The Polycrystalline Silicon Market is estimated to be valued at US$ 9.64 billion in 2023 and is expected to exhibit a CAGR of 13.4% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Polycrystalline silicon or poly-Si is a high purity form of silicon used primarily in photovoltaic (PV/solar cells). It is produced using metallurgical grade silicon as the raw material through processes like trichlorosilane process or Siemens process. Compared to monocrystalline silicon, polycrystalline is formed by fusion of multiple small silicon crystals (grains) which gives it a darker appearance. Due to its structure, poly-Si is less efficient than mono-Si, however it reduces production costs significantly making solar PV projects commercially viable.
Market key trends:
One of the key drivers for the polycrystalline silicon market is increasing adoption of solar PV technology worldwide. Factors such as depleting fossil fuel reserves, need for clean renewable energy coupled with falling module prices are boosting solar PV installations globally. According to IEA, annual solar PV additions rose from around 100GW in 2020 to over 150GW in 2021 worldwide. China remained a dominant market but countries such as US, India, Vietnam and European nations are also aggressively expanding solar capacities which is translating to growing demand for polycrystalline silicon. Furthermore, technologica advancements to increase poly-Si yields and drive down manufacturing costs have also augmented its competitiveness against monocrystalline silicon in recent years benefiting market revenues.
Porter’s Analysis
Threat of new entrants: New companies entering this market will need to invest significant capital in setting up the production facilities which requires specialized equipment and technologies to manufacture polycrystalline silicon. This poses high barrier to entry.
Bargaining power of buyers: The buyers in this market include solar cell and module manufacturers who have significant bargaining power due to presence of multiple suppliers. However, a small change in polycrystalline silicon price has large impact on solar project costs controlling buyers' power.
Bargaining power of suppliers: A few companies dominate the global supply of polycrystalline silicon providing them stronger position in negotiating prices and contracts with buyers.
Threat of new substitutes: No direct substitutes currently available in the market for polycrystalline silicon used in solar photovoltaic industry.
Competitive rivalry: Intense rivalry exists among the established players to gain market share through competitive pricing and product quality.
SWOT Analysis
Strength: Growing demand for solar energy due to environmental regulations and sustainability goals. Wide applications in solar photovoltaic industry.
Weakness: High initial investment and technology required. Fluctuating raw material prices affect production costs.
Opportunity: Rising installations of solar PV projects worldwide. Government subsidies and initiatives to promote renewable energy. Capacity expansions by leading players in major markets.
Threats: Trade barriers and tariffs imposed by certain countries. Overcapacity risks if demand does not rise as per projections. Competition from emerging technologies.
Key Takeaways
The global Polycrystalline Silicon market Share is expected to witness high growth, exhibiting CAGR of 13.4% over the forecast period, due to increasing demand for solar PV installations backed by supportive government policies and declining module prices. Asia Pacific currently dominates the global market led by China, accounting for over 50% of polycrystalline silicon production globally. Japan and India also offer significant growth opportunities.
Regional analysis - The polycrystalline silicon market in Asia Pacific is projected to maintain its dominance during the forecast period growing at over 13% CAGR. China will continue to be the fastest growing and largest producer with capacity expansion plans by top players like GCL-Poly and Daqo New Energy. Japan, South Korea and India are other major emerging markets in the region.
Key players - Key players operating in the global polycrystalline silicon market are Wacker Chemie AG, OCI Company Ltd., GCL-Poly Energy Holdings Limited, Hemlock Semiconductor Corporation, Tokuyama Corporation, REC Silicon ASA, Daqo New Energy Corp., SunEdison, Inc. (acquired by MEMC Electronic Materials), LDK Solar Co., Ltd. (faced financial difficulties in the past), TBEA Co., Ltd.
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