The global silicon metal market is anticipated to reach market size of around US$ 10,000 Mn by 2027 and is anticipated to grow at a CAGR of around 4% in terms of revenue during the forecast period 2020 – 2027.
Silicon is the 8th largest element in earth's crust in terms of density, and the second largest element in the earth's crust. Naturally, it is embedded in feldspar, mica and silica, which are the principal components of common minerals, such as sandstone and quartz. Silicon Metal, along with many other commodities, is a fragile, blue-gray lustrous and hard semiconductor material metal used to create concrete, microchip and solar cells. Silicon metal is commonly used to manufacture silicon, aluminum alloys, solar panels and semiconductor with its features such as machinability, high thermal conductivity and strong corrosion rating. The constant mounting demand for silicone metal for manufacturing aluminum used in the automotive, aerospace and foundry industry is a key driver of growth in the silicone metal sector.
Aluminum alloys based on Silicon are increasingly used in vehicle applications as fuel consumption needs to be decreased by weight alloyed to form silumin together in silicone and aluminum. The silicon alloys are graded into various groups, based on the quality of the silicone. With respect to volume, the Silicon content ranges between 3% and 50% in silicon metal alloys. Using silicon metal to aluminum provides desirable characteristics including high thermal conductivity, high castability, high resistance to corrosion and machinability. Aluminum alloys based on silicone are increasingly used in the automotive industry to replace heavy cast iron and steel. Growing silicon content of aluminum silicon alloy increases wear resistance during moderate wear. Silicium-based aluminum alloys have enough strength to preserve structural strength, durability and resistance to dents and crashes. Bending, folding and deep drawing operations are improved. In addition, during the forecast period, growth of the automotive industry would boost the silicone metal market. A big consumer of silicon-based aluminum alloys is the automotive industry. This in turn raises demand in the automobile industry for silicon metal and aluminum. Increased demand for vehicles and the growing automotive market will also potentially increase the silicon metal sector in the immediate future.
The cost of silicon metal output depends on main factors such as power costs, raw materials, labour and movement. In order to achieve a long-term supply of reliable electricity, the silicon metal processing industry needs the ignition of electric arcs required for the quartz reduction of silicon metal. The high temperature and high power demand exacerbate the energy of the manufacturing process, which greatly raises production costs in general. The raw materials for the manufacture of silicon metal are charcoal, quartzite and wood chips and therefore silicon metal producers choose physiographic regions with important quartz and charcoal deposits. The silicone metal demand is therefore expected to be hampered by high manufacturing costs and market uncertainty.
One of the key factors that influence the growth of the silicone metal market in the region is the huge opportunities for investment in the Asia-Pacific region. In the rural areas of this country, good economic growth and undeveloped infrastructure and policymakers' support for more renewable energy are the key reasons for the introduction of renewable energy. In addition, the considerable decline in solar power rates is drawing green energy options from governments and companies. Increased installation of solar power panels would push the silicon metal demand on the world market.
Some of the prominent players in the silicon metal market include Elkem ASA, RUSAL, Ferroglobe, The Dow Chemical Company, RIMA Group, Simcoa Operations Pty Ltd, Wacker Chemie AG, RW Silicium GmbH, Wynca Group, MINASLIGAS, and others.
The global silicon metal market is segmented as below:
Silicon Metal Market By Product Type
Silicon Metal Market By Application
Silicon Metal Market By Geography
Middle East & Africa