Polysilicon Market

Polysilicon Market Size:

The global polysilicon market size reached US$ 10.9 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 24.2 Billion by 2032, exhibiting a growth rate (CAGR) of 9.01% during 2024-2032. The market is witnessing significant growth, primarily propelled by heightening demand from the semiconductor and solar energy sectors. Moreover, sustainability initiatives are promoting waste reduction and recycling practices in the market, which is favoring the market growth. In addition, magnifying investments and technological advancements are fostering innovation and competition, further bolstering market expansion.

Polysilicon Market Analysis:

• Major Market Drivers: The global market is primarily driven by the surge in demand for semiconductor and solar energy applications. Amplifying investments in renewable energy projects, aided by government policies, are bolstering the requirement for pure-grade polysilicon for producing photovoltaic cells. In addition, technological advancements in production methods are lowering manufacturing costs and improving production efficacy, which, in turn, is propelling the market growth. Moreover, the proliferating electronics sector also boosts demand for polysilicon, pertaining to its crucial role in semiconductor engineering. Furthermore, strategic partnerships between major companies to scale up their production capacities are supporting market competitiveness and stability, thereby increasing the polysilicon market revenue.
• Key Market Trends: The global market is represented by numerous key trends that steer the growth, such as accelerating shift towards more sustainable and effective manufacturing methods, which includes technological advancements in Siemens process and adoption of recycling practices. In addition, the market is witnessing intensified competition, specifically from China-based manufacturers, who are proliferating their production capacities and utilizing cost benefits. Another notable trend is the increasing usage of renewable energy systems, which is heavily boosting requirement for polysilicon in solar photovoltaic end-uses. Moreover, the rapid expansion of electric vehicle sector is positively influencing the market growth, as polysilicon is essential in semiconductor and battery applications, consequently bolstering polysilicon demand.
• Geographical Trends: Asia Pacific is the leading region in the global polysilicon market, chiefly because of its significant investments in semiconductor and renewable energy sectors, bolstering demand for superior-purity polysilicon. China, in particular, is exhibiting robust expansion in polysilicon production, facilitated by cost benefits and advantageous government policies. In addition, other countries in the region, such as Japan and South Korea, are also influencing the market growth significantly through heightening adoption of solar energy and rapid technological innovations. Consequently, Asia Pacific’s dominance in polysilicon manufacturing plays a critical role in steering global market dynamics.
• Competitive Landscape: Some of the major market players in the polysilicon industry include Asia Silicon (Qinghai)Co. Ltd., Daqo New Energy Corp., GCL (Group) Holdings Co. Ltd., Hemlock Semiconductor Operations LLC (Corning Inc., Shin-Etsu Handotai Co. Ltd.), High-Purity Silicon America Corporation (Mitsubishi Materials Corporation), OCI Company Ltd., Qatar Solar Technologies, Rec Silicon ASA, Tbea Co. Ltd., Tokuyama Corporation, Wacker Chemie AG, among many others.
• Challenges and Opportunities: The polysilicon market insights reveal that manufacturers face several challenges, such as significant price fluctuations and overcapacity, creating an unpredictable and highly competitive environment globally. Additionally, adverse environmental impact of energy-intensive manufacturing techniques also hinders market growth. Nonetheless, such challenges pave opportunities for innovation, especially in formulating more effective and sustainable production methods. In addition, the amplifying demand for renewable energy and rapid advancements in semiconductor technology present significant growth opportunities for key players. Moreover, tactical investments in waste reduction and recycling technologies further improve the market’s prospect, establishing polysilicon as a crucial material in the global inclination toward sustainability and technological evolution.
   

Polysilicon Market Trends:

Increasing Product Demand in the Solar Energy Sector

The global inclination towards renewable energy is steering a surge in requirement for polysilicon, especially in the solar energy industry. Globally, numerous countries are escalating their efforts to lower the carbon emission and adopt greener energy sources, which has accelerated the adoption of photovoltaic systems in both commercial and residential sectors. This adoption ultimately benefits the market as polysilicon is a crucial material required in manufacturing solar panels. This trend is further driven by robust government incentives and policies targeting the adoption of clean energy. According to industry reports, China generated 580 TWh of clean electricity in 2023 by leveraging solar energy. Moreover, 5.5% of global electricity was generated from solar energy in 2023.

Advancements in Polysilicon Manufacturing Technology

The polysilicon market growth is significantly boosted by technological advancements that enhance production capacity and lowers costs. Innovations such as improved Siemens processes and advanced fluidized bed reactors are allowing manufacturers to attain superior purity levels with a comparatively lower energy consumption. Such advancements are critical in addressing the quality guidelines requisite for semiconductor as well as solar photovoltaic applications. With manufacturers rapidly investing in research and development, these technologies are anticipated to play a crucial role in meeting the heightening demand for pure-grade polysilicon. For instance, in September 2023, Indian scientists innovated superior-quality polysilicon ingots using recycled solar cells. The spark plasma sintering technique was employed in this innovation, attaining purity levels of 98%-99%.

Escalating Investments in Polysilicon Recycling

According to the polysilicon industry report, the heightening emphasis on sustainability is resulting in escalating investments in polysilicon recycling initiatives. The increasing demand for polysilicon, particularly in semiconductor and solar sectors, is subsequently propelling the need to lower waste production and reduce the environmental impact of polysilicon manufacturing. According to a study published in January 2023, approximately 68% of virgin polysilicon is utilized in production processes, while 32% is released into industrial wastewater. However, 87% of this polysilicon waste can be reduced, highlighting a circular flow of raw materials with a 0.6%-2.3% reduction in environmental impact. Recycling polysilicon from end-of-life electronic devices and solar panels conserves resources as well as aid in addressing the pure-grade demands for new applications. This trend is gaining momentum as numerous companies are striving to lower their dependency on raw material extraction and improving their sustainability profiles, resultantly facilitating the growth of the circular economy.

Polysilicon Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on manufacturing technology, form, and application.

Breakup by Manufacturing Technology:

• Siemens Process
• Fluidized Bed Reactor (FBR) Process
• Upgraded Metallurgical-Grade Silicon Process
   

Siemens process accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the manufacturing technology. This includes siemens process, fluidized bed reactor (FBR) process, and upgraded metallurgical-grade silicon process. According to the report, siemens process represented the largest segment.

The polysilicon market outlook points to the significant domination of siemens process as a manufacturing technology for polysilicon. This technology is generally preferred for its ability to manufacture ultra-pure polysilicon, requisite for semiconductor and solar applications. Consequently, amplifying demand for solar cells and other solar energy system components drive the adoption of this manufacturing technology. According to industry reports, over 80% of commercial solar cells are manufactured by leveraging polysilicon. In addition, polysilicon is generally extracted by employing Siemens process chemical vapor deposition technique. Regardless of the elevated energy consumption, Siemens process, prominent for its efficiency and reliability, remains the ideal choice for major manufacturers. Moreover, unceasing advancements in this technology have improved its cost-efficiency, further strengthening its position as the dominant technology in the evolving polysilicon industry.

Breakup by Form:

• Chunks
• Granules
• Rods
   

Rods holds the largest share of the industry

A detailed breakup and analysis of the market based on the form have also been provided in the report. This includes chunks, granules, and rods. According to the report, rods accounted for the largest market share.

As per polysilicon industry outlook, rods leads the market as the preferred form due to its extensive utilization in solar photovoltaic and semiconductor applications. Their superior attributes, including excellent structural stability and purity, establish them as an ideal choice for cutting-edge electronic components. The demand for polysilicon rods is further spurred by technological advancements in production methods that improve their efficiency as well as quality. Moreover, with the rapid expansion of the renewable energy sector, the dominance of this segment is consistently strengthening in the global polysilicon market.

