The global silicon carbide power semiconductor market size was valued at USD 806.85 million in 2021. It is projected to reach USD 19,549.09 million by 2030, growing at a CAGR of 42.50% during the forecast period (2022-2030). Silicon carbide (SiC) is a compound semiconductor consisting of silicon and carbide. SiC provides a number of benefits over silicon, including the ability to implement a larger range of p- and n-type control, ten times the breakdown electric field strength, and a band gap that is three times as large. Wide or high bandgap materials, such as aluminum nitride, boron nitride, gallium nitride, silicon carbide, and diamond, have made their way into applications involving high-temperature and power switching. In contrast, conventional materials, such as silicon and gallium arsenide, have been in the semiconductors market since the 1970s. Some of the benefits that electric vehicles bring to the automobile industry include a longer driving range, faster charging times, and improved performance. But they need powerful electronic equipment that can function well even when high temperatures. Hence, power modules are being developed using wide-bandgap SiC technologies.
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Growing Demand for Wireless Communications and Consumer Electronics
The rising usage of consumer electronics devices worldwide is having a positive impact on the development of the market. Today, a wide variety of consumer products, including communication devices (such as smartphones, tablets, smartwatches, and other gadgets), computers (both personal and corporate computers feature PCBs), entertainment systems, and home appliances, require semiconductors. Silicon carbide power semiconductors are required due to the high energy consumption of consumer gadgets like laptops. SiC power semiconductors help such gadgets' energy usage. Global energy consumption rises along with the number of consumer electronics devices, which fuels the need for SiC power semiconductor devices.
SiC semiconductor demand is anticipated to rise as rapid charging becomes a regular feature for tablets and laptops. There are currently relatively few laptop manufacturers offering quick charging options. Additionally, the heat loss will reduce with greater energy because of the chargers' use of SiC power semiconductors. Massive MIMO, in which a sizable number of antennas are installed at the base station, is another technology used by 5G networks. Therefore, 5G will present a huge opportunity for the market under consideration during the projection period.
Shortage of Silicon Wafers and Variable Driving Requirements
Despite SiC-based semiconductors' superior thermal characteristics, which allow them to conduct more thermal energy than silicon-based semiconductors, packing technology is still being developed. The majority of SiC components are currently packaged utilizing silicon-specific techniques, including wire bonding and die bonding. These techniques are nevertheless widely accessible, affordable, and tried and trustworthy. SiC can be packaged using this technique, although it is only useful for low-frequency circuits (tens of kHz). Furthermore, the SiC-based power device cannot reach its full potential when high frequencies are applied due to excessive parasitic capacitance and inductance. Accordingly, broad use of SiC might necessitate updating manufacturing facilities, which is not feasible at the current rate of advancement.
Rising Demand for Battery-Powered Portable Devices
Consumer electronics are powered by lithium-ion technology, the best power source currently developed. But there are several restrictions that these modern batteries face, like increasing the device's battery life. Superior solutions are being developed in laboratories worldwide to create batteries that use less energy. The demand for fast charging is growing as manufacturers boost the battery capacity of their goods. Companies have previously included numerous advanced, power-hungry sensors.
Moreover, component vendors like ARM, Qualcomm, Bosch, etc., have been aggressively releasing new CPUs and chipsets to fulfill the ever-increasing demands of the clients. The updated architecture of the new CPUs offers the enduring and always-ready performance that portable devices have been lacking for years. These developments are also intended to maximize battery life and utility in various circumstances. During the forecast period, market growth is anticipated to be aided by the rising need for energy-efficient battery technologies.
The global silicon carbide power semiconductor market is segmented by end-user.
Based on the end-user industry, the global silicon carbide power semiconductor market is bifurcated into automotive, consumer electronics, IT and telecommunication, military and aerospace, power, industrial, and others.
The automotive sector segment is the most significant market shareholder and is anticipated to expand at a CAGR of 48.80% over the forecast period. The application of silicon carbide (SiC) devices in vehicle powertrains is the subject of research initiatives. However, recent developments have made it gradually a workable solution. For instance, SiC is currently used within the vehicle architectures of Tesla, which employs a quick charging solution. The number of electric vehicles on the road is anticipated to increase as governments continue to promote renewable energy sources and automakers find ways to reduce the cost of producing their vehicles. Continuous advancements in battery technology, motivated by consumer demand for smaller, lighter, safer batteries that charge more quickly and last longer, play a significant role in making that possible. SiC semiconductors are perfect for plug-in hybrid (PHEV) applications and fully electric vehicles, such as onboard chargers and inverters (EVs).
