The fluorosilicone rubber industry is moving towards a new stage of high-end development driven by both policy and technology


1.The policy dividend of expanding the new materials catalogue has ignited the enthusiasm for research and development
National policies continue to inject development momentum into the fluorosilicone rubber industry. The "Guidance Catalogue for the First Batch Application Demonstration of Key New Materials (2024 Edition)" explicitly lists special fluorosilicone rubber as a priority development material, raising the fiscal subsidy ratio from 3% to 5%, which directly drives the industry's R&D investment intensity to rise from 4.2% in 2022 to 6.8% in 2025. Meanwhile, the "14th Five-Year Plan" for the development of new materials industry has set a goal of achieving an import substitution rate of over 65% for fluorosilicone rubber by 2027. Various regions have successively established special funds. Jiangsu Province alone has set up a 500 million yuan fund for high-performance rubber materials, focusing on supporting the research and development of automotive-grade and aviation-grade products.


2. The market size of new energy and electronic demand has continued to expand in resonance
The upgrading of downstream industries has driven the fluorosilicone rubber market to witness structural growth. The Chinese market size is expected to reach 3.28 billion yuan in 2025, among which the demand for battery sealing in new energy vehicles accounts for 28%, and the usage per new energy vehicle is 3 to 4 times higher than that of traditional fuel vehicles. The electronic and electrical sector has become the second growth pole. The construction of 5G base stations has driven the demand for high-frequency circuit boards. In semiconductor manufacturing, the demand for lens seals for photolithography machines and sealing rings for wafer transfer equipment is expected to increase by 28.6% year-on-year in 2025. Optical-grade materials for flexible displays will also form a large-scale supply by 2028.


3. Vertical integration of the supply chain accelerates breakthroughs in the localization of key raw materials
Leading enterprises in the industry ensure supply chain security through full-chain layout. In the key monomer field, the domestic production rate of electronic-grade hexafluoropropylene has increased to 40%, with a purity of over 99.999%, breaking the overseas monopoly. The vertical integration degree of leading enterprises is expected to reach 65% by 2025, achieving full coverage of the entire chain from monomer synthesis to terminal products. Meanwhile, by combining long-term contract procurement with futures hedging, the impact of key raw material price fluctuations on costs will be controlled within ±8%, which is 20 percentage points lower than the industry average.


4. The green manufacturing system has taken shape and the sustainable development path is clear
Environmental protection transformation and recycling have become new directions for the development of the industry. Substantial progress has been made in the research and development of bio-based fluorosilicone rubber. The first domestic demonstration plant with a capacity of over 1,000 tons has been put into operation. The carbon footprint of the product has been reduced by 60% compared with traditional processes. It is expected to achieve industrial application in 2026. The recycling system is gradually improving. By 2025, the market share of recycled fluorosilicone rubber will reach 8%, and the carbon emissions throughout the material's life cycle will be reduced by 60% through a closed-loop recycling system. Meanwhile, the VOCs emission limit has been tightened to 50mg/m³, forcing the industry to phase out 30% of small and medium-sized backward production capacity and promoting the transformation of the industry towards green and high-end.