Silicon Carbide Market: Global Industry Analysis and Forecast (2023-2029)

The Global Silicon Carbide Market was valued at US$ 2.33 Bn. in 2022 and it is expected to reach US$ 10.4 Bn. by 2029 is at a CAGR of 23.9% throughout the forecast period (2023-2029).

Silicon carbide (SiC) is a compound composed of silicon and carbon atoms, known for its exceptional properties such as high thermal conductivity, strength, and resistance to corrosion and wear. It finds extensive applications across various industries due to its superior performance compared to traditional materials. This report provides a comprehensive analysis and overview of the silicon carbide market, including its current state, key drivers, market size, and future prospects.

The global silicon carbide market has witnessed significant growth in recent years, driven by the increasing demand for high-performance materials in various industries. The market is characterized by the production and distribution of silicon carbide in various forms, such as grains, powders, and wafers. Silicon carbide's unique properties make it highly desirable for applications requiring high thermal conductivity, strength, and resistance to harsh environments.

According to market research, the global silicon carbide market was valued at USD 2.33 billion in 2023 and is projected to reach USD 10.4 billion by 2028, growing at a CAGR of 23.9% during the forecast period. Geographically, Asia Pacific dominates the silicon carbide market, owing to the presence of a large number of manufacturers and increasing demand from industries such as automotive, electronics, and energy. North America and Europe also contribute significantly to the market, driven by advancements in power electronics and electric vehicles.

The silicon carbide market is expected to witness continued growth in the coming years. The rising demand for energy-efficient solutions, advancements in power electronics, and the increasing adoption of electric vehicles are anticipated to drive market growth. Moreover, ongoing research and development activities focused on enhancing the manufacturing process and improving material quality are likely to open new opportunities for market expansion.To know about the Research Methodology :- Request Free Sample Report
Silicon Carbide Market Dynamics
Market Drivers: The silicon carbide market is primarily driven by several key factors. Firstly, the growing demand for silicon carbide in the power electronics industry is a major driver. Silicon carbide-based semiconductors offer superior performance compared to traditional silicon-based semiconductors, enabling higher efficiency and power density in electronic devices. For instance, in April 2022, UnitedSiC, a manufacturer of SiC power semiconductors, introduced a new generation of 650V SiC FETs, offering increased efficiency and power density in electric vehicle powertrain applications.

Secondly, the automotive industry is a significant driver of the silicon carbide market. Silicon carbide is widely used in electric vehicle powertrain systems, where it improves efficiency and extends the vehicle's range. Governments worldwide are promoting the adoption of electric vehicles, further bolstering the demand for silicon carbide. For example, in September 2021, the European Commission launched the European Battery Alliance to support the development of a sustainable battery industry, including the use of advanced materials like silicon carbide.

Market Restraints: One of the primary challenges is the high production costs associated with silicon carbide. The intricate creation procedure and the necessity for specific machinery lead to more costly production, causing limitations in the market's expansion.
Furthermore, the limited availability of raw materials is a challenge for the silicon carbide market. Silicon carbide production relies on high-purity silicon and carbon precursors, which can be subject to supply chain disruptions or fluctuations in prices. Ensuring a stable and sustainable supply of raw materials is crucial for the market's future growth.

Market Opportunities: The silicon carbide industry provides numerous prospects for growth and progress. To begin with, the escalating emphasis on sustainable energy sources and the transfer to a low-emission economy present noteworthy openings. Silicon carbide is applied in solar inverters, wind power systems, and energy storage applications, wherein its top-notch effectiveness and thermic features render it an excellent option. In December of 2021, Tesla unveiled the establishment of a new factory in Texas, which shall conceive SiC-powered electronics for their energy stock items, leading to fresh possibilities for the market.

Additionally, the aerospace and defense sector offers potential growth avenues for silicon carbide. Silicon carbide is utilized in aircraft brakes, turbine engines, and armor protection systems, where its high strength and temperature resistance are crucial. The increasing demand for lightweight and durable materials in the aerospace industry is expected to drive the adoption of silicon carbide.
Market Challenges: While the silicon carbide market is poised for growth, it faces challenges that need to be addressed. One such challenge is the lack of standardized testing methods and industry-wide quality standards. This can create inconsistencies in product quality and hinder the market's growth. Collaborative efforts between industry players, research institutions, and standardization bodies are required to establish consistent quality standards.

