Silicon Metal Market

Silicon Metal Market Size

The global silicon metal market size was valued at USD 7.51 billion in 2023 and is projected to grow from USD 7.82 billion in 2024 to USD 10.76 billion by 2031, exhibiting a CAGR of 4.66% during the forecast period.

The rising demand from the solar industry and the expansion of the construction sector are contributing significantly to the growth of the market. In the scope of work, the report includes services offered by companies such as Anyang Wanhua Metal Material Co. Ltd., RUSAL., Dow, Shin-Etsu Chemical Co., Ltd., Elkem ASA, Mississippi Silicon, Ferroglobe, Hoshine Silicon Industry Co., Ltd., RIMA INDUSTRIAL, Atlantic Equipment Engineers, and others.

The surging use of silicon metal in semiconductors is fueling market growth. As  a critical raw material in the electronics industry, silicon metal is essential for components such as integrated circuits, transistors, diodes, and microchips.

The expanding semiconductor manufacturing sector, coupled with rising per capita consumption of consumer electronics have fueled the demand for silicon. Additionally, advancements such as circuit miniaturization and the growing adoption of silicon in 5G infrastructure, IoT devices, AI, and emerging technologies are anticipated boost market growth. Companies are increasingly adopting technologies for semiconductor applications.

• For instance, in May 2023, iDEAL Semiconductor introduced its SuperQ technology, a significant innovation enhancing silicon performance to deliver smaller, more efficient, and cost-effective devices.

Silicon metal, composed of 98–99% pure silicon, is a crucial industrial material. It is produced by reducing silicon dioxide (quartz) in electric arc furnaces using carbon sources such as coal, wood chips, or coke.

Renowned for its high melting point, excellent thermal conductivity, and low electrical conductivity, silicon metal finds extensive applications across industries. It is primarily used in aluminum alloy production to improve strength, corrosion resistance, and toughness.

Additionally, it serves as a key component in manufacturing silicones for adhesives, sealants, and lubricants. In the solar and electronics industries, silicon metal is essential for producing high-purity polysilicon used in photovoltaic cells and semiconductors. 

Analyst’s Review

Rapid infrastructure development and industrialization have led to a surge in the demand for silicon metal. Key industries, including construction, electronics, automotive, and solar power, rely heavily on silicon materials for numerous applications. The expanding electronics industry boosts demand for silicon as a key material in semiconductors, and electronic devices.

Additionally, the growing solar energy industry has highlighted the need for silicon in photovoltaic cell production for solar panels. To fulfil consumer's demand, manufacturers are expanding their production facilities. Numerous manufacturers investing in new manufacturing facilities or improving existing ones to enhance their production.Government initiatives and funding to promote solar energy adoption further bolster silicon metal market growth.

• For instance, in April 2024, the Biden-Harris Government in the U.S. introduced a USD 7 billion federal grant program, ,"Solar for All,"  aimed at supporting residential solar projects for over 900,000 households. Backed by the Environmental Protection Agency, the program aims to save Americans USD 350 billion annually on electricity bills and reduce carbon dioxide emissions by 30 billion metric tons.

Silicon Metal Market Growth Factors

The growing demand for electric vehicles is fostering the growth of the silicon metal market, as silicon metal plays a vital role in the automotive industry. It enhances durability, strength, and lightweight properties of vehicles, and is a key component in EV batteries.

With manufacturers prioritizing enhanced battery performance and reduced vehicle weight to maximize efficiency and range, the demand for premium-grade silicon metal has increased. In response, market players are focusing on product development to meet rising consumer demands.

• For instance, in March 2024, Ferroglobe, a global leader in silicon metal and ferroalloys, partnered with Coreshell, a US-based battery technology company, to develop battery-grade metallurgical silicon. The partnership aims to enable cost-effective, long-range electric vehicle batteries, aligning with the objectives of the US Inflation Reduction Act.

Silicon metal production depends on quartz and coal with prices that often fluctuate due to supply chain disruptions, geopolitical tensions, and ivolving industrial demand. This presents a major challenge to the expansion of the market. The price volatility makes it difficult to maintain profit margins, lead to pricing instability and predicting operational costs.

To mitigate these challenges, companies can adopt strategies, including securing long-term supplier contracts, exploring alternative sourcing or materials, and enhancing inventory management to mitigate price fluctuations. These factors are expected to boost market growth through the forecast period.

Silicon Metal Industry Trends

The shift toward renewable energy sources, including solar power, is fostering the expansion of the market. Silicon metal, a crucial component in the production of solar panels, is critical to the global transition to cleaner energy.

High-purity silicon is used in manufacturing wafers, the core of solar cells photovoltaic (PV) systems.  in technology and cost reductions in solar panel production are fueling the demand for silicon metal, highlighting its pivotal role in a sustainable energy future.

• For instance, in June 2022, Emirates Global Aluminum (EGA), the world's leading producer of premium aluminum, announced plans to establish a renewable energy-powered facility for the production of silicon metal. Silicon is a critical raw material in the manufacturing process of premium aluminum.

