Demand
Traditional application areas are growing steadily: In the industrial field, the demand for silicone oil as a lubricant, release agent, etc. will maintain a certain growth with the stable development of the manufacturing industry. For example, the demand for silicone oil in processes such as lubrication and demolding of parts in automobile manufacturing is relatively stable. In the field of cosmetics and personal care products, as consumers' demand for high-quality products increases, the application of silicone oil in skin care products, makeup, shampoo and other products will continue to grow. For example, silicone oil can make skin care products have a better moisturizing effect and make makeup last longer.
Emerging fields bring new opportunities: With the rapid development of computing-intensive applications such as artificial intelligence and the Internet of Things, the heat dissipation demand of data centers has become increasingly prominent. Silicone oil coolants have broad market prospects due to their environmental protection, price advantages and good thermal conductivity. According to CCID Consulting, the market size of liquid-cooled data centers will reach 128.32 billion yuan in 2025, and the market size of immersion-cooled data centers will reach 52.61 billion yuan, which will bring a large growth space for the application of silicone oil in this field.
Supply
Capacity adjustment: Many DMC/silicone oil manufacturers said that uncertainty will increase in 2025, and they will implement "directional production cuts" to cope with the problem of excessive expansion of traditional homogeneous production capacity in the silicone industry in recent years. This may lead to a reduction in the overall market supply, but it will also help alleviate the pressure of overcapacity and stabilize market prices.
Technological innovation drive: Enterprises will pay more attention to technological innovation, improve the performance and quality of silicone oil, and reduce production costs by developing new production processes and products. For example, developing modified silicone oil to meet the special needs of different fields, such as developing silicone oil products with higher thermal conductivity and insulation in the field of electronic information.
Price
Influence of cost factors: Fluctuations in raw material prices will still have an important impact on silicone oil prices. If the prices of raw materials such as upstream silicone monomers rise, silicone oil prices will also face upward pressure; conversely, if raw material prices remain stable or fall, silicone oil prices are expected to remain stable or fall back.
Market supply and demand balance: Under the combined effect of demand growth and supply adjustment, silicone oil prices are expected to show a stable and changing trend in 2025. If the market supply and demand balance is maintained, prices will remain relatively stable; if demand growth exceeds supply growth, prices may rise; and if the problem of oversupply remains prominent, prices may face downward pressure.
Competitive landscape
Increased industry concentration: The market concentration of the silicone oil industry is relatively high, mainly dominated by a few large companies, and there is a trend of further improvement in the future. Large companies have advantages in technology research and development, production scale, brand influence, etc., and can better respond to market changes and competitive challenges. The market share of small and medium-sized enterprises may be squeezed to a certain extent.
Differentiated competition intensifies: With the intensification of market competition, companies will pay more attention to differentiated competition and enhance their competitiveness by continuously launching new products, optimizing product performance, and improving service quality. For example, in the field of electronic information, enterprises will focus on developing high-performance, high-value-added silicone oil products to meet the needs of the high-end market.