The silicon metal is manufactured using quartzite, a naturally occurring mineral that contains silicon dioxide. In the manufacturing process, quartzite is heated at around 2000°C in electric submerged arc furnaces. Quartzite is also mined from a nearby quarry. The resulting silicon metal is known as MicroSilica or silica slag. A wide range of applications for silicon metal are possible, and its properties make it a useful commodity in manufacturing. Silicon metal is an excellent insulator, providing the appropriate conductive efficiency under controlled specifications. It is used in semiconductors, solar panels, PCBs, transistors, and other electrical products
The global Silicon Metal market was valued at US$ 6.1 Bn in 2020 and is forecast to reach a value of US$ 8.2 Bn by 2028 at a CAGR of 4.4% between 2021 and 2028.
North America held dominant position in the global Silicon Metal market in 2020, accounting for 42.5% share in terms of volume, followed by Europe and Asia Pacific, respectively.
Figure 1. Global Silicon Metal Market Volume Share (%), By Region, 2021
Growing demand for silicon from solar industry is a prime factor driving growth of the silicon metal market. Silicon is one of the common semiconductor material widely used in solar cells and it account for around 95% of all modules marketed today. The cell made up of silicon offer high efficiency, are low cost, and have extended lifetime. The market is also expected to witness growth on the account of increasing demand for renewables source of energy worldwide.
Increasing demand from automotive industry is again expected to foster growth of the silicon metal market. Due to its corrosion resistance, low wear rates, and low thermal expansion, aluminum-silicon alloy are increasingly used in automobile production. Automaker are focussing on lowering the weight of automobiles, to reduce fuel consumption which is creating high demand for silicon metals.
|Base Year:||2021||Market Size in 2021:||US$ 6.1 Bn|
|Historical Data for:||2017 to 2020||Forecast Period:||2022 to 2028|
|Forecast Period 2022 to 2028 CAGR:||4.4%||2028 Value Projection:||US$ 8.2 Bn|
Ferroglobe PLC, Elkem, Liasa, Mississipi Silicon, RIMA Industrial, Rusal, Zhejiang Kaihua Yuantong Silicon Industry Co. Ltd, PCC SE, Hoshine Silicon Industry Co. Ltd, Anyang Huatuo Metallurgy, Minasligas, Wacker Chemie AG, Shin-Etsu Chemical Co. Ltd, and Dow
|Restraints & Challenges:||
Figure 2. Global Silicone Metal Market Volume Share (%), By Product Type, 2021
Shortage of silicon metal due to its high usage in production of semiconductor materials is significantly impacting the automotive industry. For instance, the semiconductor shortage, which was supposed to lessen by mid-2022, is expected to worsen. Because Russia and Ukraine are both suppliers of the components used in semiconductor manufacturing, Russia's attack on Ukraine will put additional strain on the industry globally, and it will result in manufacturing constraints, causing in supply shortages and price hikes for semiconductors.
Lower production of silicon metal in China because China has been limiting the power usage which is declining the production of silicon in the country. For instance, according to the Coherent Market Insights, from January to September 2021, silicon metal output grew by 39% year-on-year. However, the insufficient power supply certainly resulted in a drop in the output in Q4.
Growing focus of key manufacturer on the circular economy, sustainability, and cost-efficiency is expected to push the creators to look for more innovative and cost-efficient ways of silicon production. According to the Coherent Market Insights, the European Commission financed the SisAl Pilot project, Innovative Pilot, for low-impact silicon manufacturing, utilizing secondary aluminum and silicon raw materials under the H2020 Funding Program, subject CE-SC5-07-2018-2019-2020.
Increasing penetration of electric vehicle and favourable policies for EVs is expected to provide significant growth opportunities to the market of silicon metal. According to the International Energy Agency, overall global electric car1 stock reached 10 Billion in 2020, with battery electric vehicles (BEVs) accounting for two-thirds of the world’s electric car fleet
Market Trends/Key Takeaways:
Increasing production of automobile is expected to boost the sale of silicon metal. According to OICA (Organisation Internationale des Constructeurs d'Automobiles), automobile production reached 80,145,988 units in 2021, increasing by 3% from 2020. This is expected to fuel demand for aluminum-silicon alloys, which in turn will favour the market growth.
Increasing production capacity by key players to cater to growing demand for silicon is expected to propel market growth. For instance, in May 2022, Wacker Chemie AG has announced that it is preparing to expand its production capacity for silicon metal at Holla, Norway.
Silicon metal can withstand temperature changes during the growing process. In addition, it has low gas evolution and excellent thermal conductivity. Additionally, it is easily machined, and is very strong.
Increasing production of automobile and growing installation of solar PV due to increasing demand for renewable source of energy are major factor driving growth of the silicon metal market. For instance, in 2021, the European Union's 27 member states connected around 25.9 GW of additional solar PV capacity to their networks, a 34% increase in addition to 19.3 GW in the previous year.
On the other hand, lower silicon production in China and impact of Covid-19 worldwide is expected to hinder the market growth.
Key features of the study: