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Global Polysilicon Market - Outlook and Forecast 2022-2027
The polysilicon market is expected to reach USD 13.95 billion by 2027, growing at a CAGR of 7.30% from 2022 to 2027. This market is divided into three segments based on forms: wafers, granules, and rods. Additionally, it is classified into two types based on end use: solar panel and electronic type polysilicon. The United States plays a significant role in the North American polysilicon market, accounting for 89.21% of the market share. The country has a strong demand for polysilicon in solar PV and semiconductor manufacturing due to its well-developed infrastructure, increased investment in R&D, and global economic dominance.
Polysilicon, also known as polycrystalline silicon, is a high-purity form of silicon consisting of several smaller crystals or crystallites. It is a crucial raw material used in the production of solar modules and semiconductor chips. Polysilicon exhibits semimetal properties and is used in electronic devices for signal transfer. It shares similar characteristics with single-crystal silicon and finds wide-ranging applications in solar modules and semiconductors.
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USD 9.1 billion in 2020
Forms, End-Use, and Geography
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The adoption of renewable energy production is increasing due to the growing concerns of pollution. This has led to significant growth in the solar photovoltaic (PV) industry, resulting in high demand for polysilicon in the global market. Furthermore, the semiconductor industry’s expansion has driven increased demand for polysilicon, as it is extensively used in semiconductor chip manufacturing. Anti-dumping policies implemented by various governments can impose restrictions on the polysilicon industry.
Technological advancements in production present growth opportunities for manufacturers. As the renewable energy sector expands, the polysilicon industry is expected to grow alongside the manufacturing of solar cells. Currently, the Asia Pacific region holds the largest share in the global polysilicon market, accounting for 37.25% of the market. The region’s large industry size, emerging economies, and high adoption of renewable energy contribute to its significant share in the polysilicon market.
The global economy is increasingly focusing on energy generation from renewable sources. The shift from carbon-based petroleum derivatives to cleaner alternative energy sources is driven by environmental and climatic changes. Renewable energy sources, including solar, wind, and hydroelectric energy, already contribute approximately one-fourth of the electricity supplied by the power sector. This emphasis on renewable energy presents an excellent growth opportunity for the polysilicon market. Over the past decade, the global renewable energy generation industry has experienced notable development, with an annual growth of approximately 8.0% in electricity-generation capacity, as reported by the International Energy Agency (IEA). Government strategies and ambitious clean energy objectives set at conferences such as the 2021 Climate Change Conference (COP26) have contributed to this growth. The benefits of low greenhouse gas emissions, reduced air pollution, lower operating costs, and increased system resilience drive the sustainable energy industry’s advancement.
Rapid population growth, economic development, and infrastructure expansion have also contributed to the increasing demand for solar panels, a major driver of the global polysilicon market. Additionally, declining solar technology prices by more than 52% between 2010 and 2020, along with government incentives and tax rebates for installing solar panels, have further fueled the demand.
Dumping refers to a situation where the price of a commodity sold in an importing country is lower than its price in the exporting country’s market. Antidumping laws aim to prevent foreign firms from selling products in a country at prices below fair value. There are four types of dumping in international trade: sporadic dumping, predatory dumping, persistent dumping, and reverse dumping. International organizations like the World Trade Organization (WTO) and the European Union (EU) continuously take measures to discourage dumping by imposing tariffs and taxes.
The market is segmented based on various factors, including forms, end-use, and geography.
Segmentation by Forms
Segmentation by End-Use
Segmentation by Geography
North America – US, Canada
Europe – Germany, France, Italy, Spain, Russia, Netherlands, Rest of Europe
APAC – China, Japan, India, South Korea, Vietnam, Rest of APAC
Latin America – Brazil, Mexico, Rest of Latin America
Middle East & Africa – South Africa, Saudi Arabia, UAE, Rest of the Middle East & Africa
The global polysilicon market is dominated by the wafer form segment, which accounted for a market value of USD 5.67 billion in 2021. This market is categorized based on the form of polysilicon, namely wafers, granules, and rods. Wafers are primarily utilized in the production of solar PV materials. They are typically p-type doped and arranged in an array of small round cells, with n-type dopants applied on the surface to create a p-n junction just below the surface. This p-n junction is typically located a few hundred nanometers beneath the surface. On the other hand, granular polysilicon consists of medium-sized particles with irregular shapes and generally contains more hydrogen compared to rod polysilicon.
Within the global polysilicon market, the solar segment is the largest and fastest-growing end-use category. It is projected to grow at a compound annual growth rate (CAGR) of 7.25% during the forecast period. Polysilicon is primarily used in the production of solar panels, which can be classified into two types: monocrystalline and polycrystalline panels. The key distinction between these two types lies in the crystalline purity of the panel cells. Monocrystalline solar panels are composed of solar cells manufactured using a single crystal of silicon.
The Asia-Pacific (APAC) region holds the largest market share in the global polysilicon market and is anticipated to exhibit the fastest growth during the forecast period. Leading countries in APAC such as China, Japan, India, Vietnam, and South Korea demonstrate significant demand for polycrystalline silicon. Factors contributing to this demand include rapid urbanization, increasing disposable income, and swift industrialization, particularly in sectors such as automotive, power generation, and manufacturing. China, in particular, stands as one of the world’s largest consumers of polycrystalline silicon due to its industrial and innovation policies aimed at boosting solar panel production. Likewise, Japan possesses substantial long-term growth potential as one of the largest renewable energy industries globally.
In North America, the polysilicon market ranks as the second largest, with an expected growth rate of 6.16% during the forecast period. The United States is the primary contributor to this industry, accounting for 89.21% of the North American market. The demand for polycrystalline silicon is projected to rise in the region due to increased electricity demand and the growing solar energy sector. Additionally, there is a high demand for semiconductors across various end-use segments such as computers, communications, consumer electronics, industrial applications, and automotive, further driving the need for polycrystalline silicon.
The global polysilicon market exhibits a distinct feature where both international and regional vendors operate. As international players continue to expand their market presence, regional vendors may encounter increasing challenges in competing with them. However, certain global players such as Tongwei Group Co., Ltd (China), GCL Tech (China), Wacker Chemie AG (Germany), Hemlock Semiconductor LLC (US), OCI Company Ltd (South Korea), and others have managed to establish comprehensive product portfolios for polycrystalline silicon.
During the forecast period, several market participants are expected to enhance their global footprint, particularly in rapidly developing countries within the Asia-Pacific (APAC) region, in order to capture a larger share of the industry. For instance, Daqo New Energy Corp, a prominent player in the market, has initiated the construction of a new plant in the APAC region. This facility is projected to have an annual polysilicon production capacity of approximately 35,000 tons initially, which will gradually increase to 105,000 tons per year.
Key companies profiled in this report include GCL Technology, Hemlock Semiconductor LLC, OCI Company Limited, Tongwei Group, Wacker Chemie AG, AE Polysilicon, Asia Silicon (Qinghai) Co., Ltd., Daqo New Energy Corp, East Hope Group, Mitsubishi Polycrystalline Silicon America Corporation, REC Silicon ASA, TBEA, Tokuyama Corporation, Shaanxi Non-ferrous Tian Hong REC Silicon Materials Co., Ltd.
Key Questions Answered
What was the global polysilicon market’s revenue in 2021?
The global polysilicon market generated a revenue of USD 9.14 billion in 2021, attributed to factors such as significant growth in the solar PV industry, expansion of the semiconductor industry, and increased demand from the EV industry.
What is the projected size of the global polysilicon market by 2027?
The global polysilicon market is projected to reach a size of USD 13.95 billion by 2027.
What is the growth rate of the polysilicon market?
The polysilicon market is anticipated to grow at a compound annual growth rate (CAGR) of 7.30% from 2022 to 2027.
Which region dominates the global polysilicon market?
The Asia-Pacific (APAC) region dominates the global polysilicon market and is expected to continue its dominance with a CAGR of 7.52% during the forecast period. This can be attributed to factors such as the presence of developing economies, a large population, a robust manufacturing sector, a significant automotive industry, rapid industrialization, and ongoing technological advancements.
What are the key factors driving growth in the global polysilicon market?
Key factors driving growth in the global polysilicon market include advancements in production processes and a strong focus on renewable energy sources.