Carbon Neutral Silicones Market

Carbon Neutral Silicones Market Outlook (2024 to 2034)

The global carbon Neutral Silicones market is projected value at US$ 294.3 million in 2024 and expand at a CAGR of 4.7% to end up at US$ 465.8 million by 2034.

The carbon-neutral silicones market is an evolving market segment within the whole silicones market, as the world increasingly requires sustainable and eco-friendly products. Silicones are flexible, widely used polymers across industries like construction, automotive, electronics, healthcare, and personal care, because of their special combinations of properties featuring thermal stability, flexibility, moisture, and chemical resistance. Conventionally, the manufacture of silicones has been related to fairly heavy carbon emissions, hence calling for greener varieties. Carbon-neutral silicones are produced through manufacturing processes that try to cut or offset the carbon which is being produced by plants. This would include the adoption of renewable sources of energy, enhancing manufacturing efficiencies, and carbon offsetting by investing in reforestation or carbon capture projects. The idea is net-zero carbon emissions, meeting global environmental goals, while putting regulatory pressure on the industry to decrease its carbon footprint.

Several key factors drive the market for carbon-neutral silicones. Increased regulation by governments and international bodies in terms of cutting carbon emissions is one of the major factors. In regions such as the European Union, stringent environmental regulations and mechanisms for carbon pricing encourage manufactures to lean toward carbon-neutral technologies. Moreover, consumers and businesses alike are calling for more sustainability in materials. On this count, suppliers should be selected according to carbon neutrality, especially in heavy industries like construction and automotive.

• Between 2024 and 2034, by product type, the silicone elastomers are expected to produce an absolute dollar opportunity US$ 49.9 million.
• In 2024, the silicone oils is holding a 35.3% market share in the product type segment and is estimated to be worth US$ 102.9 million.

Report Attributes	Details
Market Size (2023A)	US$ 277.7 million
Estimated Market Value (2024E)	US$ 294.3 million
Forecasted Market Value (2034F)	US$ 465.8 million
Global Market Growth Rate (2024 to 2034)	4.7% CAGR
North America Market Share (2024E)	21.9%
East Asia Market Growth Rate (2024 to 2034)	5.1% CAGR
China Market Growth Rate (2024E)	5.3% CAGR
Key Companies Profiled	Dow Inc.; Shin-Etsu Chemical Co., Ltd.; Elkem ASA; Momentive Performance Materials; Wacker Chemie; BASF; Siemens; Evonik; KCC Silicon Corporation; AkzoNobel; Brenntag; Univar; Kemira; Covestro; LyondellBasell; Huntsman; Sabic; DuPont Pioneer; Sumitomo Chemical; Other Prominent Players

Sales Analysis of Carbon Neutral Silicones (2019 to 2023) vs. Market Forecasts (2024 to 2034)

The market for Carbon Neutral Silicones grew at a growth rate of 4.7% from 2019 to 2023, and by the end of 2023, it was valued at US$ 277.7 million. Historically, the carbon-neutral silicones market experienced a strong growth moment as increasing regulatory pressures were observed to reduce carbons, along with growing consumer demands for sustainable material.

Historical Report Attributes	Details
Market Size (2019A)	US$ 233.9 million
Market Size (2023A)	US$ 277.7 million
Historical CAGR (2019-2023)	4.2%
Forecasted CAGR (2024-2034)	4.7%

• Short Term (2024 to 2027): During this period, carbon-neutral silicones will see a boom due to the tightening regulatory framework along with an encouraging industrial outlook toward carbon neutrality. Technological innovations along with the use of renewable energies in production will lower the costs and hence facilitate deeper market penetration in industries such as automotive, construction, and electronics.
• Medium Term (2027 to 2030): In medium term, the market will see accelerated growth on account of growing investments in sustainable methods of production and greater corporate adoption of carbon-neutral practices. Reduced production costs and the clamping down of global regulations will further see demand for carbon-neutral silicones expand continuously in high-growth sectors such as health care and electronics.
• Long Term (2030 to 2034): In long period, with continued bio-based silicones and renewable production technologies further driving down their cost. Carbon-neutral silicones will be widely adopted in the market due to regulatory compliance, consumer preference, and global net-zero commitments, and they will become a standard material choice in many industries.

According to Fact.MR, the Carbon Neutral Silicones size is valued at US$ 294.3 million in 2024. Demand is projected to rise at a CAGR of 4.7% through 2034 to reach US$ 465.8 million by the end of the forecast period (2024 to 2034).

Market Dynamics

What driving forces influence the demand for Carbon Neutral Silicones?

“Rising Regulatory Pressure and Environmental Standards to Benefit Market”

The move to sustainability around the globe has driven regulatory forces across industries to entice industries toward a greener environment. That is largely benefiting the carbon-neutral silicones market as companies across sectors are compelled by regulatory norms to decrease their carbon footprint and meet more stringent environmental standards. Governments and regulatory bodies are already making legislation require lower emissions and encourage the use of sustainable material. Because of this, carbon-neutral silicones have been a strategic solution for the industry in trying to meet new requirements.

For instance, Europe has aim to become climate neutral continent by 2050. The deal sets ambitious targets for carbon reduction, forcing innovations within industries for sustainable materials. In the construction industry, where silicones are used literally everywhere, from sealants to adhesives to coatings, this regulatory push alone should drive significant growth in demand for carbon-neutral silicones. This is further reinforced by the EU's Carbon Border Adjustment Mechanism, which applies carbon costs to imports of goods where EU emissions standards are not met, providing financial incentives for low-carbon and carbon-neutral materials.

“Increasing Demand for Sustainable Materials in Automotive Industry and Rising Application in Construction will drive the Market”

The automobile industry is one of the largest industries consuming large volumes of silicon-based materials, such as for gaskets, seals, cables, thermal management systems, and many others. Due to the growing demand for electric vehicles and more stringent emission policies all over the world, car producers are increasingly pushed to use materials with reduced environmental impact in their production chains. With ecological and high-performance properties, carbon-neutral silicones are speeding into favor among automakers. A perfect example of this includes electric vehicles, which require materials that are suitable for functioning in very high temperatures and demanding conditions. Carbon-neutral silicones are perfect for thermal insulation in EV batteries because they resist heat without degradation and assure minimal carbon footprint.

Another major consumer of silicone-based products is the construction industry, with their wide use in sealants, adhesives, coatings, and many more. As sustainable infrastructure and energy-efficient buildings are pursued across the world, carbon-neutral silicones are playing an increasingly vital role in reaching green building goals. This is further enhanced with the trend of urbanization and building smart cities. As cities try to become more "green," or environmentally friendly, carbon-neutral silicones can be used in high-performance, energy-efficient building materials to minimize environmental impact, decrease carbon footprints, and retain the strength and durability that modern infrastructure requires.

What is the Primary Constraints Faced by the Market Competitors for Carbon Neutral Silicones?

“High Production Costs Associated with Manufacturing Process”

Carbon-neutral silicones are manufactured with renewable energy sources, energy-efficient production methods, and highly effective emission control systems. Traditional silicone production has high energy consumption since temperatures involved in the conversion of raw silica into silicone polymers must be very high. In contrast, the carbon-neutral production process seeks to mitigate or offset these processes, which more often than not involves the use of renewable energy or more technologically advanced equipment that comes at a greater cost. Other significant contributors to the high value of carbon-neutral silicones include the procurement of sustainable raw materials. Basically, silicones are made from silica, which is obtained from quartz sand. Manufacturers have to ensure that the whole supply chain follows the carbon-neutral standards, even down to sourcing their silica. This calls for engagement with suppliers who apply renewable energy and very sustainable extraction methods, which may be more costly compared to conventional suppliers.

Some manufacturers decide to substitute conventional silicones with renewable, bio-based feedstocks. These newer bio-based materials are usually much more expensive because of their very limited availability and the great difficulty in finding sustainable alternatives to source them. Ensuring the entire production chain-from the sourcing of raw materials to the final product-is carbon neutral merely adds layer upon layer of complication and cost.

Due to these challenges in cost, carbon-neutral silicones are normally priced higher than conventional silicones. In the building industry, for instance, where silicones are used in sealants, adhesives, and coatings, most builders would want cheaper, conventional silicones as they would go out of their way to keep the costs of the project low, even in cases of growing pressure to use green materials.

Country-wise Insights

Country-wise Forecast CAGRs for the Carbon Neutral Silicones Market

Country	CAGR
U.S.	5.2%
China	5.3%
Japan	4.9%
South Korea	4.7%

Which countries expect to have a rise in demand for Carbon Neutral Silicones?

“Rising Demand for Green Construction is driving Demand for Carbon Neutral Silicones in U.S."

The building and construction industry has been witnessing a sea change into sustainability in the US, as it is an emerging requirement for energy efficiency and eco-friendliness in the building construction segment. Green construction, therefore, sees thrusting demand, hence carbon-neutral materials, including carbon-neutral silicones, remain in demand. With building owners, architects, developers, and contractors searching for ways of reducing the environmental effect of new construction and renovation, carbon-neutral silicones will play a more crucial role in sustainable building objectives. Demand for carbon-neutral silicones is also encouraged by the growth in green building certifications like LEED and BREEAM in the U.S. Building certifications also enhance application of carbon-neutral silicones for sealants, adhesives, and coatings in energy-efficient buildings.

From superior insulation and air tightness to weatherproofing, carbon-neutral silicones provide several functions in ensuring a building is more energy-efficient. Silicone-based sealants and adhesives, for example, seal gaps and joints of windows, doors, and facades against air leakage, reducing the flow of heat. Another advantage that comes with silicones is that they are quite durable and, therefore, do not get replaced now and then, hence contributing to sustainability over time for the building envelope. Thus, carbon-neutral silicones are part of various well-known green building initiatives in the United States aimed at sustainability.

United States market is estimated to have a value of US$ 44.7 million by 2024, with a market share of 69.3% in North America.

Why is China potentially a profitable market for manufacturers of Carbon Neutral Silicones?

