Silicon Carbide Semiconductor Market By Product Type (SiC Power Devices, SiC Power Modules, SiC Power Discrete Devices), Application (Automotive, Aerospace, Aerospace, and Defense), Wafer Size (2-inch, 4-inch, 6-inch and Above), & Region for 2024-2031

Silicon Carbide Semiconductor Market Valuation – 2024-2031

SiC has a lower ON resistance than silicon, which reduces energy loss during operation and improves overall efficiency. SiC’s high breakdown field compared to silicon enables the blocking voltage region of a power device to be approximately 10 times thinner and 10 times more heavily doped. This configuration permits a roughly 100-fold reduction in the resistance of the blocking region at the same voltage rating, leading to enhanced performance and efficiency. Thus, SiC Semiconductor increases the overall efficiency which is driving the market size to surpass USD 802.93 Million in 2024 to reach USD 3614.24 Million by 2031.

SiC devices are capable of handling greater voltage applications than their typical silicon counterparts. This feature broadens the scope of potential applications and increases design freedom for power electronics. Thus, the SiC semiconductor can handle the higher voltage operation enabling the market to grow at a CAGR of 15.90% from 2024 to 2031.

Silicon Carbide Semiconductor MarketDefinition/ Overview

Silicon Carbide (SiC) semiconductors are electronic devices that use silicon carbide as a semiconductor material. SiC semiconductors are employed in a variety of applications, particularly power electronics, because of their distinct features and advantages over standard silicon-based semiconductors.

Silicon carbide (SiC), a compound semiconductor formed up of silicon (Si) and carbon (C), belongs to the wide bandgap (WBG) class of materials. Its strong physical bonding gives the semiconductor superior mechanical, chemical, and thermal stability. SiC devices, with their broad bandgap and improved thermal durability, can function at junction temperatures higher than silicon, even above 200°C.

The fundamental advantage of silicon carbide in power applications is its low drift region resistance, which is critical for high-voltage power devices. Silicon carbide-based semiconductors have higher thermal conductivity, increased electron mobility, and lower power losses. SiC diodes and transistors can operate at high frequencies and temperatures while maintaining dependability.

SiC semiconductors have enormous potential for revolutionizing power electronics and contributing to a more sustainable future. Continuous improvements in material science, integration techniques, and an increasing emphasis on energy efficiency will pave the road for SiC to become a foundational component of future technology.

How the Increasing Adoption of Silicon Carbide in Electronics, Automotive, and Renewable Energy Industries are Accelerating the Growth of Silicon Carbide Semiconductor Market?

The increasing adoption of silicon carbide semiconductors in electronics, automotive, and renewable energy industries is thanks to their effective handling of high temperatures and voltages. Silicon carbide semiconductors perform better in high-power applications. The wide bandgap energy and low intrinsic carrier concentration of SiC enable it to exhibit semiconductor behavior at significantly higher temperatures than silicon. Consequently, SiC semiconductor devices can function effectively at much elevated temperatures compared to silicon-based counterparts.

The capability to integrate uncooled high-temperature semiconductor electronics directly into hot environments offers significant advantages for industries such as automotive, aerospace, and deep-well drilling. SiC’s high breakdown field and thermal conductivity, combined with its ability to operate at high junction temperatures, theoretically allow SiC devices to achieve extremely high power densities and efficiencies.

SiC high-power solid-state switches have the potential to significantly improve efficiency in electric power management and control. Leveraging SiC electronics could enable the public power system to fulfill increased consumer electricity demand without the need for additional generation plants. Furthermore, it could improve power quality and operational reliability by implementing “smart” power management systems.

The SiC increases operational reliability, lowers maintenance costs, and enhances fuel efficiency, which is escalating the growth of the SiC aviation, and electronics industry. The uncooled operation of high-temperature, high-power SiC devices has the potential to enable breakthrough advances in aircraft systems. Jet aircraft save significant weight by replacing hydraulic controls and auxiliary power units with distributed smart electromechanical controls that can survive harsh environmental conditions. This change could result in lower maintenance requirements, less emissions, better fuel efficiency, and increased operational reliability.

In addition, government laws intended to reduce greenhouse gas emissions and environmental concerns are driving the global shift toward electric automobiles. SiC semiconductor demand is driven by the electric vehicle (EV) industry’s need for faster charging, greater driving range, and superior overall performance, all made possible by SiC-based power electronics. To encourage the use of electric vehicles, renewable energy sources, and energy-efficient technology, governments and regulatory organizations around the world are providing incentives and subsidies. These activities lower entry barriers and boost demand, which fosters an atmosphere that is conducive to the expansion of the SiC semiconductor industry.

How the High Cost of SiC is Hampering the Growth of the Silicon Carbide Semiconductor Market?

