Polysilicon is an essential raw material that is used in the production of photovoltaic cells. It finds widespread application in the solar photovoltaic industry for manufacturing solar panels and modules. The increasing global focus on renewable energy and the declining costs of solar PV systems have led to significant growth in solar PV installations across both utility-scale and rooftop segments in recent years. This rapid rise in PV demand has fueled the demand for polysilicon substantially. Key countries like China, India, USA, and various European nations have set ambitious solar energy generation targets to reduce their dependence on fossil fuels and mitigate greenhouse gas emissions. Solar power is also gaining traction in commercial and residential sectors due to its relatively lower installation and maintenance costs compared to conventional power sources.
The global Polysilicon Market is estimated to be valued at US$ 12.8 Bn in 2023 and is expected to exhibit a CAGR of 6.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The Polysilicon Market is expected to be flourished by increasing solar photovoltaic (PV) installations. Solar PV has emerged as one of the most promising renewable energy sources owing to its abundant availability, low operational costs, and zero emissions. The declining LCOE of solar power generation and supportive government policies and incentives are attracting significant investments in the utility-scale as well as rooftop solar segments across both developed and developing nations. Governments around the world are placing strong emphasis on diversifying their energy mix and reducing dependence on fossil fuels, which is driving the rapid capacity additions of solar PV farms. For instance, the Indian government has set a target of achieving 500 GW of renewable energy capacity by 2030, including 100 GW of solar capacity. This increasing shift towards sustainable energy sources is projected to substantially boost the demand for polysilicon, as it remains the primary raw material used in solar cell manufacturing. Additionally, the growing environmental awareness among consumers and businesses is accelerating the installation of rooftop solar systems worldwide. These positive industry trends are expected to propel the global polysilicon market forward over the next decade at a healthy CAGR.
Segment Analysis
The polysilicon market is dominated by the solar photovoltaic sub-segment, which holds around 90% share. This sub-segment is dominating as polysilicon is the raw material used for manufacturing solar wafers and solar cells, which are important components of solar photovoltaic systems that convert sunlight into electricity.
PEST Analysis
Political: Countries across the world are framing favorable policies and regulations to boost the production of renewable energy in order to reduce carbon emissions. Many nations have set targets to increase the share of solar energy in their overall energy mix.
Economic: The declining cost of solar power generation is driving the growth of the polysilicon market. Falling prices of solar cells and modules are making solar energy competitive with conventional power sources. This is encouraging investments in solar projects.
Social: There is a rising social awareness about the need to switch to clean and green sources of energy to reduce pollution and mitigate the effects of climate change. This is boosting the adoption of solar energy worldwide.
Technological: Technology advancements are helping reduce the manufacturing cost of polysilicon. Improvements in polysilicon production processes have enhanced purity levels and conversion efficiencies. New deposition techniques enable larger wafer dimensions for increased power output.
Key Takeaways
The global polysilicon market share is expected to witness high growth over the forecast period owing to supportive government policies and increasing investments in the renewable energy sector worldwide. The global Polysilicon Market is estimated to be valued at US$ 12.8 Bn in 2023 and is expected to exhibit a CAGR of 6.3% over the forecast period 2023 to 2030.
Europe dominates the market currently owing to the presence of favorable renewable energy targets and solar rooftop mandates in many countries. The Asia Pacific region is projected to be the fastest growing market for polysilicon during the forecast period. This can be attributed to heavy investments in solar projects, especially in China and India, and rapid capacity additions.
Key players related content comprises
Key players operating in the polysilicon market are Wacker Chemie, OCI,REC Silicon, and Hemlock Semiconductor. Wacker Chemie is one of the leading producers of hyperpure polysilicon and has a strong foothold in the solar market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
