Silicone in Electric Vehicles Market Size, Share, and Trends 2024 to 2034

Silicone in Electric Vehicles Market Size to Worth USD 18.04 Bn by 2034

The global silicone in electric vehicles market size was USD 6.70 billion in 2023, calculated at USD 7.33 billion in 2024 and is expected to reach around USD 18.04 billion by 2034. The market is expanding at a solid CAGR of 9.42% over the forecast period 2024 to 2034. Asia Pacific led the silicone in electric vehicles market with the largest revenue share of 44% in 2023. The rising demand for high-performance EVs across the world is driving the growth of the silicone in the electric vehicles market.

Silicone in Electric Vehicles Market Key Takeaways

• North America is expected to attain the fastest rate of growth during the forecast period.
• By product, the elastomers segment has contributed more than 48% of revenue share in 2023.
• By product, the fluids segment is expected to grow at a CAGR of 9.23% during the forecast period.
• By vehicle type, the light motor vehicle segment has generated the highest revenue share of 93% in 2023.
• By vehicle type, the commercial motor vehicle segment is expected to grow at a notable rate during the forecast period.
• By charging type, the battery electric vehicle (BEV) segment has held a major revenue share of 67% in 2023.
• By charging type, the plugin hybrid electric vehicle (PHEV) segment is projected to grow with the highest CAGR during the forecast period.

Asia Pacific Silicone in Electric Vehicles Market Size and Growth 2024 to 2034

The Asia Pacific silicone in electric vehicles market size was exhibited at USD 2.95 billion in 2023 and is projected to be worth around USD 8.03 billion by 2034, poised to grow at a CAGR of 9.53% from 2024 to 2034.

Asia-Pacific held the largest silicone in electric vehicles market share in 2023 and is expected to maintain its dominance throughout the forecast period. The growth of the market in the Asia-Pacific region is mainly driven by the rising investment by automotive giants for developing EV industries in countries such as Japan, India, China, and others. The growing developments in the chemical industry, along with the rising government initiatives in countries such as China, South Korea, Japan, India, and others to strengthen the chemical industry, including silicon manufacturing, have boosted market growth. For instance, in January 2023, the South Korean government unveiled the ‘Chemical Industry Forum’. This initiative is aimed at the development of the overall chemical industry across this country.

Moreover, several local silicone market players, such as Shin-Etsu Chemical Co., Ltd, Dystar Singapore Pte Ltd, Mitsubishi Chemical Group, and some others, are constantly engaged in developing high-grade silicone products for the EV industry and adopting strategies such as product launches and business expansions, which in turn drives the growth of the silicone in electric vehicles market in this region.

• In May 2024, Honda Motors announced that it would make an investment of around 10 trillion yen in Japan. This investment is made to promote research & development activities associated with EVs along with increasing the production of electric vehicles across the country.
• In March 2022, Shin-Etsu Chemical Co., Ltd. launched the KCP Series. KCP is a One-component liquid silicone rubber with superior characteristics such as cold resistance, weather resistance, heat resistance, and outstanding electrical properties. It will be used in components of electric vehicles and some electronic products.

North America is expected to be the fastest-growing region during the forecast period. The rising demand for BEVs among the people of this region increases the demand for silicon-based materials, thereby driving market growth. Also, the rising government initiatives for strengthening the electric vehicle charging infrastructure increase the demand for silicon products, thereby driving market growth.

Moreover, there are several local manufacturers of EVs, such as Tesla, Ford, Rivian, Lucid Motors, and some others, which are continuously investing in research and development of EVs and launching new electric vehicles, which increases the demand for silicone-based materials, which in turn drives the growth of the silicone in electric vehicles market in this region. Additionally, the presence of various local companies of silicone, such as Dow Chemical Company, Rogers Corporation, LORD Corporation, and some others, are developing superior quality silicone to fulfill the demand for silicone-based materials from the EV industry across the North American region, which in turn is expected to drive the market growth.

