Silicon Metal Market in Clean Energy Transition is estimated to exhibit a CAGR of 4.7% over the forecast period 2024 to 2031
Silicon metal, also known as ferrosilicon, is an alloy of silicon and iron containing approximately 15-92% silicon. It is a crucial ingredient in aluminum production, steelmaking, and electronics. Silicon metal finds wide applications as a debriding agent in the production of polysilicon, which is further used to manufacture photovoltaic cells and modules for solar panels. Rapid growth in the renewable energy sector and increasing focus on clean energy transition are driving the demand for silicon metal.
The Global Silicon Metal Market is expected to be valued at USD 7,600 Bn by 2024 and USD 10.50 Bn by 2031 , growing at a compound annual growth rate ( CAGR) of 4.7% from 2024 to 2031.
Silicon Metal Market Size plays a vital role in solar panel manufacturing where it is converted to polysilicon and used in photovoltaic cells. Rising solar power installations across the world backed by supportive government policies are expected to boost the consumption of silicon metal over the coming years.
Key Takeaways
Key players: Key players operating in the Silicon Metal Market include Elkem ASA, RIMA Group, Rusal, Ferroglobe, Sinova Global Inc, Mississippi Silicon, Minasligas, LIASA , Wacker Chemie AG, PCC SE, Zhejiang Kaihua Yuantong Silicon Industry Co. Ltd, Hoshine Silicon Industry Co. Ltd, Anyang Huatuo Metallurgy, Shin-Etsu Chemical Co. Ltd, Zhongyi Metalware (Tianjin) Co., Ltd, Otto Chemie Pvt Ltd, Phoolchand Bhagatsing, Anyang Dingsheng Silicon Industry Co., Ltd, Wasia Group, and Hensfate Metal Co., Ltd.
Growing demand: With increasing solar power installations worldwide and rising demand for electric vehicles, the consumption of polysilicon and silicon metal is expected to grow substantially over the next decade. Additionally, growth in the semiconductor industry will further augment the market.
Global expansion: Leading silicon metal producers are expanding their production facilities globally to cater to the growing demand. For instance, Elkem, the largest Silicon Metal producer recently doubled its capacity in Iceland and is setting up a new plant in China. Other players are also ramping up capacities in Asia Pacific and Middle East & Africa.
Market Key Trends
Focus on renewable energy is a key trend shaping the silicon metal market. More than 160 countries have set renewable energy targets to transition to cleaner sources of energy to reduce carbon emissions. This will significantly boost the demand for solar panels and batteries for electric vehicles, driving silicon metal consumption. Additionally, widespread solar panel installation programs in China, India, and parts of Europe and the US are well positioned to support the market over the coming years.
Porter's Analysis
Threat of new entrants: Low capital requirements and lack of economies of scale pose a low threat of new entrants. Bargaining power of buyers: Buyers have high bargaining power due to the commoditized nature of silicon metal. Bargaining power of suppliers: Suppliers have high bargaining power due to resource ownership and lack of substitutes. Threat of new substitutes: Few viable substitutes exist for silicon metal in its various applications. Competitive rivalry: Intense competition exists among existing firms due to overcapacity issues.
Geographical Regions
The Asia Pacific region accounts for the largest share of the global silicon metal market in terms of value due to high production and consumption in China. China accounts for over 50% of global silicon metal production capacity.
North America is anticipated to be the fastest growing regional market during the forecast period attributed to increasing demand from the aluminum alloy and polysilicon industries in the region. The rising solar power industry in the United States and Canada is expected to drive the demand for polysilicon, which in turn is boosting the consumption of silicon metal.
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