Ⅰ. Overview of Silica Gel Industry

1. Definition and Classification
   Silica gel, also known as silicon dioxide gel, is a highly active adsorbent material. It is an amorphous substance, presented as transparent or milky white granular solids. It is non-toxic, odorless, insoluble in water and any solvent, with stable chemical properties, good thermal stability, and high mechanical strength. It has an open porous structure, strong adsorption capacity, and can adsorb various substances. Silica gel can be divided into two major categories according to its properties and components: organic silica gel and inorganic silica gel.
   • Inorganic silica gel is classified into macroporous silica gel, coarse-pored silica gel, type B silica gel, and fine-pored silica gel according to the size of its pores.
   • Organic silica gel is an organic compound, mainly divided into four categories: silicone rubber, silicone resin, silicone oil, and silane coupling agents.
2. Development Process
   Overall, China's silica gel industry has gone through three major development stages: the initial stage, the growth stage, and the rapid development stage. At present, China's silica gel industry is relatively mature and has entered a stage of high-quality development. The industry pursues higher product quality and supports the development of basic technologies and processes. China has become one of the largest silica gel production and sales regions in the world, with a huge industry chain and a complete industrial system. However, there is still a significant gap in the development capability of high-end silica gel products compared with foreign countries.

Ⅱ. Policies for Silica Gel Industry Development

China began the research and industrial production of silica gel products in the 1950s. Since the 21st century, with the rapid development of China's national economy, the silica gel industry has been strongly driven. The state has successively issued a series of policies to support the industry's development, such as "2023 Spring Scientific Fertilization Guidelines for Fruit Trees, Cotton and Sugarcane" and "Guiding Opinions on Promoting the Development of Energy Electronics Industry".

Ⅲ. Current Development Status of Silica Gel Industry

1. Global Market
   According to data from Global Market Insights, the global silica gel market size was $24.3 billion in 2016, increased to $33.7 billion in 2023, with an average annual compound growth rate (CAGR) of 4.8% from 2016 to 2023. In the next few years, the global silica gel market size will continue to grow rapidly. Driven by the rise of emerging industries and consumption upgrading, the application fields of silica gel materials will be further expanded. It is expected that the global silica gel market size will reach $47.8 billion by 2029.
2. Chinese Market
   • Market Size:
     Silica gel is a common rubber material, widely used in various fields such as construction, automotive, medical, and electronics due to its heat resistance, cold resistance, corrosion resistance, and insulation properties. China's silica gel market is huge and has continued to develop in recent years. Data shows that the market size of China's silica gel industry was approximately 104.5 billion yuan in 2023.
   • Product Structure by Segments:
     Silica gel can be divided into organic silica gel and inorganic silica gel.
     • Organic silica gel belongs to special rubber in synthetic rubber, mainly including silicone rubber, silicone resin, and silicone oil. It has the characteristics of resistance to high and low temperatures, insulation, and low surface tension, and can be used as special materials for aviation and cutting-edge technologies, as well as silicone products for construction, textiles, automobiles, and other fields.
     • Inorganic silica gel is a highly active adsorbent material, mainly composed of silicon dioxide, which can be used for gas adsorption in the chemical industry, catalyst carriers, and beer brewing stabilizers in the food industry.
       Data shows that organic silica gel accounts for 83% of China's silica gel products, while inorganic silica gel accounts for only 17%, which is relatively low.

Ⅳ. Analysis of Silica Gel Industry Chain

1. Industry Chain Structure
   • Upstream: Raw materials (silicon dioxide, organosilicon monomers, metallic silicon, chloromethane, organosilicon intermediates, etc.) and production equipment (rubber mixers, cutting machines, sandblasting machines, hydraulic presses, air compressors, etc.).
   • Midstream: Core production links, including manufacturing, processing, and quality control of silica gel products.
   • Downstream: Wide applications in construction, textiles, electronics, transportation, petrochemicals, aerospace, new energy, medical, machinery, papermaking, daily chemicals, and personal care products.
2. Upstream Industry
   Organosilicon intermediates are the basic raw materials for silica gel production. Since the 21st century, with domestic enterprises continuously optimizing processes and actively building and expanding production facilities, the production situation of organosilicon has continued to improve. At the same time, the rapid development of China's national economy has provided strong momentum for the organosilicon industry, and the state has issued a series of supporting policies, promoting China's organosilicon industry into a period of vigorous development. According to statistics, the production capacity of organosilicon intermediates in China was 1.515 million tons in 2019, and increased to 3.44 million tons in 2024, with an average annual compound growth rate of 17.8%.

Ⅴ. Key Enterprises in Silica Gel Industry

Shandong Dongyue Organosilicon Material Co., Ltd. has been deeply engaged in the organosilicon material field since its establishment in 2006, focusing on R&D and sales. The company has integrated production capabilities, covering from metal silicon powder processing to organosilicon monomers, intermediates, and downstream deep-processed products such as silicone rubber, silicone oil, and fumed silica. It also comprehensively utilizes related by-products to build a complete industry chain. In terms of revenue, the company achieved an operating revenue of 5.151 billion yuan in 2024, a year-on-year increase of 7.3%, and revenue of 1.202 billion yuan in the first quarter of 2025, a year-on-year decrease of 15.65%.

Ⅵ. Development Trends of Silica Gel Industry

With continuous technological progress and the expansion of application fields, China's silica gel market will continue to grow rapidly. On the one hand, the rapid development of emerging industries such as new energy vehicles, 5G communications, and the Internet of Things will further increase the demand for silica gel products. On the other hand, as consumers' requirements for product quality and environmental performance continue to improve, high-end silica gel products will become the mainstream of the market.
With the enhancement of environmental awareness and the deepening of the concept of sustainable development, green silica gel products have gradually become the new favorite in the market. Especially in the fields of electronics, automotive industry, and food packaging, green silica gel products are favored for their environmental protection characteristics. For example, in the electronics field, green silica gel materials are used to manufacture recyclable electronic product casings; in the automotive industry, they are used to produce degradable interior parts; and in the food packaging field, they are used to manufacture packaging materials harmless to human health.
Huajing Industry Research Institute has conducted a detailed analysis of the development status and market supply-demand situation of China's silica gel industry, in-depth analysis of the upstream and downstream industry chains and the competitive landscape of enterprises, minimizing investment risks and operating costs for enterprises, and improving their competitiveness. It also uses a variety of data analysis technologies to predict industry development trends, so that enterprises can seize market opportunities in a timely manner. For more detailed content, please pay attention to the "2025-2031 China Silica Gel Industry Market Competition Pattern and Development Trend Forecast Report" published by Huajing Industry Research Institute.