The polycrystalline silicon market is estimated to be valued at US$ 9.64 billion in 2023 and is expected to exhibit a CAGR of 13.4% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Polycrystalline silicon, also known as poly-Si or polysilicon, is a high purity form of silicon used to manufacture semiconductors, solar photovoltaic panels and electronics. It is a basic raw material used in the production of solar photovoltaic cells for converting sunlight into electricity. Polycrystalline silicon provides high energy conversion efficiency and enables mass production of solar photovoltaic panels at relatively lower costs. Rising global demand for renewable energy sources is a key driver for the growth of the polycrystalline silicon market.
The growing demand for solar photovoltaic panels from the renewable energy sector is a major factor driving the growth of the polycrystalline silicon market. According to the International Energy Agency, solar power capacity worldwide increased by over 50% in 2021 alone. Additionally, with focus towards decarbonization efforts, many countries have set targets to increase the share of renewable sources in total power generation. For instance, China aims to source 25% of its total energy from renewable sources by 2030. This rising demand for solar energy is expected to boost the consumption of polycrystalline silicon in the coming years. Further, technological advancements in the production of polycrystalline silicon have improved its efficiency and yield, thereby reducing the overall costs. This has increased its affordability and adoption in the solar photovoltaic industry.
The polycrystalline silicon market is dominated by the Photovoltaic (PV) segment. This segment accounts for around 90% of the total polycrystalline silicon demand. PolySi is the key raw material used in the manufacturing of solar PV cells. The constant rise in solar PV installations across the globe due to growing adoption of renewable energy is driving the demand for polycrystalline silicon in this segment.
Political: Governments across various countries are introducing supportive policies and initiatives to promote the usage of clean and green energy. Subsidies and tax benefits for solar PV projects are encouraging commercial and residential installations.
Economic: Rise in electricity demand paired with volatile oil prices is compelling nations to incorporate alternative energy sources. Solar PV is proving to be a cost-effective option. The declining cost of solar modules is attracting larger investments.
Social: Global emphasis on climate change and carbon emissions is raising public awareness. More people are adopting solar PV powered homes and offices to reduce carbon footprint.
Technological: Continuous R&D is leading to technology advancements. This has improved solar cell efficiency while lowering manufacturing costs. Newer high purity polySi manufacturing processes are being developed.
The global Polycrystalline Silicon market Share is expected to witness high growth, exhibiting CAGR of 13.4% over the forecast period 2023-2030, due to increasing installations of solar PV projects. The market size is projected to reach US$ 16.18 billion by 2030 from US$ 9.64 billion in 2023.
Asia Pacific dominates the market currently owing to the presence of top solar PV module manufacturers in China and Taiwan. China contributes to over 50% of global solar PV manufacturing capacity. Major polySi players have also established production facilities in the region to cater to rising local demand.
Key players operating in the polycrystalline silicon market are Wacker Chemie AG, OCI Company Ltd., GCL-Poly Energy Holdings Limited, Hemlock Semiconductor Corporation, Tokuyama Corporation, REC Silicon ASA, Daqo New Energy Corp., SunEdison, Inc. (acquired by MEMC Electronic Materials), LDK Solar Co., Ltd. (faced financial difficulties in the past), TBEA Co., Ltd. Wacker Chemie and GCL-Poly together account for over 40% share of the global polySi supply.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it