Silicon Carbide Market Report
Silicon Carbide Market by Product (Black Silicon Carbide and Green Silicon Carbide), Application (Steel, Automotive, Aerospace, Military & Defense, Electrical & Electronics, Healthcare, and Others), and Region (North America, Europe, Asia-Pacific, and LAMEA): Opportunity Analysis and Industry Forecast, 2023-2032
Silicon Carbide Overview
Silicon carbide (SiC) is a compound consisting of silicon and carbon. With its chemical formula SiC, it is known for being a wide-bandgap semiconductor. This material possesses remarkable characteristics that set it apart. Silicon carbide shows high thermal conductivity, making it important in thermal management applications where proficient heat dissemination is crucial. In addition, its wide range allows silicon carbide to operate at high temperatures and withstand high voltages, making it suitable for high temperature, power electronics. Silicon carbide is chemically inert, resists oxidation, and can withstand harsh environments. These special properties have led to its use in power electronics, electric vehicles, aerospace, defense, industrial applications and renewable energy systems.
Global Silicon Carbide Market Analysis
The global silicon carbide market size was $3.31 billion in 2022 and is predicted to grow with a CAGR of 10.7%, by generating a revenue of $8.41 billion by 2032.
COVID-19 Impact on Global Silicon Carbide Market
COVID-19 has had a mixed impact on the silicon carbide (SiC) market. The pandemic disrupted the global supply chain, causing factory closures, reduced production capacity, and supply shortages. Additionally, various industries such as automotive, aerospace, and manufacturing experienced reduced operations and decreased consumer demand, leading to a decline in the demand for SiC-based products.
However, the SiC market has shown resilience, with growing demand in sectors like renewable energy, electric vehicles, and industrial automation. Investments in research and development have increased as governments and private entities seek advanced technologies and materials. Despite short-term challenges, the long-term growth prospects for the SiC market remain positive due to its advantages in power electronics, energy efficiency, and decarbonization efforts.
Increasing Demand for Power Electronics to Drive the Market Growth
The silicon carbide (SiC) market is driven by several key factors. Firstly, there is a growing demand for power electronics in various applications, such as electric vehicles, renewable energy systems, and industrial automation. Silicon carbide’s superior properties, including high thermal conductivity and low power losses, make it an ideal material for power electronic devices. Secondly, the increasing adoption of electric vehicles is fueling the demand for SiC, as it is extensively used in E.V. powertrain systems and charging infrastructure. Thirdly, the focus on energy efficiency in various sectors, including power generation and consumer electronics, drives the demand for SiC-based devices. Its ability to offer higher energy efficiency, lower power losses, and faster switching speeds compared to traditional materials makes it a preferred choice. Additionally, advancements in renewable energy systems and the push for clean energy sources contribute to the growth of the silicon carbide market. Moreover, the industrial automation sector heavily relies on SiC for its power electronics needs, which drives market demand. Furthermore, silicon carbide finds applications in defense and aerospace industries due to its ability to withstand harsh environments. Lastly, technological advancements in SiC manufacturing processes and the scale-up of production facilities have made SiC more accessible and affordable, further boosting market growth.
High Cost to Restrain the Market Growth
The growth of the silicon carbide market can be restrained by several factors. One of the main factors is the high cost of silicon carbide compared to other semiconductor materials like silicon. This can limit its adoption, particularly in price-sensitive applications. Additionally, the limited production capacity of silicon carbide poses a challenge, leading to supply shortages and higher prices. Technological challenges associated with manufacturing processes and device fabrication for SiC can also hinder its widespread adoption. The lack of standardization in the silicon carbide market creates barriers to entry and limits the interoperability of SiC-based devices. Furthermore, the limited ecosystem surrounding silicon carbide, including supporting components and infrastructure, slows down integration and widespread adoption. Another restraint is the need for more awareness and understanding among potential users and industries about the benefits of silicon carbide. Regulatory and policy factors and competition from other advanced semiconductor materials like gallium nitride also impact the market.
Power Grid Infrastructure to Drive Excellent Opportunities
SiC-based power devices can efficiently handle high voltages and minimize energy losses during transmission and distribution. This enables improved grid stability, reduced energy consumption, and enhanced power quality. As governments and utility companies invest in upgrading their power infrastructure, silicon carbide technology can contribute to more efficient and reliable grid systems. Additionally, the renewable energy sector, particularly solar and wind power generation, also provides opportunities for SiC, as its high voltage and temperature handling capabilities improve efficiency in energy systems. In industrial sectors such as aerospace, defence, electronics, and power generation, SiC’s exceptional properties make it suitable for harsh environments and demanding applications.
