Polysilicon Market

Polysilicon Market Synopsis

The global polysilicon market was valued at USD 22.0 billion in 2023 and is expected to grow from USD 25.2 billion in 2024 to USD 86.0 billion by 2033, reflecting a CAGR of 13.7% over the forecast period.

The polysilicon market is an essential portion of the global semiconductor and solar energy industry. Polysilicon, or polycrystalline silicon, is a highly pure form of silicon used predominantly as a raw material for production of Solar Photovoltaic (PV) cells and in the production of semiconductors. The market has experienced increased levels of growth attributed to the increased demand for solar energy this is a result of the world’s efforts to change into renewable energy and to lower the amount of carbon emissions. Large producers are locations such as in China, the United States, and Germany whereas China dominates production capacity and exports. Market dynamics are determined by such as government regulation on renewable energy industry, production costs and supply chain disruptions. In addition to process improvements resulting from increased technological innovation, including the use of the Fluidized Bed Reactor (FBR) method, there is both improvement in efficiency and cost saving, which can thus further boost demand.

Polysilicon Market Driver Analysis

Rising Demand for Solar Energy

Exciting as it has been to see the world moving towards the adoption of renewable energy sources, a lot of emphasis is being made to install solar photovoltaic (PV) installations all over the world because the world is having to find alternative to fossil fuels to minimize on the climatic changes and greenhouse effects. Governments across the globe are setting audacious carbon neutrality targets together with mobilizing supportive policies which include subsidies, tax incentives, and feed-in tariffs in the bid to encourage solarization. Technological developments have also made it easier for solar PV systems to become more output per kWh sufficient and cheaper, thus, there has been more utility-scale installations as well as residential ones. This increased demand of solar power power directly drives the need for polysilicon, the most fundamental raw element used in solar cell production. Therefore, polysilicon market enjoys accelerated global shift to clean energy, making it a key part of renewable energy supply chain.

Polysilicon Market Restraint Analysis

Trade Restrictions and Tariffs

Geopolitical frictions, with China having particular grudges, are capable of ravaging the polysilicon supply chain and the market at large. China controls the whole world’s distribution of polysilicon, especially the production of material for solar cells, and all the political blows trade wars, sanctions, or import levies can slow down the process of supplying polysilicon throughout the world. For example, disputes between the U.S. and China that remain unresolved have led to Chinese import decreases, and trade barriers are imposed due to concerns for forced labor and supply chain transparency in the international markets, thus increasing the cost of polysilicon and its availability. Such interruptions will cause volatility in price, delayed solar projects, and increasing manufacturing costs to downstream industries. These geopolitical risks underline the need for the polysilicon market to control its supply networks by diversifying them and creating more resilient global trade regimes.

Polysilicon Market Opportunity Analysis

Recycling and Circular Economy Initiatives

The creation of polysilicon recycling methods offers an exciting prospect for developing more economic as well as sustainable supply chains in the solar and electronic industries. Recycling makes possible for the manufacturers to recover high purity silicon from end-of-life solar panels, wafers and production scraps, thus reducing the need in energy intensive virgin polysilicon production. This reduces raw materials costs as well as environmental footprint (reduces waste and greenhouse gas emissions) by cutting down the waste and production of greenhouse gases in traditional manufacturing process. With the future increase in number of decommissioned solar panels, efficient recycling technologies will have greater value in the near future. By closing the loop in the supply chain, polysilicon recycling contributes to circular economy concepts and improves supply security in an environment of geopolitical and market uncertainties.

Polysilicon Market Trend Analysis

Increasing Investment in Solar-Grade Polysilicon

The trend towards higher purity solar grade polysilicon in the polysilicon market is becoming increasingly emphasized to satisfy the increasing demand for high efficiency solar cells. As solar technologies are getting mature, there is a rise of mono crystalline technology and PERC (Passivated Emitter and Rear Cell) technology and therefore performance to rely on the quality and purity of the silicon. The higher-purity polysilicon guarantees well working solar modules in their energy conversion effects that gives it a longer lifespan and better performance. Manufacturers are making investments within the boundaries of advanced purification technologies and refining processes that will deliver ultra-high-purity polysilicon that attunes to the stringent quality requirements of next generation solar cells. This trend represents the larger industry objective of increasing output while minimizing the cost-per-watt of solar energy systems and is key to making solar power at least as affordable as traditional energy options.

