The global silicon carbide (SiC) market has been experiencing significant growth in recent years, driven by its wide-ranging applications across various industries, including electronics, automotive, energy, and industrial sectors. According to recent data from Kings Research, the market is poised for robust expansion, with a compound annual growth rate (CAGR) that underscores its potential. Silicon carbide, a compound of silicon and carbon, is renowned for its exceptional properties, such as high thermal conductivity, low thermal expansion, and superior hardness, making it an indispensable material in modern technology and industrial applications.

Global silicon carbide market size was USD 4,310.0 million in 2023, which is estimated to be valued at USD 5,726.2 million in 2024 and reach USD 66,072.4 million by 2031, growing at a CAGR of 41.82% from 2024 to 2031. 

Market Growth and Trends

The silicon carbide market has been on an upward trajectory, with its valuation expected to reach unprecedented levels in the coming years. Kings Research highlights that the market's growth is fueled by the increasing demand for energy-efficient devices and the rapid adoption of electric vehicles (EVs). Silicon carbide's ability to operate at high temperatures and voltages with minimal energy loss makes it a preferred material for power electronics, which are critical components in EVs and renewable energy systems. The shift towards green energy and the global push for reducing carbon emissions have further accelerated the adoption of SiC-based solutions.

Moreover, the trend of miniaturization in electronics has also contributed to the market's expansion. Silicon carbide's superior properties enable the production of smaller, more efficient electronic components, which are essential for the development of advanced technologies such as 5G networks, Internet of Things (IoT) devices, and artificial intelligence (AI) systems. As these technologies continue to evolve, the demand for silicon carbide is expected to surge, creating new opportunities for market players.

Market Dynamics

The dynamics of the silicon carbide market are shaped by a combination of factors, including technological advancements, regulatory policies, and shifting consumer preferences. One of the key drivers of market growth is the increasing investment in research and development (RD) activities aimed at enhancing the performance and cost-effectiveness of SiC-based products. Companies are focusing on developing innovative manufacturing techniques and improving the quality of silicon carbide wafers, which are crucial for the production of high-performance semiconductors.

However, the market also faces certain challenges that could impede its growth. The high cost of silicon carbide materials and the complexity of the manufacturing process are significant barriers that need to be addressed. Additionally, the availability of alternative materials, such as gallium nitride (GaN), poses a competitive threat to the silicon carbide market. Despite these challenges, the overall market outlook remains positive, with ongoing advancements expected to mitigate these issues over time.

Unlock Key Growth Opportunities: https://www.kingsresearch.com/silicon-carbide-market-1298

Market Segmentation

The silicon carbide market can be segmented based on product type, application, and region. In terms of product type, the market is divided into silicon carbide wafers, bare dies, and epitaxial wafers. Silicon carbide wafers hold the largest market share, owing to their widespread use in the production of semiconductors and power electronics. The demand for epitaxial wafers is also growing, driven by their application in high-frequency and high-power devices.

When it comes to applications, the market is categorized into power electronics, optoelectronics, and others. Power electronics dominate the market, with silicon carbide being extensively used in inverters, converters, and power modules. The automotive sector is a major contributor to this segment, as SiC-based power electronics are integral to the functioning of electric vehicles. Optoelectronics, on the other hand, is a niche segment that is gaining traction due to the increasing use of silicon carbide in LED lighting and laser diodes.

Key Companies in Silicon Carbide Market:

• STMicroelectronics
• Infineon Technologies AG
• Wolfspeed, Inc.
• ROHM Co., Ltd
• AGSCO Corp
• Carborundum Universal Limited
• Washington Mills
• CoorsTek Inc.
• Entegris
• ESD-SIC bv
• Snam Abrasives Pvt. Ltd.
• Morgan Advanced Materials plc
• Microchip Technology Inc
• Bruckewell Technology Co., Ltd.
• Fuji Electric Corp.

 Recent Developments:

• In April 2024, ROHM and STMicroelectronics expanded their long-term agreement with SiCrystal to supply larger volumes of 150mm silicon carbide wafers, valued at USD 230 million. This intitiaitve aims to strengthen STMicroelectronics' SiC manufacturing capacity, supporting automotive and industrial applications for sustainable electrification.
• In December 2024, onsemi acquired Qorvo's Silicon Carbide Junction Field-Effect Transistor (SiC JFET) technology, including its United Silicon Carbide subsidiary, for USD 115 million. This acquisition seeks to enhance onsemi’s power portfolio, supporting energy efficiency in AI data centers and emerging markets such as EV battery disconnects.
• In December 2023, STMicroelectronics signed a long-term silicon carbide (SiC) supply agreement with Li Auto to provide SiC MOSFETs for the company's high-voltage battery electric vehicles (BEVs). This partnership supports Li Auto’s goal of enhancing performance, efficiency, and range in future BEV models.
• In January 2024, Infineon Technologies and Wolfspeed renewed and extended their long-term 150mm silicon carbide wafer supply. This partnership enhances Infineon’s supply chain resilience to meet the growing demand for SiC-based solutions in automotive, solar, EV, and energy storage applications.
• In June 2023, onsemi and BorgWarner expanded their strategic collaboration in silicon carbide (SiC) valued at over $1 billion. BorgWarner will integrate onsemi’s EliteSiC power devices into VIPER power modules, boosting EV performance with increased efficiency and range.
• In July 2023, Renesas Electronics and Wolfspeed signed a decade-long , $2 billion wafer supply agreement. Wolfspeed will provide high-quality silicon carbide wafers to Renesas, supporting its expansion in power semiconductors for automotive and industrial sectors.

Regional Analysis

Geographically, the silicon carbide market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East Africa. Asia-Pacific is the largest and fastest-growing market, driven by the presence of major semiconductor manufacturers and the rapid industrialization in countries such as China, Japan, and South Korea. The region's dominance is further bolstered by the increasing adoption of electric vehicles and the growing demand for consumer electronics.

North America is another significant market, with the United States being a key contributor. The region's growth is attributed to the strong presence of technology companies and the high demand for advanced electronics. Europe is also witnessing steady growth, fueled by the increasing focus on renewable energy and the adoption of electric vehicles. The European Union's stringent regulations on carbon emissions have further propelled the demand for SiC-based power electronics.

Latin America and the Middle East Africa are emerging markets with considerable growth potential. While these regions currently account for a smaller share of the global market, they are expected to witness accelerated growth in the coming years, driven by the increasing investment in infrastructure development and the rising adoption of advanced technologies.

Future Outlook

The future of the silicon carbide market looks promising, with several factors contributing to its growth. The ongoing transition towards electric vehicles and renewable energy sources is expected to be a major driver, as silicon carbide plays a crucial role in enhancing the efficiency and performance of power electronics. Additionally, the continuous advancements in semiconductor technology and the increasing demand for high-performance electronic devices are likely to create new opportunities for market players.

However, the market's growth will also depend on the ability of companies to address the challenges related to the high cost and complexity of silicon carbide manufacturing. Innovations in production techniques and the development of cost-effective solutions will be critical in overcoming these barriers and ensuring the sustained growth of the market.

In conclusion, the silicon carbide market is on a path of robust growth, driven by its wide-ranging applications and the increasing demand for energy-efficient and high-performance electronic devices. With ongoing advancements in technology and the rising adoption of electric vehicles and renewable energy systems, the market is poised for significant expansion in the coming years. As key players continue to innovate and invest in RD, the silicon carbide market is expected to reach new heights, offering lucrative opportunities for stakeholders across the globe.