Chlorosilane Market Analysis

Chlorosilane Market Analysis

Chlorosilane market for solar grade silicone from tetrachlorosilanes product segment is likely to surpass USD 630 Million by 2028. Demand for tetrachlorosilanes to produce solar grade silicone is expected to surge over the forecast period owing to its excellent compatibility with different chemicals including toluene, benzene, light petroleum, ether, and hydrochloric acid, among others. Moreover, it is non-explosive and does not undergo oxidation, which is expected to provide an added advantage to this product over other types of chlorosilanes.
 

Use of tetrachlorosilane to produce ultrapure tetrachlorosilane, which possesses a very high level of purity up to 99.9% makes it an ideal choice for use in different electronic applications including optical fibres, semiconductors, silicon anodes, and in photovoltaics to produce solar panels. The rising demand for solar photovoltaic modules & systems owing to the growing consumer awareness regarding the importance of harnessing energy derived from renewable sources, such as solar energy, should raise the demand for tetrachlorosilanes and foster chlorosilane market for solar grade silicone over the forecast period.
 

Chlorosilane market for solar grade silicone from dimethylchlorosilanes segment exceeded USD 580 million in 2021 and is anticipated to register a CAGR of 26.5% through 2028. Dimethylchlorosilanes are expected to show significant growth due to virtue of increasing preference among manufacturers of solar grade silicone owing to the increasing use of Direct Synthesis reaction to produce solar grade silicone.
 

Direct Synthesis reaction involves the reaction between silicon power and methyl chloride gas. This reaction results in the formation of a mixture of several liquid silicone which are then separated by distillation. Among the mixture of the different liquid silicone produced, dimethylchlorosilanes are produced on a large scale.
 

Increasing use of solar energy in different residential and commercial grid projects is likely to raise the demand for dimethylchlorosilanes to produce solar grade silicon during the forecast period. Companies are increasingly focusing on installing large scale network grids for capturing solar energy and converting it into electricity for supplying power to many residential areas.
 

North America chlorosilane market size for solar silicone grade is set to exceed USD 5.80 billion by 2028. Increasing solar photovoltaic installations across the region coupled with extensive research & development being undertaken by solar system manufacturers to bring about technological advancements in the existing design and energy generating capacity of solar photovoltaic cells is expected to further open up new growth opportunities for the regional market expansion over the forecast period.
 

Increasing support by the U.S. government in the form of tax credits, loans and grants to encourage the use of solar systems should further support the industry landscape. The Renewable Electricity Production Tax Credit (PTC), the Investment Tax Credit (ITC), the Residential Energy Credit, and the Modified Accelerated Cost-Recovery System (MACRS) are some of the tax benefitting policies implemented by the U.S. government to promote the use of solar systems, in turn boosting the demand for chlorosilanes for solar grade silicone application in the region.