Silicon Metal Market Is Anticipated To Witness High Growth Owing To Rising Demand From Aluminum Alloys And Silicon Compounds Industries
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| Silicon Metal Market |
The global silicon metal market is largely driven by the huge demand for aluminum alloys and various silicon compounds from different end-use industries such as chemicals, semiconductors, aluminum, and steel. Silicon metal acts as a reducing agent and deoxidizer in steelmaking and prevents the oxidation of molten aluminum during casting of aluminum. It helps manufacture silicones, polysilicons, and other organosilicon compounds that find extensive usage in diverse industrial verticals. Silicon metal is primarily utilized to produce ferrosilicon and silicometal. The growing aluminum alloys and silicon compounds industries have substantially increased the consumption of silicon metal.
The Global silicon metal market is estimated to be valued at US$ 7.67 Mn in 2024 and is expected to
exhibit a CAGR of 6.9% over the
forecast period 2024 to 2030.
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.
Key players are investing heavily in R&D activities to develop advanced and
innovative product grades of silicon metal with enhanced purity level. They are
also focusing on capacity expansion projects to cater to the rising demand from
end-use industries. For instance, in 2022, Elkem ASA announced plans to boost
its silicon metal production capacity in Iceland by 20% to address the strong
global demand.
The Asia Pacific region represents the biggest market for silicon metal
globally and is anticipated to grow at an impressive rate during the forecast
period. This can be accredited to large-scale aluminum smelting and
semiconductor manufacturing industries in China, Japan, Taiwan, and South
Korea. Furthermore, rapid urbanization and industrial growth in India have
increased the use of aluminum, steel, and chemicals in the country. This has
paved opportunities for silicon metal producers to expand their geographical
footprint in the region.
Market Drivers
Growing aluminum alloys industry: Silicon metal is predominantly consumed
for the production of aluminum alloys for various applications such as
transportation, packaging, construction and machinery. The expanding aluminum
alloys market is expected to boost consumption of silicon metal over the coming
years.
Surging demand for polysilicon: Polysilicon produced from silicon metal is
vital for the semiconductor and solar photovoltaic industries. The exponential
growth of the semiconductor and solar power sectors worldwide will augment
global silicon metal demand in the foreseeable future.
Market Restraints
Volatility in raw material prices: Fluctuating prices of raw materials like
quartz used for manufacturing silicon metal could negatively impact the overall
production cost of silicon metal producers.
Stringent environmental regulations: Production of silicon metal involves
energy-intensive processes that release harmful emissions. Strict environmental
norms in several countries may increase operational costs for manufacturers.
Segment
Analysis
The Silicon
Metal Market Demand can be segmented into ferrosilicon, aluminum
silicide, and others. Ferrosilicon dominates the market with a share of over
60% of the total market. This is because ferrosilicon is used in making steel
as it enhances steel durability, strength and castability. It is also used in
making semiconductors. Aluminum silicide is the second largest segment as it is
used in making aerospace and defense components owing to its high strength to
weight ratio.
Global Analysis
The Asia Pacific region dominates the global silicon metal market with over
40% share owing to high demand from countries such as China, Japan and India.
China dominates the Asia Pacific region due to presence of large number of
steel and automobile manufacturing plants. Europe and North America are other
major regions driven by widespread end use industries and stringent
manufacturing guidelines. However, the market is witnessing fastest growth in
Latin America owing to expanding industrial infrastructure and automotive
industry in countries such as Brazil and Mexico. The Middle East and Africa
region is also projected to offer high growth potential during the forecast
period majorly driven by UAE and GCC countries.
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