Silicon carbide is a hard refractory material of silicon and carbon. It is also known as carborundum. It occurs in nature as the extremely rare mineral moissanite. The silicon carbide market is segmented by product, application, and geography. By product, the market is segmented into green SiC, black SiC, and other products.
Global silicon carbide market was valued at US$ 8205.0 Million in 2021, in terms of revenue, exhibiting a CAGR of 6.67% during the forecast period (2022 to 2030).
Drivers
Silicon carbide has a voltage-dependent resistance property, which is important in semiconductors. Increasing demand for semiconductor devices which can be implemented in motor drives, high-temperature sensors, and electro-mechanical computing systems is expected to foster the market growth. Hence, the growing demand for semiconductor devices is expected to propel the market growth of the silicon carbide.
Growth in the automotive sector is projected to propel the market growth of the 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 the silicon carbide.
Key players functioning in the market are adopting new strategies in order to mitigate the impact of the Covid-19 pandemic. Mining industries in China have returned to normal operations in Q3 of 2020 as enterprises indicated towards the returning of their workers soon. Moreover, iron ore producers are known to be the least impacted. Steel and iron ore industry globally has regained strength which is expected to lower the impact of Covid-19 pandemic on silicon carbide industry
Figure 1. Global Silicon Carbide Market Value Share (%), By Region, 2021
Market Restraints
Silicon carbide is a brittle material and this poses major challenges during the production of small components that are used in the 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 the silicon carbide over the forecast period.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2021 | Market Size in 2021: | US$ 8205.0 Mn |
| Historical Data for: | 2017-2020 | Estimated Year: | 2022 |
| Forecast Period 2022 to 2030 CAGR: | 6.67 % | Forecast Period: | 2022-2030 |
| Geographies covered: |
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| Companies covered: |
AGSCO Corporation, Carborundum Universal Ltd., Entegris Inc. ESD-SIC b.v., ESK-SIC GmbH, Gaddis Engineered Materials, Grindwell Norton Ltd., Norstel AB, Saint-Gobain Ceramics Materials GmbH, and Snam Abrasives Pvt. Ltd |
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| Restraints & Challenges: |
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Market Trends
Capacity expansion plan by key manufacturers to cater to growing needs around the globe is one of the emerging trends in the market. For instance, in September 2019, Cree, Inc. a manufacturer of silicon carbide (SiC) technology, announced plans to establish a silicon carbide corridor on the East Coast of the United States with the creation of the largest silicon carbide fabrication facility. Such initiatives by key manufacturers will favor the market growth of the silicon carbide over the forecast period.
Strategic alliance such as acquisition and merger by key players is one of the current trends in the industry. For instance, in March 2020, SK Siltron, a global producer of semiconductor wafers, announced that it has completed the acquisition of DuPont's Silicon Carbide Wafer (SiC Wafer) unit, producer of semiconductor silicon wafers. The acquisition was valued at US$ 450 million. The goal of this acquisition is to meet the demand from consumers and governments for sustainable energy and environmental solutions.
Figure 2. Global Silicon Carbide Market Value Share (%), By Product Type, 2021
Recent Developments
Competitive Section
Major players operating in the global silicon carbide market include AGSCO Corporation, Carborundum Universal Ltd., Entegris Inc. ESD-SIC b.v., ESK-SIC GmbH, Gaddis Engineered Materials, Grindwell Norton Ltd., Norstel AB, Saint-Gobain Ceramics Materials GmbH, and Snam Abrasives Pvt. Ltd.
Silicon Carbide is typically used for finishing cast iron, non-ferrous metals, stone, lather, and rubber the sharp cutting characteristics of black silicon carbide is anticipated to give an uptick to its demand during the projection period. High thermal conductivity, and energy efficiency of silicon carbide drives the global silicon carbide market to a substantial growth during the forecast period.
Market Dynamics
Robust growth in the steel industry due to the increasing production of steel is a prime factor driving the market growth of the silicon carbide. Silicon carbide (SiC) is used as a deoxidizing agent in steel production. According to the India Brand Equity Foundation, India was the world’s second-largest steel producer with production standing at 111.2 million tons (MT) in 2020. As silicon carbide acts as a deoxidizing agent in steel production, its demand is increasing day by day in steel producing industry.
Increasing global demand for EVs due rapid adoption of zero-emission technologies is expected to drive the demand for silicon carbide. According to Global EV Outlook, 2021 by the International Energy Agency (IEