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In 2022, the global market for silicon gases was valued at US$388.9 million. This is expected to grow to US$578.6 million by 2029, at a growth rate of 5.8% during this period.
Market Overview
The silicon gas market stood at an approximate $388.9 million at the end of 2022. The growth rate for the market is estimated to be around 5.8% during the forecast period (2022-2030). The effects of the COVID-19 pandemic and The Russia-Ukraine conflict are also considered with these statistics.
The silicon gas market refers to the market for various forms of gases that contain silicon, such as silane (SiH4) and silicon tetrafluoride (SiF4). Silicon gases are widely used in several industries, including semiconductors, solar panels, chemical synthesis, LCD display manufacturing, and fiber optics.
The market is mainly segmented using three criteria:
Key Findings:
Market Drivers
Growing Semiconductor Industry
The semiconductor industry is a major driver of the silicon gas market, holding almost half the total market share. Silicon gases, such as silane (SiH4), are widely used to produce silicon-based semiconductors.
The increasing demand for electronic devices, including smartphones, tablets, and IoT devices, fuels the demand for silicon gases in semiconductor manufacturing. As populations grow, the use of these technologies will go up, and thus the silicon gas market will also see growth.
Expansion of the Solar Energy Sector
Silicon gases play a crucial role in the production of silicon-based thin-film solar cells. With the growing emphasis on renewable energy sources and the rising adoption of solar power generation, the demand for silicon gases in the solar energy sector is increasing.
The development of photovoltaic technologies and government incentives for solar power installations further drive the demand for silicon gases.
Technological Advancements in Semiconductor Manufacturing
Technological advancements in semiconductor manufacturing processes drive the demand for high-purity silicon gases. Advanced semiconductor devices, such as microprocessors and memory chips, require precise control and high-quality silicon gases during their fabrication.
The constant pursuit of smaller, faster, and more efficient electronic components contributes to the growth of the silicon gas market.
Increasing Demand for Specialty Chemicals
Silicon tetrafluoride (SiF4), a type of silicon gas, is utilized in the production of specialty chemicals. These chemicals find application in various industries, including electronics, automotive, and pharmaceuticals.
The rising demand for specialty chemicals, driven by factors such as industrial growth, technological advancements, and increasing consumer requirements, boosts the demand for silicon gases.
Market Opportunities
Research & Development Advancements
Ongoing research and development efforts in the field of silicon gases can lead to innovations and new applications. Exploring novel manufacturing processes, improving the purity and quality of silicon gases, and enhancing their compatibility with advanced semiconductor and solar technologies can unlock untapped market opportunities.
Emerging Technologies & Applications
The development of emerging technologies presents new opportunities for silicon gases. For instance, the growth of electric vehicles (EVs) and energy storage systems increases the demand for silicon-based components and materials.
Silicon gases play a role in manufacturing batteries, power electronics, and other critical components for these technologies, creating market prospects for silicon gas providers. As new technologies pop up, the need for silicon gas will also move up, presenting growth opportunities for providers.
Environmental Regulations & Sustainability Initiatives
Increasing awareness of environmental sustainability and the adoption of stricter regulations present opportunities for silicon gas providers. Silicon gases, being essential for green technologies like solar power generation and energy-efficient electronics, are poised to benefit from the focus on sustainable practices and green initiatives.
With an increased focus on sustainability and environmental friendliness, the demand for green energy solutions is rising, and thus, it is expected that the demand for silicon gases will also see an upward trend.
Market Challenges
Volatile Semiconductor Industry
The silicon gas market is closely linked to the semiconductor industry, which can be highly cyclical and subject to fluctuations in demand. Economic downturns, shifts in consumer preferences, and geopolitical factors can affect the demand for semiconductors, thereby impacting the demand for silicon gases.
Price Volatility
The prices of silicon gases, such as silane and silicon tetrafluoride, can be subject to volatility due to factors such as supply-demand dynamics, production costs, and raw material availability. Fluctuations in prices can impact the profitability of market participants and influence purchasing decisions by end-users.
Safety & Handling Concerns
Silicon gases can be hazardous to handle and require specialized storage, handling, and safety protocols. Ensuring proper safety measures and compliance with regulations adds complexity and costs to the production, transportation, and storage of silicon gases, posing challenges for market participants.
Environmental Regulations
Silicon gases, especially silane, are associated with environmental concerns due to their potential flammability and toxicity. Regulatory measures and restrictions aimed at minimizing environmental impact, such as emissions control and waste disposal regulations, can impact the production, use, and availability of silicon gases.
Regional Coverage
Asia Pacific is currently the largest market, accounting for about 81% of the market share. This is likely due to the large populations of India and China, the rapid urbanization of these countries, and their growing economies. Higher disposable income results in the use of semiconductors for electronic devices, and thus semiconductor gases (silicon gases).
Company Recent Development
Major players in the market hold up to 94% of the market share and include the following:
Linde, a leading industrial gas company, has been actively involved in the silicon gas market. Linde has a strong partnership with Topsil, which provides silicon wafers for semiconductors, and provides silane gas for this purpose.
Shin-Etsu Chemical has developed a new technology in 2020, that reduces the amount of platinum used for release coatings in silicone by about 50%.
In 2021, Wacker invested in the Chinese silane manufacturer, SICO Performance Material, and aims to expand its specialities in Asia. A new plant in India was established to focus on silicone end products.
In 2022, Air Liquide launched ADVANCE, a strategic plan for 2025, focusing on sustainable development.
In 2022, REC Silicon signed an agreement with Mississipi Silicon to negotiate raw material supply.
Considering the volatility of business today, traditional approaches to strategizing a game plan can be unfruitful if not detrimental. True ambiguity is no way to determine a forecast. A myriad of predetermined factors must be accounted for such as the degree of risk involved, the magnitude of circumstances, as well as conditions or consequences that are not known or unpredictable. To circumvent binary views that cast uncertainty, the application of market research intelligence to strategically posture, move, and enable actionable outcomes is necessary.
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