Americas Construction Silicones Market size is forecast to reach around $1.2 billion by 2025, after growing at a CAGR of 6% during 2020-2025. Silicones are polymers composed of many repeated subunits of siloxane. Increase in standard of living has increased the construction activities in America which in turn boosted the use of silicone for adhesives and tapes. Silicone rubbers are also used as a sealant in windows and doors to insulate the building from heat and moisture. Moreover, rising environmental concerns and the presence of substitutes such as urethane-based sealants and polysulfide sealants acts as a restraining factor for the growth of America’s construction silicones market.
- European Chemicals Agency (ECHA) has restricted the use of D4, D5 and D6 cyclic siloxane in consumer and professional products which further hampers the growth of America’s construction silicones market.
- Silicones are water repellent and have low thermal conductivity. These properties increases its use in construction industries further driving the growth of Americas construction silicones market
- The outbreak of coronavirus pandemic has led the downfall of economy and impacted the growth of the America construction silicones market.
Type – Segment Analysis
Silicone elastomers segment holds the largest share of more than 25% in the America’s construction silicones market in 2019. Silicone elastomers are made by the addition of more cross linking in linear chain polymer. Flexibility, durability and their ability to repel moisture is increasing its demand for various industrial and construction purposes such as cables, profiles architectural moldings and gaskets. U.S imported 95,790 tons of silicones in primary form whereas Brazil imported 33,185 tons in 2019. According to Bureau of Labor Statistics there were 7.29 Million people employed in construction industry group in U.S in 2018. Thus rapid expansion of construction increases the demand of silicone elastomers in American market.
Application – Segment Analysis
Coating segment is projected to witness the highest CAGR of around 8% in the Americas Construction Silicon market during the forecast period owing to its growing uses from residential and commercial sectors. Silicone coating reduces the degradation and resist the decay caused by sunlight, moisture, and extreme weather condition. In addition, they also avoid or lower the maintenance and repair costs arising from water or damp damage. Increasing use of silicone polymer for coating window panels in building and houses for protection against UV radiation drives the growth of America construction silicones market.
COVID-19 pandemic has badly impacted the silicone industries. Industries are being shuttered all around the globe due to lockdown. In order to curb for the disease, people stuck in their houses. Hence, decrease in construction activities acts as a restraining factor to the market growth.
Construction Type – Segment Analysis
Based on construction type, residential segment holds the largest share of Americas construction silicones market in 2019. According to the United States Census Bureau, total of 1,176,000 residential houses were constructed in U.S in April 2020. Rise in population has increased the construction activities which in turn boosts the demand of silicone-based coatings and adhesives for sealing the window panels and doors. Silicone sealants are also used for caulking cracks. Silicones are waterproof; hence they are ideal for repairing areas around sinks and other areas where water is frequently found.
Geography – Segment Analysis
North America region dominated the Americas construction silicone market with a share of more than 85% in 2019 followed by South America. Increase in construction activities in the U.S is driving the growth of American silicone construction market. According to The United States Geological Survey, annual domestic production of total silicon materials (containing silicon) increased from 384,000 tons in 2016 to 415,000 tons in 2017. Increase in population especially in Texas coupled with high disposable income has augmented the growth of construction industries. Moreover, the U.S Census Bureau estimated that the total spending of Texas on local and state construction activities was $ 33,389 million in 2018. Additionally, government investment in order to reform or construct infrastructure is also likely to aid the growth of America silicone construction market as they are ideal for sealing a wide range of applications such as expansion joints, transverse joints, longitudinal joints, construction joints, and crack-control joints in highways, roads, and bridges. According to Congressional Budget Office, the federal government has spent $84 billion on transportation and $10 billion on water resources in 2017, subsequently raising the demand of silicone sealants.
Drivers – Americas Construction Silicone Market
- Increasing demand from construction industries
Silicone polymer is used as the sealants between the filters and ceiling and as a sealant in wall boards. Their ability to withstand high temperature range and act as an insulator is driving their growth in construction industries. According to the U.S Census Bureau, total construction spending in the U.S has increased by 6.03% from February 2018 and estimated to be $ 1,366,697 Mn in February 2020. Thus, increase in renovation and construction activities across the region has boosted the growth of the Americas construction silicone Market during the forecast period. Additionally, Silicone sealant and glazing to insulate and protect glass panels in building façades from UV radiation is contributing to the growth of America’s construction silicone market.
- Exceptional properties of silicone sealants
Unlike urethane-based sealants, silicone sealants are more flexible and abrasion resistant that makes it suitable for to use for construction activities in seismic prone regions. Sealants ensures that materials stay fixed and absorb stresses in high speed winds and earthquakes. Moreover, filling the bricks facade with silicone additives instead of alternative water repellant technique, emits 13 times less greenhouse gases (GHG). Silicone adhesives adhere to glass, paints, metals, plastics, granite, and concrete. Also, silicone surfactants are used as additives in manufacturing polyurethane foam which is used for insulating building. Addition of silicones enhances the insulating properties as well as elasticity of polyurethane foams.
Challenges – Americas Silicone Construction Market
- Increasing environmental concerns and alternatives of silicone
Although silicone is gaining popularity and find its application in every end-use industry but increasing environmental concerns act as a restraint for the Americas construction silicone market. Silicone polymers are not degradable and remain in landfills for hundreds of years. Additionally, presence of substitutes such as acrylic sealants or polysulfide sealants also hampers the growth of market. The advantage of acrylic sealants over silicon sealants is paint ability, most of the acrylic sealants are paintable whereas silicone sealants are not. Furthermore, trade war between China and the U.S has also impacted the growth of silicone market. The U.S has imposed 10 % tariffs on $200 billion worth of Chinese products which include plastics and chemical products, substantially increasing the prices of raw materials.
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Americas construction silicones market report. In 2019, the market of Americas construction silicones top 10 companies accounting for xx% of the share. Major players in the Americas construction silicones market industry outlook are, Wacker Chemie AG, 3M Company, General Electric Company, CSL Silicones, Inc., Bostik, Henkel Corporation, H.B Fuller, Avery Dennison, Ashland Inc., and Dow Chemicals, among others.
- In April 2020, Dow launched a fast curing silicone adhesive DOWSIL EA-3838 in Midland for reduced energy usage. It cures at room temperature and creates strong, reliable bonds between varieties of dissimilar materials.
- In September 2019, Bostik was launched a silicone sealant, B-5100 during its exhibit with parent company, Arkema Inc. at GlassBuild America, for back bedding applications. It also offers excellent adhesion to glass, metals and plastics to further optimize performance and also improves paint ability.