SiC Power Semiconductor Market Forecast 2023 - 2031

Report ID : CBI_1340 |  Category : Semiconductor And Electronics   | Published Date:     |  Format :   ms word  ms Excel  PDF

Segments Covered :
By Type RF Diodes, MOSFET, IGBT, Schottky Barrier Diodes (SBDS), Junction FET (JFET), Power Modules, Rectifiers, and Others
By Wafer Size 2 inch, 3 inch, 4 inch, 6 inch, and above 6 inch
By Wafer Type SiC epitaxial wafers and Blank SiC wafers
By Application EV Charging, Solar Energy System, UPS, Industrial Drives, Photovoltaics, and Others
By End-User Industrial, Automotive, Energy and Power, IT and Telecom, Transportation, Aerospace and Defense, and Others
By Region North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Report Snapshots :
Base Year: 2022
CAGR: 25.7%
Forecast Year: 2023 - 2031
Revenue 2022: $987.85 Mn
Revenue 2023: $1,219.26 Mn
Revenue 2031: $7,622.77 Mn

SiC Power Semiconductor Market Forecast 2023 - 2031

Market Overview :

SiC Power Semiconductor Market is estimated to reach over USD 7,622.77 Million by 2031 from a value of USD 987.85 Million in 2022 and USD 1,219.26 Million in 2023, growing at a CAGR of 25.7% from 2023 to 2031.

Market Definition :

SiC (Silicon Carbide) power semiconductors refer to a class of advanced electronic components used in power electronics applications. SiC power semiconductors offer numerous advantages, including higher efficiency, superior thermal performance, and increased power density compared to silicon-based counterparts. Additionally, semiconductors are instrumental in various high-power applications including electric vehicles, renewable energy systems, and industrial motor drives, enabling enhanced energy conversion efficiency.

SiC Power Semiconductor Market :

SiC Power Semiconductor Market

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Market Dynamics :

SiC Power Semiconductor Market Dynamics

Drivers :

  • Increasing adoption of industrial automation and robotics is a significant driver for the growth of the SiC (Silicon Carbide) power semiconductors market

    Industrial automation and robotics require high-frequency operation for precise control and fast response times. SiC power semiconductors are well-suited for high-frequency applications due to the superior switching capabilities, minimal switching losses, and reduced heat generation. Additionally, space constraints are common in industrial automation applications, and SiC power semiconductors allow for higher power density and compact designs.

    Further, increasing adoption of industrial automation and robotics in manufacturing factories is contributing significantly in driving the growth of SiC power semiconductors market. For instance, in October 2022, according to the International Federation of Robotics (IFR), approximately 517,385 new industrial robots are installed in 2021 in factories all across the globe. Furthermore, the number of operational robots worldwide accounted to nearly 3.5 million units, hence contributing notably to bolstering the market growth.

    Thus, increasing adoption of industrial automation and robotics is forecasted to drive the market growth of the power semiconductors.

  • Expansion of the renewable energy sector is contributing notably in propelling the growth of the SiC (Silicon Carbide) power semiconductors market

    SiC power semiconductors are used in solar inverters to convert direct current (DC) generated by solar panels into alternating current (AC) for use in homes and the grid. The high-frequency switching capability and efficiency helps to maximize energy conservation and reduce power losses. Additionally, SiC components are also employed in wind power converters to efficiently convert the variable-speed mechanical energy from wind turbines into stable electrical power.

    Furthermore, the increasing government investments in renewable energy projects is also contributing significantly in bolstering the market growth. For instance, in August 2023, U.S. Department of Agriculture (USDA) invested USD 266 million in approximately 1,334 renewable energy projects in 47 states, further contributing to the growth of the SiC power semiconductors market.

    Thus, expansion of the renewable energy sector and increasing government investments are expected to drive the market growth of the SiC power semiconductor.

Restraint :

  • High temperature sensitivity of SiC (Silicon Carbide) wafers and devices during the manufacturing process is restraining the growth of SiC power semiconductors market

    Maintaining consistent temperature conditions throughout the manufacturing process is challenging. Variability in temperature is leading to variations in device characteristics, hence becoming difficult to achieve uniformity and reliability across a large number of devices, resulting in a high rejection rate during quality control and reducing overall yield. Additionally, high-temperature sensitivity leads to lower production yields as devices need to be discarded due to temperature-induced defects. Low yields result in higher manufacturing costs and potentially limit the availability of SiC devices in the market. Subsequently, the high-temperature sensitivity of silicon carbide devices is impeding the growth of the global market.

Opportunities :

  • Emergence of electric vehicles (EVs) is expected to create numerous future opportunities for the growth of the SiC (Silicon Carbide) power semiconductors market.

    SiC power semiconductors offer significantly higher efficiency compared to traditional silicon-based devices. SiC power devices are used in the traction inverters of electric vehicles to enable efficient and precise control of the electric motor. Additionally, in fast-charging infrastructure for EVs, SiC-based chargers handle high power levels efficiently, thus reducing charging times. Moreover, SiC power devices are also utilized in electric power steering systems, enhancing the precision and responsiveness of steering controls while reducing energy consumption. For instance, according to International Energy Agency (IEA), electric cars sales exceeded 10 million in 2022 and has more than tripled from 4% in 2020 to 14% in 2022. The increasing sales of electric cars, hence, contributes significantly in driving the market growth during the forecast period.

 

SiC Power Semiconductor Market Report Coverage :

Report Attributes Report Details
Study Timeline 2017-2031
Market Size in 2031 USD 7,622.77 Million
CAGR (2023-2031) 25.7%
By Type RF Diodes, MOSFET, IGBT, Schottky Barrier Diodes (SBDS), Junction FET (JFET), Power Modules, Rectifiers, and Others
By Wafer Size 2 inch, 3 inch, 4 inch, 6 inch, and above 6 inch
By Wafer Type SiC epitaxial wafers and Blank SiC wafers
By Application EV Charging, Solar Energy System, UPS, Industrial Drives, Photovoltaics, and Others
By End-User Industrial, Automotive, Energy and Power, IT and Telecom, Transportation, Aerospace and Defense, and Others
By Region North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa
Key Players Infineon Technologies AG, STMicroelectronics, GeneSiC Semiconductor Inc., Semiconductor Components Industries, LLC, NXP Semiconductors, Texas instruments Inc., Allegro MicroSystems, Inc., ROHM CO., LTD., WOLFSPEED, INC., TT Electronics, Renesas Electronics Corporation

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Market Segmentation :

By 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.

By 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.

By 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.

By 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.

Global SiC Power Semiconductor Market, By Application, 2022

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By 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.

By Region :

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

 
North America SiC Power Semiconductor Market, 2022 (USD Million)

Regional Growth Insights

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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.

North America SiC Power Semiconductor Market, By Countries (2022)

Details Countries Growth Insights

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SiC Power Semiconductor Market Competitive Landscape:

The landscape of the SiC power semiconductor market is highly competitive and has been examined in the report, along with complete profiles of the key players operating in the industry. In addition, the surge in innovations, acquisitions, mergers, and partnerships has further accelerated the growth of the SiC power semiconductor market. Major players in the market include-

Recent Developments :

  • In July 2023, Wolfspeed and Renesas signed a wafer supply agreement and Renesas deposited USD 2 billion to secure a 10-year supply commitment of epitaxial wafers and silicon carbide bare from Wolfspeed.
 

Frequently Asked Question

What is a SiC Power Semiconductor?+

SiC (Silicon Carbide) power semiconductors refer to a class of advanced electronic components used in power electronics applications. SiC power semiconductors offer numerous advantages, including higher efficiency, superior thermal performance, and increased power density compared to silicon-based counterparts.

What specific segmentation details are covered in the SiC power semiconductor market report, and how is the dominating segment impacting the market growth?+

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.

What specific segmentation details are covered in the SiC power semiconductor market report, and how is the fastest segment anticipated to impact the market growth?+

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. The thermal resilience is advantageous in automotive applications, where components are exposed to fluctuating temperature conditions.

Which region is anticipated to witness the highest CAGR during the forecast period, 2023-2031?+

Asia Pacific is anticipated to witness the fastest CAGR during the forecast period due to the expanding consumer electronics industry.