Supply and Demand Conditions

• Supply Side[1]: In recent years, both the output and production capacity of China's silicone oil industry have shown a rapid growth trend. In 2023, the output of China's silicone oil industry was approximately 620,000 tons, and the production capacity was about 1.07 million tons. However, in 2025, the capacity utilization rate of basic organic silicon monomers has dropped below 65%, with production capacity concentrated in low-end products. High-end products such as special silicone oils and medical-grade silicone rubbers still have a high dependence on imports[6].
• Demand Side[5]: From an overall market perspective, the demand for silicone oil in traditional application fields such as electronics, chemical engineering, and textiles will maintain steady growth, while emerging application fields such as new energy battery packaging and medical materials will become important growth points. Take hydrophilic silicone oil as an example: the beauty and personal care industry has contributed significant incremental demand. With the implementation of relevant regulations, its penetration rate in cosmetics has increased, driving the growth of raw material procurement. The medical application field has also shown rapid growth due to the surge in demand for wound care[7].

Price Trend Forecast[5]: Fluctuations in raw material prices will affect silicone oil prices. As a key raw material for silicone oil, the price of DMC is expected to fluctuate in the range of 18,000-25,000 yuan/ton, which may cause corresponding fluctuations in silicone oil prices.
Market Size Outlook

• The global silicone oil market size is expected to continue growing. According to statistics from Hengzhou Chengsi Research, the global silicone oil revenue scale was approximately 18.71 billion yuan in 2024, and it is expected to approach 24.77 billion yuan by 2031, with an average annual compound growth rate of 4.5% from 2025 to 2031[3].
• In the Chinese market, the dimethyl silicone oil industry is expected to maintain steady growth from 2025 to 2030, with an estimated average annual compound growth rate of 8.5% in market size, and the market size is expected to exceed 12 billion yuan by 2030[5]. The hydrophilic silicone oil market will grow faster, with a compound growth rate ranging from 18.5% to 22.3% from 2025 to 2030[7].

Competition Landscape[1]: The market concentration of China's silicone oil industry is relatively high, dominated by a few large enterprises. For example, Zhejiang Hesheng occupies a significant market share. However, with market development, industry competition is becoming increasingly fierce. It is expected that market concentration will further increase in the future. Leading enterprises will consolidate their market positions through vertical integration strategies, while small and medium-sized enterprises need to focus on differentiated competition in niche segments.