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Silicon Tetrachloride Market - Forecast(2023 - 2028)
Silicon Tetrachloride Market Overview
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
Figure: Asia-Pacific Silicon Tetrachloride Market Revenue, 2021-2027 (US$ Billion)
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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