Silicon Carbide Market Size, Share & Analysis

Silicon Carbide Market Size & Growth

[237 Pages Report] The silicon carbide market is estimated to be worth USD 4.2 billion in 2024 and is projected to reach USD 17.2 billion by 2029, at a CAGR of 32.6% during the forecast period. The accelerating demand for power electronics is one of the major drivers of silicon carbide market. Furthermore, the continuous developments to improve the quality of SiC substrate and epitaxy provides growth opportunities in the silicon carbide industry.

Silicon Carbide Market Forecast to 2029

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Silicon Carbide Market Trends & Dynamics

Driver: Accelerating demand for power electronics

Power electronics play a pivotal role in the global electrical infrastructure in power electronics as it requires electronic devices that offer enhanced efficiency which is important to mitigate switching losses. Within the power electronics industry there is an array of power devices that are responsible for converting alternating current to direct current or vice versa within systems that are engineered to minimize energy dissipation and bolster system efficiency. In contrast to traditional silicon-based devices, SiC power semiconductors offer improved power conversion efficiency, high voltage and current tolerances, and enhanced resistance to elevated operating temperatures. These attributes substantially benefit devices such as data center power supplies, wind or solar modules, and converters. Therefore, accelerating demand for power electronics drives the growth of the silicon carbide market.

Restraint: High cost of SiC devices

The primary factor that contributes to the high cost of SiC devices is the expensive SiC substrate, which surpasses the cost of silicon wafers significantly. The sublimation process that is required to produce SiC demands substantial energy to reach high temperatures which yields final boules that are no longer than 25 mm in length, with extended growth times. This leads to a cost escalation as compared to silicon wafers. Moreover, other cost factors include epitaxy and device fabrication that entails high temperatures and costly consumables. The final cost driver lies in the yield at each stage that includes the number of unusable wafers from boules and the post-epitaxy and fabrication write-offs. Therefore, the high costs of SiC devices hinder the growth of the SiC market.

Opportunity: Continuous developments to improve the quality of SiC substrate and epitaxy

Continuous improvement in SiC substrate quality and epitaxy processes is an important factor in the ongoing advancements of SiC device manufacturing. Researchers are diligently addressing defects that are in SiC substrates such as scratches, micro pipes, crystalline stacking faults, stains, and surface particles, which decreases the performance of the SiC device. Efforts towards maintaining consistent substrate quality even with larger wafers resist the higher density of defects. These advancements are poised to elevate SiC device quality, reliability, and cost-effectiveness, that provide growth opportunities of SiC market. Alongside substrate and epitaxy enhancements, other notable technological trends in SiC devices encompass the shift towards larger wafers which leads towards the increased adoption of SiC devices in power electronics, and the burgeoning demand for SiC MOSFETs in electromobility (EV/HEV) powertrains. Therefore, the ongoing advancements to enhance the quality of SiC substrates and epitaxy will provide further growth opportunities in the SiC market in the future.

Challenge: Defects in materials, designing and packaging processes in SiC devices

Within SiC materials, micro-sized voids, termed micropipes, are present throughout the crystals. During the fabrication of larger wafers, SiC devices are prone to various defects such as dislocations, prototype inclusions, and stacking faults. These flaws stem from an imbalanced ratio of silicon and carbon precursors and localized fluctuations in pressure or temperature. Consequently, these defects impede the efficiency of the device and decrease its electrical properties. Therefore, defects in materials, designing and packaging processes of SiC devices hinder the overall performance efficiency of SiC which thereby might restrain the market growth.

Silicon Carbide Market Ecosystem

The prominent players in the silicon carbide market are STMicroelectronics N.V. (Switzerland), Infineon Technologies AG (Germany), Semiconductor Components Industries, LLC (US), WOLFSPEED, INC. (US), and ROHM Co., Ltd. (Japan). These companies perform organic and inorganic growth strategies to expand themselves globally by providing advanced silicon carbide devices.

