Polysilicon Market - Size & Upcoming Industry Trends 2024-2032

Polysilicon Market Synopsis:

Polysilicon Market Size Was Valued at USD 37.31 Billion in 2023, and is Projected to Reach USD 141.89 Billion by 2032, Growing at a CAGR of 16% From 2024-2032.

Telecommunication devices such as cell phones and advance solar panels for use in houses require special forms of silicon known as polysilicon to make the PV cells and silicon-based semiconductors. Because of these characteristics, it is utilized in the manufacturing of parts that utilized for renewable energies and electronics.

This growth is attributed to government incentives encouraging the use of renewable energy, technological systems improving the efficiency of development, and increasing importance of environmental resources internationally. China has in particular been at the epicentre of polysilicon production, contributing to almost one-third of production of the material globally.

Polysilicon Market Trend Analysis:

Surge in Solar PV Installations Driving Polysilicon Demand

• The polysilicon market is also displaying a remarkable movement with the rise in the solar photovoltaic (PV) systems globally. Solar energy has become popular as world economies push for renewable energy sources and lower carbon footprint; polysilicon which is an input in the manufacture of the solar cell has therefore seen high demands. The solar PV segment was the largest application segment in polysilicon market in 2023, thus making up to about 77% of the total market share.
• Such a trend is likely to remain in force as solar energy becomes more efficient due to the availability of new technology, which increases its demand and, in turn, the market for polysilicon.

Expansion in Emerging Markets

• It is found that emerging markets offer great opportunities for the polysilicon industry. Emerging markets including the Southeast Asia, Latin American, and selected African countries, for instance, are gradually developing renewable energy infrastructure to support rising energy demands and global environmental conditions. Solar energy projects in these areas are gradually increasing and they require polysilicon; this creates a window of opportunity for market players to create market and provide polysilicon for the growing projects.
• Moreover, friendly government policies and international funding directed at fostering and developing sustainable energy solutions add to the potential of polysilicon makers in such emerging markets.

Polysilicon Market Segment Analysis:

Polysilicon Market Segmented on the basis of Form, Application, End User and Region.

By Form, Rods segment is expected to dominate the market during the forecast period

• Polysilicon, a high-purity form of silicon, is typically classified into three primary forms: chunks, granules, and rods. Chunks are mainly coarsely crystalline or microcrystalline polysilicon ingots in irregular geometrical forms that are popular in production of PV cells of solar panels. Their high thickness makes them suitable for slicing into thin wafers in the solar materials sector. Chunks are especially used in many applications due to cost factors and mass production where they are relatively easier to handle and transport compared to all other forms.
• Granules, by contrast, are smaller, bead-shaped polysilicon particles with benefits in terms of uniformity and production flow. Due to the materials’ uniformity in size and shape, they are well suited for applications in which precise coating is necessary; for example, in CVD processes. At the same time, rods are the cylindrical forms of polysilicon formed during the Siemens course of action and noted for their purity. These rods are usually chopped to smaller sizes or else undergo further steps for producing wafers which are a significant part of solar PV as well as in the semiconductor industry-regime which demands high performance standards. All the forms have their unique functions to suit the needs of industries for efficient and facilitated performance.

By Application, Solar PV segment expected to held the largest share

• Polysilicon is widely used in the Solar Photovoltaic (PV) industry where silicon is a critical material used in the production of solar cells. This segment consumes the largest market share in polysilicon due to solar energy solution transition, and solar energy as one of the viable renewable energy sources. Polysilicon of very high purity is required for making silicon wafers on which the solar cells that facilitate conversion of light energy into electrical energy are manufactured. This has so much so remained a reality given the fact that governments across the globe are putting venture in place to encourage the use of clean energy in the solar PV industry and with technological advancement taking its root on the solar PV modules, cost of polysilicon has dropped while the efficiency of the modules has increased.
• In the Electronics (Semiconductors) wider cluster, polysilicon is important for the production of integrated circuits and other semiconductor products. High purity polysilicon as a starting point for making single crystal silicon used in the manufacturing of microchips and other silicon devices crucial in today’s technologies. The growth of this application sector can be attributed to the increasing need for high end electronics such as mobile phones, laptops, computers, and smart devices that are associated with IoT. Also, artificial intelligence, 5G connectivity, automotive electronics, and other emerging applications, support the need for polysilicon for the creation of a new generation of semiconductors.

Polysilicon Market Regional Insights:

North America is Expected to Dominate the Market Over the Forecast period

• According to the data presented in 2023, the Asia Pacific accounted for about 64% of the market share of polysilicon globally.
• This is mainly because of increased industrialization, large investment in renewable power projects and polysilicon producers in the region. These and other nations like China have equally long production capacities and government plans for the solar energy sector. The country has shifted its emphasis towards attaining carbon neutrality and emissions of fossil fuels which in return led to the enhancement of polysilicon demand. Further, many nations, including the South Korea and Japan, have actively embraced solar technologies than the other nations, explaining why the region leads in the market.

Active Key Players in the Polysilicon Market

• Asia Silicon (Qinghai) Co. Ltd. (China)
• Daqo New Energy Corp. (China)
• GCL Technology (Hong Kong)
• Hemlock Semiconductor Operations LLC (U.S.)
• High-Purity Silicon America Corporation (U.S.)
• Mitsubishi Materials Corporation (Japan)
• OCI Company Ltd. (South Korea)
• REC Silicon ASA (Norway)
• Tokuyama Corporation (Japan)
• Tongwei Solar Co. Ltd. (China)
• Wacker Chemie AG (Germany)
• Xinte Energy Co. Ltd. (China)
• Other Active Players

Key Industry Developments in the Polysilicon Market:

• In November 2024, Mitsubishi Materials Corporation ("MMC") invested in illuminus Inc., a startup developing advanced nanoparticle technology, through the MMC Innovation Investment Limited Partnership. Illuminus developed and manufactured metal and alloy nanoparticles using its proprietary "pulsed-laser induced reduction". Until then, chemical reduction methods were commonly employed to manufacture nanoparticles, with reducing agents such as chemicals being used.
• In October 2024, Hemlock Semiconductor (HSC) hosted Sen. Debbie Stabenow, Rep. Dan Kildee, and state officials at its Hemlock site to mark the receipt of up to $325 million in proposed direct funding under the CHIPS and Science Act. The significant grant, announced by the Biden-Harris Administration on October 21, aimed to bolster national security by securing U.S. leadership in the semiconductor industry.