In the context of the accelerated restructuring of the global chemical industry pattern, silicone materials, with their unique molecular structure and excellent performance, are transforming from the supporting role of traditional industries to the core cornerstone of strategic emerging industries. As an indispensable "industrial monosodium glutamate" in modern industry, organosilicon not only continues to be deeply cultivated in traditional fields such as building sealing and electronic insulation, but also demonstrates irreplaceable value in cutting-edge fields such as new energy, semiconductors, and biomedicine. However, the silicone market is also like a vast ocean, full of opportunities and challenges.


1、 Current situation of organic silicon market: coexistence of eastward shift of production capacity and domestic overcapacity
The continuous gradient transfer of global organic silicon production capacity to China has become an irreversible trend. Over the past few years, China's production capacity of organic silicon monomers has expanded at a significant pace, with a significant increase in the proportion of production capacity, making it the world's largest producer and consumer of organic silicon. This transformation is attributed to China's well-developed industrial chain, abundant metal silicon resources, and cost advantages. However, the rapid expansion of production capacity has also planted hidden dangers. In the domestic production capacity of organic silicon monomers, low-end products account for a relatively high proportion, and the self-sufficiency rate of high-end products is low. The core market is still controlled by foreign-funded enterprises.


In terms of demand structure, the demand for organic silicon materials is undergoing profound changes. Although the demand for traditional application areas such as building sealants and electronic and electrical insulation materials has maintained stable growth, their proportion is gradually declining. Taking the construction industry as an example, although the promotion of green buildings and prefabricated buildings has driven the demand for high-end sealants, the overall market growth rate has significantly slowed down. At the same time, the rise of emerging industries such as new energy vehicles, photovoltaics, 5G, and semiconductors has opened up new growth opportunities for the organic silicon industry. For example, the demand for battery packaging adhesives and motor insulation materials in the field of new energy vehicles has surged, driving the upgrading of organic silicon materials towards high thermal conductivity, high insulation, and high temperature resistance; In the photovoltaic industry, the dependence of key components such as encapsulation films and solar cell backboards on organic silicon materials continues to increase, requiring materials to have better weather resistance, transparency, and adhesive properties.


2、 Price fluctuations in the organic silicon market: a reflection of the supply-demand game
Recently, there have been significant fluctuations in the prices of organic silicon in the market. In November 2025, the price of organic silicon DMC underwent multiple adjustments. At the beginning of the month, due to industry conferences and market expectations, most silicone manufacturers were in a state of suspension of reporting and closure. On November 18th, the 2025 Symposium on High Quality Development of Methylchlorosilane Enterprises was held in Shanghai. This conference, known as the Organosilicon Control Conference, was of unprecedented level. At the meeting, the actual controllers of industry companies attended and agreed on the "anti involution" production reduction target. They planned to lower the overall operating rate of the industry by 30% and set the price target for organic silicon DMC at 13500 yuan/ton or above, striving to achieve it within half a month. After the meeting, the manufacturer resumed quoting and raised the price of organic silicon DMC to 13200 yuan/ton, an increase of about 200 yuan/ton compared to before the meeting began. As a result, downstream products such as 107 glue and raw glue have also seen varying degrees of price increases.


However, the market's acceptance of price increases remains to be observed. Considering that the industry is still in the off-season, downstream demand may not be able to quickly keep up with the pace of price increases. In addition, the problem of overcapacity in domestic organic silicon production still exists, and some enterprises may adopt price reduction strategies in order to compete for market share, which will put certain pressure on market prices. However, in the long run, with the continuous growth of demand for organic silicon materials in emerging industries, as well as the continuous improvement of domestic enterprises' technological level and the increase in self-sufficiency rate of high-end products, the market price of organic silicon is expected to gradually stabilize and rebound.


