Silicon Carbide Market Size, Share, and Trends 2024 to 2034

Silicon Carbide Market Size and Manufacturers

The global silicon carbide market size was USD 3.72 billion in 2023, calculated at USD 4.16 billion in 2024 and is expected to reach around USD 12.39 billion by 2034, expanding at a CAGR of 11.53% from 2024 to 2034.

Silicon Carbide Market Key Takeaways

• Asia-Pacific contributed 60% of market share in 2023.
• North America is estimated to expand the fastest CAGR between 2024 and 2034.
• By product, the black SiC segment has held the largest market share of 55% in 2023.
• By product, the green SiC segment is anticipated to grow at a remarkable CAGR of 12.84% between 2024 and 2034.
• By application, the electrical and electronics segment generated over 27% of the market share in 2023.
• By application, the automotive segment is expected to expand at the fastest CAGR over the projected period.

Asia Pacific Silicon Carbide Market Size and Region 2024 to 2034

The Asia Pacific silicon carbide market size was estimated at USD 2.23 billion in 2023 and is projected to surpass around USD 7.44billion by 2034 at a CAGR of 12% from 2024 to 2034.

Asia-Pacific held a share of 60% in the silicon carbide market in 2023 due to several factors. The region's robust semiconductor and electronics industries drive demand for SiC-based devices in applications such as automotive, power electronics, and telecommunications. Additionally, rapid industrialization, urbanization, and government initiatives to promote renewable energy and electric vehicles further boost market growth. Moreover, the presence of key market players, extensive research and development activities, and favorable regulatory policies contribute to Asia-Pacific's dominance in the silicon carbide market.

North America is experiencing rapid growth in the silicon carbide market due to several factors. Firstly, the region's increasing focus on electric vehicle (EV) adoption is driving demand for SiC-based power electronics in EV drivetrains and charging infrastructure. Secondly, the expansion of renewable energy projects, particularly in the United States, is fueling the need for SiC devices in solar inverters and wind power converters. Additionally, the growth of 5G networks and industrial automation initiatives further contribute to the rising demand for SiC-based components in North America.

Meanwhile, Europe is experiencing notable growth in the silicon carbide (SiC) market due to several factors. The region's push towards decarbonization and renewable energy adoption is driving the demand for SiC-based power electronics in electric vehicles, renewable energy systems, and industrial applications. Additionally, initiatives to modernize infrastructure, such as the deployment of 5G networks, are boosting the need for SiC components. Furthermore, supportive government policies, investments in research and development, and collaborations between industry players are contributing to the growth of the SiC market in Europe.

Market Overview

Silicon carbide (SiC) is a compound made up of silicon and carbon atoms. It is known for its exceptional hardness, high thermal conductivity, and resistance to extreme temperatures, making it valuable in various industrial applications. SiC is produced through a process called carbothermal reduction, where silica (sand) and carbon sources such as petroleum coke or wood chips are heated in an electric furnace. This process results in the formation of crystalline silicon carbide, which can then be further processed into various shapes and sizes for different uses. Due to its unique properties, silicon carbide finds applications in industries ranging from automotive and aerospace to electronics and power generation. It is used in manufacturing abrasives, cutting tools, refractory materials, and semiconductor devices like diodes and transistors. SiC's ability to withstand high temperatures and harsh environments makes it particularly suitable for demanding applications where traditional materials may fail.

Silicon Carbide Market Data and Statistics

• According to the World Semiconductor Trade Statistics (WSTS), global semiconductor sales reached USD 556 billion in 2021, marking a significant increase of over 26% compared to the previous year. It is projected to further rise by 10.4% by the end of 2022.
• Germany's electronic industry stands as Europe's largest and the fifth-largest globally. The electrical and electronics sector contributes approximately 11% to Germany's total industrial production and around 3% to the country's gross domestic product (GDP).
• As per the Department of Electronics and Information Technology reports, India designs over 2,000 semiconductor chips annually, indicating a growing production of semiconductors that may drive the silicon carbide market in the future.
• The PLI scheme aims to incentivize manufacturers to boost production in India, offering USD 5.5 billion over five years, which is anticipated to stimulate electronics production in the country.
• In March 2022, China disclosed a 7.1% increase in its defense budget, reaching about USD 230 billion. The nation's strategic plans include developing a fully modern military comparable to the United States by 2027.
• According to BloombergNEF, electric vehicle sales surged by 72% in 2021, reaching over 6 million units globally.
• The International Energy Agency reported that renewable energy capacity additions reached a record level in 2020, with solar and wind accounting for 91% of the increase.
• According to the International Federation of Robotics, the global sales of industrial robots increased by 16% in 2020, despite the pandemic.

