Policy guidance combined with market drive have led the phenolic silicone oil industry to accelerate its transformation towards higher-end products. 

1. The industry transition period has arrived. The focus shifts from capacity expansion to quality improvement.
Since 2026, the phenyl silicone oil industry has witnessed a crucial development turning point. The industry's development logic has gradually shifted from previous capacity expansion and price competition to a new stage of high-quality development characterized by technological upgrading and product premiumization. According to industry observations, after the supply-demand imbalance adjustment from 2024 to 2025, industry enterprises have generally realized the drawbacks of low-end overcapacity and have shifted their research and investment focus to high-value-added product areas, promoting continuous optimization of the industry structure. 

2. Precise Policy Support Fosters the Foundation of Industrial Development
A series of policies at the national level have provided strong support for the development of the phenyl silicone oil industry. Documents such as the "14th Five-Year Plan for the Development of Raw Materials Industry" and the "Guidance Catalogue for the First Batch of Applications of Key New Materials (2025 Edition)" clearly list high-performance organic silicon materials as encouraged projects, supporting their research and development and industrialization. At the same time, stricter environmental protection and safety supervision has led to compliance requirements such as VOCs treatment and carbon emission accounting, forcing enterprises to upgrade their production processes. In 2024, the average comprehensive energy consumption of the industry decreased by 18.7% compared to 2020, significantly improving the level of green production. At the local level, characteristic industrial clusters have formed in regions such as the Yangtze River Delta, the Bohai Rim, and Chengdu-Chongqing, through policies such as research subsidies and electricity price discounts, promoting the coordinated development of the industrial chain. 

3. Product Matrix is Complete and Import Substitution Achieves Significant Results
Currently, the phenyl silicone oil product line has been continuously enriched, forming a complete series ranging from low phenyl to high phenyl. New derivatives such as cyclopentyl and ethoxy have been added, and a relatively complete product matrix has been established. Special phenyl silicone oil products with high temperature resistance and low volatility, which have successfully overcome technical bottlenecks, can replace the scarce similar products supplied internationally and have been widely recognized by downstream customers. Data shows that the self-sufficiency rate of phenyl silicone oil in China remains above 90%, and the domestic production rate of high-end products continues to increase. The process of import substitution in fields such as aerospace and semiconductors is accelerating. 

4. Accelerated Global Expansion and Continuously Widened Market Space
With the enhancement of product competitiveness, domestic phenyl silicone oil enterprises have gradually implemented global expansion strategies. They have initially established sales networks in regions such as Europe and the United States and established business connections with international end-users. At the same time, the growing demand in emerging fields such as new energy, commercial aerospace, and biomedicine has opened up new market spaces for the industry. It is expected that from 2026 to 2030, the domestic phenyl silicone oil market will maintain an average annual growth rate of 12% to 16%, and the proportion of high-end products is expected to exceed 50%. The development potential of the industry continues to be unleashed.