Global Silicon Metal Market Is Anticipated To Rising Demand from the Automotive Industry

Silicon Metal Market

Silicon metal is an indispensable material in the aluminum and chemical industries. It is also an essential input in the electronics and solar industry. Silicon is also a promising input for battery applications to increase energy storage capacity and hence battery duration. Unlike many other industrial products, there are no substitutes for Silicon as it cannot be recycled. It is therefore not surprising that the demand for Silicon is very high and prices are volatile. The process of converting quartz sand to Silicon metal is energy intensive and requires a substantial amount of coal, natural gas/oil, and electrodes as feedstocks. This limits the entry of new players and leads to high production costs which are passed on to the end consumers.

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.

Market Dynamics:

Increasing product launches are estimated to augment growth of the global silicon metal market during the forecast period. For instance, a new line of high-performance silicone materials were launched by Dow Corning Corporation, in 2021. These materials have been designed to offer enhanced performance, reliability, and durability. Moreover, high costs and lower production are anticipated to restrain growth of the global silicon metal market during the forecast period.

Impact of COVID-19:

Outbreak of COVID-19 had a marginal impact on the global silicon metal market. The pandemic caused a shortage of labor in the mining sector. The automotive and many other sectors had to halt production activities owing to shortage of raw materials. Supply chains were also disrupted in many regions owing to restrictions in many regions. The pandemic led to decrease in demand for silicon metal. The growth of the global silicon metal market was restrained during the pandemic. However, in the post-pandemic era, all restrictions were removed and the market is estimated to witness high growth.

Key Takeaways:

The global silicon metal market is expected to witness high growth, exhibiting CAGR of 4.4 % over the forecast period, due to increasing mergers among key players. For instance, Globe Specialty Metals, Inc., and Ferroglobe PLC, have entered in a definitive merger agreement in 2020. This merger is aiming to create a global leader in the silicon metal industry. 

Asia-Pacific is anticipated to witness significant growth in the global silicon metal market during the forecast period, due to increasing demand for silicon from various industries.

Key players operating in the global silicon metal market are Entegris, Infineon Technologies AG, CUMI, Cree, Inc., Dow, ROHM Co., Ltd., Grindwell Norton Limited, Microsemi, Microchip Technology Inc., STMelectronics , Renesas Electronics Corporation, Fuji Electric Co., Ltd., Toshiba Corporation, Semiconductor Components Industries, LLC, and General Electric.