• In May 2024, Jeep launched the 2024 Jeep Wagoneer S. The 2024 Jeep Wagoneer S is a battery-electric vehicle (BEV) that will be initially launched in the U.S and Canada.
• In May 2024, the U.S. government made an announcement stating that it would invest around 1.3 billion USD for developing EV infrastructure across the country.
• For instance, in January 2024, Tesla launched the all-new Model 3 in the North American region. This car is equipped with level 2 autonomy and features an electric drivetrain, which provides a driving range of up to 341 miles on a single charge.
• In December 2023, Rogers Corporation launched the PORON EVExtend portfolio. This portfolio provides solutions for the problems faced by EV battery pad applications.

Market Overview

The applications of silicone in the electric vehicles industry have gained traction in recent times. This industry mainly deals with the manufacture of silicone-based products for EVs around the globe. This industry consists of several types of products, including elastomers, resins, fluids, and some others. Silicone-based materials are also used in various charging systems for EVs, such as plug-in hybrid electric vehicles (PHEV) and battery electric vehicles (BEV). The silicone materials in the electric vehicles industry are mainly used in the production of light motor vehicles and commercial motor vehicles. This industry is expected to grow exponentially along with the growth of the electric vehicles industry and the chemical industry.

• According to the annual report of Rogers Corporation in 2023, it is estimated that 22% of the company’s net sales (US$ 908.4 million) were derived from sales related to the prominent growth markets, including EV and HEV.

Silicone in Electric Vehicles Market Growth Factors

• The growing developments in the EV industry are expected to drive the growth of silicone in electric vehicles market.
• The rising government initiatives for strengthening the EV industry have driven the market growth.
• The increasing demand for emission-free vehicles to reduce CO2 emissions across the world fosters market growth.
• The rising investments from public and private sector entities for developing the silicone industry propels market growth.
• The growing developments in the drivetrain system for EVs across the world boost the market growth to some extent.
• The increasing number of EV companies around the world is expected to boost silicone in electric vehicles market growth.
• The rising advancements in technologies for developing EVs across the world boost the market growth.
• The ongoing research and development activities related to the production of silicone-based batteries for increasing the driving range of EVs have impacted the market growth positively.
• The rising demand for commercial vehicles across the world is driving the market growth.
• The growing demand for silicone rubber for various applications, such as the manufacturing of foam gaskets and sealants or adhesives in the EV industry, propels the market growth.
• The increasing demand for silicone-based thermal management materials for EV charging stations is boosting the silicone in electric vehicles market growth.

Market Scope

Market Dynamics

Driver

Growing trend of EVs across the world

The trend of electric vehicles has grown across the world in recent times with rising developments in the automotive industry. The transition towards EVs is mainly due to various factors such as low emission, low maintenance, high efficiency, tax and financial benefits, and some others. Thus, with increasing sales of electric vehicles around the world, the demand for silicone materials from EV manufacturers has increased rapidly.

Silicone has several applications in the EV industry for the manufacturing of airbags, exhaust pipe hangers, hoses, covers, CVJ boots, batteries, electric components, bellows, connector seals, gaskets, and other components. This, in turn, drives the market growth. Moreover, popular EV companies such as BYD, Tesla, Hyundai Motor Company, SAIC-GM-Wuling Automobile, Tata Motors, and some others are launching new vehicles with superior features, which increase the demand for silicone components, thereby driving the growth of silicone in electric vehicles market.

• In April 2023, Sila launched the all-new Titan Silicon. Titan Silicon is a silicon anode battery that is expected to increase the range of EVs by 20%.
• In May 2024, BYD launched an all-new range of PHEVs in China. This new series is named ‘Qin L DM-I,’ and these PHEVs are equipped with BYD’s new fifth-generation DM system that provides a high driving range of around 2100 km.

Restraint

Shortage of silicone, along with problems associated with cost and reliability

The use of silicone is very important for several applications in the EV industry across the world. Although the application of silicone material in the manufacturing of EV components is worth mentioning, the problems associated with the availability of high-grade silicone materials act as a hindrance in the industry. Additionally, the problems associated with the reliability and cost of silicone-based materials forbid the development of this industry. Thus, the shortage of raw silicone, along with high prices and low reliability, is expected to restrain the growth of silicone in electric vehicles market.

