In October 2025, Hangzhou Chongyao Technology Development Co., Ltd. released its third quarter financial report, showing a year-on-year increase of 28% in sales of modified silicone oil and deep processed products. Its market share in segmented fields such as fiber optic coatings and food contact release agents remained the highest in China. This 7-year-old enterprise is reshaping the Chinese silicone oil market with an average annual growth rate of 30%.


Deep cultivation of technology: from following to leading
In the past, the high-end modified silicone oil market was monopolized by international giants such as Dow and Wacker, "recalled Xu Jian, General Manager of Chongyao Technology. When the company started production in 2018, the self-sufficiency rate of domestic specialty silicone oil was less than 50%. Through cooperation with Zhejiang University and the Chinese Academy of Sciences, Chongyao Technology has developed core technologies such as dynamic vulcanization and nanohybridization, successfully breaking down technological barriers.
Its star product - water-soluble silicone oil, achieves a single line annual production capacity of 5000 tons through continuous reaction kettle technology, reducing costs by 15% compared to intermittent production. A well-known hair care brand has provided feedback that the use of this silicone oil has increased the smoothness of the product by 25%, and the consumer repurchase rate has significantly increased.


Green transformation: Breaking through the barriers of bio based materials
Driven by the "dual carbon" goal, Chongyao Technology has launched plant-based silicone oil, which reduces carbon footprint by 40% and has a degradation rate of over 90%. It has passed the EU EC certification. After a certain agricultural enterprise applied it as a pesticide carrier, the duration of efficacy was extended by 30%, and soil residual pollution was significantly reduced.
Environmental protection is not about cost, but about competitiveness. "Xu Jian revealed that the company is developing silicone oil for photovoltaic film, which is expected to be put into operation in 2026. It can reduce energy consumption in module production by 20% and help the photovoltaic industry achieve full chain carbon reduction.


Market Pattern: Highlighting the Head Effect
The silicone oil industry in China is undergoing profound changes. According to data from the Huajing Industry Research Institute, the industry's production capacity will reach 1.07 million tons in 2023, but the utilization rate of basic grade silicone monomer production capacity has fallen below 65%, and high-end products such as medical grade silicone rubber still rely on imports. In this context, leading companies such as Chongyao Technology and Hesheng Silicon Industry consolidate their advantages through vertical integration strategies, while small and medium-sized enterprises focus on differentiated competition in segmented fields.
In the next three years, the industry CR5 (market share of the top five companies) is expected to increase from 65% to 75%. ”Analysts from CITIC Securities pointed out that with the increasing demand for high-performance silicone oil in industries such as new energy and electronic information, the ability to integrate technology and environmental standards will become the key for enterprises to break through.