U.S. Silicone Adhesives Market - 2024-2031

Overview

The U.S. Silicone Adhesives Market reached US$ 1.9 billion in 2023 and is expected to reach US$ 3.4 billion by 2031, growing with a CAGR of 7.5% during the forecast period 2024-2031.

The silicone adhesives market in the U.S. is predicted to grow rapidly, as the country has one of the world's largest economies. The U.S. serves as a hub for major aircraft companies such as Boeing. Aerospace and aviation applications typically make use of one-component silicone adhesive. The increase in the production level of such aircraft companies due to increased demand for new aircraft has positively impacted the utilization of silicone adhesives in the U.S.

For example, according to Boeing's annual report, the company's revenue in 2021 jumped to US$ 62,286 million due to higher production and sales, up from US$ 58,158 million in 2020. As a result of this rise in revenue, Boeing's production capacity will increase, resulting in increased use of industrial adhesives. It will enhance U.S. silicone adhesives industry growth.

Dynamics

Expanding Construction Industry

Silicone adhesives are in high demand for sealing applications in the construction sector due to their superior weather resistance, adherence to a wide range of substrates, and longevity. The construction industry's expansion, fueled by infrastructure development, commercial construction projects, and residential construction activities, generates a large need for silicone adhesives and sealants. The materials are used for bonding, sealing, and glazing in building construction.

For example, according to the U.S. Census Bureau, hospital construction spending was US$ 51.3 million in November 2021, a 9% increase from US$ 46.7 million in the same month in 2020. As a result of this rise in spending, industrial adhesives that include epoxy resin, polyurethane and acrylic will be employed more extensively in cement applications. It will help the expansion of the U.S. silicone adhesives sector.

Rising Demand for Medical Devices

The growing manufacture and usage of medical devices, such as diagnostic equipment, surgical instruments, and wearable medical devices, fuels the demand for biocompatible silicone adhesives. Silicone adhesives are used as medical adhesives in the device sector. Silicone adhesives are also employed as an excipient in transdermal patches. Additionally, they are employed as skin contact adhesives for the attachment of prosthetic and wound care devices.

Technological advancements in medical equipment, as well as an aging population, are driving the medical device industry's growth. As per the International Trade Administration, Canada is the world's eighth-largest medical equipment industry, worth around US$ 8.6 billion in 2020. Thus, the rise of the medical device industry boosts the need for medical adhesives made from Silicone Adhesives, which, in turn, drives market growth.

High Costs and Regulations

Silicone adhesives are manufactured from high-purity silica, which can be costly. Fluctuations in raw material prices have a direct impact on production costs. The manufacturing method for silicone adhesives is energy-intensive, which raises the final cost. Higher energy prices can drive up manufacturing costs even further. The silicone adhesive market is regulated by agencies such as the Environmental Protection Agency and the Food and Drug Administration.

Compliance with these standards increases costs and may limit the sorts of formulations and uses available on the market. The increased awareness of environmental issues has resulted in a greater need for eco-friendly adhesive solutions. The change in customer preferences requires innovation in silicone adhesive compositions to lessen environmental effects, adding another layer of complexity to market dynamics.

Segment Analysis

The U.S. silicone adhesives market is segmented based on product, technology, application, and region.

Rising Government Support Drives Segment Growth

Automotive is expected to be the dominant segment with over 30% of the market during the forecast period 2024-2031. The automobile industry's trend to lightweight materials for improved fuel efficiency and lower emissions is increasing the usage of silicone adhesives in automotive assembly. The proliferation of electric vehicles, which require adhesives for battery installation, thermal management, and other components, has considerably increased demand.

The increased demand from the logistics sector is likely to drive country growth. Furthermore, in June 2020, the California Air Resources Board established electric truck sales targets for manufacturers starting in 2024. The rule is estimated to bring approximately 0.3 million electric trucks to California highways by 2035. Electric vehicle sales in the U.S. plummeted in 2019 and 2020, as the federal tax credit for General Motors Company and Tesla was cut.

Competitive Landscape

The major global players in the market include 3M, American Sealants Inc., Dow Corning Corporation, Huntsman Corporation, Avery Dennison Corporation, Momentive Performance Materials Inc., HB Fuller, Bostik Inc., Hexcel Corporation, and Heartland Adhesives.

COVID-19 Impact Analysis

Many manufacturing facilities were temporarily closed or operated at reduced capacity as a result of COVID-19 outbreaks and health regulations, which impacted output volumes. Health concerns and restrictions resulted in workforce shortages, reducing manufacturing efficiency and output. Initially, the construction industry experienced a drop in activity due to lockdowns and economic uncertainty. However, there was a comeback as the economy began to improve. Rising demand for housing and infrastructure projects drives the need for silicone adhesives.

Factory closures and lower customer demand caused substantial disruptions in the automotive business. However, as the industry recovers, there is a growing interest in silicone adhesives for vehicle assembly and maintenance. The epidemic raised demand for certain electronics and medical products that use silicone adhesives. It includes things like ventilators and personal protective equipment (PPE).

Russia-Ukraine War Impact

The battle has caused disruptions in the delivery of vital raw materials. Both Russia and Ukraine are major providers of minerals and raw materials. Interruptions in these supplies can influence the silicone adhesive production process. The war has significantly disrupted logistical and transportation networks. Increased transportation costs and delays have impacted the timely supply of raw materials and completed goods.

The battle has contributed to higher global energy prices, particularly for oil and natural gas. Silicone adhesives are energy-intensive to manufacture and greater energy costs might result in higher production expenses, which may be passed on to consumers. Increased energy costs can contribute to greater operational expenses for producers, affecting profit margins and potentially resulting in higher prices for silicone adhesives.

By Product

• Single-component Silicone Adhesives
• Two-component Silicone Adhesives

By Technology

• Pressure Sensitive Adhesives
• Non-Pressure Sensitive Adhesives

By Application

• Automotive
• Electrical and Electronics
• Medical
• Construction
• Aerospace and Defense
• Others

Key Developments

• In October 2021, DAP recently released a line of four hybrid sealants that combine the exceptional properties of silicone and polyurethane with a unique recipe for a wide range of applications. The primary goal of this product introduction was to increase its position in the silicone adhesives market.
• In August 2021, Arkema made a contract to acquire Ashland's Performance Adhesives division, a leading manufacturer of high-performance adhesives for industrial applications in the U.S., with a distinctive and cutting-edge product line. The project nicely complements the group's goal of dominating the market for pure specialty materials by 2024.

Why Purchase the Report?

• To visualize U.S. silicone adhesives market segmentation based on product, technology, application, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of silicone adhesives market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The U.S. silicone adhesives market report would provide approximately 39 tables, 27 figures, and 151 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies