Liquid Silicone Rubber (LSR) Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Liquid Silicone Rubber (LSR) Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)
The liquid silicone rubber (LSR) market is projected to register a CAGR of more than 6% during the forecast period. Key HighlightsCOVID-19 negatively impacted the market in 2020. However, the market reached pre-pandemic levels in 2022 and is expected to grow steadily in the future.The increasing demand for LSR from the medical device sector and the food packaging industry is expected to drive the growth of the market. On the other hand, an increasing number of rules regulating the materials used in cookware, implants, and medical devices is expected to hinder market growth in the coming years.Furthermore, increasing adoption in the electronics sector is expected to create opportunities for the market in the coming years. The Asia-Pacific region is expected to dominate the market. North America is likely to witness the highest CAGR during the forecast period.Liquid Silicone Rubber (LSR) Market TrendsIncreasing Demand from Healthcare and Medical Devices Medical devices are one of the major end-users of the liquid silicone rubber market. The demand for liquid silicone rubber is rising in the medical devices industry due to its purity, chemical and physical resistance, flexibility, and sterilization properties. Liquid silicone rubber has applications in medical cables, medical textile coatings, respiratory masks, medical tubing, catheters, and other medical device markets. According to India Brand Equity Foundation (IBEF), medical equipment exports from India totaled USD 2.53 billion in 2021 and are anticipated to reach USD 10 billion by 2025. Furthermore, in August 2022, Wipro GE Healthcare announced a collaboration with Boston Scientific, a medical device manufacturer, to provide complete, cutting-edge cardiac interventional care solutions in India. In China, small and medium-sized businesses make up more than 90% of the medical device industry. The number of medical device manufacturers in China reached 27,496 in the first half of 2021, representing an increase of 3.8% compared to 2020. Therefore, owing to all the aforementioned factors market for liquid silicone rubber is expected to grow during the forecast period. Asia-Pacific Region to Dominate the Market The Asia-Pacific region accounted for the largest share of the regional market for liquid silicone rubber (LSR). The demand for liquid silicone rubber in the region is growing significantly due to the presence of the largest consuming countries, such as China and India. LSR is widely used in the automobile sector to produce small and complex elastomeric parts with better efficiency. Thus, with the rising automotive sector in the Asia-Pacific region, the demand for LSR is likely to increase. For instance, according to the latest data published by the Society of Indian Automobile Manufacturers (SIAM), the production of passenger vehicles reached 3,650,698 for 2021-2022, representing an increase of 19% compared to 2020-21. Further, it is anticipated that over the forecast period, demand for LSR in China will increase due to the Chinese government's efforts to promote the sales of electric vehicles. 3.3 million units of electric vehicles (EVs) were sold in China in 2021, registering an increase of 154% compared to 1.3 million units sold in 2020. Additionally, China has the world's largest electronics production base. Electronic products, such as wires, cables, computing devices, and other personal devices, recorded the highest growth in electronics. The country serves the domestic demand for electronics and exports electronic output to other countries, thus, providing a huge market during the forecast period. According to the National Bureau of Statistics (NBS) of China, the overall profit of China's electronics manufacturing businesses increased by 38.9 percent year on year in 2021, thus positively impacting the market's growth. Moreover, in India, the Department of Pharmaceuticals launched a product-linked incentive (PLI) scheme for domestic medical device manufacturers with funding of USD 468.78 million for the period 2021-2028 to increase domestic medical device production and draw significant investments in the country. Hence, for the above-mentioned reasons, Asia-Pacific is anticipated to dominate the market during the forecast period.Liquid Silicone Rubber (LSR) Industry Overview The liquid silicone rubber market is partially consolidated in nature. Some of the major players in the market include Dow, Wacker Chemie AG, Shin-Etsu Chemical Co. Ltd, KCC Silicone Corporation, and Jiangsu Tianchen New Materials Company Ltd, among others.Additional Benefits: The market estimate (ME) sheet in Excel format 3 months of analyst support