U.S. Solar Ingot Wafer Market Size, Share & COVID-19 Impact Analysis, By Type (Monocrystalline and Polycrystalline), and Country Forecast, 2023-2030

The U.S. solar ingot wafer market size was worth USD 1.18 billion in 2022 and is projected to grow at a CAGR of 12.57% during the forecast period.  

Solar ingots and wafers can be cast into various shapes for further processing into solar products such as silicon solar cells and silicon wafers. A silicon ingot represents the bulk form of crystalline silicon before being thinly sliced into wafers. These wafers, made of silicon material, are produced using an energy-intensive furnace process where wires are employed to divide silicon ingots into wafers. This method generates significant amounts of silicon waste and demands substantial energy, impacting the efficiency of solar panels.

The COVID-19 pandemic significantly dented various commercial and industrial operations across the globe. The aftermath of this crisis left the economies of various fast-growing countries in turmoil. Nearly all the nations across the world have observed a steep increase in the number of the affected population since the beginning of the current year. The unavailability of any cure or vaccine for the viral infection has led many industry professionals and players to introduce several combat measures to mitigate the impact continuously.

LATEST TRENDS

Stringent Government Regulation to Stimulate Solar Ingot Wafer Market Growth

The U.S. government's focus on power generation from renewable energy sources has been a significant driver for the solar ingot wafer market. The emphasis on renewable resources for power generation has led to the market's growth and increased usage. Stringent government regulations on CO2 emissions have pushed companies toward using renewable energy sources, particularly solar and wind power, to generate electricity. For instance, in January 2023, Qcells announced plans to establish a fully integrated solar manufacturing supply chain in the U.S. The aim is to produce solar bars and wafers domestically, expanding the module supply capacity. Qcells' parent company, Hanwha Solutions, plans to build a 3.3 GW facility for manufacturing ingots, wafers, cells, and modules in Bartow County, Georgia. This move aligns with the increasing demand for clean energy across the nation, positioning the company to offer comprehensive sustainable solar solutions in the U.S., from raw materials to finished modules, thus augmenting the U.S. solar ingot wafer market share.

Source: Interstate Renewable Energy Council

In the last decade alone, the solar industry has experienced an average annual growth rate of 24%. This growth can be attributed to favorable policies such as the solar investment tax credit, rising demand for clean electricity, and rapidly declining costs across both private and public sectors. Furthermore, over 149 gigawatts (GW) of solar capacity has been installed nationwide, sufficient to power 26 million homes.

DRIVING FACTORS

Increasing Solar Technologies in the U.S. Boost Market Growth

Solar energy is swiftly emerging as a cost-effective and rapidly growing source of electricity in the U.S. The decreasing cost of solar power systems has led to increased adoption among Americans and businesses, fostering a surge in clean energy utilization. Across the U.S., there's a notable rise in clean energy, highlighting the expanding renewable energy sector. This industry generates hundreds of billions of euros in economic activity and is anticipated to grow substantially in the coming years. Ingots and wafers represent two crucial components of solar cells, which harness solar energy to produce electrical power. The growing favorability toward renewable energy sources brings forth additional benefits in today's energy landscape.

There are tremendous economic opportunities for the countries that formulate, manufacture, and export clean energy technologies. For domestic solar production in the U.S., companies that manufacture and sell solar components need financial support to offset the 30% to 40% higher cost of domestic solar production. Significant U.S. government financial support, incentives, and strategic actions focused on labor, manufacturing, human rights, and trade will enable a global solar industry to be a long-term process aligned with U.S. interests and restore robust U.S. domestic solar production. The growing solar technologies boost the U.S. solar ingot wafer market growth.

RESTRAINING FACTORS

Aggregate Cost of the Solar Ingot Wafer with a Specialized Manufacturing Process is Hindering Market Growth

The primary constraint in the U.S. market is the costly and precise manufacturing process for wafers, which demand specialized techniques due to their minimal thickness. This raises the initial cost and potentially hampers market growth. Additionally, the overall cost of solar bars/wafers is higher, possibly diminishing their acceptance in residential applications where energy demands are typically lower. According to the National Renewable Energy Laboratory (NREL), installing 15 ground-mounted, 300-watt solar panels costs approximately USD 14,625, with an additional USD 500 per solar panel. This upfront cost increase leads to lower adoption of solar tracking systems. Moreover, the lack of necessary infrastructure acts as another factor hindering investments in the market. In the U.S., growth has been impeded by a lack of awareness regarding the benefits and a growing preference for fixed-pitch installations over tracker installations.

SEGMENTATION

By Type Analysis

By type, the market is segmented into monocrystalline and polycrystalline.

Polycrystalline type segment accounted for the largest market share in 2022 due to its high efficiency and long service life.

• Factors such as a less demanding production process than other cell technologies allow more solar cells to be manufactured faster and at lower cost, leading to polycrystalline cells gaining widespread acceptance and likely retaining a dominant market share for years.

KEY INDUSTRY PLAYERS

In the competitive landscape, the market showcases established and emerging oil & gas companies diversifying into solar energy and renewable sources with recent technological advancements. Key industry players are actively involved in exploration, development, and production activities, equipped with advanced solar energy technologies and product developments related to solar ingot wafers.

Other companies with a significant presence in the U.S. market include Sumco Corporation, Canadian Solar, Siltronic AG, SPI Energy, Targray, PV Crystalox plc, and others. This has enabled these companies to establish a strong brand and reputation for quality and reliability, aiding in securing a substantial customer base in the U.S.

LIST OF KEY COMPANIES PROFILED:

• Sumco Corporation  (Japan)


• Canadian Solar (Canada)


• PV Crystalox plc (U.K.)


• Siltronic AG (Germany)


• Mitsubishi Materials Corporation (Japan)


• CETC Solar Energy Holdings Co., Ltd. (China)


• Targray (Canada)


• Hanwha Qcells (South Korea)


• SPI Energy (U.S.)


• Comtec Solar Systems Group Limited (China)

KEY INDUSTRY DEVELOPMENTS:

• April 2023: Canadian Solar announced an immense capacity enlargement plan for CSI Solar Company Ltd. by 2024. CSI Solar, a majority-owned subsidiary of Canadian Solar, aims to expand its ingot production capacity, currently at 20.4 GW, by an additional 50 GW by March 2024. The expansion is expected to primarily enhance wafer production by 29 GW.


• August 2022: Hanwha Q Cells Company was searching for a location to expand its new solar module factory in the U.S., holding a high capacity of around 96GW.


• September 2022: SPI Energy will commence the construction of a 1.5 GW silicon wafer manufacturing site in the U.S. by 2023. The company aims to establish production facilities for solar wafers in the U.S. by 2023, with an annual wafer production capacity of 1.5 GW, intending to further increase this capacity by an additional 3 GW in 2024.

REPORT COVERAGE

The report provides a detailed market analysis and focuses on key aspects such as leading companies, types, and leading solar industries and energy technology. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the market's growth in recent years. It focuses on key aspects, such as an overview of technological advancements.

Additionally, it includes an overview of the reimbursement scenario for the solar industry, the government initiatives with high efficiency in the U.S., key industry developments such as mergers, partnerships, & acquisitions, and the impact of COVID-19 on the market. Besides this, the report also offers insights into the market trends and highlights key industry dynamics.

Report Scope & Segmentation