2025 Brief Analysis of the Organosilicon Industry: Industrial Restructuring Driven by Green Transformation and Innovation-Iota

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News > Dynamic industry > 2025 Brief Analysis of the Organosilicon Industry: Industrial Restructuring Driven by Green Transformation and Innovation

2025 Brief Analysis of the Organosilicon Industry: Industrial Restructuring Driven by Green Transformation and Innovation

1. Market and Policy: Demand Recovery and Green Transformation in Parallel
In 2025, China’s organosilicon demand is expected to grow by 10% year-on-year, reaching approximately 2.8 million tons, primarily driven by emerging sectors such as new energy vehicles (NEVs) and photovoltaics. On the pricing side, basic products like DMC have stabilized after short-term fluctuations, while industrial silicon remains under pressure due to oversupply. From a policy perspective, stricter environmental regulations have become the core driver. The Five-Year Plan for Green Development of the Organosilicon Industry requires zero emissions retrofitting of process exhaust gas by 2026, and approvals for new capacity have been significantly tightened. Local governments are introducing green factory certifications, enabling qualified companies to enjoy VAT reductions and R&D subsidies. Internationally, the EU’s REACH regulation has further tightened restrictions on D4 content, compelling exporters to upgrade purification technologies.

2. Technology and Demand: Breakthroughs in High-End Products and the Rise of Emerging Applications
Technological innovation is focusing on full value chain digitalization (e.g., AI algorithms reducing energy consumption by 12% and improving yield rates) and the development of specialty materials (domestic substitution rate of phenyl silicone rubber exceeding 60%). Downstream demand is undergoing structural adjustment: the traditional real estate sector has been weakened by declining new construction starts, but urban renewal projects in lower-tier cities have driven a 29% increase in neutral silicone sealant consumption. In emerging sectors, the localization rate of encapsulants for EV battery packs and photovoltaic TOPCon modules has surpassed 60%, while injection molding orders in the healthcare sector have surged 2.1-fold.

3. Competition and Outlook: Market Leaders in Control and Long-Term Opportunities
Industry concentration (CR4) has reached 54.65%. Leading players such as Hesheng Silicon and Dongyue Silicon consolidate their advantages through integrated value chain layouts and high-value-added product portfolios. Regionally, Inner Mongolia is planning an integrated organosilicon–polysilicon industrial park, while Yunnan and Guizhou are expanding into Southeast Asian markets. Short-term challenges include the tension between green transformation investment and demand volatility, along with rising costs caused by international trade barriers. Over the long term, the share of high-end products is projected to rise from 30% to 45%, with leading enterprises expanding international presence through technology transfer and localized production.

Conclusion: The organosilicon industry is undergoing a transformation toward higher-end and greener development. Market leaders dominate with technological reserves and agile market response capabilities, while emerging application fields create differentiation opportunities for SMEs. Under the dual drivers of policy support and market demand, the industry will continue to inject momentum into China’s economic transformation.

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