Polycyrstalline Silicon Market To Grow At Highest Pace Owing To Increasing Demand From Solar PV Industry

 

Polycrystalline Silicon Market

The global polycrystalline silicon market is primarily driven by its extensive usage in the production of photovoltaic cells in solar panels. Polycrystalline silicon, also known as polysilicon, is a high purity polymeric form of silicon with a crystalline structure composed of numerous small crystals or grains. It provides higher efficiency, long-term reliability, and is widely used in residential and utility-scale solar power projects. The rising emphasis on renewable energy sources to reduce reliance on fossil fuels is fueling demand for solar PV installations across residential, commercial, and utility sectors. Technological advancements are further improving polysilicon yields and reducing production costs, making solar energy more competitive against conventional power sources.

The Global polycrystalline silicon market is estimated to be valued at US$ 5198.17 Mn in 2024 and is expected to exhibit a CAGR of 7.2% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the Polycrystalline Silicon Market are Nike, Adidas, Beyond Skin UK, Monk Story, Hexa Vegan Shoes, Ethletic, Matt & Nat, MooShoes, Susi Studio, Veerah, and AVESU GmbH. Nike dominates the market with its wide range of sustainable footwear made from recycled polycrystalline silicon. Adidas is focusing on strengthening its recycling efforts and using more renewable materials like polysilicon in its upcoming lines.

The growing demand for solar energy across both residential and utility-scale projects is creating strong demand for polycrystalline silicon. Government incentives and policies promoting solar rooftop installations are encouraging more homeowners to install PV systems. Additionally, major utility providers are investing heavily in large solar farms to add renewable capacity to their power grids. This rising installation of solar PV worldwide is fueling consumption of polysilicon.

Advanced technologies like heterojunction cell technology use less polysilicon than traditional PERC cells but provide higher efficiency. Efforts are also ongoing to reduce manufacturing costs through improvements in ingot casting and wafering processes. New deposiiton techniques aim to enhance purity levels and yields to lower per watt costs. These technological advancements are helping boost adoption of solar energy.

Market Trends

High-efficiency monocrystalline panels are gaining popularity for both residential and commercial & industrial rooftop installations owing to their superior performance in lower light conditions. However, polycrystalline panels continue to dominate the market due to significantly lower costs and sufficient efficiency for most applications. To aid their market share, polycrystalline panel manufacturers are focusing on further cost reductions through increased economies of scale and productivity improvements.

The shift towards larger wafer formats is another key polycrystalline silicon market trend. Wafers above 210 mm diameter offer higher power outputs in the same panel space. Top manufacturers have already ramped up lines oriented around 182mm and 210mm wafers which could become the mainstream standard going ahead.

Market Opportunities

Growing focus on energy storage integrated with solar PV systems is opening opportunities for demand from the energy storage sector. Wider adoption of prosumer-based energy systems that combine rooftop solar, batteries, and electric vehicles could propel offtake from the residential sector. Emerging applications in solar glass, backsheets, and other balance of system components also provide growth prospects. Expandinginto new geographic markets like Asia Pacific and Latin America offers significant headroom for future polysilicon demand.

Impact of COVID-19 on Polycrystalline Silicon Market Growth

The COVID-19 pandemic impacted the growth of the global polycrystalline silicon market. During the lockdown phase of the pandemic, the supply chains were disrupted due to restrictions on transport. This led to reduced availability of raw materials required for the production of polysilicon. The demand from the end-use industries such as photovoltaics and semiconductor also witnessed a decline during 2020 and early 2021 owing to halted operations. However, with vaccination drives and relaxation in restrictions, the market is regaining momentum post-COVID. The demand for renewable energy sources is increasing rapidly with focus on sustainable development. This will drive the need for polysilicon in the solar industry. The governments across regions are announcing production-linked incentive schemes and investments in solar projects. This will propel the polycrystalline silicon market growth in the coming years. The key players are expanding their production capacities and investing in R&D to develop cost-effective technologies.

China - Concentration of Polycrystalline Silicon Market by Value

In terms of value, China holds the major share of the global polycrystalline silicon market. It accounts for over 50% of the total market value. China is the largest producer and consumer of polysilicon globally. The country has a massive photovoltaic industry with annual cell and module manufacturing capacity of over 100 GW. It leads in renewable energy investments and solar power installations. The supportive government policies and low production costs have established China as the dominant region for polysilicon manufacturers. The increasing domestic demand for solar products will further strengthen China's prominence in the polycrystalline silicon market.

Europe - Fastest Growing Region for Polycrystalline Silicon Market

Europe has emerged as the fastest growing regional market for polycrystalline silicon. It is expected to witness a CAGR of around 9% during the forecast period. This can be attributed to the rising adoption of solar energy in the region. The European Commission and countries have outlined ambitious solar targets and policies such as renewable energy directive. Substantial investments are flowing into the PV sectors for utility-scale projects. The growing commercial and residential installations are boosting the demand for solar cells and polysilicon. Moreover, the presence of key manufacturers in Europe will continue to support the polycrystalline silicon market growth.

Get more insights on Polycrystalline Silicon Market