Furthermore, the competition from other wide-bandgap semiconductors like gallium nitride (GaN) poses a challenge. GaN-based devices offer similar advantages to silicon carbide and are gaining traction in various applications. The market competition necessitates continuous innovation and differentiation to maintain a competitive edge.
Silicon Carbide Market Segmentation
By Product Type: The silicon carbide (SiC) market is segmented based on product type, with two prominent segments: Green SiC and Black SiC. Green SiC, produced using petroleum coke and silica sand, finds extensive applications in abrasive tools, grinding wheels, and refractory materials due to its exceptional hardness and abrasive properties. On the other hand, Black SiC, obtained through the smelting of petroleum coke and silica sand, is widely utilized in abrasive applications, refractories, and the metallurgical industry, owing to its excellent thermal conductivity and low thermal expansion.

Among these segments, Green SiC holds a significant market share due to its versatility and established applications in various industries. However, Black SiC has the potential to grow in the future due to its increasing adoption in abrasive and metallurgical applications, as well as its usage in the steel industry for refractory linings and crucibles. With advancements in manufacturing processes and the expansion of end-use industries, the demand for Black SiC is expected to witness substantial growth in the coming years.

By Application: The silicon carbide (SiC) market is segmented based on application, encompassing several key sectors like Power Electronics, Steel and Energy, Automotive, Aerospace and Defense, others. One of the widely used application segments is Power Electronics, where SiC-based power devices are gaining significant traction. These technological marvels provide better efficiency, superior thermal management, and greater power density than traditional silicon-based semiconductors. In electric vehicles (EVs), renewable energy systems, industrial power supplies, and grid applications, the application of SiC-based power electronics is vast.

The potential for growth in this field is colossal, owing to the global shift towards sustainable transportation and the growing adoption of renewable energy sources. The future market for SiC-based power electronics is expected to see a significant expansion, thanks to continuing advancements in power electronics technology and increasing demand for energy-efficient solutions. The growth is driven by various factors such as initiatives by governments to promote EVs and renewable energy, and the urge for increased power density and improved performance in diverse industries.

By Product Type: The silicon carbide (SiC) market is segmented as Power Devices, RF Devices, Optoelectronic Devices, Power Modules, and Other. Amongst this, Power devices hold the largest market share of 40%, offering superior performance compared to traditional silicon-based devices. These SiC power devices, including diodes, MOSFETs, and IGBTs, are widely used in power electronics applications for efficient power conversion, higher power density, and improved system performance. RF devices hold a 15% market share, providing high power density and frequency operation for applications in wireless communication, radar systems, and satellite communication.

Optoelectronic devices capture 10% of the market share with their high brightness and efficiency, finding applications in automotive lighting, general illumination, and solar power systems. Power modules hold a 20% market share, integrating multiple SiC power devices for compact designs and improved efficiency, suitable for automotive powertrains, renewable energy systems, and industrial motor drives. The remaining 15% represents other product types. Power devices dominate the market share due to their established usage, but power modules show significant growth potential, driven by the rising demand for efficient power conversion and the adoption of electric vehicles, renewable energy, and industrial automation.

By Crystal size:The silicon carbide (SiC) market is segmented based on crystal size, 4H-SiC and 6H-SiC, which influences the material's properties and applications. One widely used crystal size segment is 4H-SiC, which exhibits a hexagonal crystal structure and excellent electrical properties, making it suitable for power electronic devices, RF devices, and LED lighting. 4H-SiC is extensively employed in various industries due to its high thermal conductivity, superior mechanical strength, and ability to withstand high temperatures. However, another crystal size segment with significant growth potential is 6H-SiC. This hexagonal crystal structure offers high thermal conductivity, making it ideal for applications requiring superior heat dissipation. As the demand for efficient heat management and power electronics continues to rise, 6H-SiC is expected to witness substantial growth in the coming years. The crystal size segmentation in the SiC market allows for targeted product development and application-specific solutions to cater to the diverse needs of industries such as automotive, electronics, energy, and aerospace.
Silicon Carbide Regional Analysis:
The global silicon carbide (SiC) market exhibits varying dynamics across different regions, driven by regional factors and government initiatives aimed at supporting the sector. Currently, the Asia Pacific region holds the most significant position in the SiC market because of the plentiful amount of SiC producers in countries like China, Japan, and South Korea. These manufacturers answer to the rising call for SiC in sectors such as automobile, technology, and vitality. Additionally, the region gains some advantages from the agreeable schemes implemented by governments. For instance, subsidies and motivations for electrical cars and green power foundations bolster the expansion of the market.

In the near future, Asia Pacific is expected to continue leading the SiC market. The region's strong market position can be attributed to ongoing developments in power electronics, electric vehicles, and renewable energy systems. Government regulations promoting sustainable transportation and the reduction of carbon emissions further bolster the demand for SiC. Additionally, the increasing investments in research and development activities and infrastructure development initiatives in countries like China and India are expected to drive the market forward.

