Bookmark 10-16-2015

Stronger Demand for Silicones in the Construction Industry

The superior properties of silicones such as ultraviolet resistance, water resistance and longevity are driving its use in the global construction industry. Furthermore, the rising need for energy-efficient solutions to construct green buildings is fuelling the demand for silicones.

New analysis from Frost & Sullivan, "360 Degree Analysis on the Silicones Market for the Global Construction Industry", finds that the market earned revenues of USD 8.05 billion in 2014 and estimates this to reach USD 11.55 billion in 2021. The study covers silicone adhesives/sealants and coatings. The silicone adhesives/sealants segment is forecast to grow in line with the construction industry across all regions, while the coatings segment will experience modest traction. As construction output in Europe will only expand by 2.1 and 2.2 % in 2015 and 2016 respectively, the region will offer fewer opportunities than other geographies.

According to the study, in North America, cool-roof regulations and incentives are boosting the adoption of silicone roof coatings. With Asia-Pacific (APAC) and European countries expected to announce incentives for the use of cool-roof coatings to reduce the urban heat island effect, the uptake of silicone coatings in these nations’ construction industry will likely also increase.

Silicones will however face stiff competition from other chemistries, predominantly polyurethanes and acrylics, owing to their higher costs. In certain applications such as tile adhesives, acrylic chemistries are dominant, whereas products made of polyurethanes are popular in joint sealing and waterproofing applications. Although polyurethanes are also widely used in re-caulking applications, their substitution with silicone chemistry is gaining pace.

Due to high initial investments required in the silicones market for the construction industry, joint ventures and partnerships between global and local companies and among global companies are prevalent growth strategies. This is particularly so in APAC markets, where there have been several joint ventures such as that between Wacker Chemie AG, Germany, and Asahi Kasei Corporation, Japan.