The global silicone in electric vehicles (EVs) market size is poised to reach USD 1.80 billion by 2025, as per a report by Grand View Research, Inc., experiencing a CAGR of 8.1% during the forecast period. Silicone exhibits properties such as superior electrical insulation, thermal conductivity, chemical stability, flame retardancy, and resistance to heat, radiation, moisture, chemical, and light.
Silicone offers better temperature resistance at both high and low temperatures in comparison to other rubbers. It can withstand a higher temperature limit of up to 150?C and a lower temperature limit of up to -40?C. The temperature resistance property exhibited by silicone widens its application scope in electric vehicles. These useful properties of silicone are likely to fuel its demand in different forms for use in electric vehicles over the coming years. However, organic rubber substitutes are projected to pose a threat to the demand for silicone, which may challenge the consumption of the products in electric vehicle.
Climate change regulations to curb pollution are expected to have a positive impact on the environment and purchasing behavior of consumers. The transportation industry is in need of a paradigm shift from fossil fuel energy to electric energy. This change is estimated to be supported by reformed government regulations, rising concerns regarding air pollution, social perspective about pollution control, and technological advancements in the electric vehicle industry. Currently, Asia Pacific is leading the EV industry on account of increasing demand for EVs from emerging economies such as China, India, and others. This is anticipated to render Asia Pacific a promising destination for silicone products in EV.
Further key findings from the report suggest:
- North America silicone elastomers in electric vehicles (EV) market was valued at USD 128.47 million in 2017. Federal government initiative launched in last quarter of 2017 under the Internal Revenue Service (IRS) to allow tax rebate in the range of USD 2,500 to USD 7,500 per new EV procured for use in the U.S. is poised to boost the demand for electric vehicles
- China is one of the largest markets for silicone in electric vehicles in Asia Pacific. It was valued at USD 261.07 million in 2017. Rapid urbanization is playing a vital role in the growth of the market in the country
- Large number of market players with global presence, including Wacker Chemie AG, Elkem Silicones, H.B. Fuller Company, KCC Corporation, and Shin-Etsu Chemical Co., Ltd is likely to trigger competition in the future.