Polysilicon is a high purity form of polycrystalline silicon, used as a raw material by the solar photovoltaic and electronics industries. It is used as a feedstock for the production of solar photovoltaic cells and semiconductor wafers. Polysilicon provides high efficiency, low maintenance and is proven to last over 25 years with negligible degradation. Demand for cleaner energy sources like solar has been increasing which is expected to drive the growth of polysilicon market over the forecast period.
The global Polysilicon Market is estimated to be valued at US$12.80 Bn in 2023 and is expected to exhibit a CAGR of 13.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the polysilicon market is growing adoption of renewable energy. Driven by government policies and initiatives promoting renewable energy coupled with increasing energy demand, investments in solar PV installations have been rising rapidly. Various countries have set ambitious renewable energy targets to decrease dependence on fossil fuels and lower carbon emissions. This is increasing the demand for polysilicon from the solar industry. Additionally, advancement in technologies to produce higher purity polysilicon at lower costs is also supporting the market growth. However, fluctuations in raw material prices remains a challenge.
Porter’s Analysis
Threat of new entrants: The polysilicon market requires high capital investments for entry, production technology and scale economies. This poses significant barriers for new players.
Bargaining power of buyers: Buyers have moderate bargaining power due to standardized product and availability of substitutes. However, large polysilicon producers have an advantage due to economies of scale.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to need for specialized production equipment and technology. However, intangible switching costs provide some advantage to suppliers.
Threat of new substitutes: Threat of substitutes is moderate as polysilicon has few direct substitutes for its application in solar panels. Technological innovation may offer alternatives in long run.
Competitive rivalry: The market is dominated by top Chinese producers due to economies of scale and continuous capacity additions. Pricing pressures exist due to overcapacity situations globally.
Key Takeaways
Global Polysilicon Market Demand is expected to witness high growth, exhibiting CAGR of 13% over the forecast period, due to increasing demand for renewable energy sources like solar power. Asia Pacific dominates the global market with China being the largest producer and consumer globally. The country accounted for over 70% of the global polysilicon capacity in 2023.
Regional analysis: The Asia Pacific region dominates the global polysilicon market with over 70% share, led by China. The country has been the pioneer in solar installations worldwide and aims to increase its renewable energy capacity further. North America and Europe are other major markets focusing on solar energy generation.
Key players: Key players operating in the polysilicon market are Sichuan Yongxiang Co. Ltd (Tongwei Co. Ltd), GCL-TECH, DaqoNew Energy Co. Ltd, Wacker Chemie AG, and XinteEnergy Co. Ltd. The top players cater to over 50% of the global demand and are focusing on capacity expansions as well as vertical integration to gain competitive advantage.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it