Market Challenges And Opportunities

Global Silicon Carbide Market - Restraints

Increasing use of Gallium nitride as a substitute in place of silicon carbide

Silicon carbide is a brittle material and this poses major challenges during the production of small components that are used in semiconductor devices. This factor is expected to hinder the market growth of silicon carbide. Increasing use of gallium nitride as a substitute in place of silicon carbide in power modules application is projected to hamper the market growth of silicon carbide over the forecast period.

Global Silicon Carbide Market - Drivers

Increasing demand for semiconductor devices

Silicon carbide has a voltage-dependent resistance property, which is important in semiconductors. Increasing demand for semiconductor devices that can be implemented in motor drives, high-temperature sensors, and electro-mechanical computing systems is expected to foster market growth. Hence, the growing demand for semiconductor devices is expected to propel the market growth of silicon carbide.
For instance, in September 2022, SK Siltron, a global maker of semiconductor wafers, announced that it would invest US$ 1.65 bn by 2026 and allocate US$ 0.7 bn to build new wafer manufacturing in Gumi National Industrial Complex.

Increasing production of automobiles

Growth in the automotive sector is projected to propel the market growth of silicon carbide. Increasing production of automobiles around the globe is driving demand for silicon carbide. According to the stats from the European Automobile Manufacturers Association, around 92.8 million motor vehicles were produced globally in 2020 and more than 80 million passenger cars were produced around the world in 2020. Hence, increasing production of automobiles around the globe is majorly driving the market growth of silicon carbide.

Global Silicon Carbide Market - Opportunities

Evolving renewable energy applications of SiC

Silicon carbide devices allow solar power systems to achieve 98% efficiency while dramatically reducing inverter size and total cost of ownership in most cases. These converters can also operate at higher frequencies, greatly reducing the size and cost of the magnetic elements required, thereby reducing the overall system cost. These benefits enable the strategic use of clean and green energy in large-scale solar farms, home solar panels, and electric vehicle chargers. Ecosystem players such as ON Semiconductor and WOLFSPEED INC. offer SiC devices for solar power systems. For instance, WOLFSPEED INC. provides a wide range of SiC MOSFETs and SiC diodes, whereas ON Semiconductor offers SiC discrete MOSFETs and SiC modules

Silicon Carbide Market Report Snapshots