Silicone Lubricants Market

Market Overview

The Total Addressable Market (TAM) for Silicone Lubricants was valued at USD 2.19 billion in 2022. It is estimated to reach USD 3.21 billion by 2031, growing at a CAGR of 4.32% during the forecast period (2023–2031).

Lubricants manufactured using silicone oil are termed "silicone lubricants." They have various applications and work well on metallic and non-metallic surfaces. Silicone lubricants protect machinery and equipment from wear and tear, reduce downtime, extend service intervals, lower maintenance costs, improve efficiency, and speed up machine processes. Silicone lubricants can be used on rubber, PVC, wood, and other materials because of the silicone oil contained in them.

Silicone lubricants are used for many different things because they work well in scorching and freezing temperatures. They are also resistant to water washout and protect against rust and corrosion. In addition, due to technological developments, the lubricants market offers extended benefits such as a reduced interval between changing oils, increased machine life, lower carbon emissions, and lower maintenance costs of machines and equipment. Recent developments, evolving needs, and increased customer preferences have significantly changed the silicone lubricant market.

Market Dynamics

Global Silicone Lubricants Market Drivers

Rising Demand for Food-Grade Lubricants

Lubricants are crucial for ensuring that machines and equipment used in the food and beverage industry work well. Since lubricants are used in the food and beverage industries, they might accidentally come into contact with the foods and beverages of processors. Hence, they should be non-toxic and should neither influence the taste nor smell of these products. Food-grade silicone lubricants are used in machine parts and other equipment, like plastic gears, conveyor belts, rollers, rubber gaskets, and chain plastic bushings. In addition, the demand for food-grade silicone lubricants is high because they work well at high temperatures and do not wash out. They can also be applied to plastics, as they do not cause degradation.

The NSF, FDA, USP, and WRAS should certify as H1-grade all lubricants used in the food and beverage industry. Hence, they can work in high temperatures, not get washed out, and can even be applied to plastic parts. Due to public health and environmental protection factors, heat-transfer fluids are highly regulated in the food and beverages industry, thus driving the market’s growth.

High Demand for EVs

Rapid industrialization and industry 4.0 have led to considerable developments in the electrical and electronic industries in recent years. The electronics sector is divided into electric utilities and general hardware. In addition, an increase in EV adoption will influence the silicone lubricants market, as the automotive industry is one of the major end-use industries for silicone lubricants. When making silicone lubricants for EVs, it is essential to consider how well they work and how much electrical current and electromagnetic fields are in the electric modules, sensors, and circuits.

In the electrical and electronic industries, silicone lubricants are used in various applications, such as the protection of battery terminals, the potting of small electronic components, and screw thread lubrication to prevent sticking and corrosion. Many lubricant manufacturers, such as Shin-Etsu Chemicals Co. Ltd. (Japan), 3M (US), and Dow (US), have launched a new range of silicon lubricants that are compatible with EVs. Therefore, an increase in the EV market will increase the demand for silicone lubricants.

Global Silicone Lubricants Market Restraint

High Cost of Silicone Lubricants

Silicone lubricants mainly consist of silicone as a raw material along with additives. Though silicone is the second-most abundant element in the earth's crust, it is expensive due to various factors, such as the high energy cost associated with manufacturing. The process involves the conversion of sand to high-purity silica, which further includes the refinement of silica before the chemical reactions that polymerize silicone. In addition, many expensive components are used during silicone manufacturing, which further increases the overall manufacturing costs due to high maintenance, thus hampering the market growth.

Global Silicone Lubricants Market Opportunities

Increased Demand from the Pharmaceutical Industry

Factors such as emerging new technologies, cost-effectiveness, and an increase in efficient manufacturing approaches have led to a transformation in the pharmaceutical industry. Pharmaceutical companies are investing highly in research and development as the discovery of new drugs is vital for the continued growth of pharmaceutical companies. Countries like the US, China, and India are investing in the pharmaceutical sector. In India, factors such as the low cost of production and a boost in R&D activities in the pharma sector have led to competitive exports. In the US, the pharmaceutical industry is highly driven by the ongoing global vaccination rollouts and high demand for essential and nonessential medical treatments. Thus, growth in the pharmaceutical industry would increase the demand for silicone lubricants in the market.

