The organic silicon material industry will present the following development trends in the future:
Improvement of supply and demand pattern: On the supply side, the capacity expansion cycle from 2020 to 2024 is nearing its end. By 2025, only 100000 tons of new capacity are planned to be added domestically, and the subsequent capacity additions will be limited, significantly easing the industry's supply pressure. On the demand side, domestic demand has stabilized and exports have grown simultaneously. The construction sector, as the core support for organic silicon demand, has seen marginal improvement in demand as policies continue to intensify at both ends of the real estate chain, second-hand housing transactions have rebounded, infrastructure investment has accelerated, and demand margins have improved. At the same time, organic silicon is accelerating its penetration in emerging application scenarios such as photovoltaic packaging materials, lightweight components for new energy vehicles, and medical devices, and its export market is also performing well. With the acceleration of industrialization in emerging economies such as Southeast Asia and the Middle East, per capita consumption of organic silicon is increasing, and the potential for export growth still needs to be released.
Technological innovation and upgrading: Enterprises will increase research and development investment, improve production processes, enhance product quality and production efficiency, and reduce production costs. For example, in the monomer synthesis process, improving the overall average selectivity of monomer synthesis and the one-way conversion rate of chloromethane, strengthening the treatment of "three wastes" and low value by-products, and controlling key impurities in the product. At the same time, developing high-performance and high value-added organic silicon products to meet the high-performance requirements of emerging fields for materials, such as developing high-end organic silicon materials for 5G communication, artificial intelligence, humanoid robots, and other fields.
Industry concentration improvement: The domestic organic silicon industry shows a highly concentrated trend, with the top five enterprises accounting for 62% of production capacity. Leading enterprises further consolidate their competitive advantages through technological upgrades and industrial chain integration. In the future, with the tightening of environmental policies and the improvement of energy efficiency standards, the entry threshold for the industry will increase, and inefficient production capacity will accelerate its clearance. The concentration of the industry is expected to further increase, and advantageous enterprises will occupy a more advantageous position in market competition.
Expansion of application fields: Organic silicon materials, with their excellent properties, continuously expand new application scenarios on the basis of traditional application fields. In addition to fields such as construction, electronics, new energy, automobiles, and healthcare, it will also be widely applied in emerging fields such as smart wearable materials, 3D printing, aerospace, and ocean engineering, providing new growth momentum for the industry's development.
Green and sustainable development: Against the backdrop of increasing global attention to environmental protection, organic silicon enterprises will pay more attention to green production, adopt more environmentally friendly production processes and equipment, reduce the discharge of wastewater, exhaust gas, and waste residue, improve resource utilization, reduce environmental impact, meet environmental regulations, and achieve sustainable development of the industry.
Enhanced international market competitiveness: Chinese silicone enterprises have advantages in large-scale production and industrial chain collaboration. With the continuous improvement of technological level and product quality, their competitiveness in the international market will be further enhanced. Due to cost pressures, some overseas production capacity has withdrawn from the market, providing Chinese companies with more market share and development space. Chinese silicone enterprises are expected to occupy a more important position in the global market and promote the internationalization of the industry.
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