Silicon Monoxide Market

Market Overview

The global silicon monoxide market size was valued at USD 150.7 million in 2023 and is projected to reach a value of USD 392.0 million by 2032, registering a CAGR of 11.2% during the forecast period (2024-2032). Due to the growing need for sustainable packaging, the silicon monoxide market share is expected to expand significantly.

Silicon monoxide (SiO) is a chemical compound of silicon and oxygen atoms in a 1:1 ratio. It is a dark brown or black solid with a high melting point. Silicon monoxide is predominantly formed via the reaction of silicon dioxide (SiO2) and elemental silicon at high temperatures. It is commonly utilized as a precursor in the creation of silicon dioxide (SiO2), also known as silica, which is widely employed in electronics, solar energy, ceramics, and glass manufacturing. Silicon monoxide is used in semiconductor production, photovoltaic (solar cell) manufacturing, optical coatings, and innovative materials. 

The global silicon monoxide market is distinguished by its vast uses in various industries, including electronics, solar energy, ceramics, and glass manufacture. The silicon monoxide market is expected to increase steadily with rising demand for electronic products, renewable energy sources, and specialized materials. Key factors include the growth of the electronics sector, the shift to solar energy, and continued research and development in material science and nanotechnology. However, supply chain bottlenecks, cost barriers, and regulatory compliance requirements impede market expansion. 

Highlights

• Powder accounts for the largest share of the market by type.
• Coating Applications is a significant contributor to the market by application.

Market Dynamics

Market Drivers

Expansion of Electronics Industry

The fast expansion of the electronics industry, fueled by rising demand for consumer electronics, cellphones, laptops, and automotive electronics, is a significant driver of the silicon monoxide market. Silicon monoxide is a precursor in silicon dioxide thin films required for semiconductor fabrication, integrated circuits, and microelectronics. Continuous developments in electronic gadgets and the emergence of new technologies like 5G networks, the Internet of Things (IoT), and artificial intelligence (AI) are all driving up demand for silicon monoxide.

For example, many companies offering low-cost, high-performance cell phones have increased dramatically in recent years. Furthermore, the high-end product segment continues to grow by introducing new products. Nikon launched the Z8 mirrorless camera for the Indian market in May 2023. The product has a Hybrid Log-Gamma: Standard (HLG) format supporting 10-bit still photos. It also demonstrates an upgraded Artificial Intelligence (AI) algorithm.

Furthermore, according to the Semiconductor Industry Association (SIA), global semiconductor sales in 2023 were USD 526.8 billion, down 8.2% from USD 574.1 billion in 2022. However, the market rebounded in the second half of 2023, with sales expected to rise by 13.1% in 2024. This considerable market size reflects increasing demand for semiconductor devices in various industries, including consumer electronics, automotive, healthcare, and industrial applications. Thus, the expansion of the electronics industry, particularly the semiconductor sector, is a primary driver of the silicon monoxide market. 

Market Restraints

Limited Availability of Raw Materials

The supply of raw materials for silicon monoxide synthesis, such as silicon dioxide (SiO2) or elemental silicon, can be limited or disrupted. Silicon dioxide, a typical precursor for silicon monoxide synthesis, may need more supply due to geological availability, extraction costs, and environmental requirements. Similarly, fluctuations in the availability and price of elemental silicon, frequently produced from quartz or silicon metal, can impact overall silicon monoxide production and pricing, creating a challenge for market expansion.

Additionally, according to the United States Geological Survey (USGS), the globe generated an expected 400 million metric tons of industrial sand and gravel in 2023, up from 359 million in 2022. The United States was the world's biggest producer in 2023, generating an estimated 130 million metric tons worth roughly USD 7 billion. The United States also exported an expected 6.4 million tons of industrial sand and gravel in 2023, up 18% from 2021. However, the availability of high-purity silica sand appropriate for silicon monoxide production may be limited due to stringent quality requirements and processing procedures.

Although quartz, the principal source of silicon dioxide, is abundant in geological formations worldwide, extracting and processing high-purity quartz for silicon monoxide manufacture can be costly. Countries such as China, the United States, Russia, and Brazil are major quartz producers. Still, geopolitical issues and trade dynamics can affect the availability and pricing of quartz raw materials for silicon monoxide manufacturers.

Market Opportunity

Expansion of the Solar Energy Market

The global shift to alternative energy sources, notably solar energy, creates enormous prospects for the silicon monoxide market. Silicon monoxide is used to produce silicon-based solar cells and photovoltaic modules, which help improve the efficiency and performance of solar panels. With governments worldwide establishing laws to encourage clean energy use and reduce carbon emissions, the demand for silicon monoxide in the solar energy sector will likely increase. 

According to the International Energy Agency (IEA), global solar photovoltaic (PV) capacity increased to 1.6 terawatts (TW) in 2023, up from 1.2 TW in 2022. This rise was driven by the commissioning of around 446 gigawatts (GW) of new PV systems, with an estimated 150 GW of modules in global inventories. The ongoing rise of the solar energy business highlights the tremendous prospects for silicon monoxide manufacturers to offer ingredients for solar cell production.

Furthermore, according to S&P Global Commodity Insights' February 2024 research, clean energy technology (CET) investments are predicted to rise by 15% in 2024, totaling about USD 800 billion. This would represent a 10-to-20% increase over 2023 spending levels. Solar energy is projected to account for around 55% of the increased investment. As the solar energy market grows, so will the demand for high-quality silicon monoxide for solar cell manufacture, opening up new potential for growth and innovation.

