I. Current Development Status: Market Expansion and Technological Upgrading in Parallel Progress
By 2025, China's silicone waterproofing agent industry will undergo a critical transition from quantitative change to qualitative change. In terms of market size, driven by infrastructure construction and the renovation of older urban communities, demand for building waterproofing materials continues to grow, reaching nearly 120 billion yuan in 2024. Silicone waterproofing agents, as a representative of high-performance products, will steadily increase their share. On a technical level, the industry is shifting from traditional waterproofing to functional and green products:
High-end Product Breakthroughs: Domestic companies have mastered core technologies such as phenyl silicone rubber and liquid silicone rubber, with an import substitution rate exceeding 60%, meeting the needs of high-end applications such as 5G base station heat dissipation and semiconductor packaging.
Green Manufacturing Upgrades: By improving the reaction process, monomer synthesis efficiency is increased, the comprehensive utilization rate of by-products approaches international standards, and VOC emissions are significantly reduced, meeting the "dual carbon" goals.
Expansion of application areas: From building waterproofing to new energy (photovoltaic encapsulant, lithium battery electrolyte additives), electronics (thermal grease, optical-grade silicone), and other fields, becoming a new engine of industry growth.

II. Future Prospects: High-end and Green Shifts Lead Industry Restructuring
High-end Trend: By 2025, the proportion of high-end products is expected to increase from 30% to 45%, driving a 5-8 percentage point increase in the industry's gross profit margin. Leading companies are developing new materials such as low-molecular-weight polydimethylsiloxane (PDMS) and medical-grade silicones to expand into high-value-added areas such as semiconductor packaging and biopharmaceuticals.
Green Transformation: Stricter environmental protection policies are forcing companies to increase environmental investment, promote recycling technologies, and reduce energy consumption and emissions. For example, new production capacity after 2026 must meet energy consumption per unit of product below 1.2 tons of standard coal per ton; otherwise, production licenses will be denied. Emerging market layout: Southeast Asia has become a major investment destination due to its low labor costs and tariff advantages, but companies need to shift from "building factories and selling goods" to "localized operations"; the European market focuses on high-end and green, and needs to establish a dual barrier of "technical standards + environmental certification".