Polysilicon Market Segment Analysis

The Polysilicon Market is segmented on the basis of Technology, Processing Method, and Application.

By Technology

o   Siemens Process

o   Fluidized Bed Reactor (FBR) Process

By Application

o   Photovoltaics

o   Electronics

By Region

o   North America (U.S., Canada, Mexico)

o   Eastern Europe (Bulgaria, The Czech Republic, Hungary, Poland, Romania, Rest of Eastern Europe)

o   Western Europe (Germany, UK, France, Netherlands, Italy, Russia, Spain, Rest of Western Europe)

o   Asia Pacific (China, India, Japan, South Korea, Malaysia, Thailand, Vietnam, The Philippines, Australia, New-Zealand, Rest of APAC)

o   Middle East & Africa (Turkey, Bahrain, Kuwait, Saudi Arabia, Qatar, UAE, Israel, South Africa)

o   South America (Brazil, Argentina, Rest of SA)

By Technology, Siemens Process Segment is Expected to Dominate the Market During the Forecast Period

The technologies discussed in this research study, the Siemens process segment is expected to account for the largest market share of polysilicon market in the forecast period. The Siemens Process involved in chemical vapor deposition which results in quality polysilicon is a well-established process which has a wide following among the major companies. It provides known trustworthiness, the unerring product quality and the ultra-high purity which is necessary for the solar grade and the electronic grade polysilicon. Although the process is energy consuming and has a higher production cost than FBR, it enjoys high demand because it is capable of delivering high purity required by solar cells and semiconductors of high efficiency. On the other hand, there is FBR process which is characterized by low energy consumption and cost efficiency but one which is taking off but still falls short for matching Purity levels and scalability of the Siemens method.

By Application, the Automotive & Transportation Segment is Expected to Held the Largest Share 

On application basis, the Photovoltaics segment is expected to command the largest market share of the polysilicon market during the forecast period. This domination is fuelled by the quick worldwide embrace of solar energy as countries pursue clean energy goals and carbon neutrality. Solar PV systems have a high dependency on polysilicon as a primary raw material; it is used in the making of solar cells. The rapid installations of residential, commercial and utility scale solar projects, shooting up particularly in nations such as China, India, US and across Europe, poses a huge demand on solar grade polysilicon. Compared to this, other electronics, which also need ultra-pure polysilicon for semiconductor production, have a total volume demand that is considerably smaller than the solar field and therefore photovoltaics is the single leading application segment in market share.

Polysilicon Market Regional Insights

Asia Pacific is Expected to Dominate the Market Over the Forecast period 

Asia-Pacific is expected to dominate the polysilicon market throughout the forecast period due to its strong presence in the solar energy and semiconductor industries, which are the primary drivers of polysilicon demand. China, in particular, has been making a great stride in solar energy especially with solar panel production and installations being the strongest in the country, a global leader in the use of solar energy. This has led to tremendous demand for high purity polysilicon a very important material for the production of solar cells. Furthermore, electronics and electric vehicle production and manufacturing industries are supported by a high number of semiconductor manufacturers in Asia-Pacific region, particularly, in countries such as Taiwan and South Korea, creating the need for polysilicon in pursuit of manufacturing activities. With further government sponsorships in renewable energy ventures including increased manufacturing capacities as well as cost competitive manufacturing advantages in Asia-Pacific, the Asian-Pacific region is likely to hold its supremacy in the global polysilicon market. The region has well developed supply chains, plenty of raw materials and technological developments that help this region be the hub of polysilicon production and consumption during forecast period.

Recent Development

In August 2022, REC Silicon partnered with Mississippi Silicon to negotiate a raw material supply agreement, aiming to create a low-carbon, traceable U.S. solar supply chain from raw silicon to fully assembled solar modules.

In April 2022, OCI entered into a memorandum of understanding to provide polysilicon to the South Korean solar manufacturer Hanwha Solutions, with the supply agreement valued at around USD 1.2 billion.

Active Key Players in the Polysilicon Market

o   OCI COMPANY Ltd.

o   High-Purity Silicon America Corporation

o   Qatar Solar Technologies

o   Tongwei Group Co., Ltd

o   REC Silicon ASA

o   GCL-TECH

o   Wacker Chemie AG

o   Tokuyama Corporation

o   DAQO NEW ENERGY CO., LTD.

o   Xinte Energy Co., Ltd

o   Hemlock Semiconductor Operations LLC

o   Other Key Players

Global Polysilicon Market Scope