Australia Silicone Market Growth Analysis - Forecast Trends and Outlook (2025-2034)

Australia Silicone Market Trends

The Australia silicone market growth is driven by rising demand across sectors such as automotive, construction, electronics, healthcare, and food packaging. Renowned for its high-quality products, silicone offers versatile applications and is eco-friendly, durable, and recyclable, contributing to Australia’s sustainability objectives while playing a vital role in medical innovations. Based in Adelaide, South Australia, Flexichem specialised in the development and production of silicone and non-silicone chemicals, including antifoams, for industries like food processing, printing, automotive, agrochemical, mining, and personal care.

The Australia silicone market revenue is impacted by the vital role silicones play in various industries. In the automotive sector, they are essential for seals, gaskets, and electrical components. In construction, silicone-based sealants, and coatings support growth, while in electronics, silicone is crucial for insulation and semiconductors. Additionally, the market contributes significantly to Australia’s economy through job creation, exports, and product innovation.

Australia Silicone Market Growth

The demand for the Australia silicone market is driven by its excellent thermal and electrical insulation properties, benefiting the energy and electronics sectors. Its durability in extreme conditions makes it suitable for various climates, while its non-toxic and hypoallergenic nature ensures safety in consumer products. Increasing consumer demand and export opportunities, particularly in the Asia-Pacific region, are further fuelling market growth. According to CSIRO, Australia’s abundant quartz deposits, along with its world-class solar resources and potential for solar PV generation, make it ideally positioned to develop a domestic silicon production industry. Currently, Australia has only one silicon manufacturing facility, Simcoa in Western Australia, which is Japanese-owned and produces 52,000 tonnes of metallurgical silicon annually, exporting about 85 per cent of its output.

Opportunities in the Australia silicone market are increasing as silicones improve product performance in adhesives, coatings, and sealants, enhancing overall quality. Customised solutions meet specific industry requirements, while silicone's low environmental impact makes it a compelling alternative to plastics. The market also promotes research and development, driving innovations in renewable energy systems and supporting Australia’s transition to clean energy.

Australia Silicone Market Insights

• As reported by industry reports, Australian hospitals accounted for 40% of total health expenditure in 2021–22, reaching USD 96 billion. This growth reflects higher demand for medical devices and healthcare infrastructure, benefiting the silicone market, especially in producing medical-grade silicones.
• The ACT Government's Zero Emission Vehicles Plan resulted in 7,233 electric car registrations by March 1, 2024. This increase drives demand for silicone components in electric vehicles, particularly for sealing, insulation, and battery systems.
• According to the Australian Bureau of Statistics, in January 2024, the value of new residential construction in Australia rose by 19.4% to USD 7.14 billion, signalling increased demand for silicone-based products like sealants and coatings in durable, weather-resistant buildings.

Industry News

December 2024

National Distributor Alliance (NDA), a major packaging distributor in Australia, experienced strong growth and sought PegboardCo.’s help to manage product categories, pricing, and inventory. PegboardCo. provided a solution through its Silicone platform, offering an integrated online portal and Pegboard7 website. The project, launching in March 2025, aims to streamline NDA’s operations.

May 2024

Sicona Battery Technologies, an Australian battery materials producer, planned to expand into the US market by building a commercial production facility in the southeastern US. The company completed engineering design studies and aimed to develop a silicon-carbon anode materials plant producing 6,700 tons annually, with plans to increase capacity to 26,500 tons by the early 2030s.

Australia Silicone Market Drivers

Growing Demand in Healthcare and Medical Applications

The demand of the Australia silicone market is increasing, driven by the healthcare sector's growing use of silicone in medical devices, implants, and prosthetics due to its biocompatibility and durability. Its hypoallergenic nature and resistance to extreme conditions make it ideal for medical applications, enhancing patient outcomes. As the healthcare system evolves, the need for advanced medical-grade silicone is expected to rise, with innovations fostering wider use in diagnostics, therapeutic devices, and surgical instruments. In June 2022, Sydney-based Silicon Quantum Computing (SQC) achieved a significant milestone by producing the first integrated silicon quantum computer chip, enabling the development of quantum models for new materials like pharmaceuticals, battery components, and catalysts.

