The future silicone market will exhibit three core characteristics: “one dominant player with multiple strong competitors,” chain-style competition, and breakthroughs in high-end segments. The industry is accelerating its shift from scale expansion to quality- and technology-driven growth:
Hoshine Silicon Industry holds the “one dominant” position with 1.35 million tons/year of silicone monomer capacity (about 26% of the national total) and the integrated advantage of “industrial silicon–monomer–end products.”
Dongyue Silicone Materials, Xin’an Shares, Xingfa Group, and Qiya Xinjiang follow closely, forming a second tier with a combined market share exceeding 35%.
Industry CR5 has exceeded 60%, and CR10 is close to 93%. Small and medium enterprises face high costs, weak technology, and environmental pressures, leading to accelerated exits or mergers and acquisitions.
Leading companies no longer compete solely on monomer output but build moats through vertical integration:
Hoshine Silicon Industry invests in silicon carbide semiconductor materials;
Xin’an Shares advances silane specialty gases + PV sealants + liquid silicone rubber;
Dongyue Silicone Materials expands into proton exchange membranes, hydrogen energy materials, and other new energy fields.
Internal conversion rate becomes a key indicator: leading companies use 70–90% of their DMC internally, effectively smoothing cyclical fluctuations and improving gross margins.
General-purpose DMC and silicone rubber have become a red ocean, while high-end products—such as electronic-grade encapsulants, photovoltaic sealants, medical silicone, and high-purity silica sols—remain in short supply.
Domestic substitution accelerates: the localization rate of electronic-grade silicone moves from 37% to 50%, and application-end companies like Huitian New Material and Silicon Treasure Technology rise rapidly through customization capabilities.
Technology innovation focus: bio-based silicones (e.g., BASF SILVADUR®), self-healing elastomers, and low-VOC formulations are key research areas in green intelligent materials.
Export structure optimization: shifting from low-cost bulk products to high-value specialty products, expanding target markets from Southeast Asia to Europe and North America.
“Dual Carbon” policies drive change: companies with access to green electricity (e.g., Yunnan and Xinjiang bases) and circular economy capabilities (byproduct utilization) gain cost and compliance advantages.
Future competition in the silicone industry is no longer a simple price war in a single segment. It is a comprehensive contest of supply-chain coordination, speed of high-end product breakthroughs, and green intelligent manufacturing capability.
Only companies with the integrated advantage of scale + technology + downstream binding can maintain leadership in the new market landscape.
