Silicones, a strategic priority in EU Competitiveness 

The European chemical industry is at a critical juncture.  According to a recent study commissioned by Cefic (the European Chemical Industry Council), the industry represents between 5-7% of the EU’s total industry sales. The sector serves as a backbone for strategic industries like renewable energy, health, transport, construction, and digital, among many others, making it vital to Europe’s industrial resilience and its clean energy transition.   

Over the past 15 years, Europe has gradually lost ground to global competitors. While rising energy costs are often cited as the primary reason, the reality is more complex.  The European chemical industry is also hampered by intricate regulatory frameworks and an uneven playing field compared to countries such as China and the United States.   

The message of the study is clear. Without a strong domestic chemical industry, Europe risks falling even further behind.   

Silicones as a missed opportunity for Europe’s competitiveness  

The messages above, also stand true to the silicones industry. In the areas where Europe faces increasing competition, silicones stand out as both a critical component of future technologies and a missed opportunity for strengthening the region’s competitiveness.  

In 2010, Europe accounted for approximately 25% of the global silicone supply, positioning itself as a key production region. However, over the past decade, China has rapidly expanded its production capacity and capitalised on rising demand, now accounting for 60% of the global supply. Regardless, the global silicone market continues to experience positive growth, expanding at an annual rate exceeding 5%. 

The economic impact of silicones is substantial. In 2022, the manufacturing activity in the 27 EU Member States across the upstream and downstream user industries was estimated to surpass 1€ trillion, according to Ricardo’s impact assessment study. Within this, the sales value of production of silicones in the EU was estimated at around 4€ billion in the same year.   

The industry is also a powerful employer. Together with downstream users, it directly employs more than 3.4 million people in the EU. Additionally, the manufacturing and complementary activities associated with these industries involve over 25,000 people employed in the region. The silicone sector is not only an enabler of technological advancement but also a major contributor to job creation and economic progress.   

Silicones are uniquely positioned to contribute to climate neutrality and circular economy goals – but as with the chemicals industry as a whole, not without change.   

Silicones a critical component to future technologies 

The renewable energy sector uses silicones in wind turbines blades and high-voltage lines, enabling efficient energy transmission and reducing carbon emissions.  

Applications in the transport sector such as electric engine protection and battery sealing in electric vehicles, benefit significantly from silicones. 

In construction, silicones play a key role as adhesives, sealants, and insulation materials, enhancing the durability and energy efficiency of buildings and improving thermal and acoustic performance.   

In digital, they enable advanced technologies by cooling data centres with thermal management materials and supporting wearable tech with flexible, lightweight components.   

Healthcare applications such as wound care and medical devices rely on biocompatibility and flexibility provided by silicones.  

Beyond these applications, silicones are at the forefront of innovation in specialty chemicals and advanced technologies.   

Strengthening the European silicone sector  

We all benefit from European strategic autonomy, which is why we need the situation to change. Creating the business case for investment in silicones in Europe, offers the potential for the EU to regain competitiveness, reverse the current decline of European industry and strengthen economic growth. Streamlining EU regulations and reducing their associated costs would ensure a level playing field, allow the sector to drive innovation and contribute to Europe’s industrial recovery.   

To achieve this, the EU must prioritise delivering a dedicated industrial policy focused on fostering investment and simplifying regulatory frameworks. Therefore, Silicones Europe stand by Cefic, as it calls on EU policymakers to take bold action – not strategies, policies or plans – now.