Silicon Metal Market

The global silicon metal market size was valued at $6.3 billion in 2019, and is projected to reach $8.9 billion by 2027, growing at a CAGR of 5.5% from 2020 to 2027.

Silicon metal is purified form of silica that is produced by the thermal reduction of quartz in Submerged Arc Furnace (SAF), along with a reducing agent. It is also known as metal silicon or industrial silicon. Its chemical composition mainly consists of iron, aluminum, and calcium. According to the content of Fe, Al, and Ca in metallic silicon, it can be divided into different grades such as 553, 441, 411, 421, 3303, and so on.

Silicon metal is the base material for so many products; hence, it has an important role in industrial and consumer sectors. Presently, the use of silicon metal for producing aluminum alloys holds the largest share in the total silicon metal production. Aluminum alloys are used in producing automotive components and aerospace products. Silicon improves the strength, castability, and brittleness of the alloy; thereby, enhancing the alloy’s use for an increasing range of high-performance parts. The demand for silicon in the transport sector has grown significantly as a result of increase in use of aluminum-based parts as replacements for heavier steel or iron parts in automotive applications. Further, increasing versatility of silicones, a key application of silicon metal, also drives the demand for silicon metal. Silicon metal is used as the base material for silicone that has a diversified range of applications such as sealants, lubricants, gaskets & seals, food additives, and cosmetics. Polysilicon, a product of silicon metal, is the base material for solar cells and semiconductor wafers.

Presently, the high cost of production of silicon metal acts as a limiting factor in the silicon metal market growth. A huge portion of working capital is consumed by the energy requirements of the SAF. In addition, the cost of production is high due to the labor costs and transportation. Producing silicon metal is extremely energy intensive due to the necessary purification process. Production of silicon metal requires feedstock such as coal, quartz, natural gas/oil, and electrodes. Hence, the entry of new players in the silicon metal value chain is low. 

However, silicon metal plays an important role in the global manufacturing chain and increasing prices of silicon metal are expected to have little effect over the silicon metal market growth during the forecast period. Rise in use of silicon metal in solar panel production as well as the use of silicon in the production of Silicon-lithium-ion batteries as an anode has the potential to offer fresh opportunities for the growth of the silicon metal market during the forecast period. 

The global silicon market is segmented on the basis of product type and application. Based on product type, the market is divided into metallurgical and chemical. The applications of silicon metal include aluminum alloys, silicone, semiconductors, and others.

Some of the major players profiled in the report include Anyang Wanhua Metal Material Co. Ltd., Dow Inc., Elkem ASA, Ferroglobe PLC, Henan ALOY New Material Co. Ltd., Hoshine Silicon Industry Co. Ltd., Liasa, Mississippi Silicon LLC, Shin-Etsu Chemical Co. Ltd., and United Company RUSAL. 

Global Silicon Metal Market, By Region

Asia-Pacific accounted for the highest market share in 2019 in the global silicon metal market. In Asia-Pacific, China is the leader in the smelting industry and uses silicon metal in its steel & aluminum alloy production. Further, the presence of well-established automotive and semiconductor industry in India, Japan, and China is one of the underlying factors responsible for the highest market share.

Global Silicon Metal Market, By Product type

On the basis of the product type, the global silicon metal market is divided into metallurgical and chemical grade silicon metal. The metallurgical grade of silicon metal is majorly used in the automotive and construction industries.

Global Silicon Metal Market, By Application

On the basis of application, the aluminum alloy segment held the largest silicon metal market share in 2019. Silicon metal is added to aluminum to alter the structural characteristics of aluminum. Alloy made from silicon and aluminum is called as Silumin and is used in the automotive industry to produce light-weight vehicle components, which were traditionally made from steel or cast iron.

COVID-19 Scenario Analysis:

• The global silicon metal market was moderately impacted by the outbreak of COVID-19 across the globe. 
• The abrupt shutdown of operations in major economies severely impacted economic growth, thus, changing consumer spending patterns. 
• The COVID-19 led to shortage of workforce in the mining industry, which led to a deficit of supply of quartz – the primary raw material for silicon metal production.
• On the demand side, as a containment measure, the global manufacturing sector that included the automotive and infrastructure market had to be shut down for longer period which lowered the demand for metals and alloys. 
• Similar to the manufacturing sector, the global construction activities faced delays in execution due to non-availability of workforce and resources. Large number of construction projects are on hold or delayed for 6 months. Such changes negatively impacted the demand for aluminum alloy-based structural supports. 
• China, the epicenter of the pandemic had to shut down its electronic OEMs and contract manufacturing, and focus on essential products. In Asia-Pacific, China is the largest producer and consumer of silicon metal. Hence, the disruption caused by COVID-19 plummeted the silicon metal production. 
• The COVID-19 pandemic disrupted the electronics industry and the entire supply chain, creating shortage of raw material supply. 
• Silicone, a major application area of silicon metal, also faced similar demand & supply issues due to the pandemic. 

Key Benefits For Stakeholders

• The global silicon metal market analysis covers in-depth information of major industry participants.
• Porter’s five forces analysis helps analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
• Major countries have been mapped according to their individual revenue contribution to the regional market.
• The report provides an in-depth analysis of the global silicon metal market forecast for the period.
• The report outlines the current silicon metal market trends and future estimations of the market from 2019 to 2027 to understand the prevailing opportunities and potential investment pockets. 
• The key drivers, restraints, and technical foam market opportunity and their detailed impact analysis is elucidated in the study.

 Silicon Metal Market Report Highlights