SiC semiconductors are often more expensive than their silicon-based cousins. This initial outlay may deter some users, particularly those in cost-sensitive businesses because SiC-based systems necessitate pricey components such as power modules and devices. SiC wafers and devices have lower production capacity than silicon-based alternatives. Increased demand for SiC semiconductors across industries may cause supply bottlenecks, resulting in longer lead times and possibly setbacks in product development and deployment. Manufacturing SiC wafers and devices is a more complex and resource-intensive process than silicon-based semiconductor manufacture. This intricacy can raise manufacturing costs, causing issues in ensuring consistent product quality, especially in large-scale production.

Integrating SiC-based components into existing systems and infrastructure, particularly in industries dominated by silicon-based technologies, may provide compatibility issues. Additional engineering work and financing are frequently required to handle the peculiar electrical and thermal properties of SiC semiconductors, which may hinder adoption rates. The global SiC semiconductor industry is marked by the existence of several manufacturers and suppliers, resulting in market fragmentation and fierce competition. This competitive landscape may put pressure on prices and profit margins, especially for companies that lack strong technological advantages or distinguishing features.

SiC semiconductor manufacturers may face difficulties in complying with industry standards and regulatory restrictions, especially in safety-critical applications such as automotive and aircraft. Meeting onerous certification criteria may result in greater costs and lead times, reducing SiC-based systems’ market competitiveness. Despite exceeding silicon-based rivals in many aspects, potential purchasers continue to be concerned about SiC semiconductor lifetime and long-term reliability. Achieving widespread adoption requires developing trust in the dependability and longevity of SiC devices through rigorous testing and validation procedures.

Category-Wise Acumens

How the E-mobility, Diverse Industrial Applications are Driving the SiC Power Modules Segment in the Silicon Carbide Semiconductor?

The SiC Power Modules segment dominates the Silicon Carbide Semiconductor market, owing to their diverse applications in energy, e-mobility, and industrial sectors. These modules function as efficient power conversion switches, increasing power efficiency and lowering operational costs. Also, the combination of silicon carbide power modules with Schottky Barrier Diodes and Metal-Oxide-Semiconductor Field-Effect Transistors (MOSFETs) results in much-reduced switching losses than silicon-based alternatives. This advantage is likely to fuel significant growth in the market during the projection period.

The increased popularity of silicon carbide power modules is also pushing enterprises to launch new products, accelerating category growth. For example, ON SEMICONDUCTOR CORPORATION (ON Semi) has developed the APM32 power module series designed for high voltage DC-DC conversion in electric vehicles, exemplifying the segment is trending towards innovation and expansion. In addition, SiC power modules enhance the conversion efficiency, it enables a significant decrease in switching losses compared to Si-IGBT and SI-FRD.

SiC modules simplify thermal management by allowing for smaller and less expensive heat sinks or cooling systems. They can even replace water or forced air cooling with natural cooling methods. The increased switching frequency of SiC modules allows for the downsizing of passive components such as inductors and capacitors.  Moreover, SiC modules using majority carrier devices exhibit minimal changes in switching losses with temperature variations. Although the threshold voltage decreases at higher temperatures, SiC power modules tend to have lower Eon and slightly higher Eoff as the operating temperature increases.

Additionally, SiC modules can replace IGBT modules with higher-rated currents, as they offer negligibly small switching losses and support high switching speeds while handling high currents. However, it’s important to note that surge voltage (V=-L×dI/dt) generated due to wire inductance in the module or its periphery may exceed the rated voltage, requiring careful consideration during design and implementation.

How the Cost Reduction for Production is Surging the Growth of the I-inch and 4-inch Segment in the Silicon Carbide Semiconductor Market?

The 1-inch to 4-inch segment is significantly dominating in the Silicon Carbide Semiconductor Market, owing to the tool contributing to the reduction of device production. By employing Chemical Vapor Deposition (CVD), SiC epi wafers exhibit fewer surface defects, leading to an improvement in yield. This size range includes N-type and P-type wafers with a thickness of 350 ± 25 micrometers.

Silicon carbide wafers with P-type substrates are preferred for the production of power devices such as Insulated Gate Bipolar Transistors. In contrast, N-type substrates are treated with nitrogen to improve conductivity in power devices. These versions provide not only superior mechanical qualities but also compatibility with current device production procedures.

Furthermore, the mass production viability of 1 to 4-inch silicon carbide wafers makes them affordable, with industrial applications driving demand. Their capacity to reduce equipment size enhances their appeal, positioning them for increased use over the predicted period.

How the Increasing Adoption of Commercial-Scale Silicon Carbide Wafer Fabrication is Driving the Growth of the 10-inch Segment in the Silicon Carbide Semiconductor Market?

The 10-inch segment is expected to experience fastest fastest-growing segment during the forecast period, owing to the emergence of commercial-scale silicon carbide wafer fabrication.  These wafers make it easier to manufacture Gallium Nitride (GaN) devices, such as power supplies and light emitting diodes.

Furthermore, the use of silicon carbide coating slows the diffusion of silicon into GaN, at a cost of only USD 25.0 to USD 35.0 per silicon wafer. In comparison to ordinary silicon, silicon carbide wafers are expected to provide greater cost-effectiveness and power efficiency, propelling the segment’s growth during the forecast period.

