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The silicon metal market size is forecast to increase by USD 2.03 billion, at a CAGR of 5.01% between 2022 and 2027 with the market. Market growth is influenced by several factors, including the rising demand for aluminum-silicon alloys driven by their versatile applications across various sectors. Additionally, there is an increased utilization of polycrystalline silicon, particularly in the electronics and solar energy industries, owing to its exceptional electrical properties. Furthermore, they find diverse applications across industries such as automotive, construction, and healthcare, contributing to market expansion. With their unique properties like flexibility, durability, and heat resistance, silicones are increasingly preferred for applications ranging from sealants and adhesives to medical implants and personal care products. These factors collectively underscore a promising outlook for the silicon market, with sustained growth anticipated as demand continues to rise across a spectrum of industries, driven by ongoing technological advancements and evolving consumer preferences.
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In the market, disruptions in supply chain disruptions have sparked interest in alternative production methods. Industries like recyclable pulp in the paper and pulp industry heavily rely on silicon metal. Its use in propylene oxide production via the HPPO process highlights its significance despite associated health hazards. Moreover, global hydrogen peroxide demand impacts silicon metal consumption. In the healthcare sector, silicon metal's antiseptic properties aid in treating skin cuts, dead skin, bruises, and infection, even extending to oral infections as a component in mouth rinse. However, caution is advised due to potential mouth irritation and adverse reactions in mucus membranes.
This market report extensively covers market segmentation by Type (metallurgy grade and chemical grade), Application (aluminum alloys, semiconductors, solar panels, stainless steel, and others), and Geography (APAC, North America, Europe, South America, and Middle East and Africa). Our report examines historic data from 2017 to 2021, besides analyzing the current market scenario.
The market share growth by the metallurgy grade segment will be significant during the forecast period. The metallurgical grade is one of the types of silicon metal used in the market. Metallurgical-grade silicon metal is a high-purity silicon metal used in the production of aluminum alloys and other types of alloys. This type of silicon metal has a purity level of approximately 98-99% and is suitable for use in metallurgical applications. Demand for metallurgical silicon metal is primarily driven by increasing demand for aluminum alloys in the automotive and aerospace industries. The use of aluminum alloys in these industries offers several benefits such as improved fuel efficiency and reduced emissions.
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The metallurgy grade segment was valued at USD 3.18 billion in 2017. Metallurgical silicon metal is also used to make other alloys such as magnesium and titanium alloys used in various industries such as construction and aerospace. Besides its use in metallurgical applications, metallurgical silicon metal is also used in the production of silicone compounds used in various industries such as healthcare, personal care, and electronics. The high purity of metal silicon metal makes it suitable for use in applications where purity is of the utmost importance. Therefore, this segment is expected to grow in the market during the forecast period.
Based on the application, the aluminum alloys segment holds the largest market share. Aluminum-silicon alloys serve various industries, including casting, rapid solidification, and powder metallurgy. Silumin, renowned for its corrosion resistance, excels in humid conditions. Silicon's addition to aluminum reduces viscosity when molten, making it an economical casting option. Its exceptional castability produces stronger finished castings compared to more challenging alloys. In the automotive sector, lightweight aluminum alloys replace steel and cast iron to reduce fuel consumption and environmental impact. These versatile alloys are widely used in construction, marine, aviation, packaging, aerospace, and electrical industries due to their lightweight and corrosion-resistant properties.
APAC is estimated to contribute 43% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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APAC is expected to be the fastest-growing regional market, mainly due to the high demand for aluminum alloys from the automotive industry. Moreover, the demand in the Asia-Pacific region will be driven by common factors such as optimistic economic growth, the ready availability of raw materials, cheap labor, and electricity costs. Additionally, the region is witnessing the emergence of government policies aimed at increasing domestic energy production through solar panels. The rapid growth of the construction sector in developing countries such as India and China drives the demand for silicon metal, further supporting the expansion of the market in the Asia-Pacific region. South Korea, China, and Japan are other major players due to their presence in the semiconductor manufacturing sector.
In the market, recent disruptions in supply chains have prompted a closer look at alternative production methods, particularly in industries like the paper and pulp industry where silicon metal is essential for propylene oxide production using the HPPO process. While traditional applications in the electronic industry continue, new opportunities arise in water treatment, where they are used as a potent bleaching agent. Its diverse forms, from diluted solutions to concentrated forms, address various needs, although concerns persist regarding effluent color and odor. Additionally, its antiseptic properties find applications in the healthcare industry, aiding in wound healing and serving as a disinfectant products in public areas.
Silicon metal is a lustrous, grey-colored semi-conductive metal that is used in the production of steel, solar cells, and microchips. Metallurgical-grade silicon is used in steelmaking and as an alloying agent in aluminum casting. Aluminum-silicon car parts are lightweight and stronger than components that are cast from pure aluminum. Automotive parts such as engine blocks and tire rims are some of the most common aluminum-silicon cast parts. Almost half of the metallurgical silicon is used by the chemical industry to make fumed silica, silanes, and silicone.
