Polysilicon Market Analysis

Global Polysilicon Market Overview

Polysilicon Market Size was valued at USD 13.1 Billion in 2023. The Polysilicon industry is projected to grow from USD 15.2 Billion in 2024 to USD 39.5 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 12.07% during the forecast period (2024 - 2032). Polysilicon, also known as polycrystalline silicon, is a material made up of small silicon crystals that are melted and then solidified together to form a larger structure. It is widely used in the electronics industry as a raw material for the production of various semiconductor devices, including solar cells, transistors, and integrated circuits. Polysilicon is typically produced by the chemical purification of metallurgical-grade silicon, which is obtained from the reduction of silicon dioxide with carbon at high temperatures. The resulting polysilicon material has a high purity level, with impurity concentrations in the parts-per-million range. Polysilicon is a critical component in the manufacturing of solar cells, which convert sunlight into electrical energy. It is also used in the production of microchips and other electronic devices due to its high electrical conductivity and ability to form stable, reliable electrical connections.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Polysilicon Market Trends

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  Regulatory Support Is Boosting The Market

  
  

An increase in industrialization, a greater reliance on renewable energy sources, an increase in the number of small and medium-sized businesses, particularly in developing countries, and a growing emphasis on technological advancements and modernization of production methods will all contribute to the industry's growth. The government will also make greater efforts to reduce the cost of solar products.

In 2023, REC Silicon ASA declared that Hanwha Q Cells Georgia, Inc., a fully owned subsidiary of Hanwha Solutions, and its subsidiary, REC Solar Grade Silicon LLC, will be engaging into a supply deal. The new Qcells manufacturing plant in Georgia, set to open late next year, will use American-made, low-carbon polysilicon produced at REC Silicon's Moses Lake factory in Washington to manufacture ingots and wafers. High purity granular polysilicon from a fluidized bed reactor (FBR) is the subject of a 10-year take-or-pay supply agreement. Some have heralded FBR technology as a way to make polysilicon for solar energy at a quarter of the cost and energy consumption of the industry-dominant Siemens technique.

A five-year contract to buy 70,000 tons of polysilicon, the basic material used in PV modules, was inked in 2021 by Chinese solar maker JinkoSolar and German supplier Wacker. Next month, the supply of the polysilicon, which is produced at Wacker facilities in Germany and the United States, will start, and the agreement will last until December 2026.

Polysilicon Market Segment Insights

Polysilicon Manufacturing Technology Insights

The market segmentation, based on Manufacturing Technology, includes Siemens Process, FBR Process, and Upgraded Metallurgical-Grade Silicon Process. The Siemens Process segment holds the majority share in 2022, contributing to the global Polysilicon revenue. This process involves the reduction of silicon tetrachloride (SiCl4) with hydrogen gas (H2) in a high-temperature reactor. The resulting polysilicon is then purified through several steps to achieve a high level of purity.

Polysilicon Form Insights

Based on Form, the market segmentation includes Chips, Chunks, and Rods. The Excavation & Demolition segment dominated the market. Polysilicon is a critical raw material used in the production of Integrated circuits (ICs) in a form of chips, which are used in a wide range of electronic devices such as smartphones, computers, and televisions.

Polysilicon End-User Insights

Based on End-User, the market segmentation includes ​​​​Solar Photovoltaic, Electronics. The Electronics segment is the largest segment of the market. Integrated circuits (ICs) are the largest contributor to the market within the electronics segment. ICs are used in a wide range of electronic devices such as smartphones, computers, and televisions. The production of high-purity polysilicon is crucial for the production of ICs, as even small impurities in the material can affect the performance of the semiconductor device. Polysilicon is also widely used in the production of solar cells, which are used to generate electricity from sunlight.

Figure 2:  Polysilicon Market, by Form, 2022 & 2030 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Polysilicon Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Asia Pacific dominates the market, accounting for a significant share of the global market demand. This is mainly due to the increasing production and consumption of electronic devices and the growing demand for solar energy in the region. China is the largest consumer and producer of polysilicon in the world, with a significant number of polysilicon production facilities located in the country. Other countries in the Asia Pacific, such as Japan, South Korea, and Taiwan, also have a significant presence in the market, with a large number of semiconductor and solar cell manufacturing facilities located in the region. In addition to the increasing demand for electronic devices and solar energy, favorable government policies and incentives for the development of renewable energy sources have also been driving the growth of the market in the Asia Pacific region.

Figure 3:  POLYSILICON MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Polysilicon Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the market grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Polysilicon industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the global Polysilicon industry to benefit customers and expand the market sector. Major market players, including Kirloskar, Generac Power Systems Inc, Caterpillar, REC Silicon, Tokuyama Corporation, and others, are attempting to increase market demand by funding R&D initiatives.

Kirloskar Electric (KEC) is a provider of electrical engineering services. It manufactures transformers, switchgear,  generator, electronics, motors, and other products. The company caters to power generation, transportation, transmission and distribution, and renewable energy sectors.

A producer of power products is Generac Power Products (also known as Generac Power Systems). It provides a variety of goods, including pressure washers, trimmers, mowers, and portable, RV, residential, commercial, and industrial generators.

Key Companies in the Polysilicon market include

• GCL-Poly Energy Holdings Limited


• Wacker Chemie


• OCI COMPANY Ltd


• REC Silicon


• Tokuyama Corporation


• Qatar Solar Technologies


• Lanco Solar


• Kirloskar


• Generac Power Systems Inc


• Caterpillar

Polysilicon Industry Developments

August 2022: REC Silicon ASA and Mississippi Silicon announced a collaboration to develop a solar supply chain in the U.S. They plan to develop this solar supply chain from raw silicon to polysilicon and finally to fully assembled modules.

April 2022: OCI Company Ltd announced it had signed a binding memorandum of understanding (MoU) with the South Korean-based solar manufacturer Hanwha Solutions, which is a unit of Hanwha, for the supply of polysilicon. The order was valued at about USD 1.2 billion. This has helped the company in increasing its profit margins.

Polysilicon Market Segmentation

Polysilicon Manufacturing Technology Outlook

• Siemens Process


• FBR Process


• Upgraded Metallurgical-Grade Silicon Process

Polysilicon Form Outlook

• Chips


• Chunks


• Rods

Polysilicon End-User Outlook

• Solar Photovoltaic


• Electronics

Polysilicon Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America