Polysilicon Market

Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 - By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa)

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Industry: Chemicals & Materials

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Global polysilicon market is likely to exhibit a promising growth curve as far as the short-term outlook is considered. The report will uncover the insights into how the market growth will unfold in the next few years.

Polysilicon Market Likely to See Robust Growth as Solar Industry Surges Ahead

The primary factor driving demand for polysilicon worldwide is the increased demand for polysilicon from the solar energy sector. The expansion of different end-user verticals in emerging economies and the rising demand for polysilicon for various industrial applications, including the production of multi-crystalline solar panels, electronics, civilian small solar equipment, and others, will also directly influence the polysilicon market growth. Increased government efforts to lower the cost of solar products, rising major company spending on research and development, an increase in industrialization, a greater reliance on renewable energy sources, an increase in the number of small and medium-sized businesses, particularly in developing nations, and a growing emphasis on technological advancements in production methods will all further pave the way for the growth of the solar industry.

International Renewable Energy Agency (IRENA) reports that 133 GW more solar installations were added in 2021, representing a 19% increase in solar energy's total worldwide capacity expansion. According to the World Economic Forum, solar and wind together will produce over 10% of the world's electricity in 2021, with solar power making up around 5% of that total. A major obstacle to the polysilicon market expansion will be the deficiency in raw material supply due to the tightness and volatility in their pricing. The market growth rate will be slowed down by high costs associated with R&D, severe government controls on industrial processes, rising import and export taxes, and restrictive global trade policies. High capital expenditures will also limit the growth potential of  market.

Polysilicon Market: COVID-19 Impact

In 2020, China was the largest polysilicon market on the planet and the COVID-19 outbreak's focal point. Supply chains were interrupted by the regional lockdown restrictions enforced during the pandemic, which had a negative impact on several end-use businesses. Trade restrictions, a lack of labor and raw materials, a shortage of freight containers, and logistical difficulties all contributed to the pandemic's disruption of the worldwide supply chain. The capacity of the semiconductor industry to produce semiconductors was significantly impacted by the shortfall of raw material sources, which led to a shortage of silicon chips. Major automakers, including GM and Ford, briefly shut down their operations due to a silicon chip shortage. The solar power sector also consumes a lot of resources and has to deal with serious difficulties because of a lack of raw materials. Due to the increased use of solar energy during the pandemic, the market for solar energy has experienced growth. But as demand for polysilicon increased, companies could not meet it, leaving a huge supply-demand gap. As a result, after steadily declining over the previous few decades, prices for this commodity spiked substantially in 2020.

Growing Digitalization of Emerging Economies Will Fuel Polysilicon Market Expansion

Emerging economies have many options to accelerate growth and integrate into the global economy thanks to digitalization. The development and economic progress of society are accelerated by digitalization, enabling better resource management. Governments and international organizations support and heavily invest in digitization to take advantage of its potential benefits. For instance, the Government of India has been implementing the Digital India program since 2015 to convert India into a society and knowledge economy empowered by technology. By enhancing online infrastructure, expanding internet connectivity, or empowering the nation in the digital sphere, digitalization aids in the services offered to people electronically. As a result, there has been a greater reaction to digitization, raising the demand for consumer gadgets and increasing the need for electricity. Thus, growing digitization drives demand for electronics-grade goods, opening up attractive polysilicon market potential.

Rising Demand for Solar Photovoltaics Accelerates Polysilicon Market Expansion

One of the biggest problems facing the world today is climate change, which affects every part of the globe. In recent years, extreme weather occurrences like heat waves, droughts, cyclones, and heavy rains have become more frequent, interrupting commerce and negatively affecting people's livelihoods. In a 2021 assessment, the Intergovernmental Panel on Climate Change (IPCC) of the United Nations stated that the average world temperature has already increased by 1.1 degrees Celsius compared to pre-industrial temperatures in the nineteenth century. According to scientific predictions, the average global temperature may rise by 1.5 degrees Celsius over the next 20 years, exceeding the Paris Agreement's 1.5 degree danger limit. It is anticipated that growing environmental concerns would hasten the adoption of renewable energy sources like solar power during the projected period. Due to the rising use of renewable energy sources, it is anticipated that the solar photovoltaic industry will grow significantly during the forecast period. This will benefit and fuel the growth of the polysilicon market.

Utilization of Capital-intensive Manufacturing Methods to Limit Polysilicon Market Expansion

The construction of a manufacturing facility is costly and requires cutting-edge equipment and a highly qualified crew. China controls the polysilicon market, producing around 80% of the world's goods. The Silicon chip shortage brought on by pandemic-related supply chain disruptions affects all industries associated with semiconductor electronics, including the automotive and consumer electronics sectors, which depend on semiconductor components. Several nations have realized the significance of home production and its geopolitical consequences for their semiconductor-dependent industries after experiencing supply chain vulnerabilities. Worldwide initiatives and investments have been made in building domestic production facilities to safeguard the industries that depend on semiconductors. However, because setting up manufacturing facilities requires a lot of money, only big-budget players can invest in these businesses.