Silicon Carbide Market Growth Factors

• The growing demand for electric vehicles (EVs) worldwide is driving the need for silicon carbide (SiC) semiconductors in EV power electronics. SiC devices offer higher efficiency and better thermal management compared to traditional silicon-based components, making them essential for enhancing the performance and range of electric vehicles.
• The rapid expansion of renewable energy sources such as solar and wind power is fueling the demand for SiC-based power electronics. SiC devices enable efficient energy conversion and power management in renewable energy systems, contributing to increased energy generation and grid stability.
• The deployment of 5G networks globally is driving the demand for SiC-based radio frequency (RF) components. SiC's superior high-frequency performance and power handling capabilities make it ideal for use in 5G base stations, antennas, and other RF applications, supporting the growth of the telecommunications industry.
• The increasing adoption of industrial automation and robotics in manufacturing and other sectors is driving the demand for SiC-based power electronics. SiC devices offer high power density, fast switching speeds, and high-temperature tolerance, making them suitable for use in industrial motor drives, power supplies, and other automation systems.
• The aerospace and defense industries are increasingly using SiC-based components for their lightweight, high-temperature, and radiation-resistant properties. SiC devices are employed in aircraft power systems, radar systems, and missile guidance systems, supporting advancements in military and aerospace technology.
• Continuous advancements in SiC material technology and manufacturing processes are driving innovation in power electronics. Improvements in device performance, reliability, and cost-effectiveness are expanding the application areas of SiC-based devices across various industries, further fueling the expansion of the silicon carbide market.

Market Scope

Market Dynamics

Driver

Industrial automation and robotics

Industrial automation and robotics are significant drivers of the silicon carbide (SiC) market due to their reliance on high-performance electronic components. SiC offers several advantages in industrial automation and robotics applications, including higher power density, faster switching speeds, and increased efficiency compared to traditional silicon-based devices. These benefits enable the development of more advanced and efficient automation systems that can enhance productivity and reduce operational costs for industries.

Additionally, the demanding environments in industrial settings require electronic components with robust performance and reliability. SiC's ability to withstand high temperatures, voltage spikes, and harsh operating conditions makes it well-suited for use in industrial automation and robotics applications. As industries increasingly adopt automation technologies to improve efficiency and competitiveness, the demand for SiC-based power electronics is expected to grow significantly, driving expansion in the silicon carbide market.

Restraint

Concerns regarding material defects and reliability

Concerns regarding material defects and reliability restrain the market demand for silicon carbide (SiC) due to potential performance issues and uncertainties in product quality. SiC manufacturing processes can be complex, leading to variations in material properties and the occurrence of defects such as crystal imperfections and impurities. These defects can compromise the reliability and performance of SiC-based devices, raising concerns among consumers and manufacturers about the long-term durability and effectiveness of the products.

Moreover, the reliability of SiC devices is crucial in industries where downtime can have significant financial implications, such as automotive, aerospace, and power electronics. Any perceived risks associated with material defects or reliability issues may deter potential buyers from adopting SiC technology, leading to slower market growth. Addressing these concerns through improvements in manufacturing processes, quality control measures, and product testing can help build confidence in SiC technology and drive increased adoption across various industries.

Opportunity

Advancements in SiC substrate technology

Advancements in silicon carbide (SiC) substrate technology are creating significant opportunities in the market by enabling the production of larger, higher-quality SiC wafers. These advancements include improvements in crystal growth techniques, such as the adoption of advanced epitaxial growth methods like chemical vapor deposition (CVD) and physical vapor deposition (PVD).