Regional Analysis

By region, the global silicone lubricants market is divided into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant shareholder in the global silicone lubricants market and is anticipated to grow at a CAGR of 5.27% during the forecast period. Asia-Pacific is the largest market in terms of revenue for silicone lubricants due to rapid industrialization, increasing urbanization, a growing population, and emerging economies. As a result, industrial activity is increasing, as is the demand for silicone lubricants. Countries such as China, India, Japan, Australia, and South Korea are significant contributors to silicone lubricants in this region. China's silicone lubricants market is growing because more people are making things, building things, making power, mining metals, and mining for metals.

In contrast, silicone lubricants are expanding rapidly in India thanks to sectors like pharmaceuticals, the auto industry, and agriculture. In Japan, automotive and consumer electronics are essential industries, making up a big part of the country's GDP. South Korea is the fourth-largest country in Asia in terms of nominal GDP, and one of the most important parts of its economy is manufacturing. This will increase the demand for silicone lubricants in these nations.

North America is expected to grow at a CAGR of 3.23% over the forecast period. The US and Canada comprise the major silicone lubricant markets in North America. In the US, technological development and increased demand for goods will increase manufacturing activities, leading to increased demand for silicone grease used in machinery. This increases the demand for silicone lubricants used to lubricate automation systems. The maintenance cost of machines, coupled with the rise in production across industries, will increase the use of silicone lubricants, which will drive the demand for silicone lubricants in the US during the forecast period.

In Canada, the demand for silicone lubricants is expected to witness high growth due to increasing food and beverage, automotive, and manufacturing activities. Due to the vast geographical area, food consumption and consumer choices vary considerably. Furthermore, many people are health-conscious, owing to which the market has witnessed an increased demand for organic food products. In addition, the pharmaceutical industry is the primary industry driving the demand for silicone food-grade lubricants.

In Europe, countries such as Germany, the UK, France, Italy, and Spain have established markets due to their developed economies and well-developed infrastructure. Hence, these countries can anticipate stable growth in the silicone lubricant market. Countries such as Belgium, Austria, and Sweden, will have high growth due to growth in the manufacturing and food and beverages industries. In addition, Russia is expected to witness significant growth due to high manufacturing, mining, and agricultural activities.

In Latin America, countries such as Brazil and Mexico are predicted to increase due to the highly growing manufacturing industry. Other Latin American countries, such as Argentina, Columbia, Chile, and Peru, contribute significantly to the silicone lubricant market in Latin America. The silicone lubricant market in Brazil is expected to grow due to the highly expanding manufacturing, mining, construction, and agricultural industries. Brazil is one of the leading consumers of silicone lubricants in Latin America. The country's abundant natural resources and higher production of food and agricultural products provide opportunities for silicone lubricant vendors.

Countries such as Saudi Arabia, the UAE, and South Africa are the major markets for silicone lubricants in the Middle East and Africa. At the same time, other countries, such as Iran, Iraq, and Egypt, contribute significantly to the silicone lubricant market in the Middle East and Africa. The food and beverage industry is among the prime industries in Saudi Arabia and is experiencing growth due to the increasing demand for organic food, ready-to-eat food, and rising food chain outlets, coupled with the rising purchasing power and population. In the UAE, the automotive and manufacturing industries are significant end-users of silicone lubricants. In South Africa, factors such as political stability, the country's increasing involvement with the international community, and the African Free Trade Zone are bringing prospects for investments and increasing the potential for entry for smaller players in the silicone lubricant market.