3、 Competitive landscape of organic silicon market: head concentration and tail dispersion
Currently, the Chinese silicone industry presents a competitive pattern of "head concentration and tail dispersion". Top enterprises dominate the market due to the dual barriers of scale and technology. Represented by leading enterprises such as Hesheng Silicon Industry, they reduce costs through large-scale production and increase research and development investment to break through high-end product technology. For example, the specific type of silicone resin developed by Hesheng Silicon Industry has reached the international advanced level of high temperature resistance and successfully replaced imported products. These top enterprises not only have strong competitiveness in the domestic market, but also actively expand overseas markets and enhance their international influence.


Small and medium-sized enterprises seek survival and development space in the market through specialization, innovation, and deep cultivation of scenarios. Faced with the pressure from top enterprises, small and medium-sized enterprises focus on niche areas and break through by providing customized services and meeting specific market demands. For example, a certain enterprise focuses on the production of medical grade silicone catheters, and has gained a foothold in the high-end medical market through biocompatibility certification and customized services. Although these small and medium-sized enterprises cannot compare with top enterprises in terms of scale and technology, they have advantages such as strong flexibility and fast innovation speed, which can form their own competitive advantages in segmented markets.


Foreign funded enterprises still have brand advantages and technological barriers in the high-end market. Although the expansion of individual production capacity by foreign-funded enterprises in the Chinese market has slowed down, they still firmly control the high-end silicone product market through technology licensing, joint venture cooperation, and other means. For example, an international giant and a domestic enterprise jointly produce semiconductor packaging adhesive, sharing technology patents and market channels. The participation of foreign-funded enterprises has not only intensified the competition in the domestic silicone market, but also promoted the improvement of domestic enterprises' technological level and industrial upgrading.


4、 Future prospects of organosilicon: driven by technological innovation and market demand
In the future, the development of the silicone industry will undergo profound changes around four dimensions: technological innovation, market demand, industrial ecology, and policy standards. In terms of technological innovation, breakthroughs in molecular design will be key. By introducing functional groups (such as fluorine, amino, epoxy) or designing new molecular structures (such as block, star), the chemical resistance, mechanical properties, and biocompatibility of materials can be specifically improved. Intelligence and greenization will also become the development trend of organic silicon production. With the integration of technologies such as artificial intelligence and big data, the production process of organic silicon will achieve intelligent upgrading. AI driven molecular design platforms can significantly shorten the development cycle of new materials; Digital twin technology can optimize reaction processes and improve production efficiency. In addition, green technology will become a standard in the industry, and environmentally friendly products such as bio based silicone rubber and low VOC (volatile organic compound) coatings will gradually replace traditional materials.


In terms of market demand, new energy vehicles, photovoltaics, semiconductors, and other fields will become the core engines driving the growth of demand for organic silicon materials. The demand for organic silicon materials in the field of new energy vehicles will continue to explode, especially in battery packaging, thermal management, sealing components and other aspects. The demand for high-performance silicone rubber, silicone resin and other products will grow rapidly. With the development of new technologies in the photovoltaic industry, the performance requirements for encapsulation films and backplate materials are constantly increasing, promoting the upgrading of organic silicon materials towards high transmittance and high adhesive strength. The field of consumer upgrading will also bring new growth points to the organic silicon market. In the medical field, the aging population and the upgrading of medical technology will drive the growth of demand for silicone rubber in surgery, nursing, medical aesthetics, and artificial organs; In the field of electronics, the advancement of new technologies will promote the application of organosilicon in chip packaging, flexible displays, and other aspects, requiring materials to have higher insulation, thermal conductivity, and weather resistance.


The organic silicon market is currently in a critical period of transformation and development. Although facing challenges such as overcapacity and low self-sufficiency in high-end products, opportunities such as the rise of emerging industries and accelerated technological innovation have also emerged. In the future, driven by market competition, the organic silicon industry will continuously optimize its industrial structure, improve its technological level, expand its application areas, achieve sustainable development, and make greater contributions to the development of modern industry and human society.