SILICON TETRACHLORIDE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Market Size and Trends

The Global Silicon Tetrachloride Market is estimated to be valued at USD 2.58 Bn in 2024 and is expected to reach USD 3.33 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 3.7% from 2024 to 2031.

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The silicon tetrachloride market is expected to witness positive growth over the forecast period. The increasing demand for electronics and semiconductors globally is driving the need for high purity silicon used in the manufacturing of integrated circuits. Silicon tetrachloride is a crucial raw material used in the production of high-quality polycrystalline silicon for the semiconductor industry. Additionally, rising demand for solar photovoltaic cells will also boost the consumption of silicon tetrachloride. Government subsidies and initiatives in various countries to encourage the use of renewable energy is further expected to support the demand. However, the availability of alternatives and volatile prices of raw materials may hamper the market growth.

Growing Semiconductor Industry

The global silicon tetrachloride market is expected to witness significant growth due to rising demand from the semiconductor industry. Silicon tetrachloride acts as a raw material for the manufacturing of polysilicon which is used extensively in the fabrication of semiconductor devices including integrated circuits, processors and memory chips. With the proliferation of consumer electronic goods and emergence of newer technologies such as IoT, 5G, artificial intelligence, and machine learning, the demand for semiconductors is increasing at a rapid pace. The number of connected devices worldwide is projected to triple over the next decade with more devices getting interconnected through the internet. This raises the need for more powerful computing components. Additionally, the demand for semiconductors is also growing from automotive electronics with integration of advanced driver-assistance systems in modern vehicles. All these factors are creating a massive demand for semiconductors which in turn is fueling the consumption of silicon tetrachloride for manufacturing polysilicon.

Market Concentration and Competitive Landscape

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Another key driver for the silicon tetrachloride market is the increasing installation of solar photovoltaic systems globally. Solar energy has emerged as one of the most viable and sustainable sources of renewable energy. Many countries have outlined ambitious targets to increase the share of solar and other renewable sources in their energy mix to reduce dependence on fossil fuels and mitigate climate change. The cost of solar modules based on polysilicon technology has declined significantly over the years which has made large-scale deployment of solar projects commercially feasible. Rising concerns over carbon emissions and focus on energy security are encouraging both commercial and residential consumers to install rooftop solar panels. This growing solar PV market is propelling the demand for polysilicon which acts as raw material for solar cells. As silicon tetrachloride remains the primary feedstock for producing polysilicon, its demand is expected to continue rising with global additions in solar power generation capacity.

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The global silicon tetrachloride market is facing significant challenges due to rising competition from alternative materials and stringent environmental regulations. Strict environmental norms around the world are compelling manufacturers to reduce their dependence on chlorine-based chemicals and shift towards more eco-friendly green alternatives. Silicon tetrachloride is a chlorine-based compound that is used as a raw material in the production of polysilicon, which is further used in the manufacturing of semiconductors, solar photovoltaic cells and optical fibers. However, it is considered toxic in nature and its production and use releases harmful hydrochloric acid and silicon tetrachloride gas into the environment.

Opportunities: Growing demand for solar photovoltaic products and semiconductors

The demand for renewable and clean energy is rising globally as various countries aim to reduce their carbon footprint and dependence on fossil fuels. Solar energy has emerged as one of the most viable and affordable clean energy solution. Solar photovoltaic installations across the world have grown exponentially over the past decade and this trend is projected to continue into the future. For example, according to the International Renewable Energy Agency (IRENA), the total solar PV capacity addition was over 140 GW in 2021 alone. This massive scale up of solar PV manufacturing will depend considerably on the availability of key raw materials.

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In terms of Grade Type, Electronic Grade is estimated to hold 42.7% share of the market in 2024, owing to the rapid growth of the global electronics industry. Electronic grade silicon tetrachloride is used as a key raw material in the manufacture of semiconductor devices and integrated circuits. The ever-increasing use of smart consumer electronics such as smartphones, tablets, laptops, and wearables has substantially increased the worldwide demand for semiconductors over the past decade. As electronics become more advanced with each new generation, semiconductor components are becoming more complex with smaller structures and sizes, necessitating higher purity levels of silicon inputs. This drives heavy consumption of electronic grade silicon tetrachloride, which offers extremely low levels of impurities. Additionally, rising digitization across various end-use verticals like automotive, healthcare, industrial, and more have broadened the outreach of electronics. The emerging technologies of artificial intelligence, 5G networks, and Internet of Things will further bolster the growth prospects of the global electronics sector in the coming years, consequently fuelling the electronic grade segment.