Global Silicon Carbide Market Share, by Product, 2022
The black silicon carbid sub-segment accounted for the highest market share in 2022. Black silicon carbide is produced by a high-temperature electrochemical reaction, which produces high-quality precious stones. With extraordinary hardness and wear resistance, black silicon carbide is broadly utilized in cutting, grinding, and polishing applications. Its high thermal conductivity enables efficient heat dissipation, making it essential for refractories and high temperature electronics. Additionally, their chemical inertness and corrosion resistance make them ideal for harsh chemical environments. Black silicon carbide’s cost-effectiveness and versatility in various industries have contributed to its widespread adoption. It finds applications in automotive, aerospace, electronics, ceramics, etc.
Global Silicon Carbide Market Share, by Application, 2022
The electrical & electronics sub-segment accounted for the highest market share in 2022. Electrical and electronics applications have emerged as dominant forces in the silicon carbide (SiC) market due to the exceptional properties offered by this wide-bandgap semiconductor material. SiC’s superiority over traditional silicon-based semiconductors, including high thermal conductivity, breakdown voltage, operating temperature, and switching losses, has fueled its adoption in various sectors. In power electronics, SiC power devices such as diodes and MOSFETs have revolutionized power conversion and energy management, finding applications in renewable energy systems, electric vehicles, industrial motor drives, and power supplies. The surge of electric cars has mainly contributed to SiC’s prominence, enabling higher efficiency, longer driving ranges, and improved battery life. Additionally, SiC’s efficiency in renewable energy systems, its use in industrial applications for high-power motor drives and grid systems, and its integration into aerospace and defence systems for high-temperature and high-voltage requirements have solidified its domination in the market.
Global Silicon Carbide Market Share, by Region, 2022
The Asia-Pacific silicon carbide market generated the highest revenue in 2022. The region’s robust manufacturing capabilities and growing demand and adoption of SiC across industries have played a significant role. With a focus on advanced technologies, supportive government policies, and government-backed solid initiatives, Asian countries like China and Japan have fostered a favorable environment for SiC development. The region’s thriving electric vehicle market and well-established semiconductor industry have also fueled the demand for SiC-based products.
Competitive Scenario in the Global Silicon Carbide Market
Investment and agreement are common strategies followed by major market players. One of the leading market players in the industry is SK Siltron Co. In September 2022, SK Siltron, a global maker of semiconductor wafers, announced that it would invest USD 1.65 billion by 2026 and allocate USD 0.7 billion new wafer manufacturing in Gumi National Industrial Complex.
Some of the leading silicon carbide market players are AGSCO Corporation, Carborundum Universal Limited, Washington Mills, Coorstek, Entegris, Inc., ESD-SIC b.v., Snam Abrasives Pvt. Ltd., Gaddis Engineered Materials, Grindwell Norton Ltd., and SK siltron Co., Ltd.
Historical Market Estimations
Base Year for Market Estimation
Forecast Timeline for Market Projection
North America, Europe, Asia-Pacific, and LAMEA
Segmentation by Product
Segmentation by Application
Key Companies Profiled
Q1. What is the size of the global silicon carbide market?
A. The size of the global silicon carbide market was over $3.31 billion in 2022 and is projected to reach $8.41 billion by 2032.
Q2. Which are the major companies in the silicon carbide market?
A. Gaddis Engineered Materials and Grindwell Norton Ltd are some of the key players in the global silicon carbide market.
Q3. Which region, among others, possesses greater investment opportunities in the near future?
A. The Asia-Pacific region possesses great investment opportunities for investors to witness the most promising growth in the future.
Q4. What are the strategies opted by the leading players in this market?
A. Agreement and investment are the two key strategies opted by the operating companies in this market.
Q5. Which companies are investing more on R&D practices?
A. AGSCO Corporation, Carborundum Universal Limited, Washington Mills, Coorstek, Entegris, Inc., ESD-SIC b.v., Snam Abrasives Pvt. Ltd. are the companies investing more on R&D activities for developing new products and technologies.