1. Technology iteration drives product upgrade
Silicone softeners have entered the fourth generation of block modification technology-dominated stage, and new products represented by polyether-amino diblock structure occupy the mainstream market. This type of product achieves functional integration through molecular design. For example, Huntsman ULTRATEX® UHS series forms a hydrophilic-hydrophobic double-layer structure on the fiber surface through the phase separation of siloxane main chain and polyether side chain, which increases the water absorption of polyester fabric from 3 seconds to 0.5 seconds, while maintaining a softness retention rate of 98%. Domestic companies such as Chuanhua Zhilian have made breakthroughs in molecular weight distribution control technology, reducing the polydispersity index (D) of block silicone oil to 1.25, reaching the international advanced level, and the product washability exceeds 50 times of washing and still maintains more than 80% softness.

Environmental protection technology has become the focus of competition. 35% of the active ingredients in Archroma's Siligen® EH1 product come from ethanol extracted from corn stalks, and the content of siloxanes (D4, D5, D6) is less than 0.1%, which complies with REACH regulations. Germany's CHT's TUBINGAL RISE technology uses recycled siloxanes and regenerated emulsifiers to achieve 60% raw material recycling. The tear strength of the finished recycled polyester is increased by 25%, and it has excellent anti-yellowing properties.

2. Market demand shows structural differentiation
The textile industry is still the core application field, contributing 62% of the global market revenue. Among them, the surge in demand for functional fabrics has driven the proportion of high-end products to 45%, such as the penetration rate of antibacterial silicone oil in sportswear has increased by 18% year-on-year, and the demand for high-temperature resistant silicone oil in the field of new energy vehicle interiors has increased by 21% year-on-year. The personal care market has become a new growth pole. In 2024, the use of cyclic silicone oil in shampoo formulas will exceed 900 million yuan, and its low residue characteristics meet consumers' needs for scalp care.

Regional markets are significantly differentiated. The Asia-Pacific region leads the world with a global share of 48%. China's demand in 2023 will reach 153,000 tons, accounting for 26% of the global total. Driven by textile export policies, the Indian market has seen an annual increase of 11%-13% in imports in the past three years. Driven by environmental regulations in the European market, the proportion of water-based products has increased from 38% in 2020 to 52% in 2023, and the unit product premium capacity has increased by 12%-15%.

3. Accelerated reconstruction of the industry structure
The global CR5 companies (Dow Corning, Wacker Chemical, etc.) have a market share of 56%, but the process of domestic substitution has accelerated significantly. Local companies such as Xin'an Chemical have reduced the procurement cost of metal silicon by 18% through vertical integration of silicon ore resources, and their market share will increase to 37.9% in 2023. Small and medium-sized enterprises are active in differentiated markets, and the average gross profit margin of companies specializing in medical textile softeners is 38.7%, 7.2 percentage points higher than the industry average.

Technical barriers continue to increase. In 2023, the number of patents related to silicone softeners worldwide will reach 1,273, an increase of 62% over 2020. Microemulsion technology reduces the particle size of products from 200 nanometers to less than 50 nanometers, and improves application efficiency by 40%. The penetration rate of bio-based monomers will increase from 5% in 2021 to 12% in 2023. The advancement of the EU REACH regulations has prompted leading companies to accelerate the development of biodegradable products.