Silicon Carbide is Estimated to Witness High Growth Owing to Wide Applications in Semiconductor Industry

Silicon carbide, also known as carborundum, is an exceedingly hard crystalline compound of silicon and carbon. It has numerous advantages over conventional silicon, such as high thermal conductivity, high electrical breakdown field, high maximum current density, and low on-resistance. These benefits make silicon carbide an ideal semiconductor material for applications operating at high temperatures or high voltages, such as power supply units, charging stations, and railway systems.

Market Opportunity:

The wide range of applications in the semiconductor industry offers lucrative growth opportunities for the silicon carbide market. Silicon carbide semiconductors are widely used in electric vehicles, fast charging stations, and industrial motors due to their high-power switching capabilities. They enable smaller, more powerful, and more energy-efficient power electronics components. As the demand for electric vehicles sees rapid growth globally due to increasing environmental awareness, it will drive the need for silicon carbide components that can withstand high voltages and currents. Moreover, silicon carbide devices can operate at higher temperatures than conventional silicon. This makes them well-suited for applications in sectors like energy, defense, and aerospace that operate in extreme conditions. The rapidly expanding markets for electric vehicles, renewable energy, fast charging infrastructure and other such applications will continue fueling the demand for silicon carbide semiconductors over the forecast period.

Porter’s Analysis

Threat of new entrants: The silicon carbide market requires high capital investments for silicon carbide wafer fabrication plants limiting new competition.

Bargaining power of buyers: The buyer bargaining power is moderate as there are no close substitutes for silicon carbide in certain applications and this reduces buyer bargaining power.

Bargaining power of suppliers: The supplier bargaining power is high as raw materials supply base is limited restricting alternatives.

Threat of new substitutes: Technological development in wide bandgap materials like gallium nitride and diamond poses a threat to silicon carbide market share over the forecast period.

Competitive rivalry: The silicon carbide market has few players and competition is intense among Infineon Technologies, Cree, Microsemi, ROHM Semiconductor and others to gain market share.

SWOT Analysis

Strength: Silicon carbide has superior physical and chemical properties compared to silicon making it suitable for high power, high temperature and radio frequency applications. Weakness: High production costs of silicon carbide substrates and wafers limit its use in mass market applications. Opportunity: Rise in adoption of electric vehicles and fast charging infrastructure expansion presents an opportunity for silicon carbide in power electronics. Threats: Stringent environmental regulations regarding hazardous gases released during silicon carbide manufacturing pose a major challenge.

Key Takeaways

The Global Silicon Carbide Market Growth is expected to witness high over the forecast period owing to its increasing adoption in industries like automotive, aerospace & defense among others. The global Silicon Carbide Market is estimated to be valued at US$ 9.12 Bn in 2023 and is expected to exhibit a CAGR of 11% over the forecast period 2023 to 2030.

Regionally, Asia Pacific dominates the global silicon carbide market and is expected to maintain its position over the forecast period owing to presence of key wafer fabrication plants and huge demand from fast growing industries in countries like China and South Korea. Growing industries like automotive, power electronics and renewable energy generation drive the demand for silicon carbide in the region.

Key players

Key players operating in the silicon carbide (SiC) market are Infineon Technologies, Cree, Microsemi, ROHM Semiconductor, STMicroelectronics, Renesas Electronics, II-VI Incorporated, On Semiconductor, Toshiba Corporation, NXP Semiconductors and General Electric.

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