At present, the silicone industry is at a critical stage of high-end transformation. With the advancement of the "dual carbon" goals, the industry's entry threshold has significantly increased, and backward production capacity is accelerating its elimination. It is expected that the proportion of high-end products will rise from the current 30% to 45% by 2025, driving up the industry's gross profit margin by 5 to 8 percentage points. Leading enterprises have expanded into high-value-added fields such as semiconductor packaging and biomedicine by developing new materials like low-molecular-weight polydimethylsiloxane (PDMS) and medical-grade organosilicon, building a technological moat and providing new impetus for the growth of industry profits.
Greening is also an important direction for the development of the industry. The tightening of environmental protection policies has prompted enterprises to increase their investment in environmental protection. By improving reaction processes, they have enhanced the efficiency of monomer synthesis, and the comprehensive utilization rate of by-products has approached the international leading level. For instance, the demand for new energy sectors such as photovoltaic module encapsulation adhesives and lithium battery electrolyte additives has soared, driving the industry towards a transformation towards low energy consumption and low emissions. Meanwhile, enterprises utilize industrial Internet to optimize production processes, reduce energy consumption per unit, and achieve sustainable development.
The growth in demand from emerging fields provides a vast market space for the silicone industry. The rapid development of industries such as new energy, 5G, and semiconductors has led to a continuous increase in the demand for silicone materials. Photovoltaic encapsulation adhesive is suitable for double-glass modules to enhance weather resistance and support the ultra-long service life operation of photovoltaic power stations. Silicon-carbon anode materials enhance the energy density of lithium batteries through surface modification, meeting the high range requirements of electric vehicles. Liquid silicone rubber is applied in the frames of consumer electronics and wearable devices, featuring both flexible touch and electromagnetic shielding functions. The demands in these emerging fields will become the main driving force for industry growth.
