April 18, 2024
Polycrystalline Silicon Market

Polycrystalline Silicon Market: Growth Drivers, Key Players, Market Trends, and Geographic Analysis

Polycrystalline silicon, also known as polysilicon, is a high purity polycrystalline form of silicon used as a raw material by the solar photovoltaic and electronics industries. Polysilicon is produced from metallurgical grade silicon via the Siemens process or fluidized bed reactor process and is a crucial material used in manufacturing microchips, semiconductor devices, and solar panels. The increasing demand for polysilicon from the solar and electronics industry has been a major driver of growth in the polycrystalline silicon market.
Polysilicon finds application in production of monocrystalline silicon wafers used in microchips and photovoltaic panels. The increasing global demand for electronics goods and renewable energy as well as government initiatives and policies supporting the adoption of solar energy are some of the key factors propelling the demand for polycrystalline silicon.

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 from 2024 to 2031.

Key Takeaways

Key players operating in the Polycrystalline Silicon Market Growth are Nike, Adidas, Beyond Skin UK, Monk Story, Hexa Vegan Shoes, Ethletic, Matt & Nat, MooShoes, Susi Studio, Veerah, and AVESU GmbH. The rising sales of consumer electronics such as smartphones, laptops, wearable devices is a key driver of growth in demand for polysilicon from the electronics industry. Asia Pacific region being the manufacturing hub for electronics and solar photovoltaic panels accounts for the largest share in the polycrystalline silicon market currently.

North America, Europe, and China are increasingly focusing on renewable energy development and setting up solar parks to reduce their dependence on fossil fuels. This increased focus on the adoption of solar energy is expected to propel the demand for polysilicon from the solar PV industry. Rapid urbanization paired with government initiatives supporting solar rooftop installations across residential and commercial sectors especially in Asia Pacific is anticipated to boost polycrystalline silicon consumption over the forecast period.

Market Key Trends

One of the key trends observed in the Polycrystalline Silicon market is the growing preference for green and sustainable production of polysilicon. Solar grade polysilicon manufacturers are focusing on developing revolutionary metallurgical technologies such as fluidized bed reactor processes that consume lesser energy during manufacturing and emit reduced carbon emissions as compared to conventional Siemens processes. Development of cost-effective recycling technologies for recovery of polycrystalline silicon from solar wafer production scrap is another key sustainability driven trend being witnessed. This helps reduce silicon wastage and promotes a circular economy.

Porter’s Analysis

Threat of new entrants: New entrants will face high costs associated with R&D and manufacturing facilities.

Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitutes.

Bargaining power of suppliers: Suppliers have moderate bargaining power due to the availability of alternatives and dependencies on few suppliers.

Threat of new substitutes: Threat of new substitutes is moderate as there are substitutes available at lower prices.

Competitive rivalry: The polycrystalline silicon market is fragmented in nature with the presence of several local and global players competing for market share.

The geographical region where the polycrystalline silicon market is concentrated in terms of value is Asia Pacific. China dominates the global polycrystalline silicon market and accounted for over 50% of global polycrystalline silicon capacity in 2020. Other major countries include Taiwan, Japan, and South Korea.
The fastest growing region for the polycrystalline silicon market is North America. This is owing to supportive government policies and initiatives to increase solar power generation coupled with rising installations of solar photovoltaic systems across commercial and residential sectors in countries like the United States and Canada.

1. Source: Coherent Market Insights, Public sources, Desk research.
2. We have leveraged AI tools to mine information and compile it.