Silicon Carbide Market Size, Share, Forecast, & Trends Analysis by Type (Black SiC, Green SiC), Forming Method (Reaction Bonding, Sintering, Recrystallization, Other Methods), End-use Industry (Automotive, Electronics & Semiconductor, Energy & Power, Others), Geography - Global Forecast to 2031

Silicon Carbide Market Size & Forecast

The Silicon Carbide Market is expected to reach $9.5 billion by 2031, at a CAGR of 17.8% from 2024 to 2031. Factors driving this market's growth include increased use of SiC devices in power electronics and increased investment in SiC manufacture. Furthermore, there should be room for market expansion due to the rising need for SiC in the oil and gas sector and its growing application in electric cars. The availability of substitute materials, however, may hinder the market's growth. The high cost of fabrication and raw materials presents challenges to the growth of this market.

Silicon Carbide Market Growth Drivers

Increasing Use of SiC in Power Electronics

Silicon carbide is a compound semiconductor material made up of silicon and carbide atoms. SiC is transforming the way electricity is converted, managed, and distributed. Silicon has long been the dominating material used in power electrical devices due to its abundance and inexpensive cost. However, as these systems require increased efficiency, power density, and reliability, SiC has emerged as a better option.

SiC's superior material properties, including higher breakdown voltage and thermal conductivity, enable designing smaller and lighter power electronic systems. SiC devices let manufacturers achieve higher power densities, meaning more energy can be delivered using smaller and lighter components. Thus, the rising adoption of SiC in power electronics is expected to drive market growth in the forecast period.

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Growing Investment to Increase SiC Production

Silicon carbide is a critical material for high-power, high-temperature applications and is extremely difficult to produce. In recent years, driven by the burgeoning development in applications such as new energy vehicles, 5G, solar energy, and photovoltaics, the demand for silicon carbide has shown massive growth. Given the promising market prospects, major silicon carbide-related companies worldwide are accelerating their strategic deployments and are investing to maximize the manufacturing and production efficiency of SiC.

Some of the recent developments are as follows:

• In June 2024, Onsemi (U.S.) announced plans to develop a vertically integrated silicon carbide (SiC) manufacturing facility in the Czech Republic with a multi-year brownfield investment of up to USD 2 billion as part of their long-term capital expenditure strategy.
• Mitsubishi Electric Corporation (Japan) declared in March 2023 that it would double an earlier stated investment plan to roughly 260 billion Yen (USD 1.61 billion) in the five years leading up to March 2026, primarily for building a new wafer plant to boost silicon carbide (SiC) power semiconductor production.
• Microchip Technology Inc. (U.S.) stated in February 2023 that it will invest USD 880 million over the course of the following few years to increase the production capacity of silicon (Si) and silicon carbide (SiC) at its Colorado Springs, Colorado, manufacturing facility.
•  A capital investment in Fuji Electric Tsugaru Semiconductor Co., Ltd. (Japan) was made in January 2022 by Fuji Electric Co., Ltd. (Japan) in order to accelerate SiC power semiconductor production.

Silicon Carbide Market Growth Opportunity

Growing Demand for SiC in the Oil & Gas Industry

Downhole oil and gas applications are using increasing amounts of silicon carbide (SiC) as a material. It is an extremely durable, heat-resistant substance that works well in challenging conditions.

SiC is used in a variety of downhole oil and gas applications, including:

• Drill bits: SiC drill bits are more durable than traditional steel drill bits and can withstand the high temperatures and pressures encountered in deep wells.
• Downhole tools: SiC downhole tools are used to measure pressure, temperature, and flow rate. They are also used to perform other tasks, such as cutting and sealing.
• Casing: SiC casing is used to line wellbores and protect them from corrosion and erosion.
• Liners: SiC liners are used to strengthen wellbores and prevent them from collapsing.

SiC is a valuable material for downhole oil and gas applications. Thus, the rising use of SiC to improve the efficiency and safety of oil and gas production is expected to provide opportunities for market growth.

Increasing Use of SiC in Electric Vehicles

EVs of the future are being driven by silicon carbide (SiC) technology. As the automobile industry moves towards a more sustainable and efficient future, there is an unprecedented need for innovative, compact power systems capable of handling high-voltage applications while maintaining exceptional thermal performance.

The main inverter, which is the circuit that transforms the high DC voltage from batteries into the AC voltage needed to power the traction electric motor, is one of the primary uses of SiC in EVs. SiC inverters with the same topology offer an efficiency boost of 6–10% when compared to IGBT-based inverters.

New high-performance and long-range EVs will be based on SiC because conventional silicon-based power devices, such as IGBTs, are not able to further reduce their dissipation, weight, and size, and these are all prerequisites for improvements in efficiency.

As electric vehicles (EVs) transition to 800 V and higher systems, silicon carbide (SiC) will play a key role in enabling more efficient drivetrains, superior performance, longer ranges, and faster charging times.

Several electric vehicle manufacturers are taking strategic initiatives to integrate SiC devices into their vehicles. For instance, in August 2023, STMicroelectronics (Switzerland) collaborated with BorgWarner Inc. (U.S.), an automotive and e-mobility supplier, to supply the latest third-generation 750V silicon carbide (SiC) power MOSFETs dice for their proprietary Viper-based power module. This power module is used in BorgWarner’s traction inverter platforms for several current and future Volvo Cars electric vehicles.