Segmental Analysis

The global silicone lubricants market is segmented by product type and end-user.

By Type Analysis

By type, the global silicone lubricants market is divided into oil and grease.

The oil type segment is the highest contributor to the market and is anticipated to grow at a CAGR of 4.42% over the forecast period. Silicone oils are used to lubricate a variety of products. As they provide thermal stability to the systems in which they are used, they can also be used as heat transfer fluids. These oils provide excellent stability and are known for their high-temperature, non-toxic use at low surface tension and high power. Due to their non-toxicity, lack of stickiness, and ability to form stable film strips, they are used in lubricants, electric insulators, and laboratories. Silicone oil is chosen to improve its lubrication performance in a mechanical system. It is non-reactive to most substances, maintains its lubricity in extremely high-temperature ranges, has low friction, and does not oxidize. These properties make it an exceptional rubber product in severe environments. Silicone is used in airplanes, prosthetic devices, body implants, waterproofing materials for paper and ceramics, as caulk, adhesive, heat-resistant insulator, and lubricant.

A thickener is combined with silicone oil to create silicone grease, a waterproof oil. Amorphous fumed silica and polydimethylsiloxane are frequently used as thickeners and silicone oils. Depending on the ingredients used to make the grease, silicone oil has lubricating properties and is dense and translucent. Silicone grease is mainly used in consumer appliances and the automotive sector. Due to the production of formaldehyde vapors at temperatures above 3000 F, using it in these conditions is not advised. Silicone has many benefits, such as keeping water away, working better at low and high temperatures, sticking well and staying flexible for a long time, and maintaining its chemical and physical properties. Hence, it lasts longer and is resistant to chemicals, salt, wind, UV, and IR radiation.

By End-User Analysis

By end-user, the global silicone lubricants market is divided into manufacturing, power generation, automotive, food and beverages, and others.

The manufacturing segment is the highest contributor to the market and is anticipated to grow at a CAGR of 4.64% over the forecast period. The manufacturing sector requires lubrication because the machinery and components are put under a lot of stress from the constant alterations in loads, vibrations, and operating conditions. Many machines used in the food processing industry use silicone lubricants. It is crucial to use silicone-based food-grade lubricants to ensure the efficiency of food processing machinery. Due to their attributes like broad operating temperature ranges, electrical insulation, high dielectric strength, a low coefficient of thermal expansion, and resistance to moisture and chemicals, silicone lubricants are also used in electric vehicles (EVs). Electric motors, battery packs, inverters, charging units, connectors, sensors, displays, and other control units all use silicone lubricants.

The power generation industry is among the major end users of silicone-based lubricants. Silicone lubricants are widely used in power generation plants, such as coal power plants, gas turbine power plants, hydroelectric power plants, natural gas engines, nuclear energy power plants, and wind energy plants. Silicone-based hydraulic fluids, compressor oils, open gear lubricants, and enclosed gear lubricants are heavily used in power generation equipment. Coal-based power plants use these lubricants in various parts, such as belt rollers, crushers, coal feeders, conveyor lines, feed water pumps, hydraulics, turbines, and generators. In coal-based power plants, the machinery is generally heavy-duty and operates at extreme temperatures. Hence, the demand for silicone lubricant is high to carry out operations efficiently.

Recent Developments

• December 2022- Valvoline Inc. declared that it had created an internal ESG and equality council (the "Council") to direct and support the company's continued advancement on environmental, social and governance ("ESG") initiatives as it transforms into a pure-play retail services business. The creation of the Council follows the company's constructive discussions with Chicane Capital Management, LP ("Chicane"), the investment manager of current Valvoline shareholder Chicane Opportunities Fund, LP.
• October 2022- Valvoline Inc. announced the results of head-to-head testing against the industry-leading full synthetic. In side-by-side comparison tests, Valvoline full synthetic motor oils provided 24 times more robust protection against engine-killing contaminants than the industry-leading full synthetic motor oil.