Breakup by Application:

• Solar Photovoltaic
• Electronics
   

Solar photovoltaic represents the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the application. This includes solar photovoltaic and electronics. According to the report, solar photovoltaic represented the largest segment.

The polysilicon market forecast indicates that the solar photovoltaic segment is expected to maintain its leading position in global market share, primarily driven by the rapid growth of the renewable energy sector worldwide. The increasing demand for clean energy solutions has led to a substantial rise in the adoption and installation of solar PV systems, which rely heavily on high-purity polysilicon. According to the International Energy Agency, solar PV, together with wind energy systems, accounted for 96% of renewable power capacity additions in 2023. Moreover, solar PV additions are predicted to more than double by the year 2028. Moreover, beneficial government incentives as well as protocols for solar energy utilization further boost this demand.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific leads the market, accounting for the largest polysilicon market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific represents the largest regional market for polysilicon.

Asia Pacific dominates the global market primarily due to its proliferating semiconductor and solar photovoltaic sectors. The advanced and expanding production capacities, specifically in China, and robust government support are significantly influencing the polysilicon market dynamics in this region, consequently placing it at forefront in product supply as well as demand. According to industry reports, China accounts for 83% of the global polysilicon market share, indicating its soaring domination. Moreover, a 437% expansion in polysilicon capacity is anticipated in the coming years, with 93% of this expansion is anticipated to occur in China. The region’s firmly rooted manufacturing infrastructure, combined with magnifying investments in production technology, further fortifies its dominant position in the global polysilicon market.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the polysilicon industry include Asia Silicon (Qinghai)Co. Ltd., Daqo New Energy Corp., GCL (Group) Holdings Co. Ltd., Hemlock Semiconductor Operations LLC (Corning Inc., Shin-Etsu Handotai Co. Ltd.), High-Purity Silicon America Corporation (Mitsubishi Materials Corporation), OCI Company Ltd., Qatar Solar Technologies, Rec Silicon ASA, Tbea Co. Ltd., Tokuyama Corporation, and Wacker Chemie AG.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• According to the polysilicon market research report, the global market experiences an intense competition with leading companies significantly expanding their production capacities and investing in technological innovations. The market is also represented by rigorous price competition, driven by the establishment of new companies and overcapacity. Furthermore, strategic agreements and partnerships for advancements are critical for sustaining market share and addressing the soaring demand in semiconductor and solar sectors. For instance, in August 2024, Tokuyama Corporation signed an agreement with Thanh Binh Phu My JSC to develop a polysilicon factory in an industrial park in Vietnam, with an investment of USD 30 million. As per the agreement, the factory will manufacture polycrystalline polysilicon, specifically for solar cells and semiconductors.

Polysilicon Market News:

• In April 2024, Highland Materials announced the development of a new commercial polysilicon plant in the United States, which is anticipated to have 16,000 metric tons of the initial annual capacity. The company asserts that its manufacturing methods result in 90% reduction in carbon emissions.
• In June 2023, Tokuyama Corporation signed an MoU with OCI, a South Korea-based polysilicon producer, to build a polysilicon factor in Malaysia with a capacity of 10,000 metric tons. The factory will manufacture polycrystalline silicon specifically for semiconductors.

Polysilicon Market Report Scope:

Key Questions Answered in This Report:

• How has the global polysilicon market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global polysilicon market?
• What is the impact of each driver, restraint, and opportunity on the global polysilicon market?
• What are the key regional markets?
• Which countries represent the most attractive polysilicon market?
• What is the breakup of the market based on the manufacturing technology?
• Which is the most attractive manufacturing technology in the polysilicon market?
• What is the breakup of the market based on the form?
• Which is the most attractive form in the polysilicon market?
• What is the breakup of the market based on the application?
• Which is the most attractive application in the polysilicon market?
• What is the competitive structure of the market?
• Who are the key players/companies in the global polysilicon market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the polysilicon market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global polysilicon market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the polysilicon industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.