The surging demand for aluminum alloys in the automotive sector is bolstering the expansion of the silicon metal market. These alloys, essential for producing lightweight and fuel-efficient vehicles, rely on silicon metal to enhance strength, corrosion resistance, and thermal stability.

As the automotive industry prioritizes sustainability and adheres to stringent emission standards, manufacturers are increasingly using utilizing aluminum alloys to reduce vehicle weight and improve fuel efficiency. Additionally, the rise of electric vehicles, which depend on lightweight materials to optimize battery efficiency, is boosting the demand for silicon metal.

Segmentation Analysis

The global market has been segmented based on product type, application, and geography.

By Product Type

Based on product type, the market has been bifurcated into metallurgy grade and chemical grade. The metallurgy grade segment led the silicon metal market in 2023, reaching a valuation of USD 4.61 billion. Metallurgical-grade silicon metal, with purity levels between 98% to 99% is primarily used in the production of aluminum and other alloys.

It also serves as the a predecessor to polysilicon, which is crucial for semiconductor and solar panel industriesy. The demand for metallurgical-grade silicon metal is largely attributed to the growing need for aluminum alloys in the automotive and aerospace sectors, aimed at enhancing fuel efficiency and reducing emissions.

By Application

Based on application, the market has been segmented into aluminum alloys, silicone, semiconductors, solar panels, and others. The aluminum alloys segment captured the largest revenue share of 38.80% in 2023.

Aluminum-silicon alloys, including silumin, are widely utilized in industries such as solidification, casting, and powder metallurgy. Known for excellent corrosion resistance properties, particularly in humid environments, these alloys offer improved performance.

The addition of silicon decreases viscosity in the molten state, making them cost-effective for casting. This alloys are extensively used in the construction, aerospace, automotive, and electrical industries due to their lightweight and corrosion-resistanant properties.

Silicon Metal Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

Asia-Pacific silicon metal market captured the largest revenue share of 38.65% in 2023, valued at USD 2.90 billion. This growth is largely fueled by the increasing demand for silicon metal across industries such as automotive, electronics, and solar panels.

China’s strong manufacturing capabilities in the electronics and automotive sectors have increased demand for silicon metal. South Korea and Japan, with their advanced technological industries, necessitate the metal for photovoltaic cells and semiconductors.

Additionally, rising demand in India, supported by expanding automotive and renewable energy industries, is contributing to regional market expansion. Advancements in infrastructure and technology across the region further propel this trend.

Middle East & Africa is anticipated to witness the significant growth at a CAGR of 4.53% over the forecast period. The region’s focus on adoptingf renewable energy technologies, particularly solar energy, is bolstering regional market growth.

Countries such as South Africa, UAE, and Egypt, with abundant silico resources, are prompting key players to expand production capabilities. Additionally, government investments in silicon metal projects are fostering the growth of regional market.

• For instance, in June 2024, SOHAR Port and Freezone, a major deep-sea port and free zone in the Middle East, announced the establishment of Green Ferro Alloy's USD 68 billion silicon metal plant within the Freezone. Spanning 160,000 square meters, the facility is set to produce 25,000 tons of silicon metal annually in its initial phase, with exports primarily targeted at in Asia, Europe, and North America.

Competitive Landscape

The global silicon metal market report will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions.

Companies are implementing impactful strategic initiatives, such as expanding services, investing in research and development (R&D), establishing new service delivery centers, and optimizing their service delivery processes, which are likely to create new opportunities for market growth.

List of Key Companies in Silicon Metal Market

• Anyang Wanhua Metal Material Co. Ltd.
• RUSAL
• Dow
• Shin-Etsu Chemical Co., Ltd.
• Elkem ASA
• Mississippi Silicon
• Ferroglobe
• Hoshine Silicon Industry Co., Ltd.
• RIMA INDUSTRIAL
• Atlantic Equipment Engineers

Key Industry Developments

• March 2024 (Agreement): LONGI, a prominent China-based photovoltaics company and the largest producer of monocrystalline silicon wafers, entered into a long-term supply agreement with Ferroglobe, a UK-based producer of silicon metal and ferroalloys. As part of the three-year agreement, Ferroglobe aims to provide high-quality quartzite and metallurgical-grade silicon (MGS), supporting LONGI's strategy of sourcing from top-tier Western suppliers of silicon materials.
• December 2023 (Partnership): Ionic Mineral Technologies, a US-based leader in advanced battery materials specializing in nano-silicon anode powders, partnered with Andritz AG, an Austria-based global technology group specializing in silicon metals. This partnership seeks to enhance Ionic MT's (Movandi Technologies) nano-silicon production capabilities to meet the increasing demand for battery materials critical to the development of faster-charging and longer-range lithium-ion batteries.

The global silicon metal market has been segmented as:

By Product Type

• Metallurgy Grade
• Chemical Grade

By Application

• Aluminum Alloys
• Silicone
• Semiconductors
• Solar Panels
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK.
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America