Similarly, in October 2022, Jaguar Land Rover (U.K.) partnered with Wolfspeed, Inc. (U.S.) to supply Silicon Carbide semiconductors for next-generation EVs, delivering increased powertrain efficiency and extended driving range. Thus, all such factors are expected to provide opportunities for market growth.

Silicon Carbide Market Analysis: Key Findings

By Type: In 2024, the Black Silicon Carbide Segment to Dominate the Silicon Carbide Market

Based on type, the silicon carbide market is segmented into black silicon carbide and green silicon carbide. In 2024, the black silicon carbide segment is expected to account for the larger share of 72% of the global silicon carbide market. Black silicon carbide contains about 98.5% SiC; its toughness is higher than that of green silicon carbide. This segment’s large market share is attributed to the rising use of black SiC for processing materials with low tensile strength, such as glass, ceramics, stone, refractory materials, cast iron, and non-ferrous metals.

However, the green silicon carbide segment is expected to register the highest CAGR during the forecast period. Green silicon carbide is essentially the same as black silicon carbide, only the raw material and manufacturing process are different, the product is a green translucent body, and its hardness and purity are superior to black silicon carbide. The growth in this segment is driven by the rising demand for green SiC in refractory materials and various abrasive tool manufacturing.

By Forming Method: In 2024, the Sintering Segment to Dominate the Silicon Carbide Market

Based on forming method, the silicon carbide market is segmented into reaction bonding, sintering, recrystallization, and other methods. In 2024, the sintering segment is expected to account for the largest share of 28% of the global silicon carbide market. This segment’s large market share is attributed to its properties, such as high strength, hardness, and thermal conductivity, and the rising use of sintered SiC in applications such as tools, bearings, heat exchangers, combustion nozzles, and aerospace components.

However, the recrystallization segment is expected to register the highest CAGR during the forecast period. This segment’s growth is due to its better thermal conductivity and thermal shock resistance compared with other prime production methods and the rising use of recrystallized SiC in structural materials, porous materials, heat exchangers, electrical functional materials, and composite materials.

By End-Use Industry: In 2024, the Electronics & Semiconductor Segment to Dominate the Silicon Carbide Market

Based on the end-use industry, the silicon carbide market is segmented into automotive, electronics & semiconductor, energy & power, industrial, telecommunication, healthcare, and other end-use industries. In 2024, the electronics & semiconductor segment is expected to account for the largest share of 23% of the global silicon carbide market. This segment’s large market share is attributed to its high voltage resistance, rising production of semiconductor devices using SiC, including Schottky diodes (also called Schottky barrier diodes, or SBDs), junction-gate FETs (or JFETs), and MOSFETs utilized in high-power switching applications.

However, the automotive segment is expected to register the highest CAGR during the forecast period. This segment’s growth is driven by the rising demand for high quality, reliability, and efficiency in the automotive industry, the rising use of SiC to make automotive parts such as brake & engine components and suspension systems, rising demand to create increasingly efficient and high-performance electric vehicles and the potential of SiC to improve vehicle performance and efficiency while reducing environmental impact.

Geographical Analysis

In 2024, Asia-Pacific is expected to account for the largest share of 55% of the silicon carbide market. This region’s large market share is attributed to the rising adoption of advanced ceramics in various end-use industries, ongoing R&D activities focused on enhancing ceramic properties and manufacturing processes, and rising investment in manufacturing SiC components.

Moreover, Asia-Pacific is also expected to register the highest CAGR of 18.4% during the forecast period. This region's rapid growth is primarily driven by the growing automotive industry, rising demand for electric vehicles, and rising efforts by market players to expand their business in the region. For example, in July 2023, Silicon Power Group (US) announced a 10-billion-rupee (USD 121.73 million) investment to establish a facility in India's Odisha state to manufacture 150-millimeter silicon carbide.

Silicon Carbide Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last three to four years. Some of the key players operating in the silicon carbide market are AGSCO Corporation (U.S.), Carborundum Universal Limited (India), Washington Mills Electro Minerals Limited (U.S.), CoorsTek Inc. (U.S.), Entegris, Inc. (U.S.), ESD-SIC bv (Netherlands), Snam Abrasives Pvt. Ltd. (India), Morgan Advanced Materials (U.K.), Saint-Gobain (France), Schunk Group (Germany), Blasch Precision Ceramics, Inc. (U.S.), and Christy Refractories (U.S.).

Silicon Carbide Industry Overview: Latest Developments from Key Industry Players

• In November 2023, Mitsubishi Electric Corporation (Japan) collaborated with Nexperia B.V. (Netherlands) to develop SiC power semiconductors for the power electronics market. Mitsubishi Electric will use its wide-bandgap semiconductor capabilities to create and provide SiC MOSFET chips, which Nexperia will use to manufacture SiC discrete devices.
• In June 2023, STMicroelectronics (Switzerland) and Sanan Optoelectronics (China) established a joint venture to manufacture silicon carbide in Chongqing. The initiative was estimated to cost over $3.2 billion, with approximately $2.4 billion in capital expenditure over the following five years.

Silicon Carbide Market Research Summary

Key questions answered in the silicon carbide market report: