Silicon Carbide Market Size

Growing application of silicon carbide in electronics and semiconductors to aid market growth

Silicon carbide (SiC), a semiconductor material made of silicon and carbon, is used to create high-voltage power devices, such as electric vehicles (EVs), power supplies, motor control circuits, and inverters. SiC has a number of benefits over traditional silicon-based power devices like IGBTs and MOSFETs. It is used in manufacturing electronic products and inverters in EVs, among others. Power electronic modules made with SiC are significantly more powerful and energy-efficient than those made with traditional semiconductors like silicon because SiC enables power devices to operate at much higher temperatures, voltages, and switching frequencies.

SiC devices are widely used in the automotive industry, particularly in manufacturing electric vehicles and plug-in hybrid vehicles (PHEVs). The power systems for next-generation EVs must be able to boost the vehicle's efficiency and the rate of battery recharge. SiC inverters are proving to be a crucial component of the answer to these problems. The inverter controls the amount of power supplied to the motor in accordance with driving requirements and converts the input direct current to alternating current. The inverter's importance increases as automotive electric buses gradually transition from 400 V to 800 V.

An inverter based on SiC can achieve up to 99% efficiency, compared to a traditional inverter's 97% to 98% efficiency in transferring energy from the battery to the motor. It is crucial to emphasize how a one- or two-decimal-place increase in efficiency significantly impacts the entire vehicle. The increasing demand for EVs is anticipated to have a significant impact on the growth of the silicone carbide market growth. According to the International Energy Agency's (IEA) EV Outlook, 2021, there were about 3 million electric vehicle sales worldwide in 2020 and a 41% increase in electric vehicle registrations.

Due to its unique qualities, silicon carbide has been hailed as a possible silicon replacement. SiC technology is widely regarded as a trustworthy replacement for silicon. The comprehensive bandgap material provides unheard-of energy efficiency by lowering switching and conduction losses under particular loads and providing significantly better thermal management. SiC devices are also less expensive, require fewer external components, and have more dependable system designs. SiC's greater efficiency, smaller form factor, and lighter weight also allow for more intelligent designs with less cooling need, which has enormous innovation potential. Such characteristics of SiC have enhanced the market CAGR.

To cater to the demand, companies in the market are launching new products and studying to enhance the application of silicon carbide. This is another factor bolstering the growth of the Silicon Carbide market revenue.

The increasing adoption of electric vehicles (EVs) is a pivotal driver for the Global Silicon Carbide Market Industry. Silicon carbide is integral in power electronics for EVs, enhancing efficiency and performance. As the global automotive industry shifts towards electrification, the demand for silicon carbide components is projected to rise significantly. By 2024, the market is expected to reach 2.07 USD Billion, reflecting the growing need for advanced materials that can withstand high temperatures and voltages. This trend is likely to continue as governments worldwide implement stricter emissions regulations, further propelling the demand for silicon carbide in EV applications.

The Global Silicon Carbide Market Industry is experiencing growth due to the expansion of the renewable energy sector. Silicon carbide is utilized in solar inverters and wind turbine systems, which are essential for converting and managing renewable energy. As countries strive to meet renewable energy targets, the demand for efficient power conversion technologies is increasing. This trend is expected to contribute to a market valuation of 3.43 USD Billion by 2035. The integration of silicon carbide in renewable energy systems not only enhances performance but also supports sustainability goals, making it a crucial component in the transition to cleaner energy sources.

The demand for energy-efficient devices is a critical driver for the Global Silicon Carbide Market Industry. As industries and consumers seek to reduce energy consumption and lower operational costs, silicon carbide's superior thermal conductivity and efficiency make it an attractive choice for power electronics. Applications in industrial automation, consumer electronics, and telecommunications are expanding, driven by the need for devices that can operate at higher efficiencies. This trend is expected to sustain the market's growth trajectory, contributing to a projected market size of 2.07 USD Billion by 2024. The focus on energy efficiency aligns with global sustainability initiatives, further enhancing the relevance of silicon carbide.

Increased investment in research and development (R&D) is propelling advancements in the Global Silicon Carbide Market Industry. Companies and governments are allocating resources to explore new applications and improve the performance of silicon carbide materials. This investment is fostering innovation in areas such as high-voltage power supplies, electric propulsion systems, and advanced manufacturing processes. As R&D efforts yield new technologies, the market is likely to benefit from enhanced product offerings and expanded applications. This trend may contribute to the anticipated growth of the market, with a CAGR of 4.7% projected for the period from 2025 to 2035.

Technological advancements in semiconductor manufacturing are significantly influencing the Global Silicon Carbide Market Industry. Innovations in production techniques, such as the development of high-quality substrates and improved crystal growth methods, are enhancing the performance and reliability of silicon carbide devices. These advancements are likely to reduce production costs and increase the availability of silicon carbide components across various applications. As a result, the market is expected to grow at a compound annual growth rate (CAGR) of 4.7% from 2025 to 2035. This growth is indicative of the increasing reliance on silicon carbide in high-performance electronics and power systems.

Major market players, while a few well-established vendors are approaching integration with the development of value-added products for the electronics industry. Some players are focused on the development of abrasives-based SiC. Companies are also taking a range of initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, increased investments, and collaboration with other players. Competitors in the Silicon Carbide industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

Some of the business strategies manufacturers adopt in the Silicon Carbide industry are expanding the manufacturing capacity to meet the rising demand for it. In recent years, the Silicon Carbide industry has launched some new products in the market. The Silicon Carbide market major player such as CUMI EM, AGSCO Corp, Saint-Gobain, ESD-SIC BV, and others are working on expanding the market demand by raising funds for research and development activities.

CUMI EM company in the ceramics, electro minerals, and abrasives sectors. Along with super refractories, electro minerals, industrial ceramics, and ceramic fibers, CUMI was a pioneer in India's production of coated and bonded abrasives. CUMI is broadening the distribution of its products in line with the vision. The company produces over 20,000 different product varieties at 25 different facilities in 25 countries, including India, Russia, South Africa, Australia, China, Thailand, and Canada. Forty-three nations around the world receive CUMI's exports of goods. The company manufactures and distributes silicone carbide ly.

Also, Saint-Gobain is an international company that is one of the leader in the construction industry. The company has a presence in more than 76 countries worldwide. In May 2019, Saint-Gobain completed the sale of its silicon carbide grains and powders business to private equity company OpenGate Capital, which generates annual sales of about €120 million. This transaction is in line with Saint-portfolio Gobain's optimization strategy, which aims to sell off companies with more than €3.0 billion in annual sales by the end of 2019.