The polycrystalline silicon market has witnessed considerable growth over the past few years owing to rising demand for solar photovoltaic systems. Polycrystalline silicon, also known as polysilicon, is a high purity form of silicon comprising numerous small silicon crystals or crystalline structure. It is used as a raw material in the production of photovoltaic cells for solar panels. The growing need for various consumer electronic devices and increasing usage of solar power are the key factors accelerating the demand for polycrystalline silicon. The solar PV industry has emerged as a promising renewable energy source and is helping nations meet their targets for reducing carbon footprint.
The Global polycrystalline silicon market is estimated to be valued at US$ 5198.17 Mn in 2024 and is expected to exhibit a CAGR of 7.2% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Polycrystalline Silicon Market Share are Nike, Adidas, Beyond Skin UK, Monk Story, Hexa Vegan Shoes, Ethletic, Matt & Nat, MooShoes, Susi Studio, Veerah, and AVESU GmbH. The market is witnessing growing investment in research and development of new product development and manufacturing technologies. Emerging economies across Asia Pacific and South America offer significant growth opportunities for market players owing to rising solar PV installation rates in these regions. Technological advancements such as the development of smaller and more efficient polysilicon wafers is further expected to drive market growth over the forecast period.
Market Drivers
Growing demand for solar PV systems from both residential and commercial sectors – Solar power generation has emerged as a cost effective alternative to conventional power sources. Favorable government policies and incentives promoting solar installations are fueling the demand for Polycrystalline Silicon.
Increasing carbon reduction targets across nations – Nations around the world have outlined ambitious carbon emission reduction targets over the next decade to limit global temperature rise. This is expected to boost investments in renewable energy such as solar power and drive polycrystalline silicon consumption.
Current challenges in the Polycrystalline Silicon Market
The Polycrystalline Silicon market is currently facing challenges due to fluctuation in raw material prices and disruption in supply chains due to the ongoing pandemic. Being dependent on imports for raw materials like trichlorosilane from few countries makes the market vulnerable to price and supply volatility. Maintaining consistency in product quality also remains a key challenge for manufacturers due to complex production process involved.
SWOT Analysis
Strength: Stable demand from the solar PV industry due to focus on renewable sources of energy. Versatile material with wide range of applications.
Weakness: High initial capital investment requirements. Dependency on imports of raw materials.
Opportunity: Growth in solar installation in developing regions. Development of cost-effective production technologies.
Threats: Fluctuations in raw material prices. Trade wars and geopolitical tensions impacting supply chains.
The Asia Pacific region accounts for the largest share of the global Polycrystalline Silicon market in terms of value due to presence of leading solar PV panel manufacturers in China and other countries. China dominates the regional as well as global market. The Middle East and Africa region is expected to witness fastest growth during the forecast period owing to massive solar projects under implementation coupled with supportive government policies and declining costs.
The United States region currently holds the second largest share of the global market attributed to tax incentives and initiatives towards renewable energy adoption. However, trade issues have impacted supply from China in recent years.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research.
2. We have leveraged AI tools to mine information and compile it.