North America is another significant region in the silicon carbide market. The region has a strong presence of key players actively involved in SiC manufacturing and applications. The United States, in particular, showcases notable growth in SiC adoption, supported by government initiatives and investments in sustainable technologies. The push for electric vehicles, advancements in aerospace and defense technologies, and the focus on reducing reliance on fossil fuels contribute to the market's expansion in North America.

Europe is also a prominent market for silicon carbide, driven by the increasing demand for SiC-based power electronics and electric vehicles. The region is actively transitioning to cleaner energy sources, and initiatives like the European Battery Alliance promote the development and deployment of SiC technology. Government regulations and support for sustainable transportation systems, along with ongoing research and development activities, create growth opportunities for the SiC market in Europe.
Silicon Carbide Industry, Competitive Landscape
The competitive landscape of the silicon carbide (SiC) market is characterized by the presence of established players as well as new entrants aiming to capitalize on the market's growth potential. One of the prominent companies in the market is Cree Inc., headquartered in the United States. Cree, Rohm Semiconductors etc are the leading manufacturer of SiC-based products, offering a wide range of power semiconductors and materials.

As the silicon carbide market continues to grow, new entrants are also emerging in the industry. For instance, UnitedSiC, a company based in America, has garnered attention for their SiC power semiconductors. By concentrating on the creation of SiC FETs and diodes that exhibit superior performance, UnitedSiC caters to key areas like renewable energy, power supplies, and electric vehicles. With new partnerships and collaborations, UnitedSiC is bolstering their market presence while broadening their product offerings.
The silicon carbide market has also witnessed significant merger and acquisition activities.

In 2021, STMicroelectronics completed the acquisition of a majority stake in Norstel, a Swedish SiC wafer manufacturer. This acquisition enabled STMicroelectronics to strengthen its position in the SiC market by securing a strategic supply of high-quality SiC wafers for its semiconductor products.

Recent technological advancements have also been prominent in the silicon carbide market. For instance, Infineon Technologies, a global semiconductor company, introduced its CoolSiC MOSFET technology, which offers improved performance and efficiency in various applications. The technology combines high-performance SiC material with advanced packaging and manufacturing techniques to deliver enhanced power density and system reliability.
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Silicon Carbide Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2017 to 2022
Market Size in 2022:
US $ 2.33 Bn.


Forecast Period 2023 to 2029 CAGR:
23.9%
Market Size in 2029:
US $ 10.4 Bn.


 Segments Covered:
by Type
1. Green SiC
2. Black SiC
3. Others


by Application
1. Power Electronics
2. Steel and Energy
3. Automotive
4. Aerospace and Defense
5. Others


by Product Type
1. Power Devices
2. RF Devices
3. Optoelectronic Devices
4. Power Modules
5. Other


by Crystal Type
1. 4H-SiC
2. 6H-SiC



Silicon Carbide Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Silicon Carbide Key Players
The following Silicon Carbide Companies are the key players in the market and are selected based on a criteria for further evaluation. The strategies followed by the companies to sustain and grow in the market are discussed in detail in the report

1. Cree Inc.
2. Infineon Technologies AG
3. ROHM Semiconductor
4. STMicroelectronics N.V.
5. Toshiba Corporation
6. Renesas Electronics Corporation
7. ON Semiconductor Corporation
8. United Silicon Carbide Inc.
9. Mitsubishi Electric Corporation
10. GeneSiC Semiconductor Inc.
11. Monolith Semiconductor Inc.
12. WeEn Semiconductors
13. Norstel AB
14. Alpha and Omega Semiconductor
15. Littelfuse Inc.
16. Microsemi Corporation (Microchip Technology)
17. Ascatron AB
18. Powerex Inc.
19. Sumitomo Electric Industries Ltd.
20. Danfoss Group
21. General Electric Company
22. Rohm Co., Ltd.
23. AGSCO Corporation
24. Tianjin Tianzhi International Co., Ltd.
25. ESD-SIC BV

FAQs

1. How big is the Silicon Carbide Market?
Ans: Silicon Carbide Market was valued at USD 2.33 billion in 2022.

2. What is the growth rate of the Silicon Carbide Market?
Ans: The CAGR of the Silicon Carbide Market is 23.9 %.

3. What are the segments of the Silicon Carbide Market?
Ans: There are primarily 4 segments – Type, Product Type, Application, Crystal Type, and Geography for the Silicon Carbide Market

4. Which region has the highest market share in the Silicon Carbide Market sector?
Ans: Asia Pacific has the highest market share in the Silicon Carbide Market sector.

5. Is it profitable to invest in the Silicon Carbide Market?
Ans: There is a fair growth rate in this market and there are various factors to be analyzed like the driving forces and opportunities of the market which have been discussed extensively in Maximize’s full report. That would help in understanding the profitability of the market