Polysilicon Market | Contrive Datum Insights

he Global Polysilicon Market Size Was Valued At USD 8.87 Billion In 2022 And Is Projected To Reach USD 27.07 Billion By 2030 at a CAGR Of 13.2% From 2023 To 2030.

Polysilicon Market Overview:

The global COVID-19 pandemic has been unprecedented and shocking, and the demand for polysilicon has been higher than expected in all regions compared to levels before the pandemic. According to our research, the global market grew 5.9% in 2020 compared to 2019.

Metallurgical grade silicon is used to make polysilicon or polycrystalline silicon. It is a form of silicon that is very pure and is made up of many smaller crystals. This material is an important part of the process of making solar cells and other electronic devices. It is used in the electronics business and usually has less than one part per billion of impurities. On the other hand, the materials used in solar photovoltaics aren't as pure.

Market Dynamics:

Latest Trends:

Market growth will be driven by more digitalization in emerging economies.

Emerging economies can boost their growth rate and join the global economy by taking advantage of the huge growth opportunities that digitalization offers. Digitalization brings people closer together, lets them make better use of resources, and speeds up growth and development. Governments and international organisations are putting a lot of money and effort into digitalization so they can take advantage of its potential benefits. For example, since 2015, the government of India has been running a programme called Digital India. The goal of this programme is to make India a digitally empowered society with a knowledge-based economy. Digitalization makes it easier for people to get services online by improving online infrastructure and making it easier to connect to the internet. It also makes a country more digitally capable in the tech field. This has led to more people responding to digitalization, which has led to more people wanting consumer electronics, which has led to more people wanting electricity. So, growing digitalization is good for the market because it drives up the demand for products made for electronics.

Driving Factors:

Solar photovoltaics will help the market grow because demand is going up.

Climate change is one of the biggest problems the world is facing right now, and it affects every part of the globe. Extreme weather events like heat waves, droughts, cyclones, and heavy rains have become more common in recent years, causing problems for businesses and affecting the lives of people. According to a report from the Intergovernmental Panel on Climate Change (IPCC) of the United Nations that will be released in 2021, the average global temperature has already risen by 1.1 degrees Celsius since pre-industrial times in the 1800s. Scientists think that the average global temperature could rise by 1.5 degrees Celsius in the next 20 years, which is more than the Paris Agreement's limit of 1.5 degrees Celsius. One of the most important things to do to stop the worst effects of global warming is to cut down on greenhouse gas emissions right away by using less fossil fuels and switching to renewable energy sources like solar power.

Leading economies like the U.S., China, and the European Union have already said they want to reach net zero emissions in the coming years. Solar power farms are a big part of their plan to do this. The solar photovoltaic industry uses a lot of the polycrystalline silicon that is made around the world to make solar cells and panels. Even though the COVID-19 pandemic caused the world economy to slow down, demand for solar photovoltaic panels has grown a lot in both homes and businesses. Several countries around the world have reported that their solar power capacities have grown significantly, and this trend is likely to continue over the next few years. For example, China bought an extra 48.2 Gigawatts of solar power capacity in 2020 as part of a plan to use less fossil fuels and make less carbon dioxide. During the forecast period, growing concerns about the environment are likely to speed up the use of renewable energy sources like solar power. Due to more people using renewable energy sources, the solar photovoltaic industry is expected to grow a lot over the next few years. This will help and drive the growth of the polysilicon market.

Restraining Factors:

Solar photovoltaics will help the market grow because demand is going up.

Climate change is one of the biggest problems the world is facing right now, and it affects every part of the globe. Extreme weather events like heat waves, droughts, cyclones, and heavy rains have become more common in recent years, causing problems for businesses and affecting the lives of people. According to a report from the Intergovernmental Panel on Climate Change (IPCC) of the United Nations that will be released in 2021, the average global temperature has already risen by 1.1 degrees Celsius since pre-industrial times in the 1800s. Scientists think that the average global temperature could rise by 1.5 degrees Celsius in the next 20 years, which is more than the Paris Agreement's limit of 1.5 degrees Celsius. One of the most important things to do to stop the worst effects of global warming is to cut down on greenhouse gas emissions right away by using less fossil fuels and switching to renewable energy sources like solar power.

Leading economies like the U.S., China, and the European Union have already said they want to reach net zero emissions in the coming years. Solar power farms are a big part of their plan to do this. The solar photovoltaic industry uses a lot of the polycrystalline silicon that is made around the world to make solar cells and panels. Even though the COVID-19 pandemic caused the world economy to slow down, demand for solar photovoltaic panels has grown a lot in both homes and businesses. Several countries around the world have reported that their solar power capacities have grown significantly, and this trend is likely to continue over the next few years. For example, China bought an extra 48.2 Gigawatts of solar power capacity in 2020 as part of a plan to use less fossil fuels and make less carbon dioxide. During the forecast period, growing concerns about the environment are likely to speed up the use of renewable energy sources like solar power. Due to more people using renewable energy sources, the solar photovoltaic industry is expected to grow a lot over the next few years. This will help and drive the growth of the polysilicon market.

