I. Global Capacity Shifts Eastward, China Leads Industrial Chain Restructuring
Currently, global organosilicon production capacity continues to shift to China. By 2025, China's capacity share has reached 77.33%, an increase of over 12 percentage points compared to 2020. Behind this trend is the gradual withdrawal of overseas companies from primary product production due to high energy and labor costs, shifting their focus to deep processing. For example, Momentive has shut down 305,000 tons of capacity, and Dow Chemical plans to withdraw from some of its UK production capacity by 2026. Leveraging its advantages of low electricity costs and abundant metallic silicon resources, China has formed industrial clusters in Northwest China (Xinjiang and Inner Mongolia) and East China. By 2025, the Northwest region's capacity share will reach 19.83%, and East China's will exceed 51%.

II. Demand Structure Transformation, Emerging Sectors Become Core Engines
Demand growth in traditional construction and textile sectors has slowed to 5%-7%, but the demand share of the three emerging sectors—new energy, electronics, and medical—will jump from 35% in 2024 to 42% in 2025. In the new energy vehicle sector, the amount of silicone used per vehicle is seven times that of ordinary gasoline vehicles, driving a surge in demand for high-temperature adhesives and thermally conductive silicone. In the medical field, liquid silicone rubber (LSR), due to its biocompatibility advantages, is rapidly increasing its penetration rate in surgical implant materials and drug delivery systems. In the electronics sector, the demand for 5G base station heat dissipation materials and semiconductor packaging adhesives is growing at an average annual rate of over 10%.

III. Accelerated Technological Iteration and High-End Breakthroughs Reshaping the Competitive Landscape
The industry is shifting from "scale expansion" to "quality leap," with technological barriers becoming key to competition. Leading companies are increasing product added value by 3-5 times through molecular design (introducing functional groups such as fluorine and amino groups) and composite modification (composite with graphene and nano-silica). For example, one company developed a silicone rubber/graphene composite material with a thermal conductivity of 5 W/m·K, 25 times that of traditional materials; another company successfully applied low-molecular-weight PDMS to semiconductor packaging, breaking the foreign technology monopoly.

IV. Outlook: Supply and Demand Turning Point Appears in 2027, Green and Intelligent Development Becomes New Directions
It is expected that the supply and demand imbalance in the industry will gradually ease around 2027, and DMC prices are expected to emerge from a bottoming-out period. Over the next five years, the market size will expand at a CAGR of 7.5%, exceeding 200 billion yuan by 2030. Technologically, green materials such as bio-based organosilicon and biodegradable silicone will become key R&D areas. In terms of the market, Southeast Asia will be the preferred destination for overseas expansion due to its labor cost advantages, while the European market will require a focus on high-end certifications. With the tightening of environmental standards during the 15th Five-Year Plan period (energy consumption limits per unit product reduced to 1.2 tons of standard coal/ton), companies with full-industry chain integration capabilities and technological innovation strength will dominate the new cycle.