Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Silicone in Electric Vehicles Market size was valued at USD 7.4 billion in 2024 and is projected to reach USD 23.8 billion by the end of 2037, rising at a CAGR of 9.5% during the forecast period, i.e., 2025-2037. In 2025, the industry size of silicone in the electric vehicles is evaluated at USD 8.1 billion.
The demand for silicone in electric vehicles is driven by the rising demand for electric vehicles worldwide. Silicone plays a pivotal role in the electric vehicle industry, contributing to enhanced performance, safety, and durability. Its unique properties such as superior electrical insulation, thermal conductivity, chemical stability, flame retardancy, and resistance to extreme temperatures make it indispensable in various EV applications. According to Global EV Outlook 2024, electric car sales reached 14 million in 2023 out of which 95% of electric vehicles were sold in China, followed by Europe and the U.S. The sale of electric cars in 2023 was 3.5 million higher than in 2022 showcasing a 35% year-on-year increase.
The increasing consumer demand for EVs due to favorable government incentives, environmental concerns, and technological advancements is boosting the need for high-performance materials such as silicone. Governments worldwide are providing incentives to encourage EV adoption among consumers. For instance, the government of India provides FAME India policy as a part of the National Electric Mobility Mission Plan (NEMMP). The government has invested USD 1.43 billion as a part of the FAME II scheme to encourage electric vehicle consumption and support manufacturing.
Silicone in Electric Vehicles Market: Growth Drivers and Challenges
Growth Drivers
- Rising battery thermal management needs: EV batteries generate significant heat requiring effective thermal management solutions. The battery pack used in an electric vehicle (EV) can produce extreme heat, especially during rapid charging. Ideally, the optimal temperature to operate batteries should be below 35° C. Therefore, the high thermal conductivity and stability of silicone help to prevent overheating, extending battery life and efficiency. Lithium silicone batteries are an emerging battery technology that aims to improve energy density, efficiency, and lifespan over traditional lithium-ion batteries. These batteries replace the conventional graphite anode with a silicone-based anode. Companies are innovating towards developing lithium silicone battery technology to cater to the rising demand.
- Growing demand for lightweight materials: Automakers seeks to reduce vehicle weight to improve range and efficiency. Silicone’s lightweight nature compared to traditional material makes it an ideal choice for sealing, insulation, and adhesives. The U.S. Department of Energy states that using lightweight materials increases vehicle efficiency. Thus, a reduction of 10% in vehicle weight can result in a 6%-8% improvement in fuel economy. EVs rely on energy stored in batteries, and every kilogram of weight impacts efficiency, range and performance. Thus, lightweight materials especially silicone-based components play a crucial role in improving various aspects of EVs, including efficiency, thermal management, and durability.
Challenges
- Complex manufacturing and processing: The use of silicone in electric vehicles poses manufacturing and processing challenges. Due to the material’s unique properties and requirements, specialized equipment and expertise are required to process silicone in EV applications. Moreover, integrating silicone with existing automotive manufacturing processes can be challenging.
- Fluctuations in raw material supply: Silicone production depends on raw materials such as quartz and methyl chloride which are subject to silicone in electric vehicles (EV) market fluctuations. Thus, supply disruptions can impact the availability and pricing of silicone to be used in manufacturing processes. Fluctuating raw material costs can lead to increased costs for silicone-based EV components.
Silicone in Electric Vehicles Market: Key Insights
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
9.5% |
|
Base Year Market Size (2024) |
USD 7.4 billion |
|
Forecast Year Market Size (2037) |
USD 23.8 billion |
|
Regional Scope |
|
Silicone in Electric Vehicles Segmentation
Vehicle Type (Light Motor Vehicle and Commercial Motor Vehicle)
The light motor vehicle segment in silicone in electric vehicles market is predicted to register rapid CAGR by the end of 2037. The rising demand for passenger EVs is driving the need for high-performance silicone materials in compact and mid-sized electric cars. Automakers are increasing the use of silicone in LMVs to meet safety, thermal management, and energy efficiency requirements. For instance, the Tesla Model 3 a popular light electric vehicle extensively uses silicone in battery modules, high voltage wiring, and thermal management solutions. Moreover, the usage of silicone in EV batteries enhances the overall performance offering up to 175 miles of range in 15 minutes of charging. The increasing use of lightweight materials, smart connectivity, and improved charging infrastructure further accelerate light motor vehicle adoption in the electric vehicle sector.
Charging Type (Battery Electric Vehicle and Plug-in Hybrid Electric Vehicle)
Battery-electric vehicle segment is predicted to dominate silicone in electric vehicles market share of around 70% by the end of 2037. These are fully electric vehicles powered by rechargeable lithium-ion batteries that eliminate the need for internal combustion engines. Battery electric vehicles are rising rapidly due to advancements in battery technology, faster charging, and cost reductions making BEVs more practical and affordable. According to the International Energy Agency (IEA) Report 2023, over 26 million electric cars were sold in 2022, achieving a 60% rise from 2021 with BEVs accounting for over 70% of total annual growth.
