow at a CAGR of 35.4 %, reaching Rs. 352,450 crore (US$ 50 billion). During the forecast period, all of these factors are likely to have an influence on the region's liquid silicone rubber market.
Medical devices are a major end-use sector for the liquid silicone rubber market. Liquid silicone rubber is in high demand in the medical device sector due to its purity, chemical and physical resistance, flexibility, and sterilising characteristics. It is now used in medical cables, medical textile coatings, respiratory masks, medical tubing, catheters, and other applications for medical equipment. Under the "Made in China 2025" strategy, the Chinese government has expanded its emphasis on biomedical and high-end medical device production. The demand for liquid silicone rubber is projected to rise as a result of this. The medical equipment industry in the United States is the largest in the world, estimated at USD 156 billion, according to SelectUSA, a program of the International Trade Administration (ITA), US Department of Commerce. It is expected to be worth USD 208 billion by 2023. The market for liquid silicone rubber is expected to increase over the projected period due to all of the aforementioned factors.
The market is constrained by stringent government rules and regulations, as well as price competition among numerous manufacturers of pine-derived chemicals. Furthermore, there is a limited supply of pine available worldwide, resulting in a lack of raw material availability. This issue is likely to stifle market expansion. The stringent restrictions associated with the manufacturing and distribution of LSR might put the interests of the industry to the test. For instance, in the medical sector, the requirements for medical-grade parts look at a variety of biocompatibiliies t and object kinds. The ISO and FDA standards include four different categories of devices: active, implantable, non-implantable, and non-active. Devices are classified based on their length of contact with either the patient or the medical practitioner, so these standards apply to anything from implanted devices to gloves.
Impact of COVID-19 on the Liquid Silicone Rubber Market:
COVID-19 had a negative influence on the market. The market for liquid silicone rubber has been severely impacted by a disturbance in the global supply chain, as well as lower demand from different end-use sectors. The automobile sector may function as a barrier to market expansion. The global automobile sector had a drop in sales in 2020, with roughly 78 million units sold, which was much lower than the 90.4 million units sold in 2019. As a result, the liquid silicone rubber industry has suffered. However, the situation is projected to improve in the following years, restoring the market's development trajectory throughout the projection period.
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