Polysilicon Market Share, Size, Trends, Industry Analysis Report By Application (Photovoltaics {Monocrystalline Solar Panel and Multicrystalline Solar Panel} and Electronics), By Regions, Segments & Forecast, 2024 - 2032
- Published Date:Oct-2024
- Pages: 118
- Format: PDF
- Report ID: PM1519
- Base Year: 2023
- Historical Data: 2019-2022
Polysilicon Market Overview
The global polysilicon market size was valued at USD 37.24 billion in 2023. The market is projected to grow from USD 43.17 billion in 2024 to USD 141.71 billion by 2032, exhibiting a CAGR of 16.0% during 2024–2032.
The rapid expansion of the solar power industry propels the polysilicon market growth. The growing use of solar energy as a clean and sustainable power source has significantly increased solar panel production. Additionally, the development of the electronics and allied industries, fueled by the rise of 5G and IoT, has heightened the demand for polysilicon. Furthermore, government policies and incentives, including subsidies and tax credits, play a vital role in boosting the demand for polysilicon in the solar sector.
In April 2024, Highland Materials announced its plans to develop a new commercial polysilicon plant in the US with an initial annual capacity of 16,000 metric tons. The company claims that its manufacturing processes achieve a 90% reduction in carbon emissions.
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Polysilicon, also known as poly-crystalline silicon, is produced from metallurgical-grade silicon and is an ultra-high preform of silicon composed of numerous smaller crystals. This material is an essential component in the production of solar cells and electronic components. In the electronics industry, it is used with impurity levels typically below one part per billion. However, polysilicon grades used in solar photovoltaics are relatively less pure.
Establishing a polysilicon manufacturing facility is capital intensive, which also demands advanced technology, with a highly skilled workforce. China currently leads the market, contributing to about 80% of global production. Supply chain disruptions caused by the COVID-19 pandemic led to a silicon chip shortage, affecting all semiconductor-dependent industries, including the automotive and consumer electronics sectors.
Polysilicon Market Trends
Government-Sponsored Digital Programs
The polysilicon market is expected to grow in the coming years owing to a strong push from government policies and flagship programs. Digitalization would offer significant opportunities for emerging economies to enhance their economy. It connects people, optimizes resource utilization, and accelerates development and economic progress. To leverage the potential benefits of digitalization, governments and international organizations are actively promoting and making substantial investments in this area. For instance, the Government of India (GoI) implemented the “Digital India program” to transform the country into a digitally empowered knowledge-driven economy.
Digitalization enhances access to electronic services by improving online infrastructure, boosting internet connectivity, and empowering the country technologically. Furthermore, growing digitalization increased the demand for consumer electronics and raised electricity consumption. As a result, the expanding digitalization would fuel the polysilicon market growth in the coming years by driving the demand for electronics-grade products.
Increasing Adoption of Solar Energy
The increasing adoption of solar energy is a significant growth driver in the polysilicon market. Countries are transitioning toward renewable energy sources to reduce carbon emissions and meet sustainability targets which is driving demand for solar photovoltaic (PV) systems. Polysilicon, a key raw material in the production of solar cells, plays a critical role in this shift. Governments worldwide are offering incentives, subsidies, and regulatory support to promote solar installations, further fueling the need for solar-grade polysilicon. For instance, in April 2024, the Biden-Harris Administration has allocated USD 19 million from the Investing in America Agenda to support the installation of innovative solar panels over canals. Additionally, advancements in solar technologies and decreasing installation costs have made solar energy more accessible, driving higher consumption of polysilicon. This growing demand from the solar industry is expected to be a major factor contributing to the expansion of the polysilicon market.
Polysilicon Market Segment Insights
Polysilicon Market Breakdown – Application Insights
The global polysilicon market, based on application, is segmented into solar PV and electronics.
In 2023, the solar PV segment dominated the market due to its extensive use in manufacturing solar photovoltaic panels and semiconductors and the increasing global demand for solar PV system installations. Solar PV is one of the fastest-growing industries in the world. According to the International Energy Agency (IEA), it represents nearly two-thirds of net energy capacity worldwide.
The electronics segment is expected to witness a robust growth rate during the forecast period. Polysilicon is a crucial component in the production of semiconductor devices. It serves as the base material for silicon wafers, which are used to create integrated circuits. High-purity polysilicon is vital for semiconductor manufacturing to guarantee the quality and performance of electronic components.
The growing demand for electronic devices such as smartphones, tablets, computers, and IoT (Internet of Things) devices drives the need for semiconductors. This increased demand for semiconductors, in turn, boosts the need for polysilicon, which is a fundamental material in semiconductor production.
Polysilicon Market – Regional Insights
By region, the study provides market insights into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
Asia Pacific dominates the global polysilicon market in 2023. China has established dominance in the global polysilicon market owing to high manufacturing and exports, coupled with the availability of low-cost labor and coal. Most of the polycrystalline silicone manufacturers are located in China, and they are facing challenges in keeping up with the growing demand from the photovoltaic industry. As a result, prices for polycrystalline silicon have surged by 40% due to supply shortages and are expected to stay elevated in the coming years. For instance, according to the China’s National Energy Administration, the country's solar electric power generation capacity increased by 55.2% in 2023, with China adding over 216 GW of solar power throughout the year.
Other Asian nations started investing in domestic facilities to protect their growing photovoltaic and electronic sectors from potential shortages. For instance, Indian public companies NTPC & BHEL announced to foray into poly-crystalline silicon manufacturing with a capacity of ∼10 GW, aiming to reduce reliance on China.
