Global Polysilicon Market Sees Robust Growth Amidst Surge in Solar Industry Demand: Market Research Analysis
The global polysilicon market is experiencing a significant upswing, driven by the soaring demand for polysilicon in the solar energy sector. A multitude of factors, including the expansion of various end-user verticals in emerging economies, the growing demand for polysilicon in industrial applications such as multi-crystalline solar panels, electronics, civilian small solar equipment, and more, are contributing to the market’s robust growth. This trend is further bolstered by governmental efforts to reduce the cost of solar products, increased investments in research and development by major corporations, rising industrialization, a shift towards renewable energy sources, the proliferation of small and medium-sized businesses, particularly in developing nations, and a strong focus on technological advancements in production methods.
According to the International Renewable Energy Agency (IRENA), 2021 witnessed an astounding addition of 133 GW in solar installations, marking a 19% increase in the global capacity of solar energy. The World Economic Forum predicts that in 2021, solar and wind combined will account for over 10% of the world’s electricity generation, with solar power constituting approximately 5% of that total.
However, the polysilicon market growth faces challenges in the form of raw material supply shortages due to pricing volatility, high research and development costs, stringent government regulations on industrial processes, escalating import-export taxes, and restrictive global trade policies. Additionally, the capital-intensive nature of manufacturing processes poses limitations on the market’s growth potential.
Impact of COVID-19 on Polysilicon Market
In 2020, China, the world’s largest polysilicon market, was at the epicenter of the COVID-19 outbreak, leading to disruptions in global supply chains. Lockdown restrictions and logistical challenges hampered various end-use industries. Shortages in labor, raw materials, and freight containers, compounded by supply chain difficulties, significantly impacted the semiconductor industry’s ability to produce silicon chips. This shortage extended its reach to other sectors, including automotive manufacturers like GM and Ford, leading to temporary shutdowns. Similarly, the solar power sector, which heavily relies on polysilicon, grappled with resource scarcity, causing a supply-demand gap and a substantial spike in polysilicon prices.
Digitalization Drives Polysilicon Market Expansion
Digitalization is playing a pivotal role in the growth of emerging economies by accelerating economic progress and resource management. Governments and international organizations are heavily investing in digitization to leverage its potential benefits. For instance, India’s Digital India program, initiated in 2015, aims to transform the nation into a technology-driven society and knowledge economy. The widespread adoption of digitalization is fueling the demand for consumer electronics and, consequently, increasing the need for electricity, creating a favorable environment for the polysilicon market.
Rising Demand for Solar Photovoltaics Boosts Polysilicon Market
The escalating concern over climate change has prompted the adoption of renewable energy sources, particularly solar power. With the average global temperature projected to rise, renewable energy sources like solar photovoltaics are expected to play a crucial role in mitigating climate change. The growing adoption of renewable energy sources is anticipated to drive substantial growth in the solar photovoltaic industry, thereby benefiting the polysilicon market.
Challenges of Capital-Intensive Manufacturing
The construction of polysilicon manufacturing facilities entails substantial capital investment in advanced equipment and skilled labor. China dominates the global polysilicon market, producing approximately 80% of the world’s supply. The semiconductor industry’s supply chain vulnerabilities, as demonstrated during the pandemic, have led several nations to prioritize domestic semiconductor production. However, the high costs associated with setting up manufacturing facilities limit entry to only well-funded players.
Polysilicon Market Segmentation
- Rods Dominate: The rods category currently holds the largest share of the polysilicon market, driven by their extensive use in solar cells. Polysilicon rods, featuring a unique crystalline structure, are refined efficiently and are in high demand for solar energy applications.
- Solar PV: The solar PV category leads the polysilicon market due to its widespread use in semiconductors and solar photovoltaic panels. The growing global demand for solar PV systems propels this segment’s growth.
Asia Pacific and North America Lead Geographically
- Asia Pacific: Anticipated to account for the largest revenue share over the forecast period, the Asia Pacific region benefits from a well-established silicon sector and increasing solar power capacity in countries like China.
- North America: The North American polysilicon market is expected to experience stable growth, driven by the rising demand for solar photovoltaics and renewable energy installations, particularly in the United States.
Several key players are shaping the global polysilicon market, including Wacker Chemie AG, OCI Company Ltd., GCL-Poly Energy Holdings Limited, TBEA Co. Ltd, REC Silicon ASA, CSG Holdings Co. Ltd., Tokuyama Corporation, Daqo New Energy Co. Ltd., Mitsubishi Materials Corporation, Hanwha Chemical Co. Ltd, Asia Silicon, Osaka Titanium Technologies Co. Ltd., Qatar Solar Technologies, and Hemlock Semiconductor Corporation.
Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 – By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa) https://www.fairfieldmarketresearch.com/report/polysilicon-market
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