July 21, 2024

The projected growth in power electronics application to boost the global Silicon Carbide Market

The global Silicon Carbide Market is estimated to be valued at US$ 9.12 Bn in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Silicon carbide is a synthetic compound made from silicon and carbon. It has high mechanical strength, high thermal conductivity, high chemical inertness, and wide bandgap. These properties make silicon carbide suitable for applications in semiconductors, solar cells, light-emitting diodes (LEDs), and as an abrasive and refractory material. Some key advantages of silicon carbide include high electric field breakdown strength, ability to operate at high temperatures, high mechanical hardness and chemical inertness. Due to these advantages, silicon carbide semiconductor devices have better thermal cycling performance and longer lifetimes than comparable silicon-based devices.

Market key trends:
One of the major trends in the global silicon carbide market is increasing demand from power electronics application. Silicon carbide has electrical conductivity that is 10 times greater than silicon at the same electric field. Therefore, silicon carbide semiconductor devices are ideal for usage in power electronics applications. These properties enable silicon carbide devices to operate at high switching frequencies, high temperatures, and with lower power losses compared to silicon. This makes them ideal for use in high-voltage power supply systems, induction heating systems, electric vehicle powertrains, solar micro-inverters, and charging stations. Rapid adoption of electric vehicles globally is expected to boost demand for silicon carbide semiconductors in automotive power electronics. Furthermore, widespread installation of renewable energy infrastructure will also drive growth of silicon carbide market over the forecast period.
Porter’s Analysis

Threat of new entrants: The silicon carbide market requires high initial investments in R&D and manufacturing facilities to produce high grade quality products. This poses significant barriers for new companies.

Bargaining power of buyers: The market has both large customers such as automotive and steel industries and small buyers. This gives an average bargaining power to buyers.

Bargaining power of suppliers: The key raw materials needed for silicon carbide are minerals like quartz and petroleum coke. Suppliers have moderate bargaining power due to availability of substitutes.

Threat of new substitutes: While other advanced ceramics are substitutes, silicon carbide properties like high temperature resistance make substitutes less viable.

Competitive rivalry: The market has few large players and many small regional players. Competition is expected to intensify with new product innovation.

Key Takeaways

The Global Silicon Carbide Market Share is expected to witness high growth, exhibiting CAGR of 6.2% over the forecast period, due to increasing demand from semiconductor and automotive industries. The automotive industry utilizes silicon carbide for its durability and high-voltage capabilities in electric vehicles and hybrid vehicles.

Regional analysis: Asia Pacific region dominates the global silicon carbide market with China being the major manufacturing hub. The region’s dominance can be attributed to presence of numerous automobile semiconductor and steel manufacturers. Established electronics industry and government support for Electric Vehicles adoption drives the market growth.

Key players operating in the silicon carbide market are AGSCO Corporation, Carborundum Universal Ltd., Entegris Inc. ESD-SIC b.v., ESK-SIC GmbH, Gaddis Engineered Materials, Grindwell Norton Ltd., Norstel AB, Saint-Gobain Ceramics Materials GmbH, and Snam Abrasives Pvt. Ltd. Key players are focusing on new product development through heavy investments in R&D to strengthen their market position.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it