Silicon Carbide Market Size:

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The Silicon Carbide Market Size was valued at USD 3.34 Billion in 2023 and is expected to reach USD 7.64 Billion by 2032 and grow at a CAGR of 9.68% over the forecast period 2024-2032.

The Silicon Carbides (SiC) market demand is increasing at a rapid rate due to its diversified applications in multiple industries. This property along with its natural properties like high thermal conductivity earned SiC its place in power electronics, automotive parts, and industrial machinery due to the hardness and electrical conduction characteristics of SiC. The automotive market is the biggest immediate driver of SiC demand as they are already being deployed to enhance EV powertrain efficiency offering a boost to transient charging while also enhancing battery life and energy density for an overall system-level improvement. SiC technology, used by major EV manufacturers like Tesla in its Model 3, improves drivetrain efficiency, boosting driving range by 10%. SiC MOSFETs and diodes cut energy losses by up to 50% compared to silicon devices, significantly benefiting high-power applications like industrial drives and renewable energy. In EVs, SiC-based inverters and chargers reduce charging times by about 50% compared to traditional silicon systems. With the race for electric mobility reaching new levels, there have been increasing demands on power devices, such as inverters and chargers for SiC components.

SiC is mainly used in industrial applications that require high temperature, high voltage, and high power such as energy components and manufacturing equipment. Moreover, as it improves the performance of semiconductor devices, higher usage in consumer electronics, communications, and renewable energy systems is boosting its demand. Moreover, the widespread adoption of SiC is facilitated by continuous developments in manufacturing technologies that permit the production of cost-competitive SiC-based components. Consequently, different industries are gradually adopting this material to address the growing need for efficiency, sustainability, and performance in contemporary technology. SiC-based power electronics in industrial motors achieve up to 98% efficiency, outperforming traditional silicon devices (95%). In renewable energy, SiC inverters boost efficiency by up to 30%, with solar inverters benefiting from higher power density, resulting in smaller, lighter systems. In manufacturing, SiC-based grinding wheels increase tool lifespan by 40%, reducing operational costs and downtime in industries like automotive and aerospace

MARKET DYNAMICS

KEY DRIVERS:  

• Rising Demand for Energy Efficient Solutions Drives Growth of Silicon Carbide in Renewable Energy Systems

The rising demand for clean and energy-efficient solutions across various sectors plays an important role in driving the growth of the silicon carbide (SiC) market. A semiconductor can play an important role by enabling devices with high efficiency due to the various advantages it has over conventional silicon as industries are working towards decreasing their carbon footprint and improving operational efficiency. SiC, in contrast to standard silicon-based semiconductors, can survive elevated temperatures and voltages along with lower energy losses making it a perfect choice for renewable energy systems like wind and solar. The need for energy-efficient technologies will continue to increase due to government and organizational sustainability goals, which will accelerate SiC adoption in applications that reduce energy consumption and greenhouse gas emissions. The U.S. Department of Energy’s "Better Buildings Challenge" aims to improve energy efficiency in commercial buildings by 20% over 10 years, driving demand for energy-efficient technologies like SiC-based solutions. SiC adoption in power grids can reduce energy losses by up to 10%, contributing to lower carbon emissions in energy generation and distribution. Backed by regulatory frameworks and incentives promoting green technologies, the trend will further create a bigger demand for SiC-based solutions in power electronics and energy systems.

• Growing Demand for Silicon Carbide in Advanced Manufacturing Boosts Efficiency and Durability in Industries

The major factor fueling this growth is the growing demand for advanced manufacturing processes established on SiC. Silicon carbide being one of the hardest materials, withstands extreme wear and is extensively used in abrasive applications in manufacturing and machining sectors. Diamond is primarily used in cutting tools, grinding wheels, and wear-resistant coatings to enhance the equipment's durability and economic efficiency. Moreover, the continual developments of SiC growing processes allow mass production of bigger size and better-quality wafers for reducing cost and extending its applications on the progress. With industries investing more in automation and precision manufacturing technologies, SiC is going to play a pivotal role in optimization. This modular structure, combined with the alloy's resistance to high-stress environments and greater mechanical properties, makes steel a material that we can count on for industrial manufacturing long into the future. SiC coatings on industrial components like pumps and valves can extend lifespan by up to 50%, reducing replacements and downtime. In high-precision machining, SiC-based components lower maintenance costs by up to 20%. In the automotive sector, SiC devices in robotics and automation reduce energy consumption by up to 15%, boosting efficiency and cost-effectiveness.

RESTRAIN:

• Challenges in Silicon Carbide Processing and Integration Slow Market Growth and Adoption in Industries

The processing of silicon carbide (SiC) represents a significant barrier to its continued development, which is one of the main restraints for the SiC market. Silicon carbide (SiC) has many advantages but is significantly harder to fabricate than common semiconductors like silicon. SiC is a particularly hard and brittle material which makes it very difficult to cut and shape, demanding special equipment as well as technical procedures. In SiC wafer production, for instance, the level of precision needed to avoid defects and maintain a high-quality end product translates into a lot of complexities in manufacturing, which drives down production rate and yield. A further issue is the embedding of SiC elements into traditional systems. Silicon carbide is being deployed more and more in power electronics but there are numerous companies still using legacy silicon systems that may not be easy to upgrade. This means for example, in the automotive sector moving from silicon to SiC in EV powertrains would necessitate a change of all system-wide design processes, a time-consuming and expensive undertaking for OEMs.

KEY MARKET SEGMENTS

BY PRODUCT

In 2023, the black Silicon Carbide (SiC) product segment accounted for over 61.8% of the total revenue share, due to its high demand in industrial applications such as abrasive materials and steel production. A good balance in quality and price is known as Black SiC which is obtained by applying a high-temperature reaction process using silica sand and carbon. Silicon carbide is widely used for grinding wheels, cutting tools, and other abrasive products as well as refractory materials and ceramics. Black SiC is sufficiently hard and heat resistant, making its application market reach wider, such as automotive, construction, and electronics.

The green SiC product segment is expected to achieve the fastest CAGR from 2024 to 2032 because of its excellent purity and performance in high-end applications. Green SiC has similar properties to black SiC but is manufactured using a more refined process, results in higher purity SiC crystals, and is well-suited for application into advanced power electronics including high-efficiency semiconductor devices and high-performance power device applications. Therefore, due to this property, green SiC is an ideal material for next-generation technologies like e.g., electric vehicles (EVs) and renewable energy systems. Green SiC applications are proliferating, especially in power systems and electric mobility due to global energy-personnel device demand migration from conventional to more dynamic energy-efficient and high-performance electronic devices.

BY APPLICATION

In 2023, the SiC market was dominated by the electrical and electronics segment, which accounted for more than 27.5% of total revenue due to the high adoption of the material in power electronic systems resulting from its excellent electrical conductivity associated with low on-state resistance as well as high thermal stability and performance capability when compared to other silicon-based devices. Silicon carbide (SiC) is projected to be the next-generation semiconductor widely employed for high-power applications, especially in power devices, inverters, and converters. A heat-resistant and high-voltage-tolerant portion of this characteristic makes it perfect for electric grids, renewable energy, and consumer electronics

The automotive sector is poised to experience an impressive CAGR across the 2024-2032 timeframe, attributed to a growing transition toward electric vehicles (EVs) and an increasing need for energy-efficient parts in automobiles. SiC also plays a vital role in the efficiency of powertrains such as inverters, battery management systems, and electric motor drives when used in EVs. Highly scalable allows the use of higher voltages and at higher temperatures for EVs, therefore e.g. this is critical for next-gen EVs which target a longer driving range, faster charging time, and better cycle life This segment is likely to grow rapidly due to the reduction of energy losses and the improvement of overall efficiency that SiC devices bring to EV systems as the global automotive industry undergoes electrification.

