The rise of the methyl silicone oil market worth hundreds of billions of yuan is driven by emerging applications, with the market size expected to exceed 9.5 billion yuan by 2030


1.The market size has steadily expanded, with the compound growth rate remaining at a high level
In recent years, the methyl silicone oil industry has achieved steady growth driven by multiple favorable factors. Data shows that the domestic market size reached 5.83 billion yuan in 2024, with a year-on-year growth of 9.2%. It is expected that the compound annual growth rate will remain within the range of 8.5% to 10.5% in the next five years, and the market size is expected to exceed 9.5 billion yuan by 2030. As a core branch of the silicone industry chain, methyl silicone oil, with its excellent thermal stability, insulation and chemical inertness, has become an indispensable basic material in the modern industrial system, and its application boundaries are still continuously expanding.


2. Core application fields are flourishing in multiple areas, with new energy and electronics becoming growth engines
The continuous upgrading of downstream applications is the core driving force for market expansion. In the field of new energy vehicles, the penetration rate of methyl silicone oil in battery thermal management, motor insulation and other links has significantly increased. It is expected that the demand proportion in this field will increase from the current 18% to 27% by 2028. The electronic and electrical industry benefits from the rapid development of 5G communication and semiconductor packaging industries. High-purity electronic-grade methyl silicone oil has formed a rigid demand, and the compound annual growth rate is expected to reach 15.8% from 2023 to 2028. In addition, biocompatible products in the medical and health field and high-end care formulas in the daily chemical field have also contributed stable increments to the market.


3. The regional layout has been continuously optimized, and the effect of industrial clusters has become more prominent
The domestic methyl silicone oil industry has formed clear regional layout characteristics. Relying on a complete industrial chain support, the East China region maintains a production share of over 55% and has become a core production base in the industry. Leveraging the advantages of the daily chemical industry cluster, the demand growth rate in South China leads the national average by 2 to 3 percentage points. Driven by the "dual carbon" goals, the demand for photovoltaic packaging materials in the western region has seen an explosive growth. The industrial synergy and resource complementarity among regions have further enhanced the overall competitiveness of the industry.


4. Structural upgrading accelerates functional products to become the focus of competition
The industry is transforming from scale expansion to high-quality development, and the product structure is continuously optimized. The proportion of functional silicone oil has been increasing year by year, currently rising from 28% in 2021 to 37% in 2025. Among them, special products with high thermal conductivity, low volatility, and biocompatibility have become the focus of research and development. With the continuous improvement of material performance requirements in downstream high-end manufacturing industries, the premium capacity of methyl silicone oil products with customized functions has significantly increased, promoting the industry to move towards high value-added fields.