Recently, the latest news came from the domestic organic silicon material industry cluster that the leading production enterprises in the field of ethyl silicone oil in China have completed a new round of capacity upgrading. Combined with the latest report on the market size and competitive landscape of China's ethyl silicone oil industry in 2026 released by the industry, the domestic ethyl silicone oil industry is entering a new stage of high-quality development led by independent innovation from the past stage of technological catch-up.


Capacity and market size climb synchronously


In the first half of 2026, the overall production capacity of the domestic ethyl silicone oil industry increased by 22% year-on-year, with an actual output growth rate of 27%, and the supply and demand structure continued to optimize. With the steady release of demand in downstream aerospace, high-end mechanical lubrication, special insulation and other fields, the domestic market size of ethyl silicone oil has increased by 18.3% compared to the same period in 2025, breaking the situation of market growth rate hovering within 10% for many years in the past.


From the perspective of the industrial chain, the supply stability of upstream metal silicon and chlorosilane intermediates continues to improve. In July 2026, there were no large-scale production shutdowns on the domestic raw material side, providing a solid guarantee for the stable operating rate of ethyl silicone oil production enterprises. The overall production cost of the industry did not fluctuate significantly. Compared with market expectations at the beginning of the year, the actual cost control effect exceeded the industry's general expectations.


Technological breakthroughs break through long-term overseas monopolies


Previously, the core preparation technology of high-end specialty ethyl silicone oil had long been controlled by overseas enterprises, and the procurement cost of downstream high-end application products in China remained high, with delivery cycles generally lasting 3-6 months. The technological breakthrough completed by domestic enterprises this time not only achieved large-scale production of high-purity ethyl silicone oil, but also reduced the procurement cost of downstream core users by more than 65%, and the product delivery cycle was compressed from the past six months to within 7 days.


Industry experts say that with the continuous implementation of supporting production lines, it is expected that by the end of 2027, the market share of domestically produced ethyl silicone oil in the high-end domestic market will exceed 90%, completely solving the supply safety problem of special lubricating materials in key areas in China.


Industry Landscape and Future Trends


In the first half of 2026, international silicone oil companies have raised the prices of related special silicone oil products multiple times, with a cumulative increase of up to 25%, further accelerating the pace of downstream users switching to domestic supply chains. At the same time, domestic ethyl silicone oil companies are no longer limited to mass production of basic products, and have begun to develop customized products for different segmented scenarios. New specialized ethyl silicone oil products for special scenarios such as extreme low temperature environments and high load mechanical lubrication are gradually being introduced to the market.


Industry analysis indicates that in the next 2-3 years, the domestic ethyl silicone oil industry will exhibit development characteristics of "capacity scaling, product high-end, and application scenario segmentation". The global market competitiveness of domestic materials will continue to strengthen, promoting China's high-end silicone oil material industry to occupy a more core position in the global industrial chain.