SILICON METAL MARKET ANALYSIS

Silicon Metal Market Size and Trends

The global silicon metal market is estimated to be valued at USD 7.61 Bn in 2024 and is expected to reach USD 10.50 Bn by 2031, growing at a compound annual growth rate (CAGR) of 4.7% from 2024 to 2031.

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Silicon is witnessing an increase in demand from the electronics & semiconductors sector owing to its widespread usage in manufacturing of integrated circuits, chipsets, solar panels, and other electronics components. The growing demand for consumer electronics from emerging the markets of Asia Pacific and growing usage of silicone compounds in personal care products such as shampoos, conditioners, and moisturizers are expected to drive the growth of the global silicon metal market during the forecast period. Furthermore, steady growth in the automotive industry and utilization of silicone in anti-corrosion and thermal resistant applications is also driving its usage.

Demand from Aluminum Alloy Industry

The aluminum alloy industry has seen tremendous growth in the past decade owing to the increased usage of aluminum in various end-use industries such as transportation, packaging, construction, and others. Aluminum is a very important metal for the automotive industry due to its light weight and corrosion resistance properties. With automakers around the world focusing on fuel efficiency and emission norms, the use of aluminum in vehicles is expected to rise significantly in the coming years. Aluminum alloys usually contain around 8-13% of silicon which enhances their mechanical properties and makes them ideal for applications that require high strength and ductility. Thus, the rising aluminum demand from the automotive industry would positively impact the consumption of silicon metal in the long run.  Apart from automotive, aluminum finds wide usage in aircraft manufacturing, rail, machinery equipment, and other industrial goods due to its high strength-to-weight ratio. The construction industry is also shifting from steel and concrete to aluminum owing to advantages like non-corrosiveness, workability, and recycling ability. All these end-use sectors are expected to drive the growth of aluminum production and consumption globally. Being a mandatory alloying element, increased aluminum usage will subsequently boost the silicon metal demand. Many aluminum producers are also expanding and setting up new production facilities which would escalate the need for silicon in the coming years. Governments across regions are supporting aluminum usage to reduce the carbon footprint of various industries.

Silicon is considered as one of the most important elemental semiconductor and a critical raw material for the electronics industry. It finds applications in various electronic components such as integrated circuits, transistors, diodes, and microchips used in different electronic devices. The explosive growth in semiconductor manufacturing and increased per capita consumption of consumer electronics have augmented the demand for silicon in the past few decades. Moreover, miniaturization of circuits coupled with rising usage of silicon in 5G infrastructure, IoT devices, AI, and other emerging technologies are anticipated to bolster the market growth.  The ongoing renewable energy revolution and continuous cost declines have also uplifted the demand for silicon metal from the solar photovoltaic industry. Almost all solar PV modules use silicon wafers as the core material for converting sunlight into electricity.