1. The development environment: the policy continues to force, organic silicone development potential is huge
In recent years, China's economy has continued to improve, with the main domestic cycle, domestic and international double cycle to promote each other's new development pattern is gradually formed, China's organic silicon downstream products are widely used, the demand is more robust. The country continues to increase the restrictions on environmental protection and low-end production capacity, and has successively introduced policies to limit and eliminate backward product capacity and increase environmental protection inspectors. The policy has accelerated the high-quality development of the domestic organic silicone industry, to realize the organic silicone industry chain from primary processing to high value-added product development.
2. The development of the current situation: organic silicone production is growing steadily, and the scale of demand is expanding rapidly
Since 2000, China's organic silicone industry has entered a rapid development stage, and so far, China's organic silicone monomer synthesis technology and low-end silicon products production technology is basically close to the international advanced level, becoming the world's largest production and consumption area of silicone. According to the statistics of the National Silicon Industry Green Development Strategy Alliance (SAGSI), the production of silicone in China has been on a steady rise in recent years, while the overall demand for silicone in China has been on the increase.
3. The market pattern: industry concentration is high, and the downstream applications are extensive
In recent years, the global new materials industry leading enterprises rely on its technological and scale advantages, in the high technology content, high value-added new materials products market to maintain a major position, and through mergers and acquisitions, restructuring and other ways to continue to expand, in the global industry chain supply chain in a dominant position, high-end materials global monopoly situation further intensified, for the second and third echelon of national new materials industry development to form a strong constraint. 2021 Hershey's silicon industry accounted for the largest market share of China's organic silicone industry in 2021, with a proportion of 27%. This is followed by Dongyue Silicon and Xin'an, whose market shares are 13.6% and 12.7%, respectively. The three enterprises together accounted for 53.4% of the national organic silica industry market share, it can be seen that the concentration of enterprises in the domestic organic silica industry is high, there is a strong comprehensive strength of the leading enterprises.
4. The development trend: the scale of demand continues to increase, the industry's technical level to improve
With the development of the national economy and the continuous improvement of people's living standards, organic silicone products in more and more areas to show its superior performance and play a role, and gradually achieve the replacement of traditional materials, the scope of application is expanding. New materials, bio-medical, new energy, photovoltaic industry, high-end equipment manufacturing and daily necessities and other emerging applications for organic silicone consumption demand are maintaining rapid growth. At the same time, based on the current low per capita GDP of emerging market countries, per capita consumption of organic silicone compared with developed countries there is still a big gap and growth prospects, which will greatly increase the market demand for organic silicone. In the future, enterprises will continue to increase investment in research and development, using technological innovation to promote their own development, the overall technical level of the organic silicone industry will be significantly improved.