Rods Dominate Polysilicon Market with Increased Application in Solar Cells

The rods category held the largest lysilicon market share. It is anticipated that it will continue to rule the polysilicon market during the forecast period because solar cells are using it more frequently. The polysilicon rod has an outer zone with a relatively small number of larger needle crystals, an inner zone with a relatively small number of smaller needle crystals, and a smooth transition zone between the inner and outer zones. These zones surround the filament rod. The polysilicon rods can be refined in one pass using an FZ process and are produced in high yields. A polysilicon rod is made by thermally decomposing or hydrogen-reducing high-purity silicon from a silicon-containing reaction gas and depositing it on a filament rod.

Solar PV Category Leads Polysilicon Market on Account of Extensive Usage of Materials in Production of Solar PV

The solar PV category held the largest market share, and it is anticipated that it will continue to rule the polysilicon market during the forecast period due to the extensive use of materials in producing semiconductors and solar photovoltaic panels. The main factor driving this segment's growth is the rising global demand for installing solar PV systems, which drives up demand. One of the businesses with the fastest global growth in solar photovoltaics. The International Energy Agency (IEA) estimates that the industry is responsible for over two-thirds of global net energy capacity. A solar photovoltaic plant that powers small grids is also a fantastic approach to making electricity accessible to individuals who lack access to power transmission lines, particularly in developing nations with excellent sun energy resources. The market will expand at an ever-increasing rate due to strong demand from specific end-use industries, including increases in solar cell installations, investments in and financial incentives for solar photovoltaic installations, and semiconductor sales.

Asia Pacific to Dominate Polysilicon Market Owing to Well-established Silicon Sector

Over the forecast period, it is anticipated that the Asia Pacific polysilicon market will account for the largest revenue share. Due to its well-established silicon sector, access to cheap labor, and availability of coal, China controlled the global  market in manufacturing and export. In 2020, China increased its solar power capacity by 48.2 Gigawatts as part of a plan to rely less on fossil fuels and cut carbon emissions. Manufacturers of polycrystalline silicon, mostly based in China, are finding it difficult to keep up with the rising demand from the solar industry. Although new manufacturing facilities are being developed, they will take time to keep up with the growing demand. Prices for the material have increased by 40% due to a supply shortage and are predicted to stay high for the next few years.

North America polysilicon market is anticipated to experience stable revenue growth throughout the forecast period ascribed to the solar photovoltaic industry's increased demand. The United States has seen a considerable rise in residential and commercial solar installations in recent years due to improving affordability, government incentives, and a commitment to lowering carbon emissions. The U.S. solar sector built a record 19.2 Gigawatts of new capacity in 2020, a 43% increase over the prior year, according to data by the Solar Energy Industries Association and Wood Mackenzie, despite the COVID-19-related economic downturn. The report also forecasts that, from where they are now, the number of solar installations will have tripled by 2030. The rise of the local solar power industry is anticipated to boost and fuel the market expansion throughout the forecast period.

Global Polysilicon Market: Competitive Landscape

In April 2022, Hanwha Solutions, a South Korean solar manufacturer, will receive polysilicon thanks to a memorandum of agreement that OCI inked. The supply agreement is worth about 1.2 billion dollars. Similarly, in February 2021, deals with Tianjin Zhonghuan Semiconductor and LONGi Green Energy Technology were completed by GCL Technology Holdings Limited. As part of the agreement, GCL will provide both Chinese businesses with long-term access to its polysilicon.

A few of the players in the polysilicon market Wacker Chemie AG, OCI Company Ltd., GCL-Poly Energy Holdings Limited, TBEA Co. Ltd, REC Silicon ASA., CSG Holdings Co. Ltd., Tokuyama Corporation, Daqo New Energy Co. Ltd., Mitsubishi Materials Corporation, Hanwha Chemical Co. Ltd, Asia Silicon, Osaka Titanium Technologies Co. Ltd., Qatar Solar Technologies, and Hemlock Semiconductor Corporation.

Global Polysilicon Market is Segmented as Below:

By Form

  • Chunks
  • Granules
  • Rods

By End-use Industry

  • Solar PV
  • Electronics

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • UK
    • France
    • Germany
    • Russia
    • Rest of Europe
  • Asia Pacific
    • Japan
    • South Korea
    • India
    • China
    • Rest of Asia-Pacific
    • Latin America
    • Middle East
    • Africa

Key Elements Included In The Study: Global Polysilicon Market

  • Polysilicon Market by Product/Technology/Grade, Application/End-user, and Region
  • Executive Summary (Opportunity Analysis and Key Trends)
  • Historical Market Size and Estimates, Value and Volume, 2019 - 2022
  • Volume Consumption at Regional and Country Level, 2023 - 2030
  • Market Dynamics and Economic Overview
  • Market Size in Value and Volume, Growth Rates, and Forecast Figures, 2023 - 2030
  • Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
  • Regional and Product/Grade/Application/End-user Price Trends Analysis
  • Production Output Analysis (Major Producing Regions)
  • Value Chain and Five Force’s Analysis
  • Regional/Sub-region/Country Market Size and Trend Analysis
  • Company Market Share Analysis and Key Player Profiles

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