Silicon metal is an important commodity material used in production of aluminium alloys, semiconductors, solar panels, and chemicals. It is primarily produced through reduction of quartz with carbon at high temperatures in submerged arc furnaces. Silicone metal finds wide usage as a deoxidizing and alloying agent in aluminium production. Growing demand for aluminium from end-use industries such as transportation and construction has been positively impacting the silicon metal market. Aluminium alloys require 2-15% silicon content to enhance mechanical properties and corrosion resistance.
The global silicon metal market is estimated to be valued at US$ 6.65 Bn in 2023 and is expected to exhibit a CAGR of 6.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The heading opportunity of growing demand from aluminium alloys industry is expected to drive the silicon metal market over the forecast period. Aluminium has been the preferred metal for lightweight vehicles due to its high strength-to-weight ratio and corrosion resistance. Stringent fuel efficiency norms have compelled automakers to increasingly use aluminium alloys in passenger cars and commercial vehicles. Similarly, aluminium finds wide application in railway wagons, aircraft components, buildings and infrastructure due to properties such as durability and recyclability. Growing end-use industries will augment the consumption of aluminium alloys and subsequently boost demand for silicon as an alloying element. Additionally, expanding solar photovoltaics industry is another factor favoring market growth. High purity silicon is used as the core material in solar cells for absorption of sunlight and generation of electricity.
Segment Analysis
The global silicon metal market is dominated by alloys and compounds segment. Silicon metal is widely used in alloys and compounds sub-segment for applications such as aluminum alloying, refractories etc. Alloys and compounds sub-segment held around 70% share of the overall silicon metal market in 2022 owing to widespread use of silicon metal in applications such as aluminum alloying where it is used to enhance fluidity.
PEST Analysis
Political: Trade policies and government regulations influences production and pricing of silicon metal. Duties imposed by local governments on importing raw materials impacts overall cost structure.
Economic: Growth of end-use industries such as aluminum, chemicals drives demand for silicon metal. Changes in GDP, per capita income impacts manufacturing activity and consumption.
Social: Rising living standards and disposable income fuels demand for electronic products using semiconductors thereby boosting silicon usage. Safety and sustainability trends prompts development of greener production technologies.
Technological: Research on new applications, and production process innovations to reduce costs and enhance efficiencies. Application of big data and analytics to optimize operations.
Key Takeaways
The Global Silicon Metal Market Growth is expected to witness high growth over the forecast period of 2023 to 2030.
Regionally, Asia Pacific leads with the highest consumption and is expected to continue its dominance owing to presence of large manufacturing bases in countries such as China and India. China accounts for more than 50% of global silicon metal demand led by massive aluminum and chemicals industries in the country.
Key players operating in the silicon metal market are Olympus Corporation, KARL STORZ SE & Co. KG, Richard Wolf GmbH, Stryker Corporation, Medtronic plc, Ethicon (Johnson & Johnson), Braun Melsungen AG, Boston Scientific Corporation, Cook Medical, ROCAMED, Maxer Endoscopy GmbH, Vimex Endoscopy, PENTAX Medical (HOYA Corporation), Hunan Handlike Minimally Invasive Surgery Co., Ltd., Optimed Medizinische Instrumente GmbH. Key players are investing in new production plants and expanding their global footprint to cater growing consumer demand. Players are also focusing on reducing manufacturing costs and developing new applications through extensive R&D.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it