Technological Innovation Leads High-Performance Upgrades
The silicone fluid industry is undergoing a profound transformation from basic materials to functional and intelligent applications. The new energy vehicle sector places stringent demands on the temperature resistance of silicone fluids, driving the development of modified products such as phenyl silicone fluids and fluorosilicone fluids. For example, Shandong Dongyue Chemical's 350°C-resistant silicone fluid has passed BYD's battery pack sealing tests. Its thermal decomposition temperature exceeds 400°C, addressing the challenge of material failure under extreme operating conditions in the new energy sector. In the semiconductor packaging sector, low-ring vinyl silicone fluids, through fully automated process control, reduce volatile organic compound (VOC) content to below EU REACH standards, making them a key material for high-end electronic packaging. Yunnan Energy Investment Silicon Materials' 5,000-ton annual production capacity low-ring vinyl silicone fluid project is already providing core solutions for photovoltaic inverters and 5G base station heat dissipation materials.

Green transformation reshapes the industry's competitive landscape.
Environmental regulations are forcing the industry to evolve towards low-carbon and circular development. The EU's carbon tariff policy is prompting companies to adopt green electricity production. Zhejiang Xin'an Chemical has reduced carbon emissions per ton of product by 15% through carbon capture technology. Its biocatalytic process has also reduced chloromethane emissions by 30%. After its products received EU Ecolabel certification, exports have increased by 40%. On the raw material side, breakthroughs have been made in bio-based silicone fluid technology, which uses vegetable oils to replace fossil resources. Inner Mongolia Hengxing Chemical has developed a castor oil-based silicone fluid that is biodegradable for use in daily chemical applications. Its customers include international brands such as L'Oréal and Procter & Gamble. The circular economy model is accelerating its implementation. Zhejiang Hesheng Silicon Industry has built the industry's first 10,000-ton-capacity siloxane recovery unit. Using catalytic cracking technology, it has increased byproduct recovery to 92%, reducing costs by 2,000 yuan per ton and pushing the industry's comprehensive raw material utilization rate to over 92%.

Emerging markets are creating trillion-yuan growth opportunities.
Global electric vehicle penetration is expected to reach 30% by 2030, driving a surge in demand for battery thermal management fluids and motor insulation lubricants. The nanocomposite silicone oil developed by Sibao Technology boasts a stable thermal conductivity of 0.8W/(m·K) within a temperature range of -40°C to 200°C and has been used in CATL's Kirin battery modules. In the photovoltaic sector, demand for high-purity electronic-grade silicone oil has expanded in tandem with global photovoltaic installed capacity. With a transmittance of 99.2%, it has become the preferred material for bifacial photovoltaic module encapsulation. In the medical field, the penetration of biodegradable silicone oil derivatives in high-end markets such as artificial corneas and wound dressings continues to increase. Dongyue Silicon Materials has developed a hydrogenated silicone oil cross-linked membrane with an oxygen permeability of 1200 barrers, breaking the monopoly of foreign technology. According to QYResearch, the global hydrogenated silicone oil market will reach 5.02 billion yuan in 2031, with a compound annual growth rate of 8%, with China's market share expected to increase to 40%.