I. Current Development Status: Capacity Expansion and Market Restructuring in Parallel
China has become the global core base for organosilicon DMC production. By the end of 2024, China's organosilicon DMC production capacity will reach 3.44 million tons, accounting for 76% of the global total, and is expected to increase to 3.7 million tons in 2025. This capacity expansion is driven by increasing industry concentration and accelerated industry chain integration. Leading companies such as Hosun Silicon and Shandong Dongyue have achieved cost advantages and economies of scale through an integrated strategy encompassing "industrial silicon, organosilicon monomers, and deep processing." For example, Hosun Silicon, leveraging its integrated coal-fired power and silicon base in Xinjiang, has reduced industrial silicon production costs by 30%, achieving a monomer production capacity of 1.8 million tons, firmly securing the top spot globally.
The market landscape is characterized by "leading players dominating the market and regional differentiation." East China holds a dominant position with a production capacity of 2.43 million tons, while Central China and Northwest China are catching up rapidly, leveraging resources and policy advantages. In terms of price, DMC prices are expected to fluctuate between 10,300 and 13,500 yuan/ton in 2025. Supported by declining industrial silicon costs and resilient downstream demand, the industry's operating rate remains stable at around 80%, and the inventory percentile has dropped to 43%, gradually restoring the supply-demand balance.

II. Outlook: Emerging Demand and Technological Breakthroughs Shaping the Future
Demand Side: Emerging Industries Become Core Growth Drivers
New Energy Sector: Demand for photovoltaic encapsulants and silicon-carbon anode materials is surging, with the electronics and electrical appliance market projected to achieve a CAGR of 11.6% from 2025 to 2030.
High-end Manufacturing: Increased demand for low-dielectric-loss, high-transmittance materials in applications such as 5G base station heat dissipation silicone and semiconductor encapsulants is driving the industry's upgrade to electronic and medical-grade products.
Green Consumption: The penetration of environmentally friendly products such as biodegradable defoamers and water-based coatings is increasing, aligning with the "Dual Carbon" policy. Supply Side: Advanced Technology Reshapes Competitiveness
Breakthroughs in Specialty Materials: The successful development of phenyl silicone resins and fluorosilicone polymers improves product high-temperature resistance and sealing precision, breaking through import dependence in high-end sectors.
Intelligent Production: AI molecular design platforms shorten new product development cycles, and digital twin technology enables full-process production monitoring, reducing unit energy consumption by 15%.
Industry Chain Collaboration: Leading companies achieve near-zero byproduct emissions through a chloromethane recycling process. Integrated industrial parks integrate supporting production capacity, such as silane coupling agents, shortening R&D and transformation cycles.
Policies and Markets: Anti-involution and Globalization Go Hand in Hand
Domestic "anti-involution" policies are driving industry consolidation. The benchmark energy efficiency level for industrial silicon is expected to be completed by the end of 2025. The elimination of high-energy-consuming production capacity will optimize the supply and demand landscape.
In terms of overseas demand, China continues to gain market share by leveraging its cost advantages. Exports are expected to exceed 400,000 tons in 2025, with Southeast Asia becoming a new growth engine.

Conclusion: The silicone DMC industry is shifting from "scale expansion" to "value-added development." Driven by advanced technology and emerging demand, the industry is expected to achieve a 13% compound annual growth rate from 2025 to 2030, with the global market size exceeding US$17 billion. Companies must leverage innovation and environmental protection to seize opportunities amid this transformation.