Additionally, innovations in substrate manufacturing processes have led to the development of larger diameter wafers with reduced defects and improved uniformity, enhancing the performance and reliability of SiC-based devices. The availability of larger and higher-quality SiC substrates opens up new possibilities for the design and production of more advanced SiC-based devices with enhanced performance characteristics. These advancements are particularly valuable in applications requiring high power density, high frequency operation, and high temperature resistance, such as electric vehicles, renewable energy systems, and 5G infrastructure. As a result, advancements in SiC substrate technology are driving increased adoption of SiC-based devices across various industries, fueling growth and innovation in the silicon carbide market.

Product Insights

The black SiC segment held the highest market share of 54% in 2023. Black silicon carbide (SiC) is a type of SiC product characterized by its high purity and crystalline structure. It is produced through a combination of quartz sand and petroleum coke in an electric resistance furnace. Black SiC is widely used in abrasive applications due to its excellent hardness and abrasive properties. Moreover, it finds applications in refractories, metallurgy, and the manufacturing of ceramic products. Recent trends indicate a growing demand for black SiC in abrasive and cutting tool industries, driven by advancements in manufacturing processes and increased demand from end-use sectors.

The green SiC segment is anticipated to witness rapid growth at a significant CAGR of 12.8% during the projected period. Green silicon carbide (SiC) is a type of SiC characterized by its unique green color, which is attributed to its high purity and low impurity content. This segment of the silicon carbide market encompasses green SiC abrasives, grains, and powders used primarily in abrasive applications such as grinding, cutting, and polishing. The green SiC segment is witnessing steady growth driven by increasing demand from industries such as automotive, aerospace, and electronics for precision machining and surface finishing applications.

Application Insights

The electrical and electronics segment held a 26% market share in 2023. The electrical and electronics segment in the silicon carbide market encompasses the use of SiC-based devices in various electronic components and systems. These include power electronics, such as inverters, converters, and rectifiers, as well as semiconductor devices like diodes and transistors. A trend in this segment is the increasing adoption of SiC-based devices due to their superior performance, including higher efficiency, faster switching speeds, and better thermal conductivity, compared to traditional silicon-based components. This trend is driven by growing demand for energy-efficient and high-performance electronic systems across industries such as automotive, renewable energy, and telecommunications.

The automotive segment is anticipated to witness rapid growth over the projected period. In the silicon carbide (SiC) market, the automotive segment refers to the use of SiC-based components and systems in vehicles for various applications such as power electronics, electric drivetrains, and charging infrastructure. This segment encompasses the adoption of SiC semiconductors in electric vehicles (EVs) for improved energy efficiency, faster charging, and increased range. Recent trends in the automotive segment include the growing demand for SiC-based power electronics to support the electrification of vehicles and the development of advanced driver assistance systems (ADAS) for enhanced safety and autonomous driving capabilities.

Silicon Carbide Market Companies

• Cree, Inc.
• STMicroelectronics N.V.
• ON Semiconductor Corporation
• Infineon Technologies AG
• ROHM Co., Ltd.
• Toshiba Corporation
• Renesas Electronics Corporation
• United Silicon Carbide, Inc.
• Monolithic Power Systems, Inc.
• Fuji Electric Co., Ltd.
• Littelfuse, Inc.
• Microsemi Corporation (Microchip Technology Inc.)
• General Electric Company
• Fairchild Semiconductor International, Inc.
• Northrop Grumman Corporation

Recent Developments

• In September 2022, SK Siltron, a prominent manufacturer of semiconductor wafers worldwide, revealed its plan to invest USD 1.65 billion by 2026. Of this investment, USD 0.7 billion will be dedicated to establishing new wafer manufacturing facilities at the Gumi National Industrial Complex.
• In May 2022, SK Siltron also announced that its recently constructed plant in Bay City, USA, would augment production capacity. It is anticipated that this expansion will enable the production of more than 100,000 silicon carbide sheets annually.

Segments Covered in the Report

By Product

• Black Silicon Carbide
• Green Silicon Carbide

By Application

• Steel
• Automotive
• Aerospace
• Military & Defense
• Electrical & Electronics
• Healthcare
• Others

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa