1. Supply side: China has become the world's largest producer of functional silane, and the industry is accelerating its transfer to China. Since the economic crisis in 2008, due to factors such as cost pressure, industrial support, environmental protection supervision, etc., overseas functional silane manufacturers have not had large-scale capacity expansion. At present, there are only a small number of functional silane suppliers in the United States, and the output in Europe, Japan, South Korea, India and Southeast Asia is relatively small, and the supply capacity in overseas markets is limited. At the same time, developed countries such as Europe and the United States have a large market demand, and the long-standing supply and demand contradiction overseas provides a target market for Chinese manufacturers to continue to expand their production capacity. Due to strict environmental protection review, European and American manufacturers are limited in their ability to expand production in the future. With the advantages of raw materials and cost, the industry may be further concentrated in China in the future. At the same time, with the continuous implementation of the "dual carbon policy", domestic backward production capacity is gradually emerging. Clearly, the concentration of domestic industries will also be further improved.

2. Demand side: From the perspective of application fields, the main driving force for the growth of functional silane consumption comes from the introduction and development of silane products in emerging industrial applications: According to SAGSI's forecast, in the next five years, traditional consumption fields such as rubber processing The demand for functional silanes, adhesives, coatings and plastics processing still constitutes the majority of the consumption demand for functional silanes and maintains steady growth; however, driven by the demand from new energy industries such as wind power, the consumption of silanes in the composite material sector will increase at a faster rate. speed growth. From the perspective of regional distribution, the main driving force for the growth of functional silane consumption in the future will be driven by demand from emerging economies: According to WACKER’s annual report, per capita silicone consumption is positively correlated with per capita GDP. The demand for silicone is about 2kg, while the per capita consumption of silicone in emerging market countries such as China is less than 1kg, and the consumer market is in the middle stage, and the added value of consumer products is not high. Compared with the per capita consumption and consumption level of developed countries, the demand potential of emerging countries such as China is very sufficient. In the future, with the gradual implementation of green tire regulations, the gradual maturity of the new energy vehicle market, and the continuous development of emerging industries such as composite materials and surface treatment in China, the demand for functional silanes in my country will grow rapidly in the future.