The market size continues to expand, and China dominates global production capacity.
In 2025, the global silicone market is ushering in a new wave of growth. According to the latest data, the global market size has reached US$20.21 billion in 2024, and the compound annual growth rate is expected to be 6.8% from 2024 to 2029. The Chinese market has performed strongly, with a scale of 48.29 billion yuan in 2023 and is expected to exceed 180 billion yuan in 2025, with an annual compound growth rate of 14.7%. As the world's largest producer and consumer of silicone, China's production capacity has accounted for 70% of the world, reaching 2.828 million tons in 2024. Behind this growth, the rise of emerging industries such as photovoltaics, new energy, 5G, and ultra-high voltage has become the core driving force, and the current situation of insufficient supply of high-end materials has given rise to the market's urgent demand for high-performance silicone.

Technological innovations are emerging in an endless stream, and leading companies are leading upgrades.
Technological breakthroughs have become the key to breaking through the industry. Hosun Silicon Industry has built the world's first "5G+Industrial Internet" production base. Through digital transformation, the monomer synthesis reaction cycle has been shortened from 24 hours to 18 hours, and energy consumption has been reduced by 12%. Dongyue Group has made a breakthrough in the "ion membrane electrolysis" process, reducing the comprehensive energy consumption of chlor-alkali to 2.8 tons of standard coal per ton of alkali. The introduction of AI algorithms has further enabled production. The catalyst conversion efficiency of a certain company has increased to 99.2%, and Xin'an Shares' "molecular sieve catalysis" technology has increased the by-product recovery rate to 98%. Policy guidance also accelerates technology transformation. The "14th Five-Year Plan for the Development of New Materials Industry" of the National Development and Reform Commission clearly supports the application of silicone in the field of new energy. Semiconductor packaging thermal conductive gels and 3D printing materials are included in the "Guidelines for the First Batch of Application Demonstration of Key New Materials". The new silicon-based aerogel incubated by Zhongyan Puhua and Tsinghua University has a thermal conductivity as low as 0.012W/(m·K), breaking the foreign technology monopoly.

Environmental protection forces industrial upgrading, and green transformation has become a consensus.
Under the "dual carbon" goal, environmental protection policies have become a watershed in the industry. The Ministry of Ecology and Environment's "Action Plan for New Pollutant Control" requires silicone companies to reduce VOCs emissions by 40% within three years, forcing companies to transform green. In 2023, the industry's investment in environmental protection transformation will reach 12 billion yuan, a year-on-year increase of 35%. Through technological upgrades, the energy consumption per ton of the Xinjiang Zhundong base has been reduced by 23%. Shenzhen, Chengdu and other places have introduced policies to subsidize battery packs using environmentally friendly materials. Bio-based silicone has become a new track, with an annual growth rate of more than 35%, and the production capacity of DMC bio-based substitutes has reached 50,000 tons. The circular economy model has gradually become popular. Xin'an's "chlor-alkali-silicon" park has achieved a resource utilization rate of 98.5%, and all by-products have been reused, saving 120 million yuan in costs annually.

The application scenarios have been fully expanded, and emerging fields have exploded. The application boundaries of silicone are being redefined. The demand for traditional fields such as building sealants and automotive battery pack seals continues to grow, while emerging tracks such as humanoid robots, computing center liquid cooling coolants, silicone leather, etc. are expected to grow by 30% in consumption in 2025. In the medical field, the application of silicone implants and long-lasting moisturizing cosmetic raw materials has deepened. The demand for liquid glue and electronic glue has increased in scenarios such as photovoltaic module encapsulation and consumer electronics insulation protection.

The industry competition pattern has been optimized, and the head effect has been highlighted.
The industry concentration has continued to increase, with the top five Chinese companies (CR5) accounting for 70% of the production capacity, and the Yangtze River Delta region contributing 47% of the national market share. Leading companies such as Hosun Silicon and Dongyue Silicon Materials have strengthened their competitiveness through the integration of the entire industrial chain, while small and medium-sized enterprises have gradually withdrawn due to environmental protection, cost and other issues. Globally, China has dominated the increase in production capacity, overseas expansion has slowed down, and technical barriers have been formed in some sub-sectors.