Solar grade polysilicon market is anticipated to grow at a CAGR of 15.8% during the forecast period (2024-2031). Globally, the solar-grade polysilicon market is growing significantly due to the growing demand for solar photovoltaic installations. According to the data from the International Energy Agency (IEA), solar PV generation increased by 270.0 terawatt-hour (TWh) (up 26.0%) in 2022, reaching almost 1,300.0?TWh from 251.0 TWH in 2015. Among the countries, China is leading the overall market with around 85.0% of global polysilicon production capacity in 2022. In 2022, global solar PV manufacturing capacity increased by over 70.0% to reach 450.0 GW for polysilicon and up to 640.0 GW for modules, with China accounting for more than 95.0% of new facilities throughout the supply chain. 

Additionally, increasing awareness of renewable energy, advancements in solar technology, and increasing government support via policies particularly in the Asia-Pacific region through investments, regulations, and policies are driving overall market growth.  For instance, in December 2023, OCI Holdings secured a supply contract of $1.0 billion from CubicPV, the US solar panel manufacturer. The chemical and solar power company announced that its Malaysian subsidiary, OCI will provide polysilicon for solar panels to CubicPV from 2025 to 2033. CubicPV, headquartered in Massachusetts, intends to commence the production of solar wafers at its plant in Texas, utilizing OCIM's polysilicon starting in 2025.

Market Segmentation

Our in-depth analysis of the global solar-grade polysilicon market includes the following segments:

• Based on type, the market is segmented into granular polysilicon, polysilicon rod, polysilicon chunk, and others (polysilicon chip and polysilicon fines).

• Based on application, the market is segmented into monocrystalline ingot/wafer and cells, multi-crystalline ingot/wafer and cells, and novel wafer applications. 

Granular Polysilicon to Dominate Solar Grade Polysilicon Market 

Granular polysilicon held the highest market share of 43.6% and is growing at the highest CAGR of 16.8% during the forecast period. The growth of granular polysilicon is driven by the expansion of polysilicon production capacity primarily in China. In January 2022, GCL completed its granular silicon facility. At the end of 2022, GCL's total polysilicon production capacity was 185,000 tons including 140,000 tons of granular silicon.

Regional Outlook

The global solar-grade polysilicon market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America). 

Key Market Driver in Asia-Pacific - China

• China produced 857,000 tons of polysilicon in 2022, accounting for 86.0% of global production.
• China has more than 97.5% of the global production of wafers.
• China is the world’s largest solar cell manufacturer. 
• China produced 331.0 GW of solar cells in 2022, a 62.0% increase from 198.0 GW in 2021.
• China installed a 105.5 GW solar module for a cumulative capacity of 414.0 GW. 

Global Solar Grade Polysilicon Market Growth by Region 2024-2031

China: Key Players in the Polysilicon Market

China is a key producer of polysilicon globally due to the easy availability of raw materials and labor class. Tongwei and GCL are the top 2 producers of polysilicon in China, their production exceeded the annual output of 100,000 metric tons (MT) each in 2021 and are expected to reach a production capacity of 370,000 MT by 2023. According to the China Photovoltaic Industry Association (CPIA), the global production capacity for polysilicon was 1.3 million tons in 2022, showing a 73.3% year-on-year rise. The global output of polysilicon reached 1.0 million tons in 2022, indicating a 55.0% rise. 

There are 14 active polysilicon enterprises in China capable of producing a total of 1.2 million tons in 2022, displaying an 87.2% year-on-year increase. The total output of polysilicon has risen to approximately 857,000 tons, indicating a 69.4% year-on-year increase. The rise in capacity results mostly from the commissioning of new production lines of Tongwei Solar, GCL-Poly Energy, Xinte Energy, Qinghai Lihao Semiconductor, Asia Silicon, and the resumption of production from Yichang CSG Polysilicon, and Juguang Silicon (a subsidiary of Risen). The shortage of polysilicon resulted in high prices in 2022, leading Chinese manufacturers to expand their capacity and reduce costs. Such developments are anticipated to contribute to the increased share of China in the polysilicon market soon.

Market Players Outlook

Key market players in the solar-grade polysilicon market include Tongwei Solar Co., Ltd., GCL Technology Holdings Limited, Daqo New Energy, Xinte Energy, Wacker Chemie AG, and OCI Solar Power. The market players are considerably contributing to the market growth by the adoption of various strategies including geographical expansion, partnerships, collaborations, and capacity expansion to stay competitive in the market. For instance, in December 2023, Daqo New Energy Corp. announced that its subsidiary Xinjiang Daqo has signed an investment agreement to create a silicon-based new materials industrial park. Located in Shihezi, China, the project covers two phases. The first phase of the project consists of 150,000 tons of silicon metal production, 50,000 tons of polysilicon, and 1.2 million pieces of silicon seed rods, with an anticipated investment of approximately RMB 7.5 billion ($1.0 billion). The second phase of the project consists of 150,000 Tons of silicon metal production, 50,000 tons of polysilicon, and 1.0 million pieces of silicon seed rods, with an anticipated investment of approximately RMB 7.5 billion ($ 1 billion). 

The Report Covers

• Market value data analysis of 2023 and forecast to 2031.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global solar grade polysilicon market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.