Opportunity

Advancements in silicon anode battery for EVs

The applications of silicone have increased rapidly in the EV industry, ranging from electric motors to battery charging systems. The advancements in science and technology have led to several major transitions in the silicone materials industry in recent times. Currently, researchers and scientists have developed silicone anode batteries for the production of long-lasting batteries for electric vehicles. Thus, the growing advancement in technologies related to silicone anode batteries for the EV industry is expected to create ample growth opportunities for the market players in the upcoming days.

• In January 2024, Amprius Technologies launched a new range of silicon anode batteries. These batteries are manufactured using the SiCore product platform and provide a range of up to 500 Wh/kg and 1,300 Wh/L energy density for powering electric vehicles.

Product Insights

The elastomers segment held the largest market share in 2023. The rising demand for low-cost electric vehicles around the world drives the market growth. Moreover, the growing application of silicone-based elastomers due to several benefits, including reliability, longevity, and durability in manufacturing EV components, is likely to boost the market growth. Additionally, silicone-based elastomers are used in the production of electrical components in EVs due to sealing, thermal management, bonding capabilities, protecting sensitive assembly, and some others, which in turn drives the growth of silicone in electric vehicles market.

• In January 2023, Dow launched a silicone rubber named ‘SILASTIC SA 994X LSR’. SILASTIC SA 994X LSR provides rapid bond strength, durable adhesion under heat and humidity, a 12-month shelf life, and some other features. It finds application in the automotive industry for manufacturing battery vent gaskets, connector seals, radiator gasket seals, and some others for hybrid and electric vehicles.

The fluids segment is expected to grow with the highest compound annual growth rate during the forecast period. The growing developments in the EV industries have increased the demand for silicone-based fluids, thereby driving market growth. Also, the growing application of silicone-based fluids to increase the smoothness of drivetrains in EVs has boosted market growth. Moreover, the unique properties of silicone-based fluid with improved electrical properties against short circuits and static electricity, along with its growing usage in the protection of gears and bearings of EVs, has boosted the growth of silicone in electric vehicles market.

• In November 2022, TotalEnergies launched a new range of EV fluids named ‘Quartz EV’ fluid in India. This EV fluid is launched for use in electric & hybrid cars to improve the performance of the vehicle, enhance autonomy, and increase longevity.

Vehicle Type Insights

The light motor vehicle segment held a significant share in 2023. The growing demand for cars for daily use is driving the market growth. Also, the rising application of small cars weighing less than 3,500 kilograms to maintain traffic congestion around large cities has increased the demand for silicone materials, which has driven the market growth. Moreover, the growing demand for light electric vehicles due to lower on-road prices and low maintenance is likely to drive the growth of silicone in electric vehicles market.

• In January 2024, Tata Motors launched the all-new Punch EV in India at an affordable price of RS 11 lakhs. This car comes in different variants, having a battery pack of 25 kWH and 35 kWH with a claimed driving range of between 315km and 421km.

The commercial motor vehicle segment is expected to grow at the fastest rate growth during the forecast period. The growing demand for vehicle scrappage programs to mitigate pollution levels has increased the demand for commercial vehicles, thereby driving the market growth. Also, the rising application of light commercial EVs for transporting passengers and goods in different parts of the world drives the market growth. Moreover, the increasing number of government schemes to use electric buses and trucks to curb CO2 emissions across the world, along with lower prices of fuel and maintenance charges associated with EVs made for commercial purposes, is driving the growth of the silicone in electric vehicles market during the forecast period.

• In September 2023, Switch Mobility launched two light commercial electric vehicles named Switch IeV3 and Switch IeV4 in India. The Switch IeV3 comes with a 25.6 kWh LFP battery that produces a peak power of 40 kW and provides a payload capacity of 1200 kgs. The Switch IeV4 comes with a 32.2 kWh LFP battery that produces a peak power of 60 kW to provide a payload capacity of 1700 kgs.
  
  
• In September 2023, the U.S. government joined hands with the Indian government. This joint venture will launch 10,000 electric buses in various Indian states, aiming to reduce CO2 emissions and promote international cooperation in the area of electric mobility.

Charging Type Insights

The battery electric vehicle (BEV) segment holds the largest share of the market in 2023. The growing demand for electric cars and electric buses in the European region is driving the market growth. The rising developments in electric vehicle batteries, such as SLA, Li-Ion, and NiMH, along with growing advancements in silicone batteries for EVs, are driving the market growth. Moreover, the rising sales of BEVs across the world, along with rising levels of global warming that encouraged the governments of several countries to develop a good-quality EV infrastructure, is driving the market growth. Additionally, several EV manufacturers are launching luxurious BEVs for elite customers along with well-developed EV charging stations in the North American and European regions, which is likely to boost the growth of silicone in electric vehicles market.

• In October 2023, Ionblox launched a lithium-silicon battery for powering electric vehicles (EVs). This battery pack supports extremely fast charging technology that charges 60% of the battery in 5 minutes and 80% in 10 minutes.
• According to a report by Counterpoint’s Global Passenger Vehicle by Powertrain, battery electric vehicles (BEVs) sales are expected to reach 10 million units around the world in 2024.
• In March 2024, BMW launched the electric vehicle named as ‘iX xDrive50’. This car is equipped with various superior features to ensure a smooth driving experience and comes with standard adaptive 2-axle air suspension for a comfortable ride along with a claimed driving range of up to 635 km.
• For instance, in May 2024, the U.S. government announced an investment of around 1.3 billion US$ for developing EV infrastructure across the country.

The plug-in hybrid electric vehicle (PHEV) is the fastest-growing segment during the forecast period. The growing demand for plug-in hybrids (PHEVs) due to their fuel efficiency in traffic is boosting the market growth. Moreover, the driving range of these vehicles is much higher than that of fully electric cars, which, in turn, drives market growth. Additionally, there are several tax benefits provided by the governments of several countries for adopting PHEVs, which drive market growth.

• In June 2024, Skoda launched the all-new Kodiaq iV plug-in hybrid vehicle. This car features a second-gen plug-in hybrid system powered by a 150hp four-cylinder turbocharged 1.5 TSI engine that provides a 75-mile electric range.
• In April 2024, the government of the Netherlands announced that plug-in hybrid vehicles would get a 50% reduction in taxes till the end of 2024.

Silicone in Electric Vehicles Market Companies

• Wacker Chemie AG
• Elkem Silicones
• Dow
• H.B. Fuller Company
• Nexeon Limited
• KCC Corporation
• ACC Silicones Ltd.
• Rogers Corporation
• LORD Corporation
• Shin-Etsu Chemical Co., Ltd.

Recent Developments

• In June 2024, Silicon Mobility launched the OLEA U310 Field Programmable Control Unit (FPCU). The FPCU is manufactured to process critical information with 100% accuracy for use in EVs and HEVs.
• In March 2024, JR Energy Solution announced the inauguration of a new silicon battery manufacturing facility in South Korea for use in electric vehicles (EVs).
• In August 2023, McLaren Applied launched the IPG5-x. IPG5-x is a superior quality 800V silicon carbide (SiC) inverter that can be integrated into electric drive units (EDUs) to increase the performance of EVs.
• In April 2023, StoreDot announced the launch of silicon batteries for electric vehicles (EVs). This battery is manufactured using the latest technology that enables automotive manufacturers to design and manufacture lighter, cheaper, and more sustainable EVs across the globe.
• In January 2023, Wolfspeed, Inc. announced that it will provide silicon carbide devices to power the future Mercedes-Benz Electric Vehicle (EV) platforms, enabling higher powertrain efficiency.
• In January 2022, The CHT Group SilSo Lite 21025. SilSo Lite 21025 is a silicone foam that provides protection against thermal runaway and delivers protection against debris, moisture, vibration, and shock for EV battery packs and electronic components.

Segments Covered in the Report

By Product

• Elastomers
• Resins
• Fluids
• Others

By Charging Type

• Plugin Hybrid Electric Vehicle (PHEV)
• Battery Electric Vehicle (BEV)

By Vehicle Type

• Light Motor Vehicle
• Commercial Motor Vehicle

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa