The ethyl silicone oil market welcomes new opportunities for green transformation, with a surge in demand for high-end applications
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On February 5, 2026, Shanghai, China - As the global fine chemical industry accelerates towards green and high-performance, ethyl silicone oil, as an important branch of organic silicon materials, is ushering in a new round of technological upgrades and market expansion. According to industry data, the global market size of ethyl silicone oil will exceed 3.5 billion US dollars by 2025, with China accounting for over 40%, making it the world's largest producer and consumer. By 2026, the explosive growth in fields such as new energy vehicles, 5G communication, and high-end electronic packaging is driving the transformation of ethyl silicone oil towards high-end and customized direction.
Green technology has become a new trend in the industry
The traditional production of ethyl silicone oil relies on the chemical reaction between chloroethane and magnesium metal, which has problems such as high energy consumption and many by-products. In recent years, green innovative technologies such as biocatalysis and closed-loop recycling processes have gradually been implemented. For example, Xinyuan Chemical (Shandong) Co., Ltd. reduced the reaction temperature from 200 β to 80 β through enzymatic catalysis, reduced energy consumption by 60%, and the by-products can be recycled. This technology has been applied in its annual production of 20000 tons of ethyl silicone oil project. In addition, the patented technology of "Preparation Method of Low viscosity Vinyl Silicone Oil" developed by Jiangxi Blue Star Spark Organic Silicon optimizes the molecular structure to reduce the volatility of the product by 30%, meeting the strict environmental requirements of the electronics industry.
High end demand drives industrial upgrading
In the application field, ethyl silicone oil is penetrating from traditional lubricants and release agents to high value-added scenarios. In the field of new energy vehicles, as the core component of power battery heat dissipation silicone grease, its demand is increasing by 25% annually; In the construction of 5G base station, ethyl silicone oil based thermal conductive gel has become the preferred material to replace traditional silicone grease due to its strong weather resistance and low dielectric loss. In the medical field, biocompatible ethyl silicone oil is used as artificial joint lubricant and drug sustained-release carrier, and the market size is expected to exceed 500 million yuan by 2026.
Dual support from policies and capital
Under the national "dual carbon" strategy, the ethyl silicone oil industry is experiencing policy dividends. The "Green Development Guidelines for the Organic Silicon Industry" released by the Ministry of Industry and Information Technology in 2025 clearly require that by 2027, the energy consumption per unit output value of the industry should decrease by 20%, and the proportion of green products should exceed 50%. At the capital level, leading enterprises such as Hesheng Silicon Industry and Xin'an Shares are accelerating their layout. In January 2026, Hesheng announced an investment of 1.5 billion yuan to build a functional silicone oil project with an annual output of 100000 tons in Xinjiang, including a production capacity of 30000 tons of ethyl silicone oil, which is expected to be put into operation in 2027.
Industry Outlook: Analysts predict that the global market for ethyl silicone oil will grow at a CAGR of 8.5% from 2026 to 2030, and the proportion of high-end products will increase from the current 35% to 50%. Enterprises need to focus on green process research and development and downstream customized services to cope with the challenges of fluctuating raw material prices and increasingly strict environmental regulations.