The North America polysilicon market is expected to register the highest CAGR from 2024 to 2032. The regional market growth is primarily attributed to increasing demand from the solar photovoltaic industry. In the US, residential and commercial solar installations have surged in recent years, driven by greater affordability, government incentives, and commitment to reducing carbon emissions. For instance, according to the Solar Energy Industries Association (SEIA), solar power has achieved an average annual growth rate of 24% over the past decade in the US, driven by federal tax credits, lower installation costs, and increasing demand for clean energy from the private and public sectors. As a result, the US has over 162 gigawatts (GW) of installed solar capacity, enough to power nearly 30 million homes.
Polysilicon Market – Key Players and Competitive Insights
The polysilicon market is witnessing expansion and joint venture strategies adopted by companies across the world. The rising demand for high-performance, energy-efficient devices in the electronics industry propels the need for high-quality polysilicon. Additionally, advancements in solar panel technology have fueled demand for premium-grade polysilicon. Currently, PV manufacturers are consistently working to enhance efficiency. Government incentives and policies aimed at promoting renewable energy adoption have also significantly contributed to the market's growth.
Daqo New Energy Corp. (China); GCL Technology Holdings Co., Ltd. (China); Hemlock Semiconductor Corporation (US); Mitsubishi Materials Corporation (Japan); OCI Company Limited (South Korea); Qatar Solar Technologies (Qatar); REC Silicon ASA (Norway); Tokuyama Corporation (Japan); Wacker Chemie AG (Germany); and Xinte Energy Co., Ltd. (China) are among the major players in the polysilicon market.
Mitsubishi Materials Corp (MMC) is a diversified materials manufacturer engaged in various sectors, including aluminum, metals, electronic materials and components, advanced materials and tools, energy, cement, and recycling. Mitsubishi Materials Corp. provides environmental, recycling, and energy-related services. Additionally, the company conducts R&D through its Naka Energy Research Laboratory and Central Research Institute in Japan. MMC’s operations span across Asia Pacific, Europe, and North America. The company is headquartered in Tokyo, Japan.
Wacker Chemie AG (Wacker) is a chemical company that markets a wide range of silicon and ethylene-based products. Its offerings include siloxanes, silicone fluids, silicone emulsions, pyrogenic silica, and silanes. Additionally, the company produces binders and polymeric additives, such as dispersible polymer powders and dispersions. Wacker is also a producer of hyper-pure polysilicon for the semiconductor and solar industries. Its products are used across various sectors, including consumer goods, food, textiles, base chemicals, technology, electronics, automotive, and construction. The company operates in Europe, the Americas, Asia, and other regions, with its headquarters in Munich, Germany.
Key Companies in Polysilicon Market
- Daqo New Energy Corp.
- GCL Technology Holdings Co., Ltd.
- Hemlock Semiconductor Corporation
- Mitsubishi Materials Corporation
- OCI Company Limited
- Qatar Solar Technologies
- REC Silicon ASA
- Tokuyama Corporation
- Wacker Chemie AG
- Xinte Energy Co., Ltd.
Polysilicon
July 2024: Oman-based United Solar Holding announced its plans to build a polysilicon project with a capacity of 100,000 tonnes per year at the Sohar Freezone. The project is estimated to cost USD 1.35 billion.
January 2024: Hanwha Solutions' Qcells Division established an 8-year strategic partnership with Microsoft. Under this partnership, Hanwha Solutions' Qcells will supply 12 gigawatts of solar modules and EPC (Engineering, Procurement, and Construction) services. This capacity is sufficient to power over 1.8 million homes annually.
May 2023: OCI Co. partnered with Japan’s chemical giant Tokuyama Corp. to establish a joint venture in Malaysia for the production of polysilicon for semiconductors. The venture will have an annual capacity of 11,000 tons of semi-finished polysilicon products intended for semiconductor applications.
Polysilicon Market Segmentation
By Application Outlook
- Solar PV
- Monocrystalline Solar Panel
- Multicrystalline Solar Panel
- Electronics (Semiconductor)
By Regional Outlook
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Netherlands
- Russia
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Malaysia
- South Korea
- Indonesia
- Australia
- Vietnam
- Rest of Asia Pacific
- Middle East & Africa
- Saudi Arabia
- UAE
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Mexico
- Brazil
- Argentina
- Rest of Latin America
Polysilicon Market Report Scope
|
Report Attributes |
Details |
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Market Size Value in 2023 |
USD 37.24 billion |
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Market Size Value in 2024 |
USD 43.17 billion |
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Revenue Forecast By 2032 |
USD 141.71 billion |
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CAGR |
16.0% from 2024 to 2032 |
|
Base Year |
2023 |
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Historical Data |
2019–2022 |
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Forecast Period |
2024–2032 |
|
Quantitative Units |
Revenue in USD billion and CAGR from 2024 to 2032 |
|
Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
|
Segments Covered |
|
|
Regional Scope |
|
|
Competitive Landscape |
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Report Format |
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Customization |
Report customization as per your requirements with respect to countries, regions, and segmentation. |
FAQ's
The global polysilicon market size was valued at USD 37.24 billion in 2023 and is projected to grow to USD 141.71 billion by 2032.
The global market is projected to register a CAGR of 16.0% during the forecast period.
Asia Pacific accounted for the largest market share in 2023 due to the countries like China and India has established dominance in the global polysilicon market.
Key players in the market are Daqo New Energy Corp. (China); GCL Technology Holdings Co., Ltd. (China); Hemlock Semiconductor Corporation (US); Mitsubishi Materials Corporation (Japan); OCI Company Limited (South Korea); Qatar Solar Technologies (Qatar); REC Silicon ASA (Norway); Tokuyama Corporation (Japan); Wacker Chemie AG (Germany); and Xinte Energy Co., Ltd. (China).
The solar PV segment dominated the market in 2023 due to its extensive use in manufacturing solar photovoltaic panels and semiconductors
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