Increase in Demand for Silicone in Electronics

The Australian silicone market dynamics and trends are being shaped by the growing demand within the electronics industry, which increasingly relies on silicone for components like seals, adhesives, insulation materials, and encapsulants. Due to its thermal stability, electrical insulation, and flexibility, silicone is crucial for high-performance electronics. As demand rises for consumer electronics, renewable energy, and electric vehicles, the need for silicone components is expected to grow, aligning with Australia's push for smart technologies in automation and AI. In August 2024, Melbourne-based Lotus Energy partnered with Canadian Neo Battery Materials to develop and co-market a silicon anode product to battery, electronics, and automotive manufacturers.

Opportunities in the Australia Silicone Market

The automotive sector is a key trend in the Australia silicone market, with increasing use of silicone components for seals, gaskets, and electrical insulation. Silicone’s durability against high temperatures, weathering, and chemicals makes it essential in automotive manufacturing. As the popularity of electric vehicles (EVs) grows, the demand for silicone in EV parts, including batteries, powertrains, and insulation, is expected to rise, supporting Australia’s push for greener transportation and reduced carbon emissions. The Australian Silicon Action Plan, developed by PricewaterhouseCoopers, highlights the economic benefits of investing in an integrated silicon and solar cell supply chain, with a focus on renewable energy and recycling for circular outcomes.

Market Restraints

The Australia silicone market faces several key challenges that could hinder its growth. High production costs, driven by specialised raw materials and manufacturing processes, make silicone products more expensive, limiting their adoption in price-sensitive markets. The market also depends on imported raw materials, which may face supply chain disruptions.

Despite being eco-friendly, silicone production is energy-intensive, and some forms are not biodegradable, raising environmental concerns. Silicone competes with cheaper alternatives like plastics and rubber, which restricts its market share. Additionally, a lack of awareness about silicone’s benefits, stringent regulatory standards, limited local manufacturing, and external economic factors pose further barriers to market expansion.

Australia Silicone Industry Segmentation

“Australia Silicone Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Product Type

• Elastomers
• Fluids
• Gels
• Resins

Market Breakup by Application Type

• Industrial Processes
• Construction Materials
• Home and Personal Care
• Transportation
• Energy
• Healthcare
• Electronics
• Others

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Australia Silicone Market Share

Market Analysis by Product Type

According to the Australia silicone market analysis, the market is dominated by silicone gels, which are highly valued for their softness, flexibility, and adhesive properties. These gels are widely used in industries such as healthcare for wound care, medical devices, and personal care products like skin creams and cosmetics, thanks to their non-toxic and hypoallergenic properties that ensure safety and effectiveness.

The growth of the Australia silicone market is further driven by silicone fluids, known for their exceptional thermal stability, low volatility, and superior lubrication properties. Silicone fluids are extensively used in Australia across industries like automotive, electronics, and manufacturing, where they serve as lubricants, hydraulic fluids, and in thermal management applications, improving the performance, durability, energy efficiency, and reducing maintenance costs of machinery and components.

Market Analysis by Application Type

As per the Australia silicone market report, the healthcare sector leads the market, benefiting from silicone’s biocompatibility, hypoallergenic properties, and durability. Silicone is widely used in medical devices, implants, prosthetics, wound care, and drug delivery systems. Its ability to endure extreme conditions ensures safety, longevity, and effectiveness, leading to improved patient outcomes. The Commonwealth Scientific and Industrial Research Organisation (CSIRO) has identified silicone's potential in 3D printing for applications in medical devices, including dental products, hearing aids, cochlear implants, prosthetics, and custom medical devices.

