Reshaping the Supply and Demand Pattern of the Organic Silicon Industry: Highlighting Development Opportunities
In recent years, the silicone industry has gradually shown a recovery trend in the adjustment of supply and demand patterns. With the rapid development of emerging downstream industries and the slowing pace of industry expansion, the silicone market is entering a critical window period of improvement in supply and demand, highlighting development opportunities.


From the demand side, emerging industries have become the core driving force behind the growth of demand for organic silicon. Due to the development of 5G and artificial intelligence, the demand for organic silicon materials in the electronic and electrical field continues to rise. Organic silicon plays an important role in chip packaging, circuit boards, and other processes due to its high insulation and stability. In the field of new energy, the dependence of photovoltaic module sealing and thermal management of new energy vehicle batteries on organic silicon is also increasing. Photovoltaic module encapsulation adhesive can effectively protect photovoltaic cells, improve the service life and power generation efficiency of photovoltaic modules; New energy vehicle battery thermal management materials can ensure that the battery operates within a suitable temperature range, improving the safety and performance of the battery. In addition, under the trend of prefabricated construction, the demand for products such as silicone sealants in the construction industry remains stable; Innovative applications in fields such as textiles and healthcare are constantly expanding, bringing new growth points to the silicone market.


On the supply side, the organic silicon industry has experienced a period of expansion in the early stage, and capacity growth is gradually becoming more rational. The expansion of domestic enterprises from 2020 to 2023 has led to the concentration of global production capacity in China. However, the decline in industry prosperity after 2023 has led to a decrease in investment willingness and a significant reduction in plans for new production capacity, resulting in limited domestic capacity additions in the future. At the same time, improving capacity utilization and optimizing industry concentration have become key trends. Outdated production capacity is gradually being phased out, and leading enterprises are reducing costs through technological upgrades and integrated layouts. The tightening of environmental policies and the improvement of energy efficiency standards are also driving the clearance of inefficient production capacity, and the industry's operating rate is expected to rebound. In addition, the changes in the international competitive landscape have also brought opportunities for Chinese silicone enterprises. Some overseas production capacity has been withdrawn, and Chinese enterprises are accelerating their efforts to seize global market share by leveraging their cost advantages.


Against the backdrop of reshaping the supply and demand landscape, the development prospects of the silicone industry are very broad. The breakthrough of special monomers and composite materials will drive the leap of the industrial value chain. For example, the successful development of special monomers such as phenyl silicone resin and fluorosilicone polymer has significantly improved the high temperature resistance and sealing accuracy of semiconductor packaging adhesives; Self repairing silicone rubber achieves automatic repair of material cracks through dynamic cross-linking technology, extending the sealing life of photovoltaic modules; Polysiloxane based solid electrolytes optimize the safety performance of lithium batteries and solve the risk of thermal runaway. These technological innovations have shifted domestic organic silicon from basic materials to electronic and medical grade high value-added products, breaking through the bottleneck of import dependence in the high-end field.


The demand for new energy and electronics industries will also drive the penetration of organic silicon into high-precision and cutting-edge fields. The photovoltaic encapsulation adhesive is compatible with double glass modules to enhance weather resistance and support the 25 year long service life of photovoltaic power plants; Silicon carbon negative electrode material improves the energy density of lithium batteries through surface modification, meeting the high range requirements of electric vehicles; Liquid silicone is used in consumer electronics frames and wearable devices, combining flexible touch and electromagnetic shielding functions; Medical silicone rubber breaks through biocompatibility technology and is applied to implantable devices such as artificial heart valves.


The organic silicon industry is facing unprecedented development opportunities in the process of reshaping the supply and demand pattern. Enterprises should seize this opportunity, increase technological innovation efforts, improve product quality and performance, expand application areas, and achieve sustainable development.