Silicon Metal Market Size, Share & Trends Analysis Report By Application (Aluminum, Silicones, Solar & Semiconductor), By Region (North America, Europe, APAC, Central & South America, MEA), And Segment Forecasts, 2020 - 2027

Report Overview

The global silicon metal market size was valued at USD 6.05 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 4.6% from 2020 to 2027. The market is expected to be driven by the increasing production of aluminum around the globe. A significant proportion of silicon metal output is used for the production of aluminum. The global aluminum output is expected to recover from the COVID-19 pandemic in a steady manner, with a significant uptick in demand for aluminum from the building and construction industry to be expected post the COVID-19 crisis from 2021. This is likely to benefit market growth. China dominated the global silicon metal market with a demand of 1,092 kilotons in 2019. The presence of a large aluminum alloy manufacturing base, coupled with the expanding solar and semiconductor industry in China, is expected to drive the market over the coming years.

Silicon metal is mainly used in the production of automotive aluminum alloys. In China, the automotive manufacturing industry is likely to face a severe decline in 2020 as a result of sluggish demand and supply chain disruption caused by COVID-19. However, favorable policies for electric vehicles, which have a larger share of aluminum alloys by weight, are likely to promote industry growth in the near future.

Furthermore, strong efforts undertaken by the Chinese government to accelerate the growth of the solar industry are expected to bolster the demand for silicon metal over the coming years. The government of China has outlined a comprehensive plan to develop an ‘ecological civilization’, wherein solar energy installations will play an important role in order to lower pollution levels and the use of fossil fuel.

Application Insights

Aluminum dominated the market and accounted for a revenue share of more than 40.0% in 2019. The product is used as a strengthener and an alloying agent in the production of aluminum. The stringent pollution standards set for automakers across the world are likely to push the demand for automotive aluminum owing to its lightweight properties and ability to reduce pollution. This pressure on automakers is likely to drive the segment over the coming years.

Apart from the production of aluminum alloys, a significant share of the total silicon metal output goes for the production of silicones. Silicones are man-made polymers used in varied end-use industries, such as building and construction, automotive and transportation, and healthcare. The increasing demand for silicones, especially in developing economies, is expected to benefit the segment growth.

The solar and semiconductor application segment is poised to register the fastest revenue-based CAGR of 5.2% from 2020 to 2027. Silicon metal is used for the production of polycrystalline silicon, which is further used as an essential raw material for the production of both photovoltaic cells for the solar industry and semiconductors for the electronics industry.

Regional Insights

Asia Pacific dominated the market and accounted for a revenue share of 38.3% in 2019. This significant share is attributed to the presence of a large aluminum and silicone production base in China. Furthermore, China is the largest producer of silicon metal in the globe. The market in China is oversupplied and as a result, China exports a considerable proportion of its output. Although, in recent times, the share of exports has reduced owing to strong demand from the domestic industries.

As opposed to other regions, where aluminum production represents the largest end-use industry for the product, the silicone industry dominates the European silicon metal market. Europe is one of the key producers of silicones and as a result, there is a significant demand for the product from silicone manufacturers in Europe.

North America is expected to expand at a CAGR of 3.6%, in terms of revenue, from 2020 to 2027. The aluminum industry in the region also has been hard hit by the pandemic and as a result, the market for silicon metal in the country has been severely affected. In the long term, the increasing penetration of electric vehicles is likely to be the main driver of the regional market.

In the Middle East and Africa, the growing adoption of solar energy is expected to play a key role in boosting the industry growth. For example, in March 2018, a new solar photovoltaic project in Saudi Arabia was announced, which is expected to be the world’s largest solar project with an installed capacity equivalent to the entire world’s capacity of 2015. The project is expected to be completed by 2030. Such initiatives in the region are expected to prove fruitful for the market growth over the forecast period and beyond.

Key Companies & Market Share Insights

The market is highly fragmented in China, while the market is consolidated and dominated by a few large players outside China. Some of the top players in the market include Ferroglobe Plc, Dow DuPont, and Elkem ASA. Ferroglobe is the world leader in terms of silicon metal production capacity. As of 2019, the company’s capacity stood at 341 kilotons per year.

The players in the market are expected to target the solar industry for improving sales. This is because the polysilicon output is expected to become the energy of choice around the globe as solar energy offers grid parity and ease of installation. However, fluctuating silicon prices and diminished margins owing to oversupply are a significant challenge for the suppliers. Some prominent players in the silicon metal market include:

• Ferroglobe Plc

• Dow DuPont

• Elkem ASA

• RIMA Group

• Rusal

• LIASA

• Wacker Chemie AG

Silicon Metal Market Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at the global, regional, and country levels, and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global silicon metal market report on the basis of application and region:

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Aluminum

  • Silicones

  • Solar & Semiconductor

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • Russia

    • Norway

    • France

  • Asia Pacific

    • China

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa