Global Silicon Alloys Market to Reach US$ 13.69 Bn by 2027

Posted by Priyanka Thakare on May 6th, 2019

According to a new report by Transparency Market Research (TMR) titled ‘Silicon Alloys Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2019–2027’, the global silicon alloys market was valued at US$ 8.40 Bn in 2018 and is anticipated to expand at a CAGR of over 5% from 2019 to 2027. Silicon is a major element in silicon alloys. Silicon alloys are usually manufactured from sand or silica. They are produced in submerged arc electric furnaces by reducing sand or silica with coke and iron at extremely high temperatures. Large quantity of silica is used to manufacture silicon alloy. This prevents the formation of silicon carbide. Ferrosilicon is a silicon alloy which generally possess high silicon content in its composition. Ferrosilicon consists of nearly 2% of aluminum and calcium. 

Growing Investment in Infrastructure Development to Drive Silicon Alloys Market

Growth in the automotive sector and increase in demand and sales of automobiles, especially in developing countries such as China, India, Brazil, and ASEAN countries are expected to drive the silicon alloys market during the forecast period. Rise in automotive sales is projected to increase automobile production and consumption of cast iron and steel products. This, in turn, is anticipated to affect the demand for silicon alloys, as they are primarily used in the production of cast iron and steel. Rapid industrialization and ongoing infrastructure development, especially in developing and under-developed economies, is boosting the demand for silicon alloys. Growing industrialization has raised the demand for iron and steel from industries such as manufacturing, automotive, energy, and industrial machinery. Increase in infrastructure spending is fueling the demand for iron and steel products. This, in turn, is expected to drive the demand for silicon alloys during the forecast period. However, dependence on electricity and reductants for silicon alloy production is likely to restrain the market. Electricity is a major part of total production cost of silicon alloys; therefore, fluctuations in electricity prices can adversely affect the overall production cost.

Gap between actual and required expenditure on infrastructure development is expected to create opportunity for the silicon alloys market. Actual spending on infrastructure development is lesser than the required expenditure, and efforts toward reducing this gap is expected to create opportunities for the market due to significant increase in demand for iron and steel products for infrastructure development. 

Deoxidizers Sub-segment Expected to Drive Global Silicon Alloys Market

The silicon alloys market has been divided into type, application, and region. In terms of type, the market has been classified into ferrosilicon, which is further sub-segmented into deoxidizers, inoculants, and others. In terms of value, the deoxidizers sub-segment accounted for around 80% share of the ferrosilicon segment in 2018. The sub-segment is projected to expand at a rapid pace during the forecast period. 

Rising Demand for Corrosion-resistant Material to Fuel Stainless Steel Segment

Based on application, the silicon alloys market has been segregated into carbon steel & other alloy steel, stainless steel, electrical steel, cast iron, and others. The carbon steel & other alloy steel segment dominated the global silicon alloys market. It accounted for more than 45% share of the market in 2018. This trend is expected to continue during the forecast period. However, the stainless steel segment is projected to expand at a significant pace during the forecast period due to high demand for high corrosion resistant and highly durable materials in oil & gas, chemicals, and other high corrosion prone industries. 

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Increase in Industrialization to Drive Silicon Alloys Market in Asia Pacific

In terms of region, the global silicon alloys market has been divided into North America, Latin America, Europe, Asia Pacific, and Middle East & Africa. Asia Pacific accounted for more than 65% of the global silicon alloys market in 2018. China is a major producer and consumer of ferrosilicon across in globe. This, in turn, drives the market in the region. The market in the region is projected to expand at a significant pace during the forecast period. Rise in demand for automobiles in Asia Pacific is attributed to the increase in industrialization and infrastructure development in the region, especially in China and India. 

Silicon Alloys a Highly Competitive Market

The research study includes profiles of key players such as RFA International, OM Holdings Ltd., Dragon Northwest Ferroalloy Co.,Ltd., Kuwait United Chemalloys Manufacturing, DMS Powders (Pty) Ltd, Ferroglobe, SKP Group, ArcelorMittal, Jindal Stainless Ltd, Metal & Alloys Corporation, Elkem ASA, Georgian American Alloys, Lalwani Ferro Alloys Ltd., Tata Steel Ltd, Pioneer Carbide Pvt. Limited, and Steelmin Limited operating in the global silicon alloys market