Silicone Grease Market - Forecasts from 2023 to 2028

The global silicone grease market was valued at US$372.206 million in 2021.

Silicone grease is a translucent, viscous lubricant made primarily from silicone oil, with the addition of a thickening agent such as silica or other fillers. It is known for its excellent thermal stability, low volatility, and oxidation resistance, making it suitable for high-temperature environments. The types of silicone grease include thermal transfer grease and water-potable silicone grease used in industrial, oil & gas, automotive, and chemical applications as they provide lubrication and reduce friction between moving parts. The increasing production of automotive and oil & gas are driving the demand for silicone grease, boosting its market growth.

The growing automotive production is accelerating the silicone grease market growth.

The automotive industry relies heavily on the smooth functioning of various mechanical components and electrical systems. Silicone grease, with its excellent lubricating and insulating properties, is an essential product in this sector. Lubrication of moving parts such as bearings, gears, and hinges in automobiles is essential as these components experience high levels of friction and wear during operation. Automotive manufacturers can reduce friction, minimize wear and tear, and extend the lifespan of these crucial parts by applying silicone grease. Growing demand for fuel-efficient vehicles coupled with rapid urbanization has accelerated the production & sales output of the automotive sector. According to the International Organization of Motor Vehicle Manufacturers (OICA), in 2022, the production of commercial vehicles increased from 2.30 million in 2021 to 2.34 million in 2022, which is an increase of 1.4%. According to the India Brand Equity Foundation, in October 2022, Maruthi Suzuki was India's biggest car seller, with 136,700 units sold. Such an increase in production and sales will positively impact the demand for silicone grease, thereby augmenting the overall market growth.

The surge in the production of oil & gas is expanding the silicone grease demand.

The oil and gas sector encompasses various operations involving complex equipment and demanding conditions, including drilling, exploration, extraction, and transportation. Silicone grease is a vital lubricant and sealant, ensuring critical components' smooth operation and protection. In drilling operations, silicone grease is used to lubricate drill bits and reduce friction during the drilling process. Silicone grease's high viscosity and thermal stability allow it to withstand extreme temperatures and pressures encountered in deep drilling environments. The oil & gas industry can minimize equipment wear and tear and prolong the lifespan of equipment by applying silicone grease. The increase in the production of oil & gas owing to the growing demand for major end-users is expected to accelerate the demand for silicone grease. According to the US Energy Information Administration (EIA) report in 2023, global oil consumption will increase by 1.6 million, and global oil production will increase by 1.5 million b/d in 2023. According to the IEA (India Energy Outlook 2021), as of September 2021, India has a capacity of 248.9 million tons of crude oil per day, making it Asia's second-largest refiner.

The Asia-Pacific region is expected to hold a significant market share during the forecast period.

The Asia-Pacific region is expected to dominate the market due to the thriving automotive, oil & gas, and other industrial production. In November 2022, South Korea's S-Oil Corp 010950.KS announced an investment of up to 8 trillion won ($6.04 billion) in new petrochemical production in the country. In 2022, a new factory will be built in Haryana, and Maruti Suzuki India will introduce new models. The company plans to invest nearly Rs. 7,000 crores (US$ 865.12 million) in several projects. Such positive developments are expected to drive the demand for silicone grease in the Asia Pacific, accelerating regional growth.

Market Developments:

• November 2020: FUCHS acquired PolySi Technologies, a high-performance silicone lubricant manufacturer, to expand its product and packaging offering into markets where silicone technology is utilized and create opportunities to serve many critical applications, including automotive, electrical, plumbing, and medical.
• January 2020: PolySi Technologies acquired the grease product line of Specialty Silicone Products, Inc. to enhance their product offerings and offer an exceptional product fit with their lubricants and greases, specifically on the west coast of the US.
• December 2019: Super Lube launched a "Super Lube® O-Ring Silicone Grease" to provide long-lasting protection for O-Rings, extend their useful life, and provide a good seal that prevents water leaks for O-Rings, gaskets, and seals.

Market Segmentation

By Type

• Thermal Transfer Grease
• Water Potable Silicone Grease

By Thickener Type

• Amorphous Fumed Silica
• Powdered Polytetrafluorethylene (PTFE)

By Application

• Manufacturing
• Oil & Gas
• Chemical
• Automotive
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• UK
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• Japan
• South Korea
• India
• Australia
• Others