April 13, 2024

The global silicon metal market is witnessing significant growth

Silicon Metal Market Set To Expand

The global silicon metal market is witnessing significant growth driven by advancements in the semiconductor industry. Silicon metal finds wide applications in the production of aluminium alloys, semiconductors, solar photovoltaic cells, and chemicals. It has emerged as one of the most important industrial metals owing to its unique properties such as resistance to corrosion and high ability to conduct electricity.

The Global silicon metal market is estimated to be valued at US$ 7.67 Bn in 2024 and is expected to exhibit a CAGR of 6.9% over the forecast period 2024 to 2030. Silicon metal or crystalline silicon is mainly used as an upstream material in the aluminium, chemical, and semiconductor industries. It acts as a reducing agent in smelting processes and as a raw material to produce silicones, silanes, and polysilanes. Additionally, the growing adoption of solar panels and increasing battery storage demand is also boosting the silicon metal consumption.

Key Takeaways
Key players operating in the silicon metal market are Lumiere Cycling, Castelli Cycling, Giro Sport Design, Champion System, Conquest Cycle Wear Ltd., Assos Of Switzerland Sa, Cuore Of Switzerland Inc., Endura Limited, Tewsn Cycling Gear Limited, Isadore Apparel, Rapha Racing Limited, 2xu Pty Ltd., Maap, Attaquer Pty Ltd., Blacksheep, Pas Normal Studios, Santini Maglificio Sportivo S.R.L. P.I. – C.F., Capo, and Pedla.

The global silicon metal market is witnessing high demand due to the increasing applications of aluminium alloys and semiconductors in various end-use industries. Silicon metal finds usage in a wide range of applications including the manufacturing of polysilicon, siloxanes, and pyrosilicon for the solar industry. Additionally, the rapid growth of the automotive and electronics industry is positively influencing the market growth.

Geographically, the Asia Pacific region dominates the global silicon metal market and is expected to continue its dominance during the forecast period. This large share is attributed to the rising demand from China, India, Japan and other emerging economies of the region. Additionally, supportive government policies and increasing foreign investments are also promoting the market growth in the Asia Pacific region.

Market Key Trends
One of the key trends gaining traction in the Silicon Metal Market Size is the increasing focus on green metallurgical-grade silicon production methods. Metallurgical-grade silicon is conventionally produced through carbothermic reduction using coal or coke. However, this process leads to significant carbon dioxide emissions. Several manufacturers are now developing cleaner methods involving direct reduction of quartz or wood to produce metallurgical-grade silicon with lower carbon footprint. This shift towards greener production processes is likely to define the future growth path of the silicon metal market.

Porter’s Analysis
Threat of new entrants: The silicon metal market requires huge capital investments for setting up plants and maintaining workforce. Also, the market has well-established players like Lumiere Cycling, Castelli Cycling, Giro Sport Design. However, emerging technologies for silicon metal production can lower entry barriers over the forecast period.

Bargaining power of buyers: Buyers have moderate bargaining power as silicon metal has few substitutes and switching costs are high for buyers. However, established buyers can negotiate lower prices.

Bargaining power of suppliers: A few suppliers dominate the silicon metal market. Suppliers have considerable power as switching costs are high for buyers and supply of quartz, a key raw material, is limited. This inflates suppliers’ bargaining power.

Threat of new substitutes: There exist few substitutes for silicon metal in aluminum alloys and electronics industry. Substitutes require huge R&D investments, limiting threats from substitution.

Competitive rivalry: The global silicon metal market is concentrated with top players accounting for major shares. Intense competition exists among players on pricing and product quality.

Geographical regions of concentration:
Asia Pacific dominates the global silicon metal market in terms of value. China accounts for over 60% of global silicon metal production. Other major producers include India, Norway, Brazil, and Russia.

Fastest growing region:
North America is anticipated to be the fastest growing regional market for silicon metal between 2024-2030. This is attributed to increasing demand from the aluminum alloys and solar photovoltaic industries in the US and Canada. Supportive government policies towards green energy adoption will further propel demand.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it