Polysilicon is a high-grade polycrystalline form of silicon used as a raw material in the photovoltaic and electronics industries. It is produced from raw materials such as quartz or silica through a series of chemical manufacturing processes and is required to manufacture solar photovoltaic cells, semiconductors, and displays. The product has high transparency and purity levels which makes it suitable for manufacturing solar cells with higher conversion efficiencies. Growing concerns regarding environmental pollution and energy security have prompted many countries to shift focus towards renewable sources of energy like solar, thereby driving the demand for high-efficiency solar panels and subsequently polysilicon.
The Global Polysilicon Market is estimated to be valued at US$ 14.75 Bn in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the polysilicon market are Eurofins Scientific, Agilent Technologies Inc., SCS Global Services, Bureau Veritas SA, ALS Limited, Element Materials Technology (EXOVA), TUV Nord Group, Apal Agricultural Laboratory, Intertek Group PLC, EMD Millipore Corporation (Millipore Sigma), BioMerieux SA, Aurea AgroSciences, 3M Company, Charm Sciences Inc., Neogen Corporation, and Biolumix. Key players operating in the polysilicon market are focusing on expanding their production capacities and capabilities to cater to the growing demand. Eurofins Scientific acquired Element Testing Laboratory and AccuTrace to expand its testing capabilities for renewables and electronics industries. Similarly, Bureau Veritas acquired Bock Slovakia to strengthen its polysilicon testing footprint in Europe.
The demand for polysilicon is expected to grow significantly over the forecast period driven by increasing installation of solar PV systems worldwide on account of supportive government policies and initiatives around climate change. Nations are committing to sizeable carbon reductions which will greatly increase their reliance on solar and other renewable energies going forward.
Major polysilicon producers are strategizing global expansion plans to establish footholds in key consumer markets. For instance, GCL-Poly Energy Holdings commissioned a 30,000 mt polysilicon plant in Vietnam to serve Southeast Asian customers. Daqo New Energy also expanded its annual polysilicon production capacity to 100,000 mt per year to address the Western markets.
Market Key Trends
Transition towards renewable energy sources is the major trend defining the Polysilicon Market Demand. With increasing climate change concerns across the globe, many countries have ramped up their solar power installation targets and provision of financial incentives which is translating to rising demand for polycrystalline silicon from the photovoltaic sector. IEA predicts that solar will become the largest source of low-carbon power worldwide by 2025 as the demand for solar is expected to increase more than 25% each year through 2026. This rapid uptake of solar power will indubitably drive the consumption of high-purity polysilicon going forward.
Porter’s Analysis
Threat of new entrants: New players will face high initial cost to set-up polysilicon production facilities.
Bargaining power of buyers: Polysilicon buyers have moderate bargaining power as switching costs are low for buyers due to availability of substitutes.
Bargaining power of suppliers: Suppliers have moderate power as raw materials required are commoditized.
Threat of new substitutes: Thin film solar panels are substitutes but their efficiency is still lower than crystalline silicon panels.
Competitive rivalry: Intense competition exists among existing players.
Geographical Regions
The Asia Pacific region currently dominates the global polysilicon market in terms of value, with China accounting for the major share. This is attributed to high consumption and presence of a large number of polysilicon and solar panel manufacturers in China. Furthermore, rapidly growing solar PV installations and solar capacity addition programs by various governments in the region have been driving the demand for polysilicon in Asia Pacific.
The Middle East & Africa region is projected to witness the fastest growth in the polysilicon market during the forecast period, due to significant growth expected in solar PV installations in the region. Countries such as UAE, Saudi Arabia, and South Africa are actively investing in solar energy to reduce dependency on oil exports. Increasing investment by both government and private sector to achieve renewable energy targets will drive the polysilicon demand in the Middle East & Africa region.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
