Key Market Overview:
Polysilicon Market size was valued at USD 10.9 Billion in 2022, registering a CAGR growth of 11.1% during the forecast period (2023-2030), and the market is projected to be valued at USD 24.7 Billion by 2030.
Polysilicon is a high-purity form of silicon that comprises properties such as high conductivity, stability, and thermal resistance. All these properties make polysilicon an essential material in many high-tech industries for the production of photovoltaic (PV) modules, semiconductors, and electronics. Moreover, in the semiconductor industry, polysilicon is a key raw material and is produced by refining metallurgical-grade silicon. Furthermore, polysilicon is also used in the manufacturing of single-crystal silicon wafers, which are the building blocks of most photovoltaic cells.
Many companies invest in research and development for the introduction of new products to provide effective solutions as well as cater to the needs of various end-use industries. For instance, in 2020, OCI Company Ltd, a polysilicon manufacturer, launched a new line of high-purity polysilicon products for the semiconductor market. This new product provides value to the end-users, as it enables semiconductor manufacturers to produce higher-performance chips that are more reliable.
Geographically, the Asia-Pacific is growing rapidly in the polysilicon market. This is primarily due to the increasing demand for solar energy and electronics in countries such as China, India, and Japan, and also due to the presence of major polysilicon manufacturers in the region. All these above-mentioned factors increased the growth of the polysilicon market in the region.
Market Dynamics:
Driver:
Polysilicon is a key material used in the production of solar panels and semiconductors due to the unique electrical properties of this substance which is further driving the growth of the polysilicon market. Moreover, in the solar industry, polysilicon is used to make photovoltaic cells, which convert sunlight into electricity. In the semiconductor industry, polysilicon is used to make microchips, which are essential components in electronic devices such as computers, smartphones, and other electronics. All these factors result in increasing demand for polysilicon.
Restraint:
The high production costs associated with producing high-purity polysilicon limits the profitability of polysilicon manufacturers in many ways. The high cost of raw materials and energy required for polysilicon production makes it difficult for producers to achieve a competitive price point in the market leading to lower profit margins and reduced profitability. Furthermore, the high capital investment required for polysilicon production facilities also hampers profitability as building and maintaining these facilities require significant financial resources. This is the major factor that is hindering the growth of the polysilicon market.
Opportunities:
Many countries around the world strive to reduce their carbon footprint, thus, providing an opportunity for businesses to invest in polysilicon production to meet the growing demand for solar panels. Moreover, technological advancements are offering new opportunities for businesses to innovate in the production of polysilicon. For instance, the development of new processes is expected to reduce the cost of production and increase the efficiency of polysilicon production, and in turn, improve the profitability for producers. Thus, providing ample opportunity for companies to increase the market growth.
Polysilicon Report Coverage
| Report Attributes | Report Details |
| Study Timeline | 2017-2030 |
| Market Size in 2030 (USD Billion) | 24.7 Billion |
| CAGR (2023-2030) | 11.1% |
| By Manufacturing Process | Siemens Process, Fluidized Bed Reactor (FBR) Process, and Upgraded Metallurgical Grade (UMG) Process. |
| By Form | Chunks, Granules, and Rods |
| By Grade | Electronic Grade, Solar Grade, Upgraded Metallurgical Grade, and Metallurgical Grade |
| By Application | Solar Panels (Monocrystalline Solar Panels and Multicrystalline Solar Panels), Electronics, Civilian Solar Small Equipment, and Others. |
| By Geography | North America, Europe, Asia Pacific, Latin America, and Middle East & Africa |
| Key Players | Wacker Chemie AG, GCL-Poly Energy Holdings Limited, OIC Chemical Co., Ltd., REC Silicon ASA, Tokuyama Corporation, LDK Solar Co., Ltd., Hemlock Semiconductor Group, Sunedison, LLC, Daqo New Energy Corp., and TBEA Co., Ltd. |
Market Segmentation:
By Manufacturing Process
The manufacturing process segment is categorized into the siemens process, fluidized bed reactor (FBR) process, and upgraded metallurgical grade (UMG) process. Siemens process segment dominated the market in 2022, accounting for a substantial share of the market. This process is widely used in the industry and involves the production of polysilicon by reacting pure silicon tetrachloride with hydrogen gas at high temperatures to form a high-purity polysilicon product. The formation of this high-purity polysilicon product increased segment growth.