Insights by Application: Semiconductors Segment Dominates on Back of Digital Transformation

In terms of Application, Semiconductors is estimated to hold 34.6% share of the market in 2024. Semiconductors have become integral to the modern digital economy owing to their usage in various digital applications including computers, mobile devices, industrial automation systems, renewable energy solutions, and more. With digitalization accelerated across industries, organizations are increasingly adopting innovative technologies powered by semiconductors to enhance productivity, efficiency, and business growth. Semiconductors play a vital role in enabling technologies such as cloud computing, big data analytics, robotics, and advanced manufacturing that are transforming businesses. In modern times, nearly every electronic device relies on chips and integrated circuits to function. Moreover, the soaring demand for consumer electronics and connected devices that integrate various semiconductors has significantly boosted the market. Going forward, the expanding opportunities in newer domains like artificial intelligence, autonomous vehicles, smart cities, and the surging focus on Industry 4.0 will continue augmenting the demand for silicon tetrachloride in the semiconductor applications segment.

Regional Insights

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North America has been the dominant region in the global silicon tetrachloride market for many years with 35.6% share in 2024. This can be attributed to the strong presence of electronics and semiconductor industry in the U.S. Being the early adopter of latest technologies, the demand for silicon wafers and chips is consistently high in the region from diverse end-use industries such as consumer electronics, automotive, aerospace and defense. Apart from robust domestic demand, North America is also a significant exporter of electronics and semiconductor devices globally. As a result, manufacturers in the region require stable supply of key raw materials like silicon tetrachloride. The region also has presence of leading wafer and chip manufacturers who maintain long-term offtake agreements with suppliers to secure supply. This ensures higher and consistent capacity utilization for silicon tetrachloride producers catering to demand from North America.

The Asia Pacific region has emerged as the fastest growing market for silicon tetrachloride in recent times. Rapid development of electronics manufacturing cluster in countries like China, Taiwan, South Korea and others has propelled the regional demand. The presence of large fabs and foundries that depend on imported as well as domestically produced silicon wafers has boosted consumption. Moreover, the shifting of electronics production from other regions to Asia Pacific on account of availability of cheap labor and resources has augmented market growth. In addition, countries aiming at reducing their dependence on imports through domestic manufacturing are investing heavily in semiconductor industries. For instance, governments in China, India, and Southeast Asian countries are providing incentives for electronics component manufacturing. This has accelerated capacity expansions across the value chain including silicon tetrachloride production. While imports will remain crucial to meet demand, domestic production capacity is also being ramped up in the region through joint ventures and technology transfers. Overall, the Asia Pacific region offers lucrative opportunities for silicone tetrachloride suppliers during the forecast period.

Market Report Scope

Key Developments

• In April 2024, a publication by Solène Fovelle proposed silicon tetrachloride (SiCl4) as a potential working fluid for high-temperature Rankine Cycles. The publication demonstrated that SiCl4 has the ability to surpass the thermal stability limit of fluids currently used in Organic Rankine Cycles (ORC).
• In 2021, the Germany-based specialty chemicals company Evonik Industries Ag and the China-based company Wynca agreed to form a joint venture. The new company, in which Evonik will hold 60% of the shares, will produce fumed silica marketed under the name AEROSIL.
• In April 2021, Ascensus Specialties, a U.S.-based chemical company, acquired Strem Chemicals, Inc., a U.S.-based manufacturer and supplier of specialty chemicals

*Definition: The Global Silicon Tetrachloride Market is focused on the manufacturing and sales of silicon tetrachloride, which is an inorganic compound with the formula SiCl4. It is a colorless liquid that is widely used in the production of high-purity polysilicon for applications such as photovoltaic solar cells, electronics, and chemical vapor deposition processes. The Global Silicon Tetrachloride Market covers companies involved in the mining and refining of raw materials, as well as producers.

Market Segmentation

• Grade Type Insights (Revenue, USD Bn, 2019 - 2031)
  • Electronic Grade
  • Technical Grade
  • Others
• Application Insights (Revenue, USD Bn, 2019 - 2031)
  • Chemical Intermediate
  • Optic Fibres
  • Semiconductors
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • Tokuyama Chemicals Co. Ltd
  • Evonik Industries
  • PCC Group
  • Shandong Xinlong Group Co Ltd
  • Air Products and Chemicals, Inc
  • Momentive Specialty Chemicals Inc.
  • Merck KGaA
  • Dow Corning
  • ATCO
  • Hemlock Semiconductor Corporation
  • Reade International Corp
  • Alfa Aesar
  • Vizag Chemicals
  • Ennore India Chemicals
  • RX CHEMICALS