An industrial upgrade around ethyl silicone oil is accelerating. From liquid cooling in data centers to thermal conductivity in aerospace electronic equipment, from high-end cosmetics to precision instrument lubrication, this "hidden champion" material is tearing open the gap in the high-end market at an average annual double-digit growth rate.


Market panorama: a leap from 274 million to 1.865 billion


According to the latest research by Bezos Consulting, the market size of ethyl hydrogen silicone oil in China has reached 274 million yuan in 2024, with a global market size of 1.092 billion yuan. It is expected that the global market size will climb to 1.865 billion yuan by 2030. As one of the world's largest consumer markets for silicone oil, China's downstream applications of ethyl silicone oil have fully penetrated core fields such as industry, cosmetics, pharmaceuticals, aerospace, etc.


Two new engines drive a surge in demand


One is the wave of liquid cooling technology. In May 2026, the listed company New Yaqiang (603155. SH) clearly stated on the investor interaction platform that its products such as phenyl silicone oil and vinyl silicone oil can be applied in the field of liquid cooled silicone oil, and its research and development work has made positive progress. At the same time, in the thermal conductive silicone grease patent for aerospace electronic equipment applied for by Shenzhen Debon Interface Materials in January 2026, ethyl silicone oil (viscosity 50-1000 mPa · s) is used as the core component to meet the heat dissipation needs in space environments.


Secondly, there is an urgent need for extreme environments. The working temperature range of ethyl silicone oil covers -70 ℃ to+150 ℃, and it can be completely miscible with mineral oil and synthetic oil. It can be directly integrated into industrial systems without the need to modify existing equipment. This characteristic gives it an irreplaceable advantage in special machinery hydraulic systems, high and low temperature instrument oils, and extreme cold sensor insulation oils in high-altitude regions.


Domestic substitution accelerates, high-end breakthrough is just the right time


For a long time, high-end ethyl silicone oil products in China have relied on imports, but in recent years, the localization process has significantly accelerated. Enterprises represented by Xinyuan Chemical (Shandong) have complete research and development manufacturing capabilities for ultra-low temperature resistant ethyl silicone oil and fluorinated silicone oil, with 20 national invention patents. They are currently the only high-tech enterprise in China with a full industry chain production line for fluorinated silicone materials. The rise of industrial clusters in Hubei provides stable domestic supply guarantees for downstream enterprises.


Industry analysis points out that ethyl silicone oil is transitioning from a "bulk chemical" to a "special functional material", and the outbreak of two emerging tracks, liquid cooling and aerospace thermal conductivity, may reshape the competitive landscape of this niche market in the next three years.