Silicon metal, also known as ferrosilicon, is an important raw material used in the manufacturing of silicon-based semiconductors, solar photovoltaic panels, aluminium alloys and other chemical compounds. It possesses superior electrical conductivity and corrosion resistance properties which make it suitable for manufacturing electrical equipment. The surging demand for consumer electronics such as smartphones, laptops, wearable devices and tablets along with growing adoption of renewable energy sources is propelling the need for highly efficient semiconductors, thereby driving the silicon metal market.
The global silicon metal market is estimated to be valued at US$ 6.65 Bn in 2023 and is expected to exhibit a CAGR of 6.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The increasing demand from electronics industry is presenting a lucrative opportunity for the growth of silicon metal market. The booming consumer electronics sector has increased the requirement for semiconductors which are predominantly manufactured using silicon metal. Moreover, wide acceptance of solar photovoltaic panels due to environmental consciousness has also augmented the utilization of silicon in manufacturing panels. The robust growth of electronics and renewable energy applications around the world is anticipated to boost the consumption of silicon metal over the forthcoming years.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the silicon metal market is moderate. High initial investment requirement for setting up silicon metal production plants acts as a barrier for new players.
Bargaining power of buyers: The bargaining power of buyers is high due to the presence of numerous established silicon metal producers globally. Buyers can negotiate on price with suppliers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as suppliers of raw materials like quartz have limited control over prices due to availability of substitute materials.
Threat of new substitutes: The threat of substitutes is low as silicon metal has limited substitutes for its wide range of applications in aluminum alloys, chemicals, electronics, and solar panels.
Competitive rivalry: The competitive rivalry is high owing to the presence of numerous global and regional players operating in the silicon metal market. Players compete based on pricing and product quality.
SWOT Analysis
Strength: Wide applications of silicon metal in various end-use industries acts as its key strength. Established distribution network of major players.
Weakness: Volatility in prices of raw materials used for silicon metal production is a major weakness. Dependency on limited number of suppliers for raw materials.
Opportunity: Growing solar PV industry adoption is widening the application scope of silicon metal. Rising demand for aluminum alloys and polysilicon from emerging nations.
Threats: Stringent environmental regulations associated with silicon metal production. High energy consumption during manufacturing poses threat of increasing production costs.
Key Takeaways
The Global Silicon Metal Market Growth is expected to witness high growth over the forecast period owing to rising demand from the aluminum alloys and chemicals industries.
Regionally, Asia Pacific dominates the global silicon metal market and is expected to continue its dominance during the forecast period. China is the largest producer and consumer of silicon metal globally. Key players operating in the silicon metal market are Olympus Corporation, KARL STORZ SE & Co. KG, Richard Wolf GmbH, Stryker Corporation, Medtronic plc, Ethicon (Johnson & Johnson), Braun Melsungen AG, Boston Scientific Corporation, Cook Medical, ROCAMED, Maxer Endoscopy GmbH, Vimex Endoscopy, PENTAX Medical (HOYA Corporation), Hunan Handlike Minimally Invasive Surgery Co., Ltd., Optimed Medizinische Instrumente GmbH.
Key players operating in the silicon metal market are focusing on capacity expansion strategies to cater to growing demand. Olympus Corporation is one of the leading
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