The Australia silicone market is also driven by the electronics sector, where silicone’s superior thermal stability, electrical insulation, and flexibility enhance electronic components like seals, adhesives, and insulation materials. With the increasing demand for consumer electronics, silicone is vital for ensuring efficient and durable devices. According to the Australian Bureau of Statistics, in October 2024, electrical and electronic goods retailing rose by 2.7% (USD 58.0m) in seasonally adjusted estimates.

Australia Silicone Market Regional Insights

New South Wales Silicone Market Overview

The New South Wales silicone market thrives due to strong demand in construction, automotive, and healthcare sectors. The region's advanced manufacturing and access to key industries foster innovation in silicone products. In November 2024, the New South Wales government introduced a framework for large-scale solar PV projects, promoting renewable energy and increasing the need for silicone components.

Queensland Silicone Market Trends

According to the Australia silicone industry analysis, Queensland’s silicone market is expanding as demand grows for eco-friendly and durable materials in construction, electronics, and healthcare. Innovations in silicone-based solutions and the rising demand for sustainable products are expected to drive regional growth. Seamless Silicone, a specialist in Southeast Queensland, provides durable waterproof sealing for bathrooms, laundry rooms, and swimming pools.

Western Australia Silicone Market Dynamics

Western Australia’s silicone market growth is supported by its mining, construction, and manufacturing industries. The demand for silicone products in harsh environments, especially for sealing and insulation, is expanding. In October 2024, Altech Batteries improved silicone-ion battery capacity by blending alumina-coated silicon with graphite, achieving a 55% increase in performance.

Competitive Landscape

The Australia silicone market key players specialise in high-performance solutions and are recognised for their innovative products across various industries, including construction, automotive, food processing, and pharmaceuticals. These companies offer durable, reliable flooring systems designed to endure harsh industrial environments, providing advantages such as chemical resistance, high load capacity, and fast installation. Their product ranges include self-levelling flooring, coatings, and sealants, suitable for both industrial and commercial applications.

Key Industry Players

The Dow Chemical Company: Established in 1897 and headquartered in Michigan, United States, Dow is a global leader in materials science. The company manufactures a broad range of products, including chemicals, advanced materials, and agricultural solutions, serving industries such as automotive, electronics, healthcare, and construction.

Silikal GmbH: Founded in 1970 and headquartered in Bremen, Germany, Silikal is a leading provider of resin-based flooring systems and coatings. The company specialises in high-performance solutions for industrial and commercial environments, offering durable and reliable products for sectors like construction, automotive, and food processing.

Huntsman Corporation: Headquartered in Salt Lake City, Utah, United States, and founded in 1970, Huntsman Corporation is a global manufacturer of specialty chemicals. The company produces innovative solutions for industries including automotive, textiles, personal care, and construction. Huntsman is committed to delivering high-performance materials that improve the quality of life and support sustainable development across its diverse markets.

Romar Engineering: Founded in 1983 and based in Perth, Australia, Romar Engineering is an established provider of engineering solutions. The company specialises in project management, manufacturing, and custom fabrication services, delivering high-quality solutions to industries such as mining, oil and gas, construction, and manufacturing.

Another key player in the Australia silicone market report is Jehbco Manufacturing Pty Ltd. among others.

Recent Developments

February 2024

Trelleborg's acquisition of Baron Group strengthened its expertise and manufacturing capacity, positioning the company as a global partner in medical technology, particularly in sleep apnoea, respiratory care, and COPD. Baron Group, which generated SEK 1 billion in 2023, had facilities in Australia and China, expanding Trelleborg's global presence and LSR manufacturing capabilities.

August 2023

Adelaide-based 1414 Degrees commissioned a 1 MWh SiBox pilot unit, using its SiBrick molten silicon energy storage solution to store renewable energy and produce clean, high-temperature heat. The system, designed for industrial sectors like cement and steel, demonstrated its ability to convert electric energy into a controlled hot air stream during trials.