Industrial Silicone Sealant Enters High-Growth Period, Import Substitution Advantages Become Increasingly Prominent

March 29, 2026 – With the continuous development of China’s advanced manufacturing industry, the rapid upgrading of downstream industries such as electronic batteries, automotive manufacturing, and new energy power, the demand for high-performance industrial silicone sealants is growing rapidly. Domestic silicone sealant enterprises are accelerating the breakthrough of core technologies, improving product quality and performance, and the import substitution process is accelerating, gradually changing the pattern that high-end industrial silicone sealants were dominated by foreign brands.

Industry data shows that in 2025, the market scale of China’s industrial silicone sealants reached 8.7 billion yuan, a year-on-year increase of 15.3%, and the growth rate was 5.2 percentage points higher than that of architectural silicone sealants. Among them, the demand for industrial silicone sealants in the electronic battery field was 3.2 billion yuan, a year-on-year increase of 22.1%; the demand in the automotive manufacturing field was 2.8 billion yuan, a year-on-year increase of 18.5%; the demand in the power equipment field was 1.5 billion yuan, a year-on-year increase of 10.7%. The rapid growth of demand has provided a broad market space for the development of domestic industrial silicone sealant enterprises.

Taking Guibao Technology, a leading enterprise in the industry, as an example, its industrial silicone sealant business achieved sales revenue of 921 million yuan in 2025, a year-on-year increase of 11.44%, accounting for 24.5% of the total operating income. In the electronic battery field, the company has deepened cooperation with leading customers such as BYD, CATL, ZTE, and DJI UAV, and its thermal conductive silicone sealants, potting sealants, and bonding sealants have obvious import substitution advantages. The thermal conductive silicone sealant developed by the company has a thermal conductivity of 1.5~5.0 W/(m·K), which is comparable to similar products of foreign brands such as Dow Corning and Wacker, but the price is 20%~30% lower, which is widely favored by customers. In the automotive manufacturing field, the company’s automotive silicone sealants have passed the certification of international automotive standards such as IATF16949, and have been introduced into the supply chain of foreign benchmark customers such as ZKW (Austria) and Mobis (South Korea), with the market share in the domestic automotive silicone sealant market increasing to 12%.

In addition to Guibao Technology, domestic enterprises such as Sinochem Blue Star, Dongyue Group, and Bluestar Silicones are also accelerating the layout of the industrial silicone sealant market. Sinochem Blue Star launched a high-temperature resistant industrial silicone sealant with a long-term service temperature of -60~250 ℃, which is widely used in aerospace, high-speed rail, and other high-end fields; Dongyue Group developed a low-VOC industrial silicone sealant, which meets the environmental protection standards of the European Union and the United States, and has been exported to more than 20 countries and regions.

Industry insiders said that with the continuous improvement of domestic enterprises’ technological level, R&D investment, and product quality, the gap between domestic industrial silicone sealants and international brands is gradually narrowing. In the future, with the acceleration of the localization process of key downstream industries such as new energy, electronics, and automobiles, the industrial silicone sealant industry will usher in a broader development space. It is predicted that by 2030, the market scale of China’s industrial silicone sealants will exceed 20 billion yuan, and the market share of domestic products will reach more than 70%, completely realizing the import substitution of high-end industrial silicone sealants.

Taking Guibao Technology as an example, its industrial sealant business achieved sales revenue of 921 million yuan in 2025, a year-on-year increase of 11.44%. In the electronic battery field, the company has deepened cooperation with leading customers such as BYD, CATL, ZTE and DJI UAV, and the import substitution advantage of thermal conductivity and potting materials is obvious. In the automotive manufacturing field, it has been introduced into foreign benchmark customers such as ZKW (Austria) and Mobis (South Korea), and its market share has continued to increase.

Industry insiders said that with the continuous improvement of domestic enterprises’ technological level and product quality, the gap between domestic industrial silicone sealants and international brands is gradually narrowing. In the future, with the acceleration of the localization process of key downstream industries, the industrial silicone sealant industry will usher in a broader development space, and the market share of domestic products is expected to further increase.