The global polysilicon market size was estimated at USD 5.49 billion in 2015 and is projected to grow at a CAGR of 10.2% from 2016 to 2025. The growing demand for photovoltaics and semiconductors is anticipated to propel growth over the forecast period. Clean energy policy goals and tax exemption in the solar industry are expected to augment demand over the coming years. According to the International Energy Agency (IEA), the global PV sector is projected to grow at a rate of 25% annually.
The fluidized bed reactor (FBR) and Siemens process are two of the major production techniques used in the manufacture of polycrystalline silicon (poly-Si). Manufacturers prefer different production technologies depending on the end-use application and scale of production.
U.S. polysilicon market volume by application, 2014-2025 (Kilo Tons)
Investment, expansions, and securing long-term contracts are some of the strategic initiatives undertaken by companies operating in this market. In April 2016, Wacker invested USD 2.5 billion in the development of its Tennessee, the U.S. polysilicon production facility. The plant has an annual capacity of more than 20,000 metric tons.
Consolidations are also expected in the market over the coming years. In September 2016, OCI Company Ltd. announced its plans to acquire Tokuyama’s Malaysian polysilicon operations by the end of March 2017.
Polysilicon is widely used in the manufacture of solar photovoltaic panels and semiconductors. The photovoltaic segment is projected to experience exponential growth due to upcoming clean energy projects in several countries.
The manufacture of solar grade silicon (SG-Si) using the FBR technology remains the most efficient way to produce 8N purity poly-Si. The FBR process enables continuous production and reduces energy consumption. According to REC Silicon, the FBR process helps to manufacture SG-Si at low cost while reducing energy consumption by 80% as compared to the Siemens technology.
According to the Institute of Electrical and Electronics Engineers (IEEE) Journal of Photovoltaic, in 2000, approximately 80% of the polysilicon production was consumed by the semiconductor sector. However, in 2008 the industry experienced a major trend reversal, whereby the solar sector consumed 60% to 80% of the production.
Polysilicon market share by application, 2015
Electronic grade silicon (EG-Si) is used for fabrication of single crystal silicon used in integrated circuits (IC), very large scale integration (VLSI), and ultra-scale integration (ULSI). The electronics segment requires high purity poly-Si ranging between 9N to 11N. Siemens process is used to produce EG-Si which meets high resistivity and purity standards.
In 2015, Asia Pacific occupied the largest share owing to rapid growth of the solar energy sector, technological advancements, high GDP growth rates, and increasing demand for consumer electronics. China, Japan, and South Korea are some of the major poly-Siproducers operating within the region.
North America held the second largest share and is expected to grow at a CAGR of around 10% over the forecast period. Initiatives undertaken in the U.S. to lower carbon footprints and increasing production of consumer electronics has given a thrust to the market growth.
Central & South America is projected to grow at the second highest CAGR on account of major solar PV installation projects planned over the coming years in countries such as Chile, Brazil, and Honduras.
Influential companies operating in the market include Wacker Chemie, GCL-Poly, OIC Chemical, REC Silicon, Tokuyama Corporation, LDK Solar Co. Ltd., Hemlock Semiconductor Group, SunEdison, DAQO New Energy, and TBEA Co. Ltd.
Over the past few years, companies operating in the industry have faced several challenges such as plant shutdowns, anti-dumping regulations, and oversupply. However, over the forecast period, the market is expected to experience a more balanced supply and demand scenario, price stability, and profitability. Companies have also adopted forward integration strategies and entered into the semiconductor and photovoltaic sector.
Attribute |
Details |
Base year for estimation |
2015 |
Actual estimates/Historical data |
2014 & 2015 |
Forecast period |
2016 - 2025 |
Market representation |
Volume in Kilo Tons and Revenue in USD Million & CAGR from 2016 to 2025 |
Regional scope |
North America, Europe, Asia Pacific, Central & South America & MEA |
Country scope |
U.S., Canada, Mexico, UK, Germany, France, Italy, Japan, China, India, South Korea, Australia, Chile, Honduras, South Africa, Algeria |
Report coverage |
Revenue forecast, competitive landscape, growth factors and trends |
15% free customization scope (equivalent to 5 analyst working days) |
If you need specific market information, which is not currently within the scope of the report, we will provide it to you as a part of customization |
This report forecasts volume & revenue growth and provides an analysis on the latest trends in each of the sub-segments from 2014 to 2025. For the purpose of this report, Grand View Research has segmented the global polysilicon market on the basis of application and region:
Photovoltaic
Electronics
North America
The U.S.
Canada
Mexico
Europe
UK
Germany
France
Italy
Asia Pacific
China
India
Japan
South Korea
Australia
Middle East and Africa
South Africa
Algeria
Central & South America
Chile
Honduras
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Halted manufacturing activities across various end-use industries has led to weakened demand for specialty polymers. The prevailing macroenvironment due to the pandemic shall register indications of recovery depending on the course of COVID-19's prevalence and subsequent resuming of manufacturing activities. The report will account for Covid19 as a key market contributor.