Sector-Specific Conditions

We expect economic trends in the sectors relevant to our business to be largely positive in 2019.

Chemical Industry Expected to Post Slight Gains in 2019

After a good year in 2018, the German Chemical Industry Association (VCI) anticipates moderate growth for 2019. According to the VCI, chemical production will climb by 1.5 percent. The VCI forecasts that total sales will rise 2.5 percent. In addition to the weaker economy in Germany and diminished economic growth worldwide, the industry is confronted with political challenges such as the USA’s trade conflicts with the EU and China.

WACKER’s chemical divisions see major growth opportunities in BRICS countries and other emerging markets. Rising affluence in emerging economies will continue to lift WACKER’s sales in countries such as China and India, as well as across Southeast Asia. WACKER’s portfolio has many value-added products that are in demand among new customer groups.

Construction Industry to Remain on Growth Trajectory

According to research institute B + L Marktdaten GmbH, the construction industry will continue expanding over the next few years. On average, construction volume is expected to rise by about 1.9 percent annually until 2021, with Asia as the main growth driver. B+L estimates that construction in Europe and South America is also on track for further growth, albeit at a slower pace than in Asia. North America’s construction market, on the other hand, is contracting slightly.

Construction-Industry Growth Rates by Region, 2019 to 2021

Construction-Industry Growth Rates by Region, 2019 to 2021 (bar chart)
Source: B + L Marktdaten GmbH, December 2018

In the coming years, renovation, energy-efficiency and sustainability projects will continue to offer WACKER good growth opportunities. At WACKER POLYMERS, we expect to grow our construction sales in every region during 2019. The main growth drivers, in our view, will be low- interior paints and dry-mix mortars. At WACKER SILICONES, we intend to carry on increasing the percentage of value-added specialty products in a multitude of segments. Growth prospects are good for hybrid (used to formulate high-performance adhesives and sealants) and for sealants sold under our own brand.

Electrical and Electronics Sector Anticipates Moderate Growth in 2019

The electrical and electronics industry expects global market volumes to expand by 4 percent in 2019. According to the German Electrical and Electronic Manufacturers’ Association (ZVEI), most expansion will be spurred by emerging economies and Asia, with slight gains anticipated in Europe and the Americas.

WACKER sees good growth prospects in silicone gels and silicone encapsulants for electronic components and in customized for automotive applications, such as driver-assistance systems, sensors and optical displays.

Market Remains Challenging, But Installed PV Capacity Likely to Continue Growing in 2019

Economic conditions for photovoltaics (PV) will again be dynamic and challenging in 2019. On the one hand, intense competition is creating market uncertainty.

 (XLS:) Download XLS
Photovoltaic-Market Trend in 2019

 

 

 

Installation of New PV Capacity (MW)

 

 

2019

 

2018

 

 

Lower Range

 

Upper Range

 

 

Sources: PV market in 2019: Solar Energy Industries Association (SEIA), RTS Corporation, Bridge to India, market studies, WACKER’s own market research; PV market in 2018: Germany’s Federal Network Agency, Commissariat Général au Développement Durable, IHS, SEIA, RTS Corporation, China National Energy Agency, Ministry of New and Renewable Energy, Bridge to India, market studies, WACKER’s own market research

 

 

 

 

 

 

 

Germany

 

3,500

 

4,500

 

3,100

France

 

1,400

 

1,700

 

1,000

Rest of Europe

 

8,000

 

11,000

 

7,500

USA

 

11,000

 

14,000

 

11,100

Japan

 

6,000

 

7,000

 

7,000

China

 

40,000

 

45,000

 

43,000

India

 

11,000

 

12,000

 

9,500

Other regions

 

29,100

 

34,800

 

22,800

Total

 

110,000

 

130,000

 

105,000

On the other, levelized costs for solar power continue to drop, strengthening the competitiveness of PV relative to other energy sources. In addition, solar energy has a key role to play in achieving global climate-protection targets, since it significantly reduces specific carbon-dioxide emissions compared with fossil energy sources. New markets are opening up to PV due to its cost effectiveness and to political efforts to keep global warming below 2 °C. The PV market is expected to deliver further growth. China will remain the world’s largest and most important market in 2019. Other markets likely to add large amounts of capacity include India, the USA, Europe and Japan. Regions with strong growth potential include Central and South America, Southeast Asia, the Middle East and Africa. Based on our own market surveys and those of third parties, WACKER expects newly installed PV capacity to range from 110 to 130 gigawatts (GW) in 2019.

WACKER’s Key Customer Sectors

 

Sectors

 

Trend in 2018

 

Trend in 2019

 

 

 

 

 

Chemicals

 

Growth

 

Growth

Construction

 

Growth

 

Growth

Energy and electrical

 

Growth

 

Growth

Photovoltaics

 

Growth

 

Growth amid intense competition

Emission
Substance outputs, noise, vibrations, light, heat or radiation emitted into the environment by an industrial plant.
Polymer
A polymer is a large molecule made up of smaller molecular units (monomers). It contains between 10,000 and 100,000 monomers. Polymers can be long or ball-shaped.
Silicones
General term used to describe compounds of organic molecules and silicon. According to their areas of application, silicones can be classified as fluids, resins or rubber grades. Silicones are characterized by a myriad of outstanding properties. Typical areas of application include construction, the electrical and electronics industries, shipping and transportation, textiles and paper coatings.
Silicones
General term used to describe compounds of organic molecules and silicon. According to their areas of application, silicones can be classified as fluids, resins or rubber grades. Silicones are characterized by a myriad of outstanding properties. Typical areas of application include construction, the electrical and electronics industries, shipping and transportation, textiles and paper coatings.

todo Vorjahresvergleich