On December 20, 2025, Shanghai - According to the latest report from the International Organic Silicon Industry Association (IOSA), the global silicone oil market size will reach 20.37 billion US dollars by 2025, a year-on-year increase of 9.2%, with China firmly ranking as the world's largest consumer country with a share of 38.6%. Benefiting from the surge in demand in emerging fields such as new energy vehicles, semiconductor packaging, and biomedicine, the silicone oil industry is undergoing a structural transformation from traditional industrial lubricants to high-end functional materials.


New energy vehicles become the core growth pole
The report points out that the consumption proportion of silicone oil in the field of new energy vehicles has jumped from 12% in 2020 to 27% in 2025. Among them, the demand for thermal conductive silicone oil in power battery thermal management systems has a compound annual growth rate of 34%, while the market size of silicone oil for motor insulation materials has exceeded 1.5 billion US dollars. Domestic leading enterprises such as Hesheng Silicon Industry and Xin'an Shares have successfully replaced imported products by developing low viscosity and high thermal conductivity silicone oil, occupying 65% of the domestic market share of silicone oil for new energy vehicles.


Technological breakthroughs in semiconductor packaging field
In the semiconductor industry, the demand for silicone oil as a key packaging material continues to rise with the advancement of advanced processes. By 2025, the global market size of semiconductor grade silicone oil will reach 2.84 billion US dollars, with China's share increasing to 22%. The "ultra pure silicone oil" developed by a certain enterprise in Jiangsu has passed the 5nm chip packaging certification, with an impurity content of less than 0.1ppm, breaking the foreign monopoly. Industry experts say that with the development of AI chips and third-generation semiconductors, the requirements for high-temperature stability and dielectric properties of silicone oil will be further enhanced.


Unleashing the potential of the biopharmaceutical market
The application of silicone oil in the pharmaceutical field is accelerating and expanding. Medical grade silicone oil, as a lubricant and defoamer, has been widely used in ophthalmic surgeries, pharmaceutical preparations, and medical devices. By 2025, the market size of medical silicone oil in China will reach 420 million US dollars, with an annual growth rate of over 15%. The "degradable silicone oil" developed by a certain enterprise in Shandong can be completely metabolized in the body within 30 days, providing a safer solution for minimally invasive surgery. It is currently entering the clinical trial stage.


Green transformation drives industrial upgrading
Faced with the "dual carbon" goal, the silicone oil industry is accelerating decarbonization. By 2025, the energy consumption per unit output value of the industry will decrease by 21% compared to 2020, and the wastewater recycling rate will increase to 85%. Top enterprises have reduced carbon emissions in the production process by 30% by using biobased silane raw materials and optimizing catalytic processes. Hesheng Silicon Industry announced that its newly built "zero carbon silicone oil factory" will be put into operation in 2026, with an expected annual carbon reduction of 100000 tons.