Market Trends of Quartz Industry
Rising Demand from the Electronics and Semiconductor Industry
- Quartz is used within the electronics industry for its highly stable, high-performance resonators for further use in filters and oscillators. Quartz possesses various properties for the electronics industry, including piezoelectric properties, as its melting point is above 1700º C and its curing temperature is 573º C.
- There is an increasing demand for quartz from the electronics industry. It is because of its growing 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 various products, such as communication equipment, computers, electronic games, and television receivers.
- For decades, companies in the United States have led the world to produce tiny semiconductor chips that power modern technologies. According to Semiconductor Industry Association (SIA), the semiconductor industry in the United States accounts for 47% of the global semiconductor market, which is the largest share in the world.
- The semiconductor manufacturers are planning to invest in the country, which is anticipated to contribute to market growth. For instance, in March 2021, Intel invested USD 3.5 billion in its New Mexico plant to manufacture tiny microchips used in nearly all modern devices, as their demand is increasing.
- Digital technologies such as the internet of things (IoT) and the latest communication technologies, such as 5G, are expected to aid in developing innovative consumer electronic products. As per data published by JEITA, global electronics production increased significantly in 2022 compared to 2020.
- Owing to such factors, the demand for quartz is expected to witness rapid growth in the electronics industry.
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Asia-Pacific Region to Dominate the Market
- China is one of the major countries in the Asia-Pacific region, with ample construction activities. The country's industrial and construction sectors are expected to account for approximately 50% of the GDP.
- As per the forecast given by the Ministry of Housing and Urban-Rural Development, China's construction sector is expected to maintain a 6% share of the country's GDP going into 2025. Keeping in view the given forecasts, the Chinese government unveiled a five-year plan in January 2022 focused on making the construction sector more sustainable and quality-driven.
- The electronics supply chain was already in the throes of disruption before the outbreak due to the tariff war between the US and China. It forced the relocation of some high-profile electronics manufacturers from China to Southeast Asia, including GoPro, Kyocera, and Nintendo, moving manufacturing to Vietnam, Casio, Daikin, and Ricoh, and shifting operations to Thailand.
- To benefit from the extensive demand scenario, China embarked on strategic initiatives like the "Made in China 2025" plan, under which the Chinese government announced its goal to reach an output of USD 305 billion by 2030 and meet 80% of its domestic demand.
- The digital vision in India is a vast opportunity and includes significant economic value. The Indian economy is expected to generate revenue of more than USD 1 trillion by 2022 by implementing the 30 digital themes that are currently planned. With the increase in electronic device manufacturing ecosystems, the growth scope of the semiconductors and electronics market in India is extremely high.
- According to the industrial outlook released by South Korea's Ministry of Science and ICT, electronic component production in value grew by 12.5% in 2021 compared to 2020 values. This growth is driven by the continuous demand for semiconductor memory for data centers, edge computing (IoT), automobiles, and 5G smartphones, as well as soaring demand for OLED panels for TV and mobile devices.
- Vietnam's electronics industry (EI) is one of the country's fastest-growing and most important industries. The US-China trade war and rising manufacturing costs in China have hugely benefited the Vietnam electronics industry. It captured one of China's most significant shares of electronic industry migration. The Philippines' semiconductor industry, coupled with the electronics industry, is the most critical contributor to the manufacturing sector within the country. While the electronics industry in Indonesia primarily serves the local industry with very little export.
- Such factors are expected to increase the demand for quartz during the forecast period.
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