Silicon Carbide

Silicon Carbide Market Capturing High Growth Owing To Increasing Demand For Power Electronics

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Silicon carbide (SiC) is an advanced semiconductor base material that is approximately three times faster than silicon and 10 times more energetic at higher temperatures. SiC semiconductors have wide bandgap properties that allow better efficiency and performance compared to silicon or gallium arsenide semiconductors. The material is highly suited for power electronics applications as it reduces power losses and allows smaller, more efficient power electronic and power switching devices. The increasing adoption of electric vehicles and consumer electronics chargeable devices is driving demand for power efficient solutions like SiC semiconductors. The Global Silicon Carbide Market is estimated to be valued at US$ 10.51 Bn in 2024 and is expected to exhibit a CAGR of 11% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the Silicon Carbide Market Forecast are Infineon Technologies AG, Cree Inc., STMicroelectronics N.V., ROHM Co Ltd., Fuji Electric Co. Ltd., Renesas Electronics Corporation, Toshiba Corporation, and ON Semiconductor Corporation.

The key opportunities in the market include rapidly growing power electronics and EV markets. Silicon carbide devices enable faster charging of EVs and allow for more power and energy efficiency in systems. The increasing demand for green energy is also driving SiC adoption in solar energy power inverters.

Silicon carbide semiconductors allow devices to operate at higher temperatures, voltages, and frequencies than possible with silicon. Wide bandgap properties also result in lower switching and conduction losses. This has driven SiC adoption in high power applications like EV fast chargers, solar and wind power systems, and power factor correction systems.

Market Drivers

The main driver for the silicon carbide market growth is the increasing demand for power electronics devices with better power efficiency and capabilities. Silicon carbide power devices enable faster charging batteries in shorter time, highly efficient power conversion, and smaller form factors for power electronic systems. These advantages are driving SiC adoption in automotive, industrial, telecom and renewable energy sectors. Growing investments into development of electric vehicles and renewable energy infrastructure will significantly boost silicon carbide semiconductor demand over the forecast period.

Challenges in Silicon Carbide Market

The silicon carbide market has been facing certain challenges that are hindering its growth potential. Limited availability of raw materials is a major issue as Silicon Carbide Market is synthetically manufactured from plant materials like petroleum coke or wood chips through the Acheson process which requires high temperature. Moreover, the process requires long production time which increases the cost of silicon carbide. Another challenge is high costs associated with research and development activities to improve the quality and properties of silicon carbide. Compared to other semiconductors, silicon carbide production involves advanced technological processes that demand heavy investments. Equipment used in the manufacturing also has high initial and maintenance costs. Moreover, there is a lack of standardized process equipment, testing procedures and device fabrication which limits wide commercialization of silicon carbide devices.

SWOT Analysis

Strength: High thermal conductivity and resistance to oxidation and chemicals make silicon carbide suitable for high temperature applications. Wide bandgap property allows it to operate at high voltages.
Weakness: Limited availability of raw materials increases production costs. Lengthy manufacturing process is also costly.
Opportunity: Growing demand for power electronics in automotive, renewable energy and rail traction sectors offer huge opportunities. Ongoing R&D to develop advanced 4H and 6H polytypes will widen potential applications.
Threats: Stiff competition from other wide bandgap semiconductors like GaN and diamond. Environmental regulations over usage of certain manufacturing chemicals pose threats.

Geographical concentration
In terms of value, the silicon carbide market is currently concentrated in Asia Pacific region led by countries like China, Japan and South Korea. This is due to presence of large electronics industry and growing supply chain for power devices in the region. Countries like China have emerged as major producers of silicon carbide owing to availability of raw materials and manufacturing capabilities.

Fastest growing region

North America region is expected to witness fastest growth in the silicon carbide market during the forecast period. This is attributed to increasing investments by leading players to establish manufacturing base and expand R&D activities. Development of electric vehicle industry and focus on developing clean energy infrastructure will drive the demand for advanced silicon carbide based power devices in the region. Initiatives to deploy smart grids and move towards renewable energy resources are also propelling the regional market growth.

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

Ravina
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Ravina Pandya,  Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.