In September 2025, the Chinese ethyl silicone oil market will usher in a new growth cycle. According to industry data, the market size of ethyl silicone oil in China will exceed 3.5 billion yuan by 2025, a year-on-year increase of 12%, with the contribution rate of new energy vehicles and photovoltaic industries exceeding 60%. This growth is mainly due to the rapid expansion of downstream application scenarios and technological upgrades.


New energy vehicles: surge in demand for sealants
In the field of new energy vehicles, ethyl silicone oil, as the core component of power battery encapsulation adhesive, has shown explosive growth in demand. The power battery pack of enterprises represented by Ningde Times and BYD has an increasing demand for high temperature and anti-aging sealing materials. Data shows that the application penetration rate of ethyl silicone oil in power battery adhesives will increase from 15% in 2021 to 28% in 2025, with a single new energy vehicle consumption of 0.8 kilograms. In addition, the packaging requirements for electronic components such as car displays and sensors have further increased the market share of low viscosity ethyl silicone oil to 45%.


Photovoltaic industry: Double glass modules give birth to a new blue ocean
The photovoltaic field has become another growth pole for ethyl silicone oil. With the popularization of N-type TOPCon battery technology, the performance requirements of silicone sealant for double glass components have significantly increased. In 2025, the consumption of ethyl silicone oil for silicone sealant used in China's double glass components will be 18000 tons, an increase of 4.2 times compared to 2020. Among them, the "high transmittance silicone oil modified film" developed by Hangzhou Foster and other enterprises has improved the weather resistance of components by introducing ethyl silicone oil, increasing power generation efficiency by 0.3 percentage points and occupying a global market share of 30%.


Technological breakthrough: Green synthesis process leads industrial upgrading
Faced with environmental pressure, domestic enterprises are accelerating the layout of green production processes. The "biocatalytic synthesis of ethyl silicone oil technology" developed by Zhejiang Xin'an Chemical Group replaces traditional chemical catalysis with enzyme catalysis, reducing by-products by 60% and energy consumption by 25%. This technology has been applied to its production base in Zhenjiang, with an annual production capacity of 20000 tons. The products have passed the EU REACH certification, and the export volume has increased by 50% year-on-year.


The regional cluster effect is highlighted
The Yangtze River Delta region, with its complete industrial chain supporting advantages, has become the core area of ethyl silicone oil production capacity. Jiangsu and Zhejiang provinces together contribute 65% of the country's production, with companies such as Hangzhou Silicon Treasure Technology and Hesheng Silicon Industry achieving a full industry chain layout from metal silicon to downstream products through vertical integration. At the same time, the central and western regions are accelerating their rise based on policy dividends, with newly built 100000 ton production bases in Sichuan, Hubei and other places gradually put into operation. It is expected that the market share will increase to 20% by 2026.