In 2026, the silicone industry is undergoing a profound structural transformation—general-purpose low-end products face overcapacity, while high-end specialty materials suffer from supply shortages. High-end categories such as liquid silicone rubber (LSR), medical implant-grade silicone rubber, and electronic-grade silicone gels have a self-sufficiency rate of less than 40%, leaving broad room for domestic substitution.

From a demand structure perspective, demand in traditional construction and textile sectors has contracted somewhat, but demand from emerging sectors such as new energy vehicles, healthcare, electronic packaging, and AI computing power continues to be released. Among these, the photovoltaic sector has become the largest incremental downstream market for silicone, with an estimated additional silicone consumption of approximately 42,000 tons for the full year; applications including adhesives for new energy vehicle lithium-ion batteries, AI semiconductor chip packaging, and adhesives for ultra-high-voltage power transmission and transformation construction are injecting sustained growth momentum into the industry.

In terms of technological breakthroughs, China has made multiple advances in the high-end LSR field. Addition-cure liquid silicone rubber for high-voltage cable accessories has achieved self-reliance, with 110 kV cable intermediate joints already in grid-connected operation in Xi'an, breaking long-term foreign monopoly. Hoshine Silicon's zero-degree human body silicone and medical-purpose liquid silicone rubber have officially entered the commercialization promotion stage, with products applicable to high-value-added scenarios such as simulated human models, flexible sensors, and medical catheters.

International giants are also accelerating product innovation. Wacker Chemie recently launched its first self-adhesive, post-cure-free liquid silicone rubber, ELASTOSIL® LR 5471, which incorporates adhesive components directly within the silicone polymer, enabling direct overmolding onto metal or thermoplastic substrates without surface pre-treatment and, in most scenarios, without high-temperature post-curing. The product achieves adhesion strength to PBT of up to 28 N/mm, with volatile content below 0.4%, compliant with German BfR food-contact standards.

From an industry development trend perspective, liquid silicone rubber is exhibiting five major directions: high-end specialization (high purity, low volatility, functional modification), precision molding integration (automated injection molding replacing traditional compression molding), green and low-carbon development (low-VOC vulcanization, bio-based materials), business model servitization (shifting from material supply to joint R&D), and deepening domestic substitution (the import substitution rate for domestic LSR raw materials has risen to 61.4% in 2026).

For downstream application enterprises, selecting LSR suppliers with automated molding capabilities, formulation development capabilities, and compliance certification support is key to ensuring product consistency and delivery schedules. With the improvement of domestic enterprises' technical strength and the refinement of the supply chain, the domestic production process for high-end liquid silicone rubber will continue to accelerate.

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