Gain Access to Silicon Carbide Semiconductor Market Report Methodology

Country/Region-wise Acumens

How the Increasing Investment in Manufacturing Activities are Surging the Growth of the Silicon Carbide Semiconductor Market in Asia Pacific?

Asia Pacific is substantially dominating the Silicon Carbide Semiconductor Market and is expected to continue its growth during the forecast period, owing to the presence of major industry players in the region. Furthermore, growing investments in development and manufacturing activities across the Asia Pacific are important drivers of market growth.The rapid development in the automotive industry across the region is fueling the growth of silicon carbide semiconductors in the region. According India is targeting to double the size of its auto industry to Rs. 15 lakh crores by the end of 2024. From April 2000 to September 2022, the industry attracted FDI inflows totaling $33.77 billion, accounting for approximately 5.48% of India’s total FDI inflows during the same period.

The cumulative equity FDI inflow in the automobile sector reached US$ 35.40 billion between April 2000 and September 2023. India is poised to emerge as the largest EV market by 2030, with an estimated investment opportunity exceeding US$ 200 billion over the next 8-10 years. This significant investment potential underscores the country’s commitment to fostering the growth and development of the electric vehicle sector. In addition, China’s automotive industry has grown significantly, and the country is now a major player in the global automotive market. The Chinese government recognizes the strategic importance of the automotive sector, particularly auto parts manufacture, and considers it one of the country’s pillar industries. This viewpoint emphasizes the government’s commitment to promoting the development and growth of China’s automobile industry.

Furthermore, the region is a significant electronics hub, generating millions of electronic goods each year for both international export and home consumption. This large manufacturing volume of electronic components and devices is critical in increasing the market share of the examined market within the region. For instance, according to the of China, in 2023, China’s mobile phone production reached 1.09 billion units from January to September, marking a 0.8 percent year-on-year increase. Specifically, in September alone, China’s mobile phone output surged by 11.8 percent compared to the previous year. Furthermore, the growing demand for SiC semiconductors with higher efficiency, smaller size, and lighter weight from various end-use manufacturers in the Asia Pacific region drives market expansion.

How the Presence of Major Players in the Region are Contributing to the Growth of the North America Silicon Carbide Semiconductor Market During the Forecast Period?

North America is anticipated to be the fastest-growing region during the forecast period in the silicon carbide semiconductor market. Key players such as Gene Sic Semiconductor and ON SEMICONDUCTOR CORPORATION (ON Semi) have a substantial presence and concentration. These enterprises have large customer bases, which are key drivers of market expansion in the region. In addition, the concentration of major players in North America promotes the adoption of novel SiC semiconductor devices by power electronics makers. These devices provide increased efficiency, leading to a move toward their use in a variety of applications.

Furthermore, key regional firms are aggressively exploring strategic efforts to drive growth in the North American marketplace. These activities may involve investments in R&D, strategic collaborations, or capacity growth, all to accelerate innovation and market penetration. As a result, North America is anticipated to emerge as in the future years, the SiC semiconductor market will see significant expansion.

Competitive Landscape

The silicon carbide semiconductor market is likely to witness continued growth and consolidation. Established players are expected to maintain their dominance, while new entrants with disruptive technologies could emerge. Collaboration and strategic partnerships will play a key role in accelerating advancements and driving market expansion. As SiC costs decrease and its performance advantages become more evident, it will likely become a ubiquitous component in next-generation power electronics, shaping the future of various industries.

The organizations are focusing on innovating their product line to serve the vast population in diverse regions. Some of the prominent players operating in the silicon carbide semiconductor market include

• Wolfspeed
• Infineon Technologies
• ROHM Semiconductor
• ON Semiconductor
• STMicroelectronics
• Mitsubishi Electric
• GeneSiC Semiconductor
• TT Electronics
• Vishay Intertechnology

Silicon Carbide Semiconductor Latest Developments

• In August 2021, ON Semiconductor Corporation (on semi) announced an acquisition deal with GT Advance Technologies Inc., a well-known maker of SiC and sapphire materials. This strategic decision is expected to strengthen ON Semi’s SiC supply capabilities, allowing the company to meet increasing customer demand for SiC-based products.
• Toshiba Electronic Components and Storage Co., Ltd. announced a JPY 100 billion (USD 839 million) investment in March 2022 to enhance its power component capacity.

Report Scope

Silicon Carbide Semiconductor Market, By Category

Product Type

• SiC Power Devices
• SiC Power Modules
• SiC Power Discrete Devices
• SiC Bare Die Devices

Application

• Automotive
• Aerospace
• Aerospace and Defense
• Consumer Electronics
• Industrial
• Power Electronics

Wafer Size

• 1 inch to 4 inch
• 6 inches
• 8 inches
• 10 inches above

Region

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Research Methodology of Market Research

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• Qualitative and quantitative analysis of the market based on segmentation i