Segmentation Analysis:

By Application Analysis:

The market is divided into solar photovoltaics and electronics, based on how they are used. Solar photovoltaics was the most important part of the market because so many materials are used to make solar photovoltaic panels and semiconductors. Most of this segment's growth can be attributed to the fact that more and more people around the world want to instal solar PV systems, which in turn drives up the demand. Solar photovoltaics is one of the industries that is growing the fastest around the world. The International Energy Agency (IEA) says that almost two-thirds of the world's net energy capacity is made up of this industry.

Also, a solar photovoltaic plant that powers mini grids is a great way to get electricity to people who don't have access to power transmission lines. This is especially true in developing countries with a lot of good solar energy. The market will grow because there is a lot of demand from certain end-use sectors, such as the growth in solar cell installations, the increase in investments and incentives for solar photovoltaics installations, and the growth in sales of semiconductors.

Regional Insights:

In 2021, 457.4 tons, or a big part of the market, were sold in Asia Pacific. China ruled the world market for manufacturing and exports because it had a well-established silicon industry and had cheap labour and coal. China bought 48.2 Gigawatts of extra solar power capacity in 2020 as part of a plan to use less fossil fuels and put out less carbon dioxide. The photovoltaic industry is making it hard for companies that make polycrystalline silicon. Most of these companies are in China. Prices for the material have gone up by 40% because there isn't enough of it. Prices are expected to stay high for the next few years, even though new factories are being built to meet rising demand. High costs have hurt the solar industry, and manufacturers have had to cut the number of photovoltaic modules they can make. Other countries in the region have started to put money into their own production facilities to protect their growing photovoltaic and electronics industries from possible shortages. For example, Indian public sector companies like NTPC and BHEL have said they want to build a facility to make polycrystalline silicon with a capacity of about 10 Gigawatts to reduce their reliance on China. The solar photovoltaic industry is expected to grow because many countries in the region are likely to use renewable energy sources like solar energy to meet their energy needs. Polycrystalline silicon is a key part of solar photovoltaic modules, and its demand is expected to rise, which will help the market grow in the South East Asia Pacific region.

Due to rising demand from the solar photovoltaic industry, the North American polysilicon market share is likely to grow. In the U.S., the number of homes and businesses with solar panels has grown a lot in recent years. This is because solar panels are becoming more affordable, the government is offering incentives, and people want to reduce carbon emissions. According to a study by the Solar Energy Industries Association and Wood Mackenzie, the U.S. solar industry installed a record 19.2 Gigawatts of new capacity in 2020. This is a 43% increase over the previous year. The study also predicts that by 2030, the number of solar installations will be four times what it is now. During the period of the forecast, the solar power industry in the region is expected to grow, which will help the market grow and drive its growth.

The European Commission has set legally binding goals to cut net carbon emissions by 55% by 2030 compared to what they were in 1990 and to get rid of them completely by 2050. One thing the European Union is doing to reach these goals is increasing the use of renewable energy. By 2030, the goal is for renewable energy to make up 40% of all energy used. According to a report by SolarPower Europe, the solar industry in the region grew by 11% in 2020. This meant that solar photovoltaic modules could produce an extra 18.7 Gigawatts of energy. Recent changes in the price of polycrystalline silicon and claims that Chinese factories use forced labour and violate human rights are likely to delay solar installation projects in Europe for a short time. On the other hand, the European Union will need to take important steps in the long run, like building production facilities in its own countries, to strengthen its solar power industry. Market growth is likely to be driven by rising demand from the region's solar industry and the EU's strong commitment to the transition to renewable energy.

Scope Analysis

Recent Development:

• April 2022: OCI signed a memorandum of understanding to supply polysilicon to Korean solar manufacturer Hanwha Solutions. The supply contract size is about 1.2 billion dollars.
• February 2021: GCL Technology Holdings Limited entered into definitive transactions with Tianjin Zhonghuan Semiconductor and LONGi Green Energy Technology. As part of the deal, GCL will supply polysilicon to the two Chinese companies in the long term.

Market Segmentation

By Application:

• Solar Photovoltaics
• Electronics
• Others

By Companies:

• Daqo New Energy Corp. (China)
• GCL Technology Holdings Co., Ltd. (China)
• Hemlock Semiconductor Corporation (U.S.)
• Mitsubishi Materials Corporation (Japan)
• OCI Company Limited (South Korea)
• Qatar Solar Technologies (Qatar)
• REC Silicon ASA (Norway)
• Tokuyama Corporation (Japan)
• Wacker Chemie AG (Germany)
• Xinte Energy Co., Ltd. (China)
• Others