Silicon Tetrachloride Market size is estimated to reach US$3.1 billion by 2027 after growing at a CAGR of 4.5% from 2022-2027. Silicon tetrachloride is a colorless volatile liquid that is used to produce high purity silicon and is used to make optical fibre and fumed silica which is used as viscosity adjustment in paint & coating, printing, adhesive, etc. Silicon tetrachloride has various applications like as chemical intermediate used in fractional distillation for making polysilicon, making coating adhesives from Grignard reagents, as raw material for semi-conductors, solar photovoltaic, and consumer electronics like mobiles, laptops, etc. The drivers for the silicon tetrachloride market are growing demand for consumer electronics, an increase in the number of solar projects, growing paints & coating industry. However, the pollution made from the production of the photovoltaic cells causes health issues like burning sensation, sour throat. Owing to this, other types of cells such as perovskite cells are being used as a replacement for silicon-based photovoltaic solar cells which can hamper the demand for silicon tetrachloride in the solar sector, thereby harming the growth of the silicon tetrachloride industry.
COVID-19 Impact
The restrictions and regulations like lockdown, social distancing, and quarantining imposed by governments of countries to prevent the spreading of COVID-19, harmed end-users of silicon tetrachloride. Shortage of labor, restriction on movement of people, and supply of material decreased the productivity of various sectors like electronic, chemical, etc., and also it reduced sales of certain equipment like semiconductors. For instance, as per the 2020 report of the Central Statistics Office of India, the factory output in the computer and electronics industry contracted 41.7% in Mar 2020 compared to the same month in 2019. The July 2020 report of the U.S Energy Information Administration stated, that 53 solar photovoltaic projects totaling 1.3GW of capacity were delayed as a result of the pandemic. Also, as per the 2020 report of the Semiconductor Industry Association, the first quarter sale of semi-conductor in the U.S decreased by 3.6% compared to an increase of 6.9% for the same period in 2019. Such a decrease in productivity and sales of major end-users of silicon tetrachloride negatively impacted the growth of the silicon tetrachloride industry.
Report Coverage
The report: “Silicon Tetrachloride Market Report – Forecast (2022 – 2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Silicon Tetrachloride industry.
By Grade Type – Electronic Grade, Technical Grade, Others.
By Application – Chemical Intermediate, Semiconductors, Optic Fibres, Photovoltaic Cell, Others.
By End-user – Electronic (Mobile, Tablets, Laptop), Automotive, Ceramics, Chemical, Power (Renewable, Non-renewable), Others.
By Geography - North America (USA, Canada, Mexico), Europe (UK, Germany, France, Italy, Netherland, Spain, Russia, Belgium, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, Rest of South America), Rest of the World (Middle East, Africa).
Key Takeaways
- Asia-Pacific dominates the silicon tetrachloride market as the region consist of major end-users of the silicon tetrachloride like electronic, automobile, ceramics, etc. in countries like China, India, Indonesia
- High purity silicon tetrachloride is a major raw material used for the manufacturing of optic cables whose demand is steadily increasing due to the growing development of 4G, LTE, FTX, and other Internet-of-Things.
- Silicon tetrachloride is the major source of pure silicon while manufacturing polysilicon which is used as wafers in large amounts for photovoltaic cells and semiconductors
Silicon Tetrachloride Market Segment – By Grade
Electronic grade held the largest share in the silicon tetrachloride market in 2021, with a share of over 30%. The high purity and low volatile nature of electronic-grade silicon tetrachloride make it suitable for the production of silicon rubber which is used in applications like automotive wiring insulation. The high electrical stability and resistance properties make electronic-grade silicon tetrachloride to be used as major raw material in semiconductor manufacturing. Rapid development in the production of automobiles and semi-conductor will have a positive impact on the demand for electric grade silicon tetrachloride. For instance, as per European Automobile Manufacturing Association, the production for e-vehicles increased up to 11% in 2020 from 3% in 2019 in the EU. The December 2021 report of the Semiconductor Industry Association stated that worldwide sales of semiconductors were $48.8 billion in October 2021, an increase of 24.0% from October 2020. Such an increase in production and sales of automobiles and semiconductors will lead to more usage of electronic-grade silicon tetrachloride, thereby having positively impacting the growth of the silicon tetrachloride industry.
Silicon Tetrachloride Market Segment – By Application
Semiconductor held the largest share in the silicon tetrachloride market in 2021, with a share of over 42%. Semiconductors are primarily made of a compound such as silicon that is rich in electrical stability and acts as an insulator. These electronic devices are used as discrete devices or integrated circuit chips in most consumer electronics such as computers, smartphones, digital cameras, LED, washing machines, digital cameras, etc. The rapid development in the electronic industry and growing demand for consumer electronics such as smartphones will lead to an increase in the demand for semiconductors. For instance, as per the 2021 report of the National Bureau of Statistics of China, the manufacturing of electrical equipment such as computers, laptops, mobiles, etc. and other electrical equipment increased by 13.5%. Hence, with such an increase in the production of electrical equipment the demand for semiconductors to be sued in them will also increase, thereby increasing the usage of silicon tetrachloride in semiconductor manufacturing.
Silicon Tetrachloride Market Segment – By End User
Electronic held the largest share in the silicon tetrachloride market in 2021, with a share of over 36%. Electronic equipment has high usage in various fields such as communication, medical diagnosis, information technology, entertainment, etc. Silicon tetrachloride due to its high electrical and resistance properties is used to make integrated circuit chips and semiconductors used in electronic devices. The growing technological advancements and rapid urbanization have led to an increase in the consumption of electronic devices which has increased the growth rate of the electronic industry. For instance, as per the 2021 report of the Ministry of Industry and Information Technology, China’s electronic equipment manufacturing showed an expansion of 18% compared to last year. Also, as per the 2021 report of International Data Corporation on smartphones, the shipments of smartphones reached 1.38 billion units in 2021 showing an increase of 7.7% over 2020. An increase in output of the electronic industry will lead to an increase in demand for semiconductors and IC chips which will lead to an increase in usage of silicon tetrachloride for their manufacturing.
Silicon Tetrachloride Market Segment – By Geography
Asia-Pacific held the largest share in the silicon tetrachloride market in 2021, with a share of over 45%. The region consists of countries like China, India, Indonesia, etc. that have maximum smartphone users and established electronic and automobile sectors which are major users of silicon tetrachloride. The growing development in the electronic, automobile sector has increased their productivity, which will have a positive impact on demand for silicon tetrachloride as it is used for automotive wiring in automobiles and semiconductors for electronic devices. For instance, as per the International Energy Agency, electric car registration increased by 41% in 2020 globally, with China being the largest e-vehicle producer. Also, as per the Ministry of New and Renewable Energy, India increased its solar power capacity eleven times in the past five years from 2.6GW in 2014 to 30GW in 2019. Such an increase in production output of these sectors will create more usage of silicon tetrachloride which increase the growth of the silicon tetrachloride industry in the Asia-Pacific region.
Silicon Tetrachloride Market Drivers
Increase in the number of solar projects
Silicon tetrachloride is used in the production of polysilicon which is majorly used in solar applications as photovoltaic cells as it provides good energy efficiency, has high corrosion resistance, long-term durability, and optimal thermal expansion properties. The significant increase in solar energy projects will increase the usage of photovoltaic cells in solar panels. For instance, as per Nuclear Energy Administration China installed 25.56 GW of new solar capacity in the first nine months of 2021, showing a 36.68% increase from 18.7 GW in 2020. Also, as per Solar Energy Industry Association, US In Q3 2021, the US solar market installed 5.4 GW of solar capacity, a 33% increase over the third quarter of 2020 and the largest Q3 on record. Hence such an increase in solar capacity will increase the demand for photovoltaic cells, which will increase the usage of silicon tetrachloride for manufacturing photovoltaic cells to be used in solar panels.
Growing demand for consumer electronics
High disposable incomes, technological advancements, and rapid changes in lifestyles of people have led to an increase in demand for more advanced and efficient electronic items, like smartphones, laptops, digital cameras, television (LCD, LED), etc. Hence as silicon tetrachloride is used in such consumer electronics as semiconductor and integrated circuit chips, so increase in demand for these items will have a positive impact on its demand. For instance, as per India Brand Equity Foundation, television sales in the country increased 7.04% in 2021 compared to 2019. Also, as per the China Academy of Information and Communication, the smartphone shipment of the country in 2021 was 349 million units showing an increase of 15.9% compared to 296 million units shipped in 2020. Such an increase in demand and consumption of electronic devices will increase the demand for silicon tetrachloride-based semiconductors, thereby having a positive impact on the growth of the silicon tetrachloride industry.
Silicon Tetrachloride Market Challenge
Availability of Substitutes
The production of the photovoltaic cell creates toxic smoke which causes environmental problems as well as human health problems like burning sensation and sour throat. Hence to minimize the toxic effect of silicon-based photovoltaic cell, other options such as perovskite cells which is a hybrid form of a photovoltaic cell has been started to be used in solar panels as a replacement for silicon. The solar panels made from perovskite cells are light-weighted, cost-effective, and are sustainable. Hence, the growing shift towards using sustainable substitutes which are more effective than silicon-based photovoltaic cells will lead to less usage of silicon tetrachloride in the solar sector, which can harm the growth of the silicon tetrachloride industry in the solar sector.
Silicon Tetrachloride Industry Outlook
The companies to develop a strong regional presence and strengthen their market position, continuously engage in mergers and acquisitions. Silicon Tetrachloride Market top 10 companies include:
- Evonik Industries
- Tokuyama Chemicals Co. Ltd
- Shandong Xinlong Group Co Ltd
- Air Products and Chemicals, Inc
- Momentive Specialty Chemicals Inc.
- Merck KGaA
- Dow Corning
- Hemlock Semiconductor Corporation
- Alfa Aesar
- Reade International Corp
Recent Developments
- In 2021, Evonik industries entered into a joint venture with Chinese company Wynca for producing fumed silica in Jiangsu province. The plant is Evonik's first fumed silica production site in China and will produce the product under the brand name AEROSIL
- In 2021, Merck KGaA opened a new production plant in Germany for making silica-based pigments. Hence such establishment will enable the company to provide silica substrate for automotive coating and color cosmetics
Relevant Reports
Report Code – CMR 0236
Report Code – CMR 49253
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