REGIONAL ANALYSIS

In 2023, Asia Pacific dominated the silicon carbide (SiC) market with a share of 56% and also projected to register the highest growth rate during 2024-2032. The region accounts for a large share of revenue primarily due to strong manufacturing and industry in China, Japan, South Korea, and India. Such nations are the world's largest producers of electronics, cars, and energy systems that require SiC-based components. One such development has been the growth in demand for SiC from automotive applications, as China has embraced electric vehicles (EVs). Similarly, Japan's automotive titans such as Toyota and Nissan have been looking to incorporate SiC into their EV powertrains to enhance performance and add efficiency to it. Moreover, the readiness for huge manufacturing of SiC wafers as well as devices in advanced semiconductor fabrication nations, such as South Korea, makes the Asia Pacific a center for such items. The drive toward renewable energy and the subsequent electrification of transportation and industrial systems are boosting SiC adoption in solar inverters, EV charging infrastructure, and energy storage systems. Example: India has aggressive plans to expand the amount of solar power generation it has in place, and also gain traction with electric mobility initiatives driven by the Indian government which should grow SiC demand significantly.

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Key players 

Some of the major players in the Silicon Carbide Market are:

• Cree, Inc. (SiC Power Devices, SiC Wafer Substrates)

• Infineon Technologies AG (SiC Power MOSFETs, SiC Diodes)

• STMicroelectronics (SiC MOSFETs, SiC Schottky Diodes)

• ROHM Co., Ltd. (SiC Discrete Devices, SiC Modules)

• Wolfspeed (formerly Cree) (SiC Power Devices, SiC Wafer Materials)

• Onsemi (SiC Diodes, SiC MOSFETs)

• Microsemi (A subsidiary of Microchip Technology) (SiC Power Devices, SiC Modules)

• Siccast GmbH (SIC Castings, High-Performance Silicon Carbide)

• Carborundum Universal Limited (CUMI) (SiC Abrasives, SiC Refractories)

• Washington Mills (SiC Abrasives, SiC Powder)

• Grindwell Norton Ltd. (SiC Abrasives, Industrial Products)

• Entegris, Inc. (SiC Wafer Handling, SiC Material Supply)

• Coorstek (SiC Ceramics, SiC Components)

• SK Siltron Co., Ltd. (SiC Wafers, SiC Substrates)

• TankeBlue (Shenzhen TankeBlue) (SiC Power Devices, SiC Wafers)

• Norstel AB (SiC Substrates, SiC Epitaxial Wafers)

• Rohm Semiconductor (SiC Power Modules, SiC MOSFETs)

• Tungsten Heavy Powder & Parts (SiC Components, Advanced Ceramics)

• Saint-Gobain (SiC Grinding Wheels, SiC Refractories)

• ESD-SIC B.V. (SiC Substrates, SiC Powder)

Some of the Raw Material Suppliers for Silicon Carbide Companies:

• Advanced Abrasives Corporation

• Entegris Inc.

• Washington Mills

• CoorsTek

• Saint-Gobain

• CUMI (Carborundum Universal Ltd.)

• Snam Abrasives Pvt. Ltd.

• Gaddis Engineered Materials

• Grindwell Norton

• ESD-SIC B.V.

RECENT TRENDS

• In September 2024, RIR Power Electronics Limited commenced construction of India's first Silicon Carbide (SiC) manufacturing facility in Bhubaneswar, Odisha, with an investment of Rs 620 crore.

• In September 2024, STMicroelectronics launched the fourth generation of its STPower Silicon Carbide (SiC) MOSFET technology. The company claims that the new MOSFETs deliver enhanced performance, offering improved efficiency, greater power density, and increased robustness, setting a new standard for advanced power applications.

• In September 2024, Wolfspeed, Inc. introduced a 2300V baseplate-less silicon carbide power module designed for 1500V DC Bus applications. Developed using Wolfspeed’s 200mm silicon carbide wafers, the module aims to enhance efficiency, durability, and scalability in renewable energy, energy storage, and high-capacity fast-charging sectors.