The silicon metal market is expected to grow at a CAGR of 5.5% during the forecast period of 2023 to 2030. Using quartzite, a naturally occurring material that includes silicon dioxide, silicon metal is produced. In electric submerged arc furnaces, quartzite is heated to around 2000°C throughout the fabrication process. Likewise, quartzite is extracted from a neighboring quarry. This silicon metal is referred to as MicroSilica or silica slag. Silicon metal can be used for a variety of purposes, and its qualities make it a valuable commodity in manufacturing. Under controlled conditions, silicon metal is a superb insulator, providing the required conductivity efficiency. It is utilized in semiconductors, solar panels, printed circuit boards, transistors, and other electrical devices.
Extensive Utilisation of Silicon Metal
Silicon metal serves as the basis for numerous products; hence, both the industrial and consumer sectors rely significantly on it. The vast majority of silicon metal produced today is used to manufacture aluminum alloys, accounting for the majority of overall output. Aluminum alloys are used to manufacture both automobiles and aircraft. Silicon boosts the alloy's strength, castability, and brittleness, allowing it to be used for a broader range of high-performance components. The greater use of aluminum-based materials as replacements for heavier steel or iron components in automotive applications has led to a significant rise in silicon demand in the transportation industry. As a result, market growth is anticipated to quicken throughout the forecast period.
In addition, the availability of a sizable aluminum alloy production base will boost the silicon metal market's expansion rate. Moreover, the increasing solar and semiconductor industries will contribute to market value expansion. In controlled settings, silicon metal is an excellent insulator and delivers the requisite conductivity. The market is developing because of the increasing concentration of defense and aerospace elastomers business owners and other industry specialists working to improve silicon metal-enabled technologies. The lightweight aircraft trend, which will continue to impact business growth during the forecast period, is what is driving the market growth of the silicon metal sector. The rise of the building and construction industry is also anticipated to contribute to the market's growth.
Demand Growth in the Automotive Industry
Automobile makers are concentrating on producing fuel-efficient vehicles and reducing greenhouse gas emissions. Due to its resistance to corrosion, low wear rates, and low thermal expansion, aluminum-silicon alloy is ideally suited to fulfill these requirements. The OICA predicts that automotive production will reach 80,145,988 units in 2021, a 3% increase from 2020 levels. To lower the amount of electricity required to power an electric car's engine, vehicle designs must become much lighter. According to the IEA's New Policies Scenario, global sales of electric vehicles would exceed 125 million by 2030 (excluding two- and three-wheeled vehicles). Consequently, the rising demand for electric vehicles and the expanding manufacturing of automobiles will increase the demand for aluminum-silicon alloys, which will in turn increase the demand for silicon metals.
Innovations and Increasing Manufacturer Strategies to Open Opportunities
During the forecast period of 2023 to 2030, market participants will have access to lucrative prospects as a result of the numerous advancements made by market participants and the substantial investments made in research and development to enhance product applications. In addition, the increased focus of manufacturers on sustainability and cost-effectiveness will push innovators to create more inventive and cost-effective ways to generate silicon, which will contribute to the market's future expansion.
High Prices to Constrain Market Growth
The SAF's energy requirements consume a considerable portion of its working capital. In addition, labor and transportation costs increase production costs. Due to the energy-intensive purification process required to generate silicon metal, this material is extremely energy-intensive. Coal, quartz, natural gas or oil, as well as electrodes, are required for the synthesis of silicon metal. Therefore, the expansion of the silicon metal market is restrained by silicon metal's high production costs.
Environment Regulation to Limit the Market for Silicon Metal Market
China's energy consumption restrictions have resulted in a decrease in silicon metal production, which has led to a decrease in silicon output. From January to September 2021, the output of silicon metal climbed by 39% on an annual basis. Despite this, it is undeniable that Q4 output decreased due to the low power supply. Therefore, this aspect will hinder the growth rate of the silicon metal market.
Metallurgical Grade Segment Dominated the Market by Product
The worldwide silicon metal market is segmented by product type into metallurgical grade silicon metal and chemical grade silicon metal. Silicon metal's metallurgical grade is mostly generated the largest revenues in the automotive and construction industries in 2021, therefore, dominating the product segment.
Global Market for Silicon Metal, by Application
In 2021, aluminum dominated the market and accounted for a greater than 40.0% revenue share. The product is used in the manufacturing of aluminum as a fortifier and alloying agent. As a result of its lightweight capacity to minimize emissions, the tough pollution requirements imposed on automakers across the globe are projected to increase the market for automotive aluminum. In the next years, this pressure on automakers will certainly drive the segment. In addition to the creation of aluminum alloys, a major portion of the overall silicon metal output is used to produce silicones. Silicones are synthetic polymers utilized in diverse end-use industries, including construction and building, automotive and transportation, and healthcare. The rising need for silicones, particularly in developing economies, is anticipated to contribute to the segment's expansion. During the forecast period 2023 to 2030, the solar and semiconductor application segment is projected to record the highest revenue CAGR of 5.5%. Silicon metal is used to produce polycrystalline silicon, which is a key raw material for the manufacturing of photovoltaic cells in the solar industry and semiconductors in the electronics sector.
APAC Remains as the Global Leader
In 2021, Asia Pacific dominated the market and accounted for 40% of the revenue. This substantial part is attributable to China's extensive aluminum and silicone production facilities. In addition, China is the world's largest manufacturer of silicon metal. The Chinese market is oversupplied, and as a result, China exports a significant amount of its output. In recent years, however, the proportion of exports has decreased due to robust demand from domestic sectors. Leading electric car manufacturers in China include Tesla, BYD Co., and Nio Inc. The Chinese government intends to have at least 5,000 fuel-cell electric vehicles by 2025, and one million by 2030. During the projection period, the government's support of electric, hybrid, and fuel-cell electric vehicles is anticipated to drive the market. The increasing demand for electric vehicles in the United States drives the markets for aluminum alloys, silicon adhesives, and semiconductors. In terms of semiconductor manufacturing and consumption, China is the largest market in the Asia-Pacific area. It is an ideal site for investments in the manufacturing of mobile phones, computers, and other electronic devices.
In contrast to other regions, where aluminum production is the major end-use industry for the commodity, the silicon industry dominates the silicon metal market in Europe. Europe is one of the leading producers of silicones, and as a result, European silicone manufacturers have a substantial demand for the product. Revenue in North America is anticipated to grow at a CAGR of 3.6% during the forecast period. The epidemic has also badly impacted the aluminum industry in the region, and as a result, the market for silicon metal in the country has been significantly impacted. Long-term, the increasing adoption of electric vehicles is anticipated to be the primary market driver in the region.
Key Companies to Focus on Emerging Opportunities and Cost to Increase Margins
It is anticipated that market participants will pursue the solar business to enhance revenues. As solar energy delivers grid parity and ease of installation, polysilicon production is anticipated to become the energy of choice worldwide. However, fluctuating silicon pricing and decreased margins as a result of an oversupply provide a substantial obstacle for the suppliers. Hoshine Silicon Industry Co. Ltd, Ferroglobe, Elkem, Dow, and Wacker Chem. AG is one of the market leaders in the silicon metal industry.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Silicon Metal market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
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| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
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Region Segment (2022-2032; US$ Million)
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Key questions answered in this report