Moreover, silicon-based solar cells, which use silicon monoxide for thin film deposition, account for more than 90% of the global solar PV market, according to the International Renewable Energy Agency (IRENA). Silicon-based solar cells have numerous advantages, including high efficiency, durability, and scalability, making them the preferred choice for global utility-scale and distributed solar power projects. 

Regional Analysis

The global silicon monoxide market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America Dominates the Global Market

North America is the most significant global silicon monoxide market shareholder and is estimated to grow at a CAGR of 11.0% over the forecast period. The region is currently the leading producer of SiO. The growth trajectory is due to the widespread usage of silicon monoxide as a coating material in the glass sector and its increasing importance as an anode material. Factors such as high demand and consumption of portable consumer electronics, bolstered by some of the world's largest electronics brands, contribute to North America's, particularly the United States', supremacy in the SiO industry. Increased investment in solar panels and increased EV sales are critical for regional growth. 

For example, electric vehicle (EV) sales in the United States are predicted to rise in 2024, making it the best year ever for EV sales. The IEA predicts EV sales in the United States will climb by 20% in 2024 compared to 2023, or nearly half a million more sales. The IEA also predicts that EV sales will account for 11% of all vehicles sold in the United States by 2024. In June 2023, the US government launched a USD 7 billion grant competition to promote the use of clean solar energy and assist low-income people in the country. 

Asia-Pacific is anticipated to exhibit a CAGR of 11.7% over the forecast period. Asia-Pacific is expected to rise steadily, driven by growing SiO output in China and India. Furthermore, Asian countries are seeing increased growth in end-user verticals as China intensifies its ambitions to emerge as a global leader. In addition, the rising automobile industry is likely to stimulate the regional market. For example, in 2023, EVs accounted for 36% of new automobile sales in China. China then accounted for 57% of global EV sales. Chinese EV manufacturers are on track to generate up to 36 million EVs annually by 2025. The Chinese market is driving the technological disruption.

Furthermore, semiconductors are South Korea's most significant export product, accounting for more than 20% of yearly exports. The sector's share peaked at 25% in 2021 but fell to a five-year low of 20.7% in 2023, weighing on market growth.

Europe holds a significant market share. Silicon monoxide is a silicon dioxide thin film manufacturing precursor in the European electronics sector. The solar energy business in Europe is also a significant driver of the silicon monoxide market. Despite legal changes and market dynamics, countries like Germany, Spain, Italy, and the United Kingdom continue investing in solar PV systems and renewable energy projects. Silicon monoxide produces silicon-based solar cells, which aids the region's transition to clean and renewable energy sources.

Segmental Analysis

The global silicon monoxide market is segmented based on type and application.

The market is further segmented by type into Granular, Powder, and Bulk.

The powder segment is predicted to lead the segmental growth in 2023 due to its greater adaptability. It has a wide range of uses in several fields. The increased dimension size of the granular or bulk form limits its use. If the process temperature ranges between 400 and 800 °C, SiO can rapidly and irreversibly decompose into Si and SiO2. Powder silicon monoxide comprises finely ground silicon monoxide particles, typically with a large surface area and a tiny particle distribution. Powder silicon monoxide has strong reactivity, surface activity, and dispersibility, making it ideal for applications that need fast chemical reactions, surface modification, or catalytic activity. Powdered silicon monoxide is widely utilized in powder metallurgy, surface coating, and additive manufacturing techniques. 

Granular silicon monoxide refers to silicon monoxide particles manufactured in a granular form, usually with a regulated size distribution. Granular silicon monoxide has several advantages, including homogeneous particle size, flowability, and simplicity of handling. It is widely utilized in applications that need accurate dosing, mixing, or dispersion of silicon monoxide particles. Granular silicon monoxide, for example, can serve as a feedstock in chemical processes, catalyst compositions, and composite material synthesis. Its granular structure enables efficient processing and inclusion into various final products, making it appropriate for multiple industrial applications.

The market can be bifurcated by application into Anode Material and coating Applications.

The coating applications category led the market in 2023, owing to the rising use of coated products such as glass and mirrors. Silicon monoxide coatings have numerous uses in optical, electronics, aerospace, and automotive industries, where thin film deposition processes attach silicon monoxide coatings to substrates. These coatings have optical transparency, scratch resistance, chemical inertness, and thermal stability, making them ideal for various functional and protective applications. The compound's optical qualities make reflectors, jewellery, and other goods worthwhile. The increasing demand for high-quality mirror and glass goods across end markets may result in faster growth in the coming years. SiO has an average resistivity of 10^10 to 10^15 ohm-cm.

Furthermore, silicon monoxide coatings can act as barrier coatings, providing corrosion resistance, moisture protection, and surface modification in electronic devices, sensors, and packaging materials. Silicon monoxide coatings can be tailored to match individual performance requirements and application needs by varying the deposition conditions and film thickness, providing versatility and reliability in various industrial and technical applications.

As an anode material, Silicon monoxide can hold many lithium ions throughout charging and discharging cycles, resulting in increased energy storage capacity and improved battery performance. Researchers are working to produce silicon monoxide-based anodes with enhanced stability, cycle efficiency, and rate capability for next-generation LIBs. Silicon monoxide has the potential to help create high-energy-density and low-cost lithium-ion battery technology for a variety of applications, including electric vehicles, portable devices, and energy storage systems.

Recent Developments

• April 2024- Shin-Etsu Chemical Co., Ltd. (Headquarters: Tokyo; President: Yasuhiko Saitoh) stated that it will develop a new plant in Isesaki City, Gunma Prefecture, Japan, to expand its semiconductor lithography materials business. The new factory will be Shin-Etsu's fourth production base in this business.