The burgeoning demand for aluminum-silicon alloys is a key driver of growth in the market. These alloys are experiencing heightened demand, particularly from the automotive and transportation sectors. They are favored for their unique blend of characteristics, offering the ability to cast intricate shapes while maintaining a favorable strength-to-weight ratio. This grants them advantages over cast iron, including lower density and improved mechanical properties.
Moreover, aluminum-silicon alloys find primary use in casting, as well as in the production of sheet metal and welding/brazing wire. Notably, their castings exhibit superior mechanical properties compared to higher-strength, less-castable alloys, thanks to their role in enhancing fluidity, reducing shrinkage, and ensuring weldability. Pistons, featuring low thermal expansion coefficients and hard particles for wear resistance, are expected to fuel market growth in the forecast period.
The growth of the market is notably influenced by emerging market investment prospects. Increasing demand for silicon metal in emerging markets opens doors for investors in companies engaged in its manufacturing and distribution. Companies focusing on efficient and sustainable production methods, aligning with tightening environmental regulations, are particularly appealing to investors.
Additionally, technological advancements offer investment opportunities, with companies innovating in production processes, such as plasma technology, presenting attractive prospects. However, it's vital to acknowledge that, like all investments, market investments carry risks, necessitating thorough research and analysis. These expanding investment opportunities are expected to drive market growth in the forecast period.
The market faces growth challenges due to its high production costs. Raw materials like quartz and carbon, similar to those for ferrosilicon, require exceptional purity levels for silicon production. Impurities, particularly iron, are problematic once they enter the furnace, significantly impacting their production. High-quality quartz, with lower iron content than that used for ferrosilicon, is essential. Beyond chemical purity, various physical parameters also affect furnace performance and efficiency. Consequently, the supply of premium quartz becomes a strategic factor in their production.
Further, traditional charcoal use has downsides, including high labor costs and environmental concerns. Many countries, such as China, India, and Mexico, are shifting to low-ash mineral coal as labor costs rise. These factors together are expected to drive up production costs, posing a hindrance to its adoption in the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Anyang Wanhua Metal Material Co. Ltd., Dow Inc., Elkem ASA, Ferroglobe Plc, Henan Star Metallurgy Material Co. Ltd., Hoshine Silicon Industry Co. Ltd., Ligas de Aluminio S.A., Minasligas, Mississippi Silicon, Ningxia Darshan Silicon Industry Co. Ltd., PCC SE, RIMA INDUSTRIAL, RW silicium GmbH, Shin Etsu Chemical Co. Ltd., Simcoa Operations Pty Ltd., United Company RUSAL, Wacker Chemie AG, Westbrook Resources Ltd., Wynca Group, and Zhejiang Kaihua Yuantong Silicon Industry Co. Ltd.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
The market is witnessing substantial growth across various sectors due to its versatile applications. In the commercial buildings and public stoppages like airports and railway platforms, silicon-based sanitizers play a vital role in disinfection, utilizing compounds such as peroxyacetic acid, isopropyl alcohol, and chlorine dioxide recommended by the Center for Biocide Chemistries to combat viruses, bacteria, and other microorganisms. Additionally, in the wastewater treatment segment, they acts as an effective oxidizing agent, catalyzing the breakdown of pollutants and pathogens. Moreover, in the food processing sector, silicon-based bleaching agents enhance the whiteness and clarity of processed foods, while in the medical sector, it finds applications in disinfectant goods and hygiene products, ensuring high standards of cleanliness and safety.
Further, the market is witnessing robust growth driven by its diverse applications across various industries. In the water treatment industry, silicon in its catalyzed form aids in combating water-borne sickness by facilitating chemical oxidation to remove contaminants, meeting stringent guidelines for water quality. Additionally, in the food and beverage processing sector, silicon-based bleaching substances enhance the appearance of processed food and packaged edibles, ensuring biological degradability and maintaining chemical properties. Moreover, in the cosmetics and personal care industry, silicon is utilized in hair care formulations, skincare creams, and lotions, meeting the demands of oral hygiene products like mouthwash while contributing to volume growth and revenue growth in the market.
Market Scope |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.01% |
Market growth 2023-2027 |
USD 2.03 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.54 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 43% |
Key countries |
US, China, India, Japan, and Russia |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Anyang Wanhua Metal Material Co. Ltd., Dow Inc., Elkem ASA, Ferroglobe Plc, Henan Star Metallurgy Material Co. Ltd., Hoshine Silicon Industry Co. Ltd., Ligas de Aluminio S.A., Minasligas, Mississippi Silicon, Ningxia Darshan Silicon Industry Co. Ltd., PCC SE, RIMA INDUSTRIAL, RW silicium GmbH, Shin Etsu Chemical Co. Ltd., Simcoa Operations Pty Ltd., United Company RUSAL, Wacker Chemie AG, Westbrook Resources Ltd., Wynca Group, and Zhejiang Kaihua Yuantong Silicon Industry Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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