SiC module is expected to register highest CAGR in the silicon carbide market during forecast period  

SiC power modules utilize silicon carbide as a switch material that offers high efficiency in power conversion with reduced heat energy loss which serves as a crucial component in industrial, automotive, and power & energy sectors. These modules are preferred over silicon-based devices due to the wide bandgap of SiC that enables low switching losses and high frequencies, along with the ability to operate at elevated temperatures and voltages for demanding applications such as automotive, industrial and energy & power. Therefore, SiC module is expected to register the highest CAGR in the silicon carbide market during the forecast period.

Industrial application is expected to have the second largest market size in the silicon carbide market during forecast period

SiC is increasingly recognized in various industrial sectors such as robotics, manufacturing facilities, motor drives, and other fields. In robotics, it serves in applications like robot arms and end effectors, leveraging its high strength and thermal conductivity to endure extreme temperatures and harsh conditions. Similarly, within manufacturing facilities, SiC is utilized in cutting tools and grinding wheels due to its exceptional hardness and wear resistance, ensuring durability amidst abrasive operations. Therefore, the growing adoption of SiC in robotics, manufacturing facilities, motor drives and other industrial fields drives the market growth. Therefore, industrial application is expected to have the second largest market size in the silicon carbide market during the forecast period.

Asia Pacific is expected to register for the largest market size in silicon carbide market during the forecast period

The surging deployment of silicon carbide in Asia Pacific is driven by rising number of electric vehicles and related charging infrastructures in China. Additionally, the growing interest towards renewable energy sources further fuels market growth of silicon carbide in Asia Pacific which further drives the market growth. Therefore, Asia Pacific is expected to register for the largest market size in silicon carbide market during the forecast period.

Silicon Carbide Market by Region

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Key Market Players -  Silicon Carbide Market

The major players in the silicon carbide companies include

• STMicroelectronics N.V. (Switzerland),
• Infineon Technologies AG (Germany),
• Semiconductor Components Industries, LLC (US),
• WOLFSPEED, INC. (US), and
• ROHM Co., Ltd. (Japan). These companies have used both organic and inorganic growth strategies such as product launches, agreements, partnerships, collaborations, contracts, acquisitions, and expansions to strengthen their position in the market.

Silicon Carbide Report Scope :

Silicon Carbide Market Highlights

The study segments the silicon carbide market based on device, wafer size, end-use application, and region at the regional and global level.

Recent Developments

• In December 2023, STMicroelectronics N.V. announced an agreement with Li Auto, a China based manufacturer of smart premium electric vehicles. Under this agreement, STMicroelectronics will supply SiC MOSFET devices to support Li Auto’s strategy around high-voltage battery electric vehicles (BEVs) in various market segments.
• In January 2024, Infineon Technologies AG. announced the expansion of the wafer supply agreement, worth USD 20 billion, with Wolfspeed, Inc. In this agreement Infineon will supply SiC 150 mm wafer to Wolfspeed to manufacture SiC devices.
• In July 2023, Semiconductor Components Industries, LLC and BorgWarner Inc. announced a strategic collaboration, worth ~USD 1 billion, to deliver SiC based innovative and sustainable mobility solutions. Under this collaboration, BorgWarner plans to integrate onsemi EliteSiC 1200 V and 750 V power devices into its VIPER power modules.
• In July 2023, WOLFSPEED, INC. announced the wafer supply agreement, worth USD 2 billion, with Renesas Electronics Corporation, a supplier of advanced semiconductor solutions. In this agreement, Renesas will secure a 10-year supply commitment of silicon carbide bare and epitaxial wafers from Wolfspeed. Through this, Wolfspeed will pave the way for Renesas to scale production of silicon carbide power semiconductors starting in 2025.
• In December 2022, ROHM Co., Ltd. partnered with Shenzhen BASiC Semiconductor Ltd., a leading company in China’s next-generation power semiconductor industry. This is a strategic partnership agreement on SiC power devices for automotive applications. Under this partnership, both the companies will leverage their respective strengths to innovate and improve the performance of SiC power devices and develop high performing, efficient, and reliable SiC solutions for new energy vehicles.

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