1. Demand from Emerging Industries Surges, and the High-End Market Continues to Expand
The explosive growth of strategic emerging industries such as new energy vehicles, photovoltaics, and 5G is becoming a core driver of demand growth for silicone rubber. In the new energy vehicle sector, the demand for high-temperature seals in power battery packs is driving the use of high-temperature vulcanized silicone rubber (HTV) to 3-5 kg per vehicle. Global new energy vehicle sales are expected to exceed 18 million in 2024, driving a 28% increase in the related silicone rubber market. The photovoltaic industry is also performing strongly, with room-temperature vulcanized silicone rubber (RTV) penetration exceeding 95% in module encapsulation. Domestic photovoltaic installed capacity is expected to exceed 600 GW in 2024, directly driving the silicone rubber market to 14.5 billion yuan. The construction of 5G base stations is driving demand for high-frequency communication sealing materials. Companies like Huawei and ZTE are expected to see a 40% year-on-year increase in silicone rubber procurement in 2024.

The healthcare sector is also experiencing a structural upgrade trend. The accelerated aging population is driving demand for medical silicone rubber catheters, prostheses, and other implantable devices. The Chinese market is expected to reach $3.38 billion in 2024, representing a 12% share. Breakthroughs in biocompatible materials are further expanding the scope of applications. For example, self-healing silicone rubber extends the sealing life of photovoltaic modules through dynamic cross-linking technology, while polysiloxane-based solid electrolytes address the risk of thermal runaway in lithium batteries. The gross profit margins of these functional products are generally 15-20 percentage points higher than those of traditional materials.

2.Technological iteration is reshaping the industry landscape, accelerating domestic substitution.
Vertical integration of the industry chain has become a core strategy for leading companies. Hosun Silicon Industry, through its integrated "coal-to-electricity-silicon" model, has expanded its high-temperature adhesive production capacity to 500,000 tons/year, capturing 18% of the global market share. Xin'an Shares has built a 200,000-ton/year fully automated liquid silicone rubber production line in Hangzhou, achieving a yield rate of 98%. In terms of technological breakthroughs, domestic companies have achieved key performance targets, such as phenyl silicone rubber's temperature resistance of 350°C and thermal conductivity of thermally conductive silicone rubber ≥5W/m·K. The domestic production rate of semiconductor encapsulation adhesives has jumped from 45% in 2020 to 58% in 2024.

Green manufacturing and intelligent transformation are advancing simultaneously. AI-driven molecular design platforms have shortened new material development cycles by 40%, and digital twin technology has reduced production anomaly warning response times to within 15 minutes. Environmental protection policies are driving industrial upgrades, resulting in a 30% reduction in carbon emissions from bio-based silicone rubber. Demand for biodegradable medical silicone is growing at an annual rate of over 25%. Leading companies have reduced monomer synthesis energy consumption by 12% and increased production efficiency by 18% through photovoltaic power generation.

3.The recovery of infrastructure construction in Southeast Asia and the Middle East is driving overseas demand. China's silicone rubber exports are expected to grow by 24% in 2024. Hosun Silicon's Vietnam base is expanding into the ASEAN market, and Sibao Technology has established an R&D center in India to serve the local electronics industry. Small and medium-sized enterprises focus on the special silicone rubber track and have formed local advantages in segments such as conductive adhesives and flame retardant adhesives. In 2024, organic silicone rubber will account for 38.7% of the electronic adhesive market, and the growth rate of the special product market will reach 22%, far exceeding the industry average of 9%.