“Rapid Growth of Electric Vehicles (EVs) in China is Increasing Demand for Carbon Neutral Silicones in the Country”

As the world's largest EV market, China is pushing forward with aggressive policies promoting green transportation, which surge the requirement for sustainable materials in vehicle manufacturing. Carbon-neutral silicones have become critical components in the manufacture of EVs due to their various applications and environmental properties, particularly in such areas as thermal management, sealing, and insulation. In 2022 alone, China accounted for more than half of EV sales. And so, the rising fleet of electric vehicles in Chinese roads raises increasing demand for carbon-neutral material, which also involves silicones, to reach sustainability goals in EV manufacturing.

These carbon-neutral silicones are widely being adopted by leading Chinese EV players in their product design. A case in point is BYD, which has taken the lead recently in the global EV market by implementing carbon-neutral silicone materials in its systems of thermal battery management that contributes to the energy efficiency of the overall vehicle performance. Simultaneously, NIO operates high-performance electric vehicles and uses sustainable materials like carbon-neutral silicones in improving vehicle performance and meeting environmental standards.

By 2034, the market for China Carbon Neutral Silicones is projected to be worth US$ 91.3 million.

Category-wise Insights

Silicon Elastomers have High Demand in Carbon Neutral Silicones Market due to its Improved Properties and Versatility across Various Applications?

The demand for silicon elastomers is high in the carbon-neutral silicones market because of their excellent properties and wide uses. Silicones elastomers are commended to have endurance that resists very high temperatures, UV exposure, and harsh weathering without degrading; this therefore reduces the frequency of replacements. These are driven by excellent thermal and chemical resistance among other key attributes. In EVs, silicon elastomers have a leading role in ensuring thermal management and insulation within the battery systems. They maintain the efficiency and safety of batteries while fostering the use of sustainable solutions for transportation.

In application, they provide unparalleled performance during thermal stress and in chemical exposure; thus, finding vital applications in high-demanding industries. Within construction, silicones are applied in energy-efficient sealants and coatings. They afford better insulation in windows and doors, thereby reducing energy consumption to meet the goals of sustainable building. Their uses have also been extended into the medical and personal care fields. In medical applications, they are perfect for implants and surgical tools due to their biocompatibility and resistance to sterilization. In personal care products, they play a role in the formulation of safer and more eco-friendly products.

According to projections, the silicon elastomers is holding the market share of 28.8% in global Carbon Neutral Silicones market and will reach to US$ 134.6 million value in 2034.

Are Carbon Neutral Silicones more preferred in Construction Industry?

The main reasons for the preference of carbon-neutral silicones in construction are for their environmental sustainability. Manufacturing processes involved in the production of such silicones minimize carbon emissions, hence coinciding with the world's effort to reduce carbon emissions from the construction industry. Carbon-neutral silicones offer superior performance characteristics necessary in construction. They show very good resistance to extreme temperatures, UV radiation, and bad weather conditions and are very durable. Therefore, they may be used in sealants, adhesives, and coatings when performance and reliability are required for extended periods. The increasing focus on green building and government legislation on energy efficiency and sustainability also acts as a driver for carbon-neutral silicones. As building materials are increasingly subject to various regulations and the construction industry moves more and more toward sustainable methods, carbon-neutral silicones will become a staple choice for developers and architects truly committed to environmentally responsible building projects.

In 2024, the global Carbon Neutral Silicones market by synthetic source segment will generate a net worth of US$ 78.6 million.

Competitive Landscape

The prominent players moving ahead with the initiatives of carbon neutral silicones are Dow Inc., Shin-Etsu Chemical Co., Ltd., Elkem ASA, Momentive Performance Materials, Wacker Chemie, BASF, Siemens, Evonik, KCC Silicon Corporation, AkzoNobel, Brenntag, Univar, Kemira, Covestro, LyondellBasell, Huntsman, Sabic, DuPont Pioneer, and Sumitomo Chemical.

These companies continue to invest in innovation ways and strategic partnerships for enhanced product performance at lower environmental cost. More recently, with growing demand for green construction and automotive applications, new entrants and regional players are entering the market.

• In May 2024, Dow India signed an agreement with Glass Wall Systems India. Under the terms of the agreement, Dow will supply DOWSILTM Facade Sealants for Glass Wall System's curtain wall system, drawn from Dow's DecarbiaTM portfolio of reduced-carbon solutions.
• In August 2022, Dow released PAS 2060 certified carbon neutral silicones service for building façade and automotive applications.
• In February 2023, Shin-Etsu Chemical Co. expanded its portfolio by introducing new series of carbon neutral silicone sealants.

Fact.MR has provided detailed information about the price points of key manufacturers of Carbon Neutral Silicones positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Carbon Neutral Silicones Market

• By Product Type:

  • Silicone Oils
  • Silicone Gels
  • Silicone Resins
  • Silicone Elastomers
  • Silicone Coatings

• By Application:

  • Personal Care
  • Industrial Manufacturing
  • Construction
  • Automotive
  • Textiles
  • Medical

• By End-Use Industry:

  • Consumer Goods
  • Industrial Manufacturing
  • Construction
  • Automotive
  • Healthcare
  • Others End-Use

• By Region:

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa