April 13, 2024
Polysilicon Market

Polysilicon Market is Estimated to Witness High Growth Owing to Strong Demand from Solar Photovoltaic Industry

Polysilicon Market is Estimated to Witness High Growth Owing to Strong Demand from Solar Photovoltaic Industry

Polysilicon is a high-purity form of silicon used primarily in electronics and photovoltaic applications. It is used as an upstream material in the production of solar PV modules, producing silicon wafers, cells and panels. Rising global demand for renewable energy has significantly increased the demand for polysilicon in recent years. The growing adoption of solar energy is attributed to environmental concerns over fossil fuels and government incentives and initiatives to promote the use of clean energy. This has provided a strong impetus to the expansion of the solar PV industry 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 11% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

Strong demand from solar photovoltaic industry remains the key growth driver for the polysilicon market. Majority of the world’s polysilicon production is destined for the solar PV sector. With growing focus on environmental sustainability and renewable energy adoption globally, solar PV installation is expected to witness significant increase over the coming years. This will augment the consumption of polysilicon as it is a key raw material used in the manufacturing of solar PV modules and cells. Government targets and initiatives to increase renewable energy capacity especially solar energy bodes well for sustained demand growth of polysilicon market over the forecast period. The market is estimated to gain from rising global investments in solar PV projects which will continue driving the consumption of polysilicon in the long run.

Porter’s Analysis

Threat of new entrants: The polysilicon market requires large capital investments to construct manufacturing facilities and acquire production technologies, acting as a deterrent for new entrants.

Bargaining power of buyers: Buyers in the polysilicon market such as PV module manufacturers have moderate bargaining power due to availability of numerous suppliers globally.

Bargaining power of suppliers: Suppliers of raw materials for polysilicon production such as trichlorosilane have low-to-moderate bargaining power due to availability of substitute materials.

Threat of new substitutes: There exists a threat from emerging thin film solar technologies that do not require polysilicon, however crystalline silicon still dominates the solar PV market.

Competitive rivalry: The market is consolidated with top players competing on the basis of production capacity and technology.

SWOT Analysis

Strengths: Rising global solar PV installation and technological advancements in polysilicon manufacturing processes.

Weaknesses: Volatility in raw material prices and significant initial capital requirements.

Opportunities: Growing adoption of renewable energy in developing nations and increasing investments in solar parks and rooftop projects.

Threats: Trade barriers on solar imports and fluctuating silicon wafer prices.

Key Takeaways

The Global Polysilicon Market Share is expected to witness high growth during the forecast period of 2023 to 2030 supported by rising solar PV installations globally. The Asia Pacific region currently dominates the market and is expected to continue its dominance due to presence of leading manufacturers and rapidly growing solar power capacity additions in China and India.

Key players operating in the polysilicon market are Thermo Fisher Scientific, Inc., Illumina, Inc., PerkinElmer Genomics, QIAGEN, Agilent Technologies, Inc., F. Hoffmann-La Roche Ltd, Macrogen, Inc., Abbott, PacBio, Zymo Research Corporation, Oxford Nanopore Technologies plc, Tecan Trading AG, Hamilton Company, ZS Genetics, Inc. LI-COR, Inc. Regional manufacturers are also expanding their production capacities to leverage the market opportunities.

Expanded polysilicon production in China andMiddle East region is expected tomake these regions the fastest growing markets during the forecast period. China accounts for over 50% of global polysilicon production capacity and also dominates solar PV installation additions each year.

Note:
Source: Coherent Market Insights, Public sources, Desk research
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