Our in-depth analysis of the global silicone in electric vehicles market includes the following segments:
|
Vehicle Type |
|
|
Charging Type |
|
|
Product |
|
Want to customize this research report as per your requirements? Our research team will cover the information you require to help you take effective business decisions.
Customize this ReportSilicone in Electric Vehicles Industry - Regional Scope
Asia Pacific Market Analysis
Asia Pacific in silicone in electric vehicles market is expected to capture over 48% revenue share by 2037, driven by the high demand for electric cars across the region. With the push for affordable, high-performance electric vehicles and government initiatives promoting electric mobility, Asia Pacific has become a key hub for EV manufacturing. The silicone in electric vehicles (EV) market is also expanding due to advancements in charging infrastructure and automotive innovation in the region.
China is a major player in the silicone in electric vehicles market driven by its position as the world’s largest EV producer and market. Automakers in China such as BYD, NIO, and Xpeng are increasing their use of silicone in EV battery systems. According to an IEA report, 60% of new electric car registrations were done in China alone. In China, the number of new electric car registrations reached 8.1 million in 2023, increasing by 35% as compared to 2022. In addition, China exported over 4 million cars in 2023, making it the largest auto exporter in the world, among which 1.2 million were electric vehicles. This makes China the world’s largest market for electric vehicles.
The silicone in electric vehicles market in India is growing rapidly due to increasing demand for energy-efficient and sustainable transportation solutions. According to the India Brand Equity Foundation Report (IBEF) 2024, electric vehicle registrations in India reached 15.29 million EVs in 2023. Due to high adoption of EVs in India, electric vehicle sales in May 2024 surged by 20.88% to 1.39 million units. The report further states that India is set to become the largest EV market by 2030 with a rise in investment over the next 8-10 years. Top automakers such as Tata Motors, Mahindra Electric, and Ola Electric are integrating silicone-based solutions to enhance battery performance and vehicle durability. This trend towards the adoption of electric vehicles will drive the need for silicon in India’s EV market.
North America Market Analysis
North America is anticipated to likely to witness rapid growth between 2025 and 2037 due to increasing adoption of battery electric vehicles and plug-in hybrid electric vehicles. Automakers such as Tesla, General Motors, and Ford are investing in EV production, utilizing silicone materials for improved efficiency and long battery life.
The silicone in electric vehicles market in the U.S. is growing because of green energy solutions and the demand for sustainable transportation. According to the International Energy Agency (IEA) Report 2024, the U.S. registered a total of 1.4 million electric cars in 2023, contributing to a 40% rise compared to 2022. Further, the government’s push for electric vehicle infrastructure such as charging stations is encouraging growth in the U.S. The U.S. Department of Energy states that as of February 2024, there were over 61,000 publicly available EV charging stations in the country. As of 2023, nearly 80% of public EV charging ports in the U.S. were level 2. The level 2 charging equipment uses the same J1772 connector that level 1 equipment uses. This move encourages the adoption of EVs among consumers as all commercially available EVs in the country can charge using Level 1 and Level 2 charging equipment.
The silicone in electric vehicles market in Canada is growing as the country focuses on accelerating its transition to clean energy and reducing carbon emissions. The government in Canada is also offering incentives for EV adoption, along with public awareness of environmental issues. For instance, to decarbonize the transportation sector in Canada, the government aims to achieve 100% sales of zero-emission vehicles by 2035. According to Canada's 2030 Emissions Reduction Plan, it aims to garner at least 20% sales of new light-duty vehicles by 2026 and 60% by 2030.
Companies Dominating the Silicone in Electric Vehicles Market
- Wacker Chemie AG
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Elkem Silicones
- Dow
- H.B. Fuller Company
- Nexeon Limited
- KCC Corporation
- ACC Silicones Ltd.
- Rogers Corporation
- LORD Corporation
Key companies dominating the silicone in electric vehicles market include Dow, Wacker Chemie, Shin -Etsu Chemical and Momentive Performance Materials. These companies provide advanced silicone-based solutions for battery thermal management, insulation and sealing applications in EVs. These companies develop advanced materials that enhance safety, durability of electric vehicles. With strong global presence and innovative techniques, these firms are pivotal in shaping the future of sustainable transportation.
In the News
- In February 2025, Zeekr 7X became the fastest-charging EV in the world with the 800-volt Golden Battery. It is capable of adding 1,270 miles of range per hour and can charge from 10-80% in 9 minutes 45 seconds.
- In November 2024, ProLogium Technology introduced the world’s first 100% silicon anode battery that will be manufactured in 2027. This new battery concept will charge a battery from 5% to 60% capacity in just five minutes. It will offer future EVs a 186-mile range (300km) with just five minutes of charging time.
Author Credits: Rajrani Baghel
- Report ID: 7233
- Published Date: Feb 28, 2025
- Report Format: PDF, PPT
