COVID-19 has halted the supply chain of several industries including electronics and semiconductor, buidling and construction, automotive, etc. around the globe. This in turn adversely affected the demand for quartz in these industries. The usage of Solar power has increased, but this alone couldn’t lift the market back. European Construction Industry Federation (FIEC) has stated that there is a 20% fall in the construction activity in Europe for the year 2020, compared to 2019. However, as the lockdowns were lifted in most of the countries around the world, the market is expected to recover, owing to the production being resumed in most of the industries.

- Over the mid-term, the major factor driving the growth of the market studied is demand for high-purity quartz in the semiconductor industry, coupled with the growing solar industry.

- The ecological impact of quartz mining, coupled with discoloration in quartz tiles and slabs, is anticipated to hinder the market’s growth during the forecast timeframe.

- Electronics and semiconductor industry are expected to dominate the global market, during the forecast period.

- Emerging applications of quartz powder owing to its unique properties can act as an opportunity for the market.

- Asia-Pacific dominated the market across the world, with the largest consumption from China.

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Key Market Trends

Rising Demand from the Electronics and Semiconductor Industry

- Quartz is used within the electronics industry for its high stable, high-performance resonators, for further use in filters and oscillators. Quartz possesses various properties for the electronics industry, including piezo-electric properties, as its melting point is above 1700º C and its curing temperature is 573º C.

- There has been an increasing demand for quartz from the electronics industry. This is majorly because of its increasing usage in devices, such as mobile phones, tablets, laptops, and desktops.

- Additionally, quartz crystal is used as an oscillator in radios, watches, and pressure gauges. Quartz crystal is also used to make frequency filters, frequency controls, and timers in electronic circuits for a wide range of products, such as communication equipment, computers, electronic games, and television receivers.

- The electronics manufacturing market in Asia-Pacific is expected to grow rapidly during the coming years, due to the presence of large number of OEMs in the region. Low cost and the availability of raw materials, coupled with cheap labor, are driving the growth of the sector. The companies in the region provide manufacturing and assembling services to companies in Germany, France, and the United States. Moreover, these companies are rapidly digitizing their business to achieve end-to-end integration of their operation. This is further encouraging the OEMs from Europe and North America to outsource their production to Asia-Pacific.

- China dominates the electronics production in the global market. The country’s electronics production, which was steadily increasing through the years, has recently suffered from deceleration owing to the ongoing trade war between China and the United States, forcing various electronics producers to shift their base from China to other countries in the Asia-Pacific region.

- In India, the electronics production was valued at around USD 63.62 billion in 2018-2019. The National Policy on Electronics 2019 planned to advance local assembling and fare in the whole worth chain of Electronics System Design and Manufacturing (ESDM) to accomplish a turnover of USD 400 billion by 2025.

- Though electronics production is increasing in major countries of the world, the semiconductor industry is however registering a decline in revenue at present. According to The Semiconductor Industry Association (SIA), the global semiconductor industry sales stood at USD 412.1 billion in 2019, registering a decline of 12.1% compared to that of 2018. Ongoing global trade unrest and cyclicality in product pricing were the major reasons for the decline in semiconductor sales in 2019. Declining sales further affected the semiconductor production, globally.

- Post this decline in semiconductor industry, the market witnessed further slowdown owing to the COVID-19 outbreak and shutdown of production facilities across the globe.

- However, countries, such as China, one of the major consumers of semiconductors, are trying to ramp up the semiconductor production. In 2019, Beijing, the capital of China, highlighted semiconductors as a key area of the Made in China 2025 plan, a government initiative that aimed to boost the production of higher-value products. China is aiming to produce 70% of the semiconductors it uses by 2025.
- Owing to such factors, the demand for quartz is likely to witness rapid growth from the electronics industry.

Asia-Pacific region to Dominate the Market

- China is expected to dominate the quartz market in Asia-Pacific and is also likely to witness the fastest rising demand. This is majorly because of the increasing demand from the end-user industries, including electronics, building and construction, and the medical sector.

- China has the world’s largest electronics production base and offers a tough competition to the existing upstream producers, like South Korea, Singapore, and Taiwan. Electronic products, such as smartphones, OLED TVs, and tablets, witnessed the highest growth in the consumer electronics segment of the market studied. With an increase in the level of disposable income of the middle-class population, the demand for electronic products is projected to increase in the near future. This is expected to drive the growth of the market studied.

- Furthermore, over 51% of the PCBs are manufactured in China, owing to the incentives offered by the government to the PCB factories. Moreover, the country is producing circuit boards at low costs. As a result, many companies across the world are focusing on closing their operations.

- The Chinese smartphone brands, such as ZTE, Huawei, and Lenovo, have cooperative relations with the local PCB factories. Thus, the smartphone industry’s growth is likely to drive the demand for metal finishing.

- China is the world's largest importer and consumer of semiconductors. Many emerging economies are dependent on China for technology and trade. They perceive China's technological rise as a positive trend and are focusing on establishing economic ties with the country.

- China launched a technological innovation board, the STAR market, on the Shanghai Stock Exchange, primarily to attract private capital, while supporting talented entrepreneurs and startups that aid the development of advanced chips.

- Currently, China produces over 16% of silicon chips. Furthermore, it is planning to produce 70% of all the primary semiconductors by 2025, primarily to establish itself as leader in the semiconductor industry, while building strong economic relationships with emerging economies.

- Due to the US-China trade war, China is focusing on the growth of its semiconductor industry.

- In China, the housing authorities of Hong Kong have launched various measures to push-start the construction of low-cost housing.

- Currently, China accounts for the highest solar capacity in the world, and it is home to several massive solar farms, including the world’s largest solar farm in Tengger. In 2019, about 233.8 terawatt-hours of electricity had been generated from solar power in China.

- The country is the largest clean energy investor in the world, and it is focusing on increasing the proportion of renewable energy in its power mix. In terms of energy mix, solar energy accounts for about 5% of the share and coal energy accounts for 60%. Quartz glass is used for manufacturing photovoltaic (PV) cells, which are primarily used in light sources and reaction chambers, along with the tools used in the production of solar cells, thin films, and silicon wafers.

- In India, solar power is a developing industry. The country's solar installed capacity was valued at 33.730 GW, as of 31 December 2019. India established nearly 42 solar parks, in order to provide land to the promoters of solar plants.

- The Indian Electronics and Semiconductor Association (IESA) signed a MoU with the Singaporean Semiconductor Industry Association (SSIA), to establish and develop trade and technical cooperation between the electronics and semiconductor industries of both the countries. This is expected to result in the development of various break-through semiconductor manufacturing technologies, which are expected to improve the scope for quartz applications in India.

- Such factors are expected to increase the demand for quartz, during the forecast period.

Competitive Landscape

The quartz market is fragmented in nature. The major players of the market studied include the Jiangsu Pacific Quartz Co. Ltd, NIHON DEMPA KOGYO CO., LTD., AGC Inc., The Quartz Corporation and Sibelco amongst others.

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