SiC power semiconductors are in high demand as a result of the need for electronic manufacturers to extend the battery life of their products. The demand for low-charging devices is driving market expansion in this industry as consumer electronics manufacturers have been expanding the battery capacity of their products, which include smartphones, wearables, smart home devices, etc. The market for smartphones has recently grown to be very competitive. Fast charging, a standard feature in tablets and laptops, is anticipated to raise the demand for SiC semiconductors.
Si-based power electronics are better suited for power management in information technology applications that operate at voltages below 600 V. Design engineers need high-performance, high-reliability MOSFET devices in order to fulfill the demanding efficiency and power density targets required by contemporary IT and telecom applications. SiC MOSFETs are still in the early stages of market penetration, whereas SiC diodes are employed in high-end power supply for servers and telecom systems. SiC has three times the thermal conductivity and a breakdown field that is ten times greater than power MOSFETs. The server power supplies have been pushed to achieve ever-higher levels of efficiency with little heat loss. Today's hyperscale data centers use more than 30KW server racks and extremely advanced cooling management systems to fuel the digital economy, big data, IoT, and artificial intelligence.
The global silicon carbide power semiconductor market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
Asia-Pacific Dominates the Global Market
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Asia-Pacific is the most significant shareholder in the global silicon carbide power semiconductor market and is expected to grow at a CAGR of 43.40% during the forecast period. Players like SK Siltron, a top-five worldwide wafer maker and a South Korean producer of semiconductor silicon wafers with annual sales of KRW 1.542 trillion, 17% of which go toward global silicon wafer sales, are well-represented in the region. The SK Siltron also fully acquired DuPont's Silicon Carbide Wafer (SiC Wafer) division in March 2020. It is expected that SK Siltron's output of SiC wafers will increase as a result of the acquisition, further confirming the company's commitment to further investment in related industries. To keep up with consumer demand, manufacturers of power semiconductors are adopting new materials, such as silicon carbide (SiC), which is capable of operating at higher voltages, temperatures, and frequencies while also providing increased efficiency and durability. These acquisitions and mergers in the region are anticipated to drive market growth.
North America is anticipated to increase at a CAGR of 41.80%, generating USD 3,898.64 million during the forecast period. The new SiC traction inverters were developed internally by Karma's Powertrain Power Electronics team in conjunction with the University of Arkansas' Power Electronic System Laboratory (P.E.S.L.A.). According to the business, the new inverters are suitable for various industries, including automotive, aviation, rail, agricultural, and industrial applications. The United States has also led the way in using cutting-edge technology for military purposes. The nation spends the most on its military worldwide, which is a lot more money and makes it a lucrative end-user industry for the market.
The European continent is a significant driver and adopter of contemporary technology and is home to some of the most important tech centers worldwide. The market is expanding due to the rising adoption of advanced technologies and semiconductors across numerous sectors. Many semiconductor-focused businesses have improved because of the growing assistance of regional government for research initiatives and an environment of advanced technological connection. The German government aimed to increase the number of research organizations to 20,000 and the number of innovative organizations to 140,000 by 2020.
Latin America, the Middle East, and Africa are studied under the heading of the rest of the globe. Due to developments in the local military and telecom industries, the market is anticipated to grow progressively in these regions throughout the projected period. Solar energy is used in the Gulf region to help with its energy needs. The United Arab Emirates intends to boost its capacity for producing electricity by about 21 G.W., with solar energy expected to account for 26.1% of the total extra generation capacity. Therefore, it is anticipated that all of the advancements in the United Arab Emirates, Saudi Arabia, and Egypt will present chances for the market under consideration over the forecast period.
The global silicon carbide power semiconductor market’s major key players are Infineon Technologies AG, Texas Instruments Inc., ST Microelectronics NV, NXP semiconductor, ON Semiconductor Corporation, Renesas electronic corporation, Broadcom Limited, Hitachi Power Semiconductor Device Ltd, Toshiba Corporation, Mitsubishi Electric Corporation, Fuji Electric Co. Ltd, Semikron International, and Cree Inc.