(October 16, 2026) There are several positive developments in the silicone materials industry. The domestic hydroxy-silicon oil sector is rapidly transitioning from general-purpose products to high-purity, low-ring-body specialty grades. The process of domestic substitution in the high-end market is accelerating, and new growth opportunities are emerging in sectors such as new energy, electronic packaging, and personal care.

Hydroxy-silicon oil, also known as α,ω-dihydroxypolydimethylsiloxane, contains active hydroxyl groups at both ends of its molecular chain. It is a key organic silicon intermediate. This product is a colorless, transparent liquid with properties such as resistance to high and low temperatures, electrical insulation, moisture resistance, and chemical stability. The hydroxyl groups can undergo condensation and cross-linking reactions. It serves as a crucial raw material for room-temperature vulcanized silicone rubber, sealants, silicone coatings, textile softeners, and personal care products. It also functions as a structural control agent used in silicone rubber production.

In the past, domestic production of hydroxy-silicon oil focused on general industrial-grade products, while electronic-grade and medical-grade products, as well as high-purity grades with low ring bodies, relied heavily on imports. In 2026, with the rapid growth in demand for new energy vehicles, photovoltaic packaging, and miniaturized semiconductor devices, coupled with stricter environmental regulations regarding ring siloxane impurities both domestically and internationally, many domestic silicone companies have invested in process improvements. Through molecular distillation, closed continuous production, and online monitoring systems, they have managed to reduce the residual amount of D4, D5, and D6 ring bodies to below 50 ppm. As a result, these products have been able to enter the high-end personal care and electronic packaging supply chains, breaking the long-term monopoly held by foreign brands.

Industry research data shows that the domestic hydroxy-silicon oil market will continue to grow steadily in 2026, with the main driver being the new energy industry. In the new energy sector, hydroxy-silicon oil is used in battery sealants and motor encapsulation materials, allowing it to maintain its elasticity and insulating properties across a wide temperature range. In photovoltaic encapsulation systems, this material is widely used to improve weather resistance and bonding stability. In the personal care sector, low-ring-body hydroxy-silicon oil emulsions can provide smooth hair while solving the problem of foam formation that traditional silicone oils cause. Additionally, demand for hydroxy-silicon oil in textiles, leather, building sealing, and specialty coatings remains stable.

From an industrial perspective, although there is sufficient overall production capacity in China, high-purity, high-grade products are still in short supply. Industry analysts say that in the past, downstream customers had a longer time for certification processes for domestic specialty silicone oils. Now, with increased safety awareness in the supply chain, leading new energy and electronic material companies have shortened the product validation period. Domestic hydroxy-silicon oil has moved from the stage of sample testing to bulk procurement. Compared to imported products, domestic hydroxy-silicon oil offers significant advantages in terms of delivery timelines, customized viscosity and hydroxyl content adjustments, and local technical services.

Greenness and precision are the main directions for future development in this industry. Next, research efforts will focus on developing products with lower ring body residues, narrow molecular weight distributions, and low volatility. At the same time, efforts will be made to develop bio-based hydroxy-silicon oil as an environmentally friendly alternative. As domestic companies continue to advance their technologies for precise molecular control, hydroxy-silicon oil will transform from a traditional basic material into a customized functional material for various industries, helping to upgrade the entire domestic silicone industry to a higher level.

Industry professionals warn that as new production capacities come online, competition in the general-grade hydroxy-silicon oil market may increase. A company’s competitiveness will depend more on its ability to control impurities, ensure batch stability, and provide appropriate technical services for custom formulations.