SiC Power Semiconductor Market Size & Industry Share - Growth Trends & Forecasts (2023 - 2031)

Based on the Type :

The type segment is classified into RF diodes, MOSFET, IGBT, Schottky Barrier Diodes (SBDS), Junction FET (JFET), power modules, rectifiers, and others. MOSFETs (Metal-Oxide-Semiconductor Field-Effect Transistors) accounted for the largest market share in 2022 as SiC MOSFETs offer high efficiency in power conversion applications. MOSFET has low conduction losses and fast switching capabilities, resulting in less power dissipation and increased energy efficiency. Additionally, SiC MOSFETs are capable of handling high voltages and are used in a wide range of voltage classes, suitable for various applications, including high-voltage power electronics. Moreover, the increasing adoption of MOSFETs in quick charging devices owing to the low-resistance feature is also contributing remarkably in bolstering the market growth. For instance, in May 2023, Toshiba launched SSM14N956L, an efficient N-channel MOSFET to offer protection in lithium-ion (Li-ion) battery packs, including mobile devices. MOSFETs are responsible for delivering low on-resistance and reducing the heat generation in Li-ion batteries, hence contributing notably in boosting the growth of the global SiC power semiconductor market.

Power modules are expected to witness the fastest CAGR in the SiC power semiconductor market during the forecast period. Power modules integrate several SiC power semiconductor devices into a single package, such as SiC MOSFETs or SiC diodes. The integration simplifies the design and assembly process, reducing the need for external components and the associated interconnections, which in turn, lowers the system costs. Additionally, power modules are designed with advanced thermal management techniques, including improved heat sinks and packaging materials. SiC devices operate at high temperatures, and power modules leverage the capability to optimize thermal performance, enabling better reliability and longer lifespans. In conclusion, the integration of multiple components and enhanced thermal management are the key factors responsible for spurring the growth of power modules during the forecast period.

Based on the Wafer Size :

The wafer size segment is divided into 2 inch, 3 inch, 4 inch, 6 inch, and above 6 inch. Above 6 inch wafer accounted for the largest market share in 2022 and is also predicted to witness the fastest CAGR during the forecast period. The growth is attributed to the ability of larger wafers to provide higher productivity in the fabrication process. Larger wafers allow semiconductor manufacturers to produce more SiC power devices in less time, increasing the overall output, and thus driving the adoption of the large wafers segment. In addition, larger wafers result in less material waste during the manufacturing process as more devices are fabricated from a single wafer, minimizing the amount of unused or discarded material. Furthermore, the increasing investment by key players in constructing new wafer plants encompassing large diameter SiC wafers is also promoting the growth of the above 6 inches segment. For instance, in March 2023, Mitsubishi Electric Corporation invested USD 1,946.02 million for constructing a new wafer plant to increase the production of silicon carbide (SiC) power semiconductors by 2026. The new factory will produce large-diameter 8-inch SiC wafers featuring high-level automated production efficiency. In conclusion, the enhanced productivity, reduced material wastage, and significant investment by key players are contributing substantially in bolstering market growth.

Based on the Wafer Type :

The wafer type segment is bifurcated into SiC epitaxial wafers and Blank SiC wafers. Blank SiC wafers accounted for the largest market share in 2022 as wafers are used in the fabrication of radio frequency (RF) and microwave devices, including high-power amplifiers and high-frequency transistors. Additionally, SiC epitaxial wafers are utilized in the production of optoelectronic devices including UV and blue LEDs and laser diodes. SiC's wide bandgap allows for efficient emission of short-wavelength light, thus becoming ideal for optoelectronics applications. Subsequently, the increasing adoption of blank SiC wafers in RF and microwave electronics and optoelectronics is contributing notably in propelling the growth of the segment.

SiC epitaxial wafers are anticipated to register the fastest CAGR in the SiC power semiconductor market during the forecast period. SiC epitaxial layers are engineered with precision to enhance the performance of SiC power devices. Epitaxial growth allows for the creation of specific layer structures that lead to better electrical characteristics, including reduced on-resistance (Rds(on) for SiC MOSFETs), improved breakdown voltage, and higher switching speeds. Additionally, SiC epitaxial wafers reduce power loss and emit less heat than conventional silicon-wafer-based power semiconductors, thereby conserving energy. For instance, in March 2023, Resonac Holdings Corporation developed and started the mass production of third generation of high-grade silicon carbide (SiC) epitaxial wafer (HGE-3G). The advanced wafer is designed to reduce the power loss and emit less heat, thereby contributing remarkably in fueling the demand of silicon carbide (SiC) epitaxial wafers in the upcoming years.

Based on the Application :

The application segment is categorized into EV charging, solar energy systems, UPS, industrial drives, photovoltaics, and others. Photovoltaics accounted for the largest market share of 28.81% in 2022 as photovoltaic inverters require power semiconductors that are highly efficient to maximize the energy conversion from solar panels to the electrical grid. SiC power devices are known for the low conduction and switching losses, resulting in higher overall inverter efficiency. Additionally, solar energy systems, including photovoltaics, are exposed to harsh environmental conditions. SiC power devices are more durable and reliable, with better thermal performance, and suitable for outdoor installations with varying temperatures. Moreover, SiC power semiconductors help to reduce the size and power loss of power converters, particularly for inverters used in renewable energy applications namely photovoltaic and wind-power generation, further promoting the market growth. For instance, in August 2020, Mitsubishi Electric Corporation launched a T-series insulated-gate bipolar transistor (IGBT) module to reduce the power loss in photovoltaics. The advanced module is designed with energy-saving capabilities and is widely employed in photovoltaics, thus contributing substantially in driving the growth of the segment.

Industrial drives are expected to witness the fastest CAGR in the SiC (Silicon Carbide) power semiconductor market. Industrial drives, namely motor drives and variable frequency drives (VFDs), demand power semiconductors that offer high efficiency. SiC power devices are known for the low conduction and switching losses, resulting in higher efficiency in motor control and drive applications. Additionally, SiC power devices exhibit better thermal performance, enabling industrial drives to operate at higher temperatures without compromising reliability. Consequently, the aforementioned factors including high-efficiency requirements and improved thermal performance are projected to drive the growth of the industrial drives segment during the forecast period.

Based on the End-User :

The end-user segment is categorized into industrial, automotive, energy and power, IT and telecom, transportation, aerospace and defense, and others. Industrial sector accounted for the largest market share in 2022 as SiC power semiconductors are used in motor drive systems for industrial automation and robotics. The high-temperature tolerance and fast switching capabilities result in more efficient and precise control of electric motors, leading to improved industrial processes. In addition, SiC power semiconductors are also employed in UPS systems to ensure continuous and reliable power backup for critical industrial equipment. SiC devices offer higher efficiency and smaller form factors, reducing the size and weight of UPS units. Therefore, the growing adoption of SiC power semiconductors in motor drives and UPS systems is contributing remarkably in fueling the growth of the industrial segment.

Automotive segment is anticipated to register the fastest CAGR as SiC power devices are used in electric vehicle charging systems to provide faster charging times. Additionally, SiC power devices operate at higher temperatures compared to traditional silicon-based devices. Thermal resilience is advantageous in automotive applications, where components are exposed to fluctuating temperature conditions. Moreover, SiC power semiconductors generate less heat during operation, leading to improved thermal management in electric vehicles and reducing the power losses. For instance, in May 2022, Hitachi Energy Ltd. introduced RoadPak, an efficient power semiconductor with silicon carbide (SiC) technology to provide faster charging capabilities for electric vehicles. The advanced system is responsible for reducing power losses and functions efficiently at higher temperatures, hence contributing remarkably in propelling the market growth.

Based on the Region :

The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

North America is estimated to reach over USD 2,530.00 Million by 2031 from a value of USD 324.31 Million in 2022 and is projected to grow by USD 400.65 Million in 2023. The growth is attributed to the expanding automotive and renewable energy sector that raises the need for efficient and high-performance power electronics. Additionally, SiC power devices are extensively employed in electric vehicles to improve the efficiency, range, and charging speed of EVs. Furthermore, North America is witnessing an expansion in the renewable energy sector including solar and wind power. SiC power devices are essential for grid-connected and distributed renewable energy systems, further fueling the growth of SiC power semiconductor market in the region.

Asia Pacific accounted to USD 247.85 Million in 2022, USD 306.73 Million in 2023, and is expected to reach USD 1,973.54 Million in 2031 in the SiC power semiconductor market. In addition, in the region, China accounted for the maximum revenue share of 28.5% in the year 2022. The growth is attributed to the expanding consumer electronics industry and SiC power semiconductors are used in power supplies, adapters, and battery management systems to improve energy efficiency. Additionally, SiC power devices generate less heat during operation compared to traditional silicon-based devices. In consumer electronics, where compact and slim designs are highly desirable, reduced heat generation helps manufacturers design thinner and lighter devices with better thermal management. In conclusion, the expanding consumer electronics sector is contributing notably in propelling the growth of the SiC power semiconductor market in Asia Pacific countries during the forecast period. For instance, in May 2023, according to India Brand Equity Foundation (IBEF), India's consumer electronics and appliances market is predicted to be fifth largest in world by 2025 and is projected to reach USD 17.93 billion.