U.S. Demand for Silicones to Rise 5.3% Annually

Reportlinker.com announces that a new market research report is available in its catalogue: Silicones http://www.reportlinker.com/p060892/Silicones.html

US demand to advance 5.3% annually through 2014

US demand for silicones is forecast to advance 5.3 percent per year to $3.6 billion in 2014. Gains will represent a strong acceleration from the 2004-2009 period, fueled by a rebound in manufacturing activity and construction spending, which will rise from a 2009 base depressed by an economic recession. Consumer goods such as cosmetics and toiletries will remain a fast-growing market for silicones, as will medical products. However, more sluggish growth in areas such as automotive polishes and textile coatings will limit further gains in demand. As silicones become an increasingly mature product, and competition with other materials intensifies, technological advancements and product innovation will become essential to improve the performance of silicone in a variety of markets and applications.

Silicone fluids to remain leading product type

Silicone fluids were the leading product type in 2009, accounting for over 40 percent of the market. However, demand for silicone fluids will rise at a below average pace through 2014, limited by slow growth in applications such as vehicle polishes, pulp and paper defoamers and urethane additives. Stronger gains are expected for elastomers and resins, buoyed by a bounceback in key markets, including motor vehicles, machinery and construction. The fastest gains, however, are expected for silicone gels, driven by robust growth in demand for gel encapsulants in LED and solar cell applications.

Medical, construction markets to see strong growth

Industrial markets will remain the dominant outlet for silicone through 2014, accounting for a majority of total demand. After an overall decline in silicone sales during the decade from 1999 to 2009, a rebound in manufacturing activity will spur healthy increases industrial markets for silicone. Motor vehicles -- rising from a severely depressed 2009 base -- and machinery will be the fastest-growing industrial outlets. Among other markets, construction and medical products will also see strong increases in demand. Medical markets have historically been a growth area for silicone, and the increased use of silicone gel-filled breast implants will stimulate even stronger gains in the medical segment. The construction market will benefit from a bounceback in construction activity and the rising use of higher performing silicone-based adhesives, sealants and coatings.

Conditioning agents to be fastest growing application

Among the wide range of applications for silicone, conditioning agents are expected to post the strongest increases, followed closely by elastomeric components. Demand for conditioning agents will benefit from solid growth in the cosmetic and toiletry market, particularly hair and skin care products. Silicone demand in elastomeric component applications will be fueled by a rebound in the production of motor vehicles and machinery, where silicones are used in products such as gaskets, seals, hose and tubing. Silicone surfactants, on the other hand, will see below-average gains, restrained by sluggish growth in polyurethane foam production. Silicone defoamers will also experience slow demand increases, limited by weakness in the pulp and paper industry.

Study coverage

This new industry study, Silicones, presents historical demand data (1999, 2004 and 2009) and forecasts for 2014 and 2019 by silicone product, market and application. The study also considers market environment factors, evaluates company market share and profiles 34 industry competitors, including Dow Corning, Momentive Performance Materials, Wacker Chemie, Shin-Etsu, Bluestar Silicones and Evonik.

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