Markets - Wacker Chemie AG


Markets

WACKER will continue to profit from emerging markets and megatrends that promise further value increases and growth.

The Energy Megatrend:

The market research institute IHS estimates that the market for photovoltaics reached a volume of some 59 GW in 2015. That corresponds to a 34 percent growth compared with 2014. About 60 percent of new installations were made in 2015 in China, Japan and the USA. Photovoltaics is growing rapidly also in many other regions, thus developing into an important pillar of the global energy supply. In particular, the sharp drop in module costs in Asia, but also incentive measures in various countries have made a significant contribution to the growth of PV installations. Decreased PV system costs enable that power generated from solar plants is now cost-competitive with power from traditional fossil fuel burning plants in more and more locations of the world. For the current year, most market observers expect an additional building of 60 to 70 GW photovoltaics. Especially in the United States and India very strong growth rates are expected. In addition other emerging markets in Latin America and Southeast Asia show positive growth signals. WACKER POLYSILICON is one of the world’s largest raw-material suppliers to the semiconductor and solar industries. WACKER is extremely well positioned to meet growing customer demand, thanks to its Burghausen and Nünchritz sites in Germany and the new Tennessee site in the United States.

The Environment Megatrend:

WACKER POLYMERS plays a major role in global environmental protection. It offers innovative thermal insulation products that strongly contribute to saving energy and reducing greenhouse-gas emissions.

The Digitization Megatrend:

WACKER serves the fast-growing digitization trend by manufacturing silicon wafers for the semiconductor industry. Growth in the digitization market is subject to fluctuations in consumer demand within a complex supply chain Since the early nineties, the market has grown by an average of about 7 percent annually (wafer area). However, this trend was occasionally disrupted by intervals of low growth (dot-com crisis, financial crisis), which were each followed by a phase of strong growth. The silicon wafer demand for the Semiconductor Industry increased further in 2015. According SEMI the global demand area based has been 3,3% higher in 2015 compared to previous year.

Experts from the market research Company IHS Technology anticipate an annual growth rate of around 3 percent in 2016. WACKER will benefit from this growth through Siltronic, with its ultramodern facilities in Germany, Singapore and the United States of America.

The Construction Megatrend:

According to the market research institute b + l Marktdaten GmbH, the global construction industry grew by 1.7 percent to USD 8.4 trillion in 2015 (2014: USD 8.3 trillion). Construction contracts in Europe stayed at a low level. In Western Europe, sales edged up 0.5 percent. In the German construction industry, sales reached USD 333.6 billion in real terms  (2014: USD 329.3 billion). Eastern Europe saw a decline in construction contracts of 1.4 percent. China – at USD 1.8 trillion – remains the largest market worldwide. The North American real-estate market continued to stabilize in 2015. This spurred the construction industry, where volumes rose by 4.3 percent. Asia, on the other hand, saw an increase of just 1.5 percent as the real-estate crisis in China took its toll.

Over half of today’s construction activity is already accounted for by so-called developing regions. Globally, construction contributes about 7 to 9 percent to world GDP, which makes it a major sector in every economic region. By 2025, its share is expected to rise to over 13 percent. While China and India are the main growth engines in developing regions, Indonesia, Vietnam and the Philippines are also becoming attractive. In advanced economies, growth is focused on the USA, the world’s largest market after China. Residential construction will remain the largest construction market in the medium to long term, due to strong economic expansion, fast population growth and a marked urbanization trend. Increasing importance will be attached to sustainable construction and the development of environmentally compatible products and solutions.

With average growth rates of 8 percent, the construction-chemical segment plays a decisive and vital role within the construction industry. This segment enables the widespread mechanization of manual processes and the substitution of conventional construction materials with high-end ones. This significantly reduces the amount of materials and time needed and makes construction more economical, efficient and safer. Furthermore, it improves construction materials’ functionality, appearance and durability, helping to conserve energy.

WACKER offers its customers solutions and innovative specialty-chemical products (polymers & silicones) that are tailored to their respective markets. WACKER can benefit to an above-average extent from growth in numerous dynamic sectors, such as renovation, modernization, and thermal-insulation and sealing systems. The Group has additional opportunities in new construction and infrastructure measures.

WACKER provides customers with local advice and support, and develops solutions that are tailored to regional market needs and which are based on available raw materials, formulations, climate conditions, working methods and building materials. With its worldwide presence of production sites, global distribution network and regional technical-competence centers, WACKER is close to its customers and has native-speaker specialists who offer comprehensive expertise and tailored solutions.

Eddyville 1999