Furthermore, the fluidized bed reactor (FBR) process is expected to be the fastest-growing segment in the market during the forecast period as this process is known for its lower production costs and energy consumption. Such factors make the fluidized bed reactor process more environmentally friendly and cost-effective which is expected to increase the segment growth over the forecast period.
By Form
The form segment is divided into chunks, granules, and rods. The chunks segment dominated with the highest market share in the polysilicon market. Chucks are irregularly shaped blocks of polysilicon that are typically used in the production of solar panels. Furthermore, chunks are easier to handle and transport than other forms of polysilicon and are therefore more commonly used. All these above-mentioned factors result in increased demand thereby driving the segment growth.
Furthermore, granules are expected to grow at the fastest CAGR during the forecast period. Granules are small, uniform grains of polysilicon that are used in the production of high-performance solar panels and semiconductors and they also offer a higher level of purity and consistency for high-end applications. All these above-mentioned factors are anticipated to increase segment growth over the forecast period.
By Grade
The grade segment is categorized into electronic grade, solar grade, upgraded metallurgical grade, and metallurgical grade. The electronic grade dominated the market and generates the highest market revenue. This is because the electronic grade is the highest purity grade of polysilicon and is used in the production of semiconductors and electronic devices. Further, this high level of purity and superior quality is driving the segment’s growth.
Moreover, solar grade is expected to be the fastest-growing segment in the polysilicon market during the forecast period. Due to the increasing demand for solar energy as a clean and renewable energy source, this segment is expected to grow rapidly over the forecast period.
By Application
The application segment is classified into solar panels (monocrystalline solar panels, and multi crystalline solar panels), electronics, civilian solar small equipment, and others. Solar panel dominated the market and holds the largest market share in 2022. This is due to the increasing deployment of solar photovoltaic systems around the world, as countries seek to transition to clean energy sources and reduce greenhouse gas emissions. All these factors drive segment growth.
Moreover, the electronics segment is expected to be the fastest-growing segment over the forecast period. This is due to the growing demand for electronic devices such as smartphones, tablets, and laptops, and this increasing demand for electronic devices is expected to drive growth in the polysilicon market in the electronics segment.
By Region
The region includes North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Asia Pacific dominated the segment and generated the highest revenue in the market. This is due to the fact that the region comprises the largest market for polysilicon due to the high demand for solar energy in countries such as China, Japan, South Korea, and India. Asia Pacific also comprises a well-established semiconductor industry, which is another significant factor contributing to the high demand for polysilicon in the region.
Moreover, North America is expected to witness significant growth in the market during the forecast period as North America is home to major manufacturers of solar panels and semiconductors, and these manufactures rely on a steady supply of high-quality polysilicon. Further, this region is also investing heavily in research and development to improve the efficiency of solar cells and semiconductor technology, which is expected to increase the demand for polysilicon over the forecast period.
Polysilicon Market Competitive Landscape:
The polysilicon market is highly competitive, with several large players and numerous small and medium-sized enterprises. These companies have strong research and development capabilities and a strong presence in the market through their extensive product portfolios and distribution networks. The market is characterized by intense competition, with companies focusing on expanding their product offerings and increasing their market share through mergers, acquisitions, and partnerships. The key players in the market include-
- Wacker Chemie AG
- GCL-Poly Energy Holdings Limited
- OIC Chemical Co., Ltd.
- REC Silicon ASA
- Tokuyama Corporation
- LDK Solar Co., Ltd.
- Hemlock Semiconductor Group
- SunEdison, LLC
- Daqo New Energy Corp.
- TBEA Co., Ltd.
Recent Developments:
- In December 2022, Daqo New Energy Corp. announced its agreement on high-purity polysilicon supply with two companies named LONGi and EQ MAG, a solar manufacturing company in China.
- In August 2022, REC Silicon and Mississippi Silicon signed a Memorandum of Understanding (MOU) to expand the solar supply chain in the U.S. The two companies agreed to work together to evaluate the feasibility of developing a new solar-grade silicon production facility.
- In July 2022, Hemlock Semiconductor Operations (HSC) announced that it became the first polysilicon manufacturer in the world to receive certification from the International Automotive Task Force (IATF) for its quality management system.
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