The domestic phenyl silicone oil industry is experiencing a period of rapid growth, with the market size expected to exceed 25 billion yuan by 2030

1.The new energy and electronics sectors have become the core driving forces of demand
Recent industry research data shows that China's phenyl silicone oil industry will enter a high-speed development channel from 2025 to 2030. The market size is expected to rise from about 15 billion yuan in 2025 to 25 billion yuan in 2030, with an average annual compound growth rate of 8.7%. This growth trend is mainly attributed to the continuous and rigid demand for high-performance materials in high-end fields such as downstream new energy vehicles, electronic and electrical equipment, and medical and health care. Among them, the demand proportion in the new energy vehicle field will rise to 35%, becoming the core engine of industry growth.

2. The supply and demand pattern has been continuously optimized, and the process of import substitution has accelerated
On the supply side, the maturity of the industry has significantly improved. By 2024, the domestic output of phenyl methyl silicone oil had reached 1.2 million tons, and the gap between supply and demand was gradually narrowing. At present, the import dependence of high-end phenyl silicone oil products is about 42%. With the breakthroughs made by domestic enterprises in core technologies such as catalyst systems and polymerization processes, it is expected that the import dependence will drop to 28% by 2028. In terms of regional layout, policy dividend regions such as the Yangtze River Delta have formed industrial cluster effects, contributing over 65% of the national consumption.


3. Technological innovation leads the upgrading of green processes as the development direction
Technological iteration has become a key support for the development of the industry, and breakthroughs in high-performance special silicone oil technology have become the core research and development direction of the industry. The average annual growth rate of R&D investment in green and environmentally friendly products has been significant, and the number of related patents is expected to exceed a new high in 2025. The popularization of continuous production processes will drive a 30% increase in single-line production capacity and a 25% reduction in energy consumption. The industry's average operating rate is expected to rise from 78% in 2024 to 85% in 2028, further enhancing the industry's competitiveness.


4. With the continuous release of policy dividends, high-end products have become investment hotspots
At the policy level, the support policies for the new materials industry in the 15th Five-Year Plan will continue to be strengthened. The tax preferential range for the R&D investment of phenyl silicone oil enterprises may be expanded to an additional deduction of 150%, which is expected to keep the average annual growth rate of R&D investment in the industry above 15%. Investment opportunities mainly focus on the development of high-end products and the upgrading of intelligent manufacturing. Among them, electronic-grade phenyl silicone oil has become a key area of market attention due to its gross profit margin reaching over 42%. Industry analysts point out that in the next five years, the industry will present a competitive pattern of high-end concentration and mid-to-low-end differentiation. The market share of the top five enterprises is expected to increase from 58% in 2025 to 67% in 2030.