The silicon metal market has shown lucrative growth in the last few years owing to its extensive use in aluminum alloys. Silicon metal is primarily used as an additive for aluminum to enhance fluidity and casting abilities. It reduces the melting point and improves ductility and prevent oxidation of aluminum. The growing demand for aluminum alloys from automotive, aerospace and construction industries has catalyzed the silicon metal market.
The Global Silicon Metal Market is expected to be valued at USD 7,600 Bn by 2024 and USD 10.50 Bn by 2031 , growing at a compound annual growth rate ( CAGR) of 4.7% from 2024 to 2031.
Key Takeaways
Key players operating in the silicon metal market are Elkem ASA, RIMA Group, Rusal, Ferroglobe, Sinova Global Inc, Mississippi Silicon, Minasligas, LIASA , Wacker Chemie AG, PCC SE, Zhejiang Kaihua Yuantong Silicon Industry Co. Ltd, Hoshine Silicon Industry Co. Ltd, Anyang Huatuo Metallurgy, Shin-Etsu Chemical Co. Ltd, Zhongyi Metalware (Tianjin) Co., Ltd, Otto Chemie Pvt Ltd and Phoolchand Bhagatsing, Anyang Dingsheng Silicon Industry Co., Ltd, Wasia Group, and Hensfate Metal Co., Ltd.
Growing Silicon Metal Market Demand for applications in aluminum castings, polysilicon and electronics have augmented the demand in recent years. Technological advancements to enhance production process and upgrade metallurgical-grade silicon to semiconductor-grade silicon have provided thrust to the silicon metal market.
Market Trends
Use of scrap-based production method is gathering momentum in the global silicon metal industry. Reliance on scrap reduces cost, energy usage and carbon footprint in the production process. Growing electric vehicle sales worldwide is opening new avenues for silicon metal manufacturers. Silicon metal is a key raw material for lithium-ion batteries which power EVs. Its increasing use in anodes will drive future opportunities. Another major trend is industry’s focus towards developing new silicon alloys to produce superior aluminum castings and reduce weight of components.
Market Opportunities
Recycling methods for metallurgical grade silicon can potentially disrupt the recycling process and reduce wastage. Collaborative research between material science and silicon metal companies will help utilize silicon waste streams efficiently. Expanding polysilicon capacity to meet growing solar PV demand offers lucrative gains for silicon metal suppliers. Long term agreements with polysilicon makers ensure steady business opportunities.
Impact of COVID-19 on Silicon Metal Market
The COVID-19 pandemic has impacted the growth of silicon metal market. During the initial stages of the pandemic, supply chain disruption impacted raw material availability which resulted in reduced production levels across end use industries like aluminum alloys, semiconductors, photovoltaic cells, etc. This had a short term negative impact on market demand.
However, post lockdowns were lifted, with economic activities resuming, the demand for silicon metal started increasing steadily as end use industries ramped up production levels to pre-COVID levels. Additionally, the pandemic also showcased the importance of technologies like semiconductors which play a vital role in healthcare, automation, 5G networks rollout, etc. This has boosted investments in semiconductor fabrication plants fueling demand for specialty grade silicon metal.
Looking ahead, the pandemic has highlighted the need for robust supply chains to tackle future disruptions which may drive companies to diversify suppliers and explore localized or regional production capabilities to mitigate concentration risks. More investments are also expected in digital infrastructure offering opportunities for silicon metal demand to grow steadily in the long run.
Geographically, Asia Pacific accounts for the major share of global silicon metal market in terms of value. This is mainly attributed to dominant manufacturing bases of end use industries like aluminum, semiconductors located in China, Taiwan, South Korea and countries like Japan.
China alone contributes over 40% share to the regional market owing to presence of world’s largest aluminum smelters and semiconductor foundries. Europe ranks second in terms of value share supported by recovery in automotive & construction industries in Germany, France etc. The United States represents the fastest growing regional market driven by new capacity additions in solar PV and semiconductor fabrication facilities in the country in line with renewable energy goals and onshoring trends.
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