Polysilicon or polycrystalline silicon is a high-purity silicone material used as raw material in the production of photovoltaic cells used in solar panels. It has high light absorption capacity and is a more efficient alternative to conventional materials used in photovoltaic cells. The growing demand for solar energy and government support for renewable energy sources is driving the growth of the polysilicon market. With increasing focus on controlling carbon emissions, more countries are setting renewable energy targets and investing in solar energy infrastructure development. This is expected to boost the demand for solar panels and subsequently polysilicon as a core component.
The global Polysilicon Market is estimated to be valued at US$ 12.8 Bn in 2023 and is expected to exhibit a CAGR of 6.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights. Market Opportunity: The surging demand from the renewable energy sector presents a key growth opportunity for the polysilicon market. Solar energy has emerged as one of the most viable and affordable renewable energy sources and global solar capacity addition has been growing at a strong pace over the past few years. According to the International Energy Agency (IEA), global solar PV capacity is expected to grow at an average annual rate of 17% through 2026. This rising focus on solar energy to meet renewable targets along with achieving carbon neutrality goals will drive up the demand for polysilicon as a key material in solar photovoltaic panels. The market players can leverage this opportunity by expanding their production capacities and capabilities to meet the growing polysilicon needs of the solar industry. Strategic partnerships with solar panel manufacturers would help secure long term demand. Porter's Analysis Threat of new entrants: The polysilicon market requires massive capital investments for setting up production facilities and technology to produce polysilicon. This poses significant entry barriers for new players. Bargaining power of buyers: The presence of multiple established players in the polysilicon market gives buyers considerable bargaining power to negotiate on pricing and other terms. Bargaining power of suppliers: A few major players dominate the raw material supply chain for polysilicon production giving them strong influence over pricing. Threat of new substitutes: At present, there are no direct substitutes for polysilicon. Advancements in thin-film photovoltaic technologies pose a potential threat. Competitive rivalry: The polysilicon market is highly competitive with major players competing on cost leadership, product quality and technical capabilities. SWOT Analysis Strengths: Rising solar installations worldwide and government support for clean energy boost demand. Weaknesses: High capital requirements and fluctuations in silicon prices impact profits. Supply chain disruptions affect production. Opportunities: Increasing uptake of heterojunction solar PV technology presents an opportunity. Growing solar rooftop markets in developing nations offer scope. Threats: Trade restrictions and tariff policies impact supply and costs. Climate change policies influence long term demand prospects. Key Takeaways The global Polysilicon Market Demand is expected to witness high growth over the forecast period of 2023 to 2030. Rapid capacity additions in solar PV manufacturing mainly in China and increasing policy support for renewable energy in European and Asian countries will drive the demand for polysilicon. Regionally, Asia Pacific dominates the polysilicon market currently and is projected to continue its lead, supported by China's massive production and installation base for solar PV. Key players operating in the polysilicon market include GCL-Poly Energy Holdings, Wacker Chemie, OCI, Hanwha Solutions, Tokuyama Corporation, DAQO New Energy, Mitsubishi Materials Corporation. These players are focusing on ramping up production capacities to meet the rising global demand. Tier 2 players are expanding through partnerships for technology access and to gain access to global markets. Explore more related article on this topic: https://www.ukwebwire.com/polysilicon-market-is-expected-to-be-flourished-by-growing-demand/
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