by Silicon metal finds wide applications in the production of aluminum alloys, silicones, and polysilicon. It is used as a reducing agent in the production of ferrosilicon and various other ferroalloys. Silicon metal also serves as a raw material in the production of semiconductors, solar panels, and lithium-ion batteries. It enhances the corrosion resistance, castability, and mechanical properties of aluminum alloys. Aluminum-silicon alloys are extensively used in automotive components due to their high strength-to-weight ratio. The growing automotive industry is augmenting the demand for aluminum alloys, thus driving the silicon metal market.
The global silicon metal market is estimated to be valued at US$ 6.65 Bn in 2023 and is expected to exhibit a CAGR of 6.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The rising adoption of green technologies is one of the key trends in the silicon metal market. Silicon metal plays a vital role in the production of polysilicon, which is used in the manufacturing of solar photovoltaic cells. The growing emphasis on renewable energy generation is propelling the demand for solar panels and boosting the consumption of silicon metal. Growing investments in the expansion of solar photovoltaic production capacities across countries like China, India, the U.S., and Germany are expected to further increase the demand for silicon metal over the forecast period.
Porter’s Analysis
Threat of new entrants: The silicon metal industry requires large capital investment and technical know-how for production which inhibits new players from entering the market easily.
Bargaining power of buyers: The buyers have moderate bargaining power since the product is a commodity and switching costs are low for buyers.
Bargaining power of suppliers: The key raw materials for silicon metal production are quartz and woodchips. The supplies have moderate bargaining power due to availability of substitutes.
Threat of new substitutes: There exists a threat from substitutes like polysilicon however silicon metal continues to have an advantage over substitutes in terms of cost effectiveness.
Competitive rivalry: The silicon metal market is dominated by few large players. Competition is based on pricing and quality.
Key Takeaways
The Global Silicon Metal Market Growth is expected to witness high growth driven by increasing demand from the aluminum industry.
Regional analysis: Asia Pacific currently dominates the global silicon metal market owing to strong presence of manufacturers in China. Several plants are also coming up in countries like India which is anticipated to drive the Asia Pacific market at a strong pace.
Key players: Key players operating in the silicon metal market are Olympus Corporation, KARL STORZ SE & Co. KG, Richard Wolf GmbH, Stryker Corporation, Medtronic plc, Ethicon (Johnson & Johnson), Braun Melsungen AG, Boston Scientific Corporation. Key players are focusing on expanding production capacity and geographical footprint to leverage opportunities in developing markets.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
