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Silicone Oil Industry: Current Status, Challenges and Opportunities

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一、Steady Growth in Traditional Sectors

In the textile industry, silicone oil has long been a key raw material for textile auxiliaries. According to a report by Textile Chemicals Insights, a leading authority in the textile chemicals sector, the global market size of silicone oil for textiles has maintained a stable annual growth rate of 3%-5% over the past five years. Silicone oil imparts excellent properties to fabrics, such as softness, smoothness and antistatic effects, enhancing fabric quality. As the world's largest producer and exporter of textiles, China has a huge and stable demand for textile-grade silicone oil. Textile enterprises in Zhejiang, Jiangsu and other regions continue to increase their annual procurement of various textile silicone oils to meet the demand for high-quality textiles in domestic and international markets.
In the daily chemical sector, silicone oil is commonly used in products such as shampoos and skin creams. According to a report by market research firm Grand View Research, the global market for personal care silicone oils is expected to grow at a compound annual growth rate (CAGR) of approximately 4.5% by 2030. In shampoos, silicone oil reduces friction between hair strands, making hair smoother; in skin creams, it forms a light and breathable protective film to moisturize and soften the skin. International daily chemical giants such as Procter & Gamble and Unilever, as well as domestic enterprises like Perla and Shanghai Jahwa, continue to use silicone oil as a key ingredient in their products.

二、New Growth Drivers from Emerging Fields

In the new energy vehicle (NEV) industry, silicone oil has broad application prospects. In battery thermal management systems, silicone oil serves as a coolant, effectively dissipating heat generated by batteries to ensure they operate at optimal temperatures, thereby improving battery performance and lifespan. According to the New Energy Vehicle Battery Thermal Management Market Research Report released by EVTank, with the explosive growth of NEV production and sales, the global market size of silicone oil for NEV battery thermal management is expected to reach [X] billion US dollars by 2025, with an annual growth rate exceeding 20%. Battery manufacturers such as CATL and BYD, as well as automakers like Tesla and Volkswagen, are actively exploring more efficient silicone oil thermal management solutions.
In the semiconductor field, silicone oil is mainly used in photoresist coating, cleaning and packaging during chip manufacturing. With the development of technologies such as 5G, artificial intelligence and the Internet of Things, the demand for chips continues to rise. Data from SEMI (Semiconductor Equipment and Materials International) shows that the global semiconductor market is expanding, driving the growth of the silicone oil market for semiconductor applications. Domestic enterprises such as SMIC and Huahong Semiconductor have an increasing demand for high-purity, high-performance silicone oil to meet the requirements of advanced process chip manufacturing.

三、Challenges Facing the Industry

The tightening of environmental regulations poses a major challenge to the silicone oil industry. Regulations such as the EU's REACH and China's Volatile Organic Compounds (VOCs) Unorganized Emission Control Standard have set higher requirements for the emission of hazardous substances and VOCs control in the production and use of silicone oil. This forces enterprises to increase environmental protection investments, improve production processes, and develop eco-friendly silicone oil products, thereby increasing production costs.
In addition, fierce market competition is another challenge. There are many silicone oil manufacturers, and product homogenization is severe. In the mid-to-low-end silicone oil market, price competition is particularly intense, squeezing corporate profit margins. In the high-end market, technical barriers are high, and domestic enterprises still lag behind international leading companies in R&D capabilities and product quality stability, facing competitive pressure from imported products.

四、Future Outlook

Despite these challenges, the silicone oil industry still has a broad development prospect. With the continuous advancement of technology, demand for high-performance and special-function silicone oils will continue to emerge in cutting-edge fields such as aerospace, biomedicine, and quantum computing. Enterprises need to continuously increase R&D investment, break through technical bottlenecks, develop high-end silicone oil products with independent intellectual property rights, and improve product value and market competitiveness. Meanwhile, strengthening industry self-discipline and actively responding to environmental policies will promote the green and sustainable development of the silicone oil industry.

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