May 22, 2024
Polysilicon Market

Polysilicon Market is Estimated to Witness Growth Due to Increasing Solar Panel Installations

The global polysilicon market is used to manufacture electronic grade silicon which is further used in semiconductor and photovoltaic industries. Polysilicon is considered a key raw material for the production of solar photovoltaic panels as it acts as the core element for manufacturing cells and modules. It provides high purity polycrystalline silicon which offers excellent electrical conductivity. Growing awareness regarding usage of renewable energy coupled with declining costs of solar installations has been a major factor propelling the adoption of polysilicon.

The Global polysilicon market is estimated to be valued at US$ 14.75 Bn in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the polysilicon market are Eurofins Scientific, Agilent Technologies Inc., SCS Global Services, Bureau Veritas SA, ALS Limited, Element Materials Technology (EXOVA), TUV Nord Group, Apal Agricultural Laboratory, Intertek Group PLC, EMD Millipore Corporation (Millipore Sigma), BioMerieux SA, Aurea AgroSciences, 3M Company, Charm Sciences Inc., Neogen Corporation, and Biolumix. Key players focus on capacity expansions as well as collaborations with solar panel manufacturers to cater to the growing demand.

The global polysilicon market is expected to witness significant opportunities owing to rising solar installation targets by governments worldwide. Many countries have set ambitious renewable energy goals to reduce dependence on fossil fuels and lower carbon emissions. This will drive the demand for solar panels thereby boosting the polysilicon market.

Asia Pacific dominates the global polysilicon market and the trend is expected to continue owing to presence of leading solar panel manufacturers as well as supportive government policies promoting solar energy adoption in countries such as China, India, Japan, and South Korea. Manufacturers are shifting their production facilities to Asia Pacific to leverage low costs and address growing regional demand.

Market Drivers

The Polysilicon Market Growth is estimated to witness high owing to increasing solar panel installations globally. Growing significance of renewable energy coupled with favorable government policies and investments in the solar sector has been driving the installations of photovoltaic panels. This widespread adoption of solar energy is the key driver boosting the demand for polysilicon.

The need for polysilicon is also driven by its superior characteristics such as high purity, excellent conductivity, stability, and ability to deliver high efficiency which makes it most suitable for manufacturing solar cells. Rapid technological advancements to produce low-cost polysilicon are further expanding its applications and strengthening the market growth.

PEST Analysis

Political: The polysilicon market is experiencing fluctuating trade policies globally. Some countries impose tariffs to protect domestic manufacturers while others offer subsidies to promote renewable energy production.

Economic: Rising energy costs and government incentives are driving demand for solar photovoltaic panels made from polysilicon. However, a global economic slowdown could negatively impact investments in renewable energy projects.

Social: Concerns about climate change and the need for clean energy are encouraging the adoption of solar power. However, some communities oppose the construction of new solar farms over land usage concerns.

Technological: Manufacturers are developing more efficient production processes that require less energy and generate fewer emissions. Meanwhile, innovations in solar cell design allow for increased power output from thinner wafers.

Geographical concentration

The Asia Pacific region accounts for the largest share of the global polysilicon market in terms of value.China dominates polysilicon production and solar panel manufacturing. Government policies actively support the renewable sector through subsidies and tariffs. Other major Asian markets include Japan, India, and South Korea.

Fastest growing region

North America is expected to register the fastest growth in the polysilicon market during the forecast period. Solar energy deployment is growing rapidly across the United States due to supportive regulations and tax incentives. States like California and Texas have ambitious renewable energy targets. Meanwhile, Canada is also expanding its solar PV capacity to reduce emissions from electricity generation.

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