Silicon Carbide Market Analysis

Silicon Carbide Market Analysis

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Based on the device type, the market is segmented into SiC discrete devices, SiC modules, and other SiC devices. The SiC modules represent the fastest growing segment, with a CAGR of over 30% between 2024 and 2032.
 

• The rapid expansion of the EV market, driven by global efforts to reduce carbon emissions and transition to cleaner energy sources, is a major catalyst for the growth of SiC modules. Companies like Tesla, BYD, and Volkswagen are increasingly incorporating SiC modules into their electric vehicles to enhance energy efficiency and extend driving range.
   
• The renewable energy sector is another key area where SiC modules are gaining traction. SiC modules are being increasingly used in solar inverters, wind turbine converters, and energy storage systems due to their ability to operate at higher frequencies, voltages, and temperatures than traditional silicon-based solutions.
   

Based on the product type, the market is segmented into black silicon carbide, green silicon carbide, and other silicon carbide types. The black silicon carbide segment dominated the market in 2023 and is expected to reach over USD 15 billion by 2032.
 

• Black silicon carbide is widely used in abrasive applications due to its hardness and strength. It is commonly employed in grinding, cutting, and polishing operations across industries like automotive, aerospace, and metalworking. The growing demand for high-performance abrasive materials in these sectors is a significant trend contributing to the expansion of the black silicon carbide market. Additionally, its use in refractory materials, which are essential for high-temperature industrial processes, is also on the rise.
   
• Black silicon carbide is also increasingly being used in metallurgical applications, especially as a deoxidizer and in the production of silicon and silicon alloys. Its properties make it an excellent choice for improving the efficiency of metallurgical processes and enhancing the quality of the final products. The growing steel and aluminum industries are major consumers of black silicon carbide, as it helps reduce impurities and improve the mechanical properties of metals.
   

The silicon carbide market is experiencing growth in North America and is expected to reach USD 10 billion by 2032. North America exhibits robust demand for silicon carbide (SiC) due to its advancements in technology and increasing adoption of electric vehicles (EVs) and renewable energy systems. The U.S. and Canada are key markets, driven by a high concentration of semiconductor and electronics companies and growing investments in energy-efficient technologies.
 

U.S. market is driven by significant investments in clean energy and electrification. The country’s focus on renewable energy sources and energy-efficient technologies is bolstering demand for SiC components, especially in power electronics and automotive applications.
 

Canada's SiC market is growing due to the country's focus on sustainable energy solutions and advancements in power electronics. The Canadian government's support for clean energy initiatives is fostering the adoption of SiC devices in various applications.
 

European silicon carbide market is experiencing substantial growth, fueled by the region's strong commitment to renewable energy, electric vehicles (EVs), and energy-efficient technologies. The European Union's stringent policies aimed at reducing carbon emissions and its aggressive promotion of green technologies are key drivers in the increasing adoption of SiC devices across various industries. Europe's ambitious climate goals and initiatives, such as the European Green Deal, are accelerating the transition towards renewable energy sources like wind and solar power. SiC technology is integral to this shift, as it enhances the efficiency and performance of power conversion systems in renewable energy applications.
 

Asia Pacific region exhibits strong demand for SiC due to its rapid industrialization, growing automotive sector, and increasing adoption of renewable energy technologies. China, Japan, and South Korea are key markets driving the growth of SiC in the region.
 

China's market is growing rapidly due to the country's focus on renewable energy, electric vehicles, and industrial modernization. The government's policies supporting green technologies and energy efficiency are driving demand for SiC components.
 

Japan's silicon carbide market is driven by advancements in power electronics, renewable energy systems, and the automotive sector. The country's emphasis on technological innovation and sustainability is supporting the growth of SiC devices. In June 2024, Japan-based power semiconductor device maker ROHM Co Ltd introduced its EcoSiC brand as a trademark for products utilizing silicon carbide (SiC).
 

South Korea's market is experiencing growth due to the increasing adoption of electric vehicles, renewable energy systems, and advancements in power electronics. The country's focus on innovation and sustainability is driving demand for SiC devices. In October 2023, power semiconductor IC supplier onsemi, based in Phoenix, AZ, USA, completed the expansion of its silicon carbide (SiC) fabrication facility in Bucheon, South Korea. Claimed to be the world’s largest SiC wafer fabrication plant, the facility will have the capacity to produce over 1 million 200mm SiC wafers annually at full operation.