Polysilicon Market

Market Overview

The global polysilicon market size was valued at USD 8.87 billion in 2021 and is projected to reach USD 27.07 billion by 2030 at a CAGR of 13.2% from 2022 to 2030.

Polysilicon, commonly known as polycrystalline silicon, is a very pure version of polycrystalline silicon. The Siemens technique is used to create it from silicon that is of the metallurgical grade. The electronics and solar photovoltaic industries mostly employ polysilicon as a raw material. When compared to polysilicon used for solar photovoltaics, which is somewhat less pure, polysilicon made for the electronics industry has an impurity level of less than one part per billion. The majority of the polysilicon used in the manufacture of solar cells is consumed by the solar photovoltaics sector.

Market Dynamics

Drivers for the Global Polysilicon Market

• Demand For Solar Power Is Driving The Market

The primary driver of the market growth rate is an increase in polysilicon demand from the solar power sector. Rising demand for polysilicon for a variety of industrial applications, including the production of multi-crystalline solar panels, electronics, civilian small solar equipment, and others, as well as the development and expansion of different end-user verticals in emerging economies, will also have a direct and favorable impact on the market's growth rate.

• Supporting Regulations Are Driving The Market

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 and modernization of production methods will all further pave the way for the growth of the industry.

Restraints for the Global Polysilicon Market

• Insufficient Raw Materials And High Costs Restrict The Market

A significant obstacle to the market's expansion will be the deficiency in raw material demand and supply as a result of the lockup and price volatility. The high cost of research and development, the government's strong regulations on industrial operations, growing import and export taxes, and severe international trade restrictions will all slow the market's growth rate. The market's potential for expansion will also be constrained by high capital expenditures.

Opportunities for the Global Polysilicon Market

• The Need For Green Energy Will Bring In New Opportunities

With the rising concerns about climate change, the need for green and renewable energy is growing. Solar energy is the most convenient form of renewable energy and is the fastest growing one in this segment. Over the projection period of 2022 to 2030, demand for solar-grade polysilicon products is anticipated to significantly increase as solar energy generation becomes more and more popular. Sales of polysilicon materials with an electronics grade are also expected to increase due to the increasing demand for semiconductors and electronics.

Segmental Analysis

This market can be segmented on the basis of applications, geographical regions and competitors. Semiconductors and solar photovoltaic panels are both produced using polysilicon on a large scale. Due to impending sustainable energy initiatives in numerous nations, the photovoltaic market is anticipated to witness exponential expansion.

The most productive method for creating 8 N purity poly-Si is still the production of solar grade silicon (SG-Si) utilizing FBR technology. Continuous production is possible thanks to the FBR method, which also uses less energy. REC Silicon claims that the FBR process reduces energy consumption by 80% compared to the Siemens technique, enabling the production of SG-Si at a reasonable cost.

In 2000, the semiconductor industry consumed around 80% of the world's polysilicon production, according to the Institute of Electrical and Electronics Engineers (IEEE) Journal of Photovoltaic. The solar sector, however, accounted for 60% to 80% of production in 2008, which marked a significant trend reversal for the business.

To create the single-crystal silicon utilized in integrated circuits (IC), very large scale integration (VLSI), and ultra-scale integration, electronic grade silicon (EG-Si) is employed (ULSI). High purity poly-Si with a 9–11 N range is required by the electronics industry. High resistivity and purity parameters are met by the EG-Si produced by the Siemens method.

Regional Analysis

The nations included in the polysilicon market report are the United States, Canada, and Mexico in North America, Germany, France, the United Kingdom, the Netherlands, Switzerland, Belgium, Russia, Italy, Spain, and Turkey, and the Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, the Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, the United Arab Emirates, Israel, Egypt, South Africa, and the Rest of the world.

The Asia-Pacific region currently holds a dominant position in the polysilicon market due to factors including an increase in power outages, an immediate need for reliable power supply, rising demand from a variety of end-use industries, an increase in research and development activities, rising consumption and demand from countries like China and India, investment policies by the government to support industrial growth, high economic growth in emerging countries, and a rapid rate of urbanization.

The country part of the polysilicon market research additionally lists specific market affecting factors and domestic market regulation changes that have an impact on the market's present and future trends. Some of the key data points utilized to anticipate the market environment for specific nations are consumption volumes, production sites and volumes, import-export analysis, price trend analysis, cost of raw materials, and upstream and downstream value chain analysis. When giving a prediction analysis of the country data, it also takes into account the presence and accessibility of international brands as well as the difficulties they encounter due to strong or weak competition from local and domestic brands, the influence of domestic tariffs, and trade routes.

Due to the rapid expansion of the solar energy industry, technical breakthroughs, high GDP growth rates, and rising demand for consumer goods, Asia Pacific held the highest share. Some of the region's biggest poly-Siproducers include China, Japan, and South Korea.

North America, which accounted for the second-largest share, is anticipated to expand at a CAGR of almost 10% over the projection period. The U.S.'s efforts to increase consumer electronics output and reduce carbon emissions have given the market growth a boost.

Because of the significant solar PV installation projects that are slated to be completed during the following years in nations like Chile, Brazil, and Honduras, Central & South America is predicted to develop at the second-highest CAGR.

Recent Developments

• Chinese polysilicon maker Daqo New Energy Corp. began its trial production in a new plant in December 2021. The factory is anticipated to start out producing about 35,000 tonnes of polysilicon annually before ramping up to 105,000 tonnes yearly.
• JinkoSolar Holding Co., a Chinese maker of solar panels, stated in September 2021 that it would invest USD 500 million to build a factory in Vietnam and export some of the components from China. The company made the financial announcement as soon as it was confirmed that the United States had halted importing some panels as the Biden administration cracked down on alleged labour abuses in China's Xinjiang province, where the majority of the world's solar-grade polysilicon is produced.
• In May 2021, REC Silicon ASA, a provider of silicon gas and polysilicon located in Norway, announced that its Lake Moses Plant in Washington would be restarted in 2023. This statement was made following the company's release of its first-quarter (Q1) results. Because of Chinese tariffs placed on polysilicon made in the US, the plant was shut down in May 2019.
• The government-run Energy Efficiency Services Ltd (EESL) awarded orders worth INR 538 crore to Tata Power Solar in April 2021 for the construction of several dispersed ground-mounted solar projects totalling approximately 100 MW in India.
• In February 2021, OCIM Sdn Bbn (OCIMSB), a Malaysian subsidiary of OCI, stated that it would provide polysilicon to the Chinese company LONGi Green Energy Technology Co. Ltd. for about three years, from February 2024 to February 2025, at the cost of USD 845.5 million. With the aid of this contract, OCI Company Ltd. will be able to improve both the productivity and business competence of its operations.

Polysilicon Market Segmentation

By Application

• Photovoltaic
• Electronics

By Region

• North America
• Europe
• Asia Pacific
• The Middle East and Africa
• Central & South America