Solar Silicon Wafer Market Analysis

Solar Silicon Wafer Market Analysis

The monocrystalline wafer segment in the solar silicon wafer market was valued at USD 8 billion in 2020 and is projected to witness around 13% growth rate till 2027 led by several intuitive features offered by the monocrystalline solar silicon wafer such as sleeker aesthetics, higher performance, and better energy conversion efficiency. Adding to this, the monocrystalline solar silicon wafer manufacturers are proactively focusing on expanding their production capacities and entering into strategic long-term contracts to achieve competitive advantage in the market.

The solar cell application accounted for 12.5% of the solar silicon wafer market share in 2020 and will grow at a CAGR of 13% through 2027 impelled by growing adoption of solar cells in photovoltaic panels, solar modules and solar power station equipment for energy conversion, and storage application in the market. The rising establishment of solar farms and solar power stations in developing economies, such as Turkey, Mexico, India, and Malaysia, is expected to create high growth opportunities for the market. In January 2021, the Ministry of Energy and Natural Resources, Turkey, for development of its Renewable Energy Resource Zones (YEKA), announced the launch of 74 solar energy mini tenders. These new tenders will increase the total production capacity by 1,000 MW for 36 regions in Turkey. This is increasing the proliferation of solar cells, adding new growth opportunities to the market.

Asia Pacific solar silicon wafer market dominated around 90% of revenue share in 2020 and is predicted to attain a CAGR of over 11 % during 2021 to 2027 on account of the favorable government initiatives supporting the regional PV manufacturing industry in China. In July 2020, the Ministry of Finance, Government of China, increased its budget for renewable power subsidies to approximately USD 14.27 billion, which is 7.5% more than the previous year’s budget. The proposed budget will subsidize local solar silicon wafer manufacturers in research & development and plant expansion activities, further contributing to the regional growth.  

Adding to this, the presence of several solar silicon wafer manufacturers in the region including LONGi Solar, CETC Solar Energy Holdings Co., Ltd, Jiangxi LDK Solar High-Tech Co., Ltd., and Comtec Solar Systems Group Limited is further accelerating the market growth in China. According to the China Photovoltaic Industry Association, China holds for the largest manufacturers of photovoltaic products and had a silicon wafers production capacity of more than 173.7 GW in FY2019. The country held 93.7% of the world’s total production capacity in FY2019.