Silicon Carbide is Estimated to Witness High Growth Owing to its Increasing Usage in Power Electronics
Silicon Carbide is Estimated to Witness High Growth Owing to its Increasing Usage in Power Electronics
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, as highlighted in a new report published by Coherent Market Insights.

Silicon carbide (SiC) is a compound of silicon and carbon which has a variety of industrial uses, but is most notably used for its semiconducting properties. As a semiconductor, SiC demonstrates greater efficiency, faster switching speeds and higher operating temperatures compared to traditional silicon chips. Its unparalleled strength and thermal conductivity makes it suitable for power electronics applications in electric vehicles, solar inverters, fast charging stations and other devices where heat dissipation is critical. 

Market Opportunity:

The increasing adoption of electric vehicles presents a major market opportunity for silicon carbide. As electric vehicles require power electronics component to handle higher currents and voltages, SiC is the preferred material due to its superior heat transfer properties compared to silicon. At higher switching speeds, electric vehicle power modules made with SiC reduce power losses by nearly 30%, allowing for smaller components with increased power density. This results in increased driving range, faster charging times and more responsive acceleration. With aggressive carbon emission reduction targets globally driving the shift towards electric mobility, the demand for more efficient SiC power modules is expected to rise sharply over the coming years. As electric vehicles continue to gain mass market acceptance, silicon carbide will play a vital role in enhancing driving experience and addressing range anxiety - one of the key adoption barriers.

Porter's Analysis

Threat of new entrants: The silicon carbide market requires high initial capital investments to set up manufacturing facilities and R&D centers. This acts as a barrier for new players.

Bargaining power of buyers: The presence of established silicon carbide manufacturers reduces the bargaining power of buyers. However, the rising demand provides buyers with some bargaining power.

Bargaining power of suppliers: Key raw materials include petroleum coke and quartz sand. Established suppliers can influence prices, but the availability of substitutes maintains some balance.

Threat of new substitutes: Alternatives like silicon and gallium nitride are emerging but have not achieved the same performance levels as silicon carbide in high power applications.

Competitive rivalry: The market is growing but dominated by few players who compete on pricing, quality, and innovation.

SWOT Analysis

Strengths: Silicon carbide has superior properties like high thermal conductivity and high electric field breakdown strength compared to silicon. It is suitable for applications requiring high temperatures, voltages, and frequencies.

Weaknesses: High cost of silicon carbide substrates and devices. Production process requires very high temperatures and thus has high energy consumption.

Opportunities: Growing demand from the electric vehicle, renewable energy and power electronics industries. Technological advances can help reduce production costs.

Threats: Limited availability and high prices of raw materials can impact supply. Economic slowdowns may temporarily affect the growth of end-use industries.

Key Takeaways

The Global Silicon Carbide Market Size is expected to witness high growth on account of increasing adoption in the renewable energy and electric vehicle industries. Rapid industrialization and investments in advanced technologies across regions like Asia Pacific, Europe, and North America are boosting demand.

Regional analysis: The Asia Pacific region currently dominates the global silicon carbide market and is expected to grow at the fastest rate during the forecast period. This can be attributed to rapid industrial development and infrastructure growth along with government policies supporting clean energy adoption in major economies such as China and India. Countries like Japan and South Korea are also major manufacturing hubs for products using silicon carbide.

Key players operating in the silicon carbide market are Cree Inc., Infineon Technologies, Rohm Semiconductors, STMicroelectronics, Fuji Electric Co. Ltd., General Electric, Renesas Electronics, Toshiba Corporation and Western Electronic Components.

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https://www.ukwebwire.com/silicon-carbide-market-share-and-trends-analysis/ 

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