Silicon carbide, also known as carborundum, is an extremely hard material and a wide bandgap semiconductor. It has high thermal conductivity, high breakdown electric field strength, saturation electron velocity and resistance to corrosion. These properties make it suitable for high-temperature and high-power applications. Some of the key applications of silicon carbide include power electronics, automotive accessories, steel production, light emitting diode, renewable energy and energy conversion.The Global Silicon Carbide Market is estimated to be valued at US$ 10.51 Bn in 2024 and is expected to exhibit a CAGR of 11% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the Silicon Carbide are Infineon Technologies AG, Cree, Inc., ROHM Co., Ltd., STMicroelectronics N.V., Renesas Electronics Corporation, Toshiba Corporation, General Electric, Fuji Electric Co., Ltd., and SemiQuest Inc. The growing demand for electric and hybrid vehicles has fueled the adoption of Silicon Carbide Market Size semiconductors in automotive power electronics applications. Technological advancements in silicon carbide semiconductors allow higher blocking voltages, low on-state resistance and reduce power losses providing higher efficiency in power electronics systems.

Market Trends

The growing trend of automation across various industries is driving the demand for electric drives and industrial motor controls, which utilizes silicon carbide semiconductors for high reliability and efficiency. Another key trend is the increasing adoption of solar photovoltaic systems for renewable energy generation. Silicon carbide based solar inverters provide reliability and reduce overall system costs for commercial solar installations.

Market Opportunities

Growing investments in electric vehicle charging infrastructure across developed as well as developing countries will create significant opportunities for silicon carbide semiconductor manufacturers. An emerging opportunity lies in the adoption of silicon carbide technology for energy storage systems used in renewable energy generation and distribution networks that require high power density solutions.

Impact of COVID-19 on Silicon Carbide Market Growth

The COVID-19 pandemic has adversely impacted the growth of the global silicon carbide market. During the initial outbreak and subsequent lockdowns imposed across major economies, the supply chains were disrupted significantly. With restrictions on transportation and workforce mobility, raw material procurement and silicon carbide wafer fabrication activities witnessed slowdown. This led to reduced production volumes and shortage of silicon carbide devices in the market. Additionally, with recession fears and declining consumer spending, the demand from end-use industries such as automotive, power electronics, and telecommunications dipped considerably in 2020.

However, with rapid vaccination drives and relaxation of COVID-19 guidelines globally, the market has started recovering from 2021 onwards. The pent-up demand along with government stimulus measures to boost manufacturing is fueling the silicon carbide semiconductor adoption once again. Meanwhile, growing focus on clean energy technologies and expansion of 5G networks are boosting the consumption of silicon carbide devices for renewable energy applications and telecom base stations respectively. Going forward, the emerging trends of electrification of vehicles and growth of data centers are projected to drive higher silicon carbide sales over the forecast period on a more sustainable note. Overall, though the pandemic impacted silicon carbide market negatively in the short-term, the long-term outlook remains positive.

Regional Concentration of Silicon Carbide Market in terms of Value

In terms of value, the silicon carbide market is highly concentrated in North America and Europe. The United States and Germany account for over 60% of the global silicon carbide market revenue owing to strong presence of semiconductor device manufacturers and end-use industries in these regions. The immense R&D spending and government support for wide bandgap semiconductor research in the US and Europe has enabled early commercialization of silicon carbide devices. In addition, these regions are spearheading technological advancements across various end-use verticals such as electric vehicles, aircrafts, renewable energies, 5G infrastructure, and others - where silicon carbide semiconductors are increasingly finding adoption.

Fastest Growing Region for Silicon Carbide Market

The Asia Pacific region is emerging as the fastest growing market for silicon carbide globally. With expanding manufacturing sectors, heavy investments in developing charging infrastructure, and government focus on clean energy transition, the demand for silicon carbide wafers and components is surging rapidly across China, India, Japan, and Southeast Asian countries. Moreover, the region is a major global automotive hub with several automakers ramping up their EV production capabilities. This is presenting lucrative opportunities for silicon carbide device suppliers. The rapidly growing consumption of consumer electronics and proliferation of 5G networks are also propelling the silicon carbide sales in Asia Pacific. Going forward, the region's silicon carbide market share is expected to increase substantially.

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