July 16, 2024
Silicon Carbide Market

Silicon Carbide is Projected to Driven by Advancement in the Semiconductor Industry

Silicon carbide is a chemical compound of silicon and carbon widely used in semiconductors and electronics applications owing to its superior properties such as high thermal conductivity, high electric field breakdown strength, and high maximum current density. Silicon carbide semiconductors can operate at high voltages, temperatures, and frequencies. They are increasingly being used in power electronics applications like electric vehicles, fast charging stations, renewable energy equipment, and power supplies. With the rising adoption of electric vehicles and renewable energy sources, and need to develop power grids capable of handling clean energy, demand for silicon carbide semiconductors is growing rapidly.

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 11% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Key Trends:

One of the key trends in the silicon carbide market is the shift towards wide bandgap semiconductor materials from the conventional silicon. Wide bandgap semiconductors have superior properties compared to silicon such as ability to operate at high temperatures, high breakdown electric field strengths, and high saturated electron drift velocities. These properties make them suitable for applications requiring operation under extreme conditions. Within wide bandgap semiconductors, silicon carbide is emerging as a strong contender and gradually replacing silicon in applications such as power supplies, fast electric vehicle chargers, and renewable energy equipment where silicon carbide’s properties give it a clear advantage. This shift towards silicon carbide and other wide bandgap semiconductors is expected to drive future growth in the market.

Porter’s Analysis

Threat of new entrants: Silicon carbide has high production investment costs, requiring specific equipment for processing. This poses barriers to new players.

Bargaining power of buyers: Demand for silicon carbide comes from diverse industries like semiconductors, automotive, aerospace etc. No single buyer can influence pricing.

Bargaining power of suppliers: Raw materials for silicon carbide like high purity petroleum coke and quartz sand are abundantly available. This reduces suppliers’ bargaining power.

Threat of new substitutes: Silicon carbide offers better properties than existing alternatives. No major substitute threats are anticipated in the forecast period.

Competitive rivalry: Being an established market, the silicon carbide industry has major global players competing on pricing and product development.

Key Takeaways

The Global Silicon Carbide Market Demand is expected to witness high growth. 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 11% over the forecast period 2023 to 2030.

The Asia Pacific region currently dominates the global market owing to large manufacturing capacities in China, Japan, and other countries. The region is estimated to experience fastest growth during the forecast period supported by expanding semiconductor fabrication capacities. North America is another major regional market for silicon carbide. The growing aircraft components manufacturing industries and power electronics usage in the US and Canada are driving market growth. Initiatives by governments in the region to enhance power infrastructure will further support the silicon carbide industry.

Key players operating in the silicon carbide market are Infineon Technologies AG, CREE Inc., ROHM Semiconductor, STMicroelectronics N.V., Toshiba Corporation, General Electric, Saint-Gobain Group, and Fuji Electric Co., Ltd. STMicroelectronics N.V. specializes in power and analog chips used in automotive, industrial, and other applications and captures a significant market share.

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