Polysilicon Market Size, Share, and Trends 2024 to 2033

The global polysilicon market size surpassed USD 11.5 billion in 2023 and is estimated to hit around USD 37.84 billion by 2033, poised to grow at a CAGR of 12.70% from 2024 to 2033.

Key Takeaway

• Asia Pacific dominated the market while holding 64% of the market share in 2023.
• By application, the solar PV segment held the largest share of the market while accounting for 77% of the market share in 2023.
• By application, the electronics (semiconductor) segment is expected to witness rapid expansion during the forecast period of 2024-2033.

Polysilicon Market in the Asia Pacific 2024 to 2033

The Asia Pacific polysilicon market size was valued at USD 7.36 billion in 2023 and is anticipated to reach around USD 24.67 billion by 2033, poised to grow at a CAGR of 12.91% from 2024 to 2033.

Asia Pacific held the dominating share of the polysilicon market while contributing 64% of the market share in 2023 due to rising consumption from South Korea, China, and India, among other nations. The nation's potential to produce 122,000 tons of polysilicon was recently disclosed by the Chinese government. Large-scale pipelines are still being constructed nationwide for the increase of polysilicon production, with over 1.2 million tons predicted to be operational by 2023. Even though the bulk of expansions (72%) are slated to occur outside of Xinjiang, China is still predicted to produce the great majority (89%) of the world's polysilicon.

The ninth-largest solar installation in the world is located in South Korea. About 4% of the nation's electricity is produced by solar energy, and since November 2021, this percentage has been continuously rising. Additionally, South Korea is the fourteenth nation to achieve carbon neutrality by 2050, according to the International Trade Organization, with an interim goal of lowering emissions by 40% by 2030.

• In April 2022, a legally binding memorandum of understanding (MoU) was signed by OCI Company Ltd. and Hanwha Solutions, a unit of Hanwha, a South Korean solar producer, regarding the supply of polysilicon. The estimated value of the order was USD 1.2 billion.
• In August 2023, leading South Korean chemical and renewable energy business OCI Co. joined forces with Japanese chemical behemoth Tokuyama Corp. to launch a joint venture in Malaysia to manufacture polysilicon semiconductors.

Besides, Europe is expected to grow at a significant rate over the forecast period. European countries have been actively promoting renewable energy sources as part of their efforts to reduce carbon emissions and combat climate change. Policies and incentives supporting solar energy projects contribute to the demand for polysilicon, a crucial material in the production of solar cells. Additionally, the region is home to several research and development initiatives focused on advancing solar technology and improving the efficiency of solar cells. Investments in technological innovation can influence the demand for high-quality polysilicon, which is essential for the performance of advanced solar panels. Thus, this is expected to drive the polysilicon market in these regions.

Polysilicon Market Overview

Polysilicon, short for polycrystalline silicon, is a material commonly used in the production of solar cells, semiconductor devices, and other electronic components. It is a form of silicon that consists of multiple crystal structures, as opposed to monocrystalline silicon, which has a single crystal structure. The polysilicon market revolves around the manufacturing process of polysilicon involves melting high-purity silicon in a crucible and then slowly cooling it, allowing multiple crystal structures to form. This results in a material with crystalline grains of varying sizes, giving it a polycrystalline structure.

Polysilicon is a key component in the production of photovoltaic cells used in solar panels. These cells convert sunlight into electricity by harnessing the photoelectric effect. Polysilicon wafers are also used in the semiconductor industry to create integrated circuits and other electronic components. The production of high-quality polysilicon is crucial for the efficiency and performance of solar cells and electronic devices, and advancements in polysilicon manufacturing techniques continue to play a significant role in the development of solar energy and electronics industries.

Growth Factors

• The solar photovoltaic (PV) industry's explosive growth is the main driver of the polysilicon market. The need for polysilicon, a substance essential to the production of solar cells, is growing along with the market for solar energy.
• The market for electric vehicles is expanding, which therefore raises the need for polysilicon. Polysilicon is used in solar cells and other electrical parts of electric vehicles (EVs), and as the auto industry shifts to electric vehicles, there is a growing need for polysilicon in EVs for a variety of uses.
• In the semiconductor industry, polysilicon is essential for the creation of integrated circuits and other electronic components. The semiconductor industry is expanding due to the growing demand for electronic products and technological improvements, which in turn influences the need for polysilicon.
• The polysilicon market is mostly driven by government regulations and subsidies that support renewable energy projects, such as solar power.

Polysilicon Market Scope

Polysilicon Market Dynamics

Driver: Increased adoption of microgrids

A microgrid is a small-scale electrical infrastructure that generates and stores energy on its own. Microgrids can function separately from other small power grids or in tandem with them. A microgrid is referred to as a hybrid microgrid if it is connected to the main power grid. Microgrids are installed in remote villages and rural regions where there is a limited supply of power that is connected to the grid.

Often, natural calamities have demonstrated the vulnerability of the centralized grid system. Global governments are endorsing microgrids because of their resilience in the face of natural calamities. One of the key developments that are anticipated to propel the global polysilicon market expansion over the projected period is the growing popularity of microgrids.

Restraint: The intermittent nature of solar power generation

The decrease in cost and associated technologies has led to a large growth in solar PV installations. As a result, more solar power installations have been installed globally throughout the period. The sporadic nature of solar energy, however, poses a serious obstacle to its widespread use. Furthermore, the production of solar PV systems is negatively impacted by the sporadic nature of solar energy.

Even while solar PV technology is always improving, it still cannot convert energy as quickly as fossil fuels. Because solar energy cannot be employed as a stand-alone power system, it remains a barrier to the renewable energy sector. Throughout the projected period, this is anticipated to provide a significant obstacle to the expansion of the worldwide polysilicon market.

Opportunity: Increasing focus on renewable energy globally

The production of energy from renewable sources is the main emphasis of the global economy. Cleaner alternative energy sources are replacing petroleum derivatives based on carbon due to climate and environmental developments. Currently, almost 25% of the electricity produced by the power industry comes from renewable energy sources, including solar, wind, and hydroelectric power. Concentrating on renewable energy is an ideal opportunity for the polysilicon market to expand.

Over the last ten years, the worldwide renewable energy generating sector has changed, and the IEA estimates that the capacity to generate electricity has increased by around 8.0% per year. This is a result of government initiatives and ambitious renewable energy goals that were previously announced and discussed during the Climate Change Conference in 2021 (COP26). The growth of the sustainable energy business is facilitated by low greenhouse gas emissions, low air pollution, low operating costs, and system resilience.

Application Insights

The solar PV segment dominated the polysilicon market with 77% of market share in 2023. Polysilicon is the primary raw material used in the manufacturing of solar cells. It is a semiconductor material that is essential for the conversion of sunlight into electricity in photovoltaic systems. The demand for polysilicon is directly associated with the growth of solar PV installations globally.

The International Energy Agency (IEA) published a snapshot of the global PV markets in 2023, which states that by the end of 2022, installed capacity had reached around 1.2TW, with China continuing to hold the top spot. The capacity of solar photovoltaic systems increased to 1,185GW last year with the installation and commissioning of 240GW of new systems worldwide. China, which added 106GW of capacity last year—or 44% of all additions worldwide—and now has 414.5GW of installed capacity cumulatively, continuing to lead the world in both new and cumulative capacity. The growth in 2021 and 2020 was 54.9 GW and 48.2 GW, respectively, following prior years' trends.

Besides, the electronics (semiconductor) segment is expected to grow at a rapid rate in the polysilicon market over the forecast period. Polysilicon is a key material in the fabrication of semiconductor devices. It is used to produce silicon wafers, which serve as the substrate for the creation of integrated circuits. High-purity polysilicon is essential for the semiconductor manufacturing process to ensure the quality and performance of electronic components.

The increasing demand for electronic devices, including smartphones, tablets, computers, and IoT (Internet of Things) devices, contributes to the demand for semiconductors. This, in turn, influences the demand for polysilicon as an essential material in semiconductor production.

Recent Developments

• In June 2023, Wacker Chemie AG, a Munich-based company, declared its plan to double the amount of semiconductor-grade polysilicon it can clean. As a result, by early 2025, a new production line is expected to be installed at the Burghausen location. The site's current capacity will be increased by well over 50% due to the new facility.
• In June 2023, a leading producer of high-purity polysilicon for the global solar PV industry, Daqo New Energy Corp., announced that production at its brand-new Phase 5A polysilicon 100,000 MT manufacturing plant in Baotou, Inner Mongolia, has reached maximum capacity. The company's capacity for nameplate production has grown to 205,000 MT with the advent of Phase 5A.

Polysilicon Market Companies

• Qatar Solar Technologies
• OCI COMPANY Ltd.
• DAQO NEW ENERGY CO., LTD.
• REC Silicon ASA
• Tongwei Group Co., Ltd
• Tokuyama Corporation
• Wacker Chemie AG
• Xinte Energy Co., Ltd
• High-Purity Silicon America Corporation
• GCL-TECH

Segments Covered in the Report

By Application

• Solar PV
• Monocrystalline Solar Panel
• Multicrystalline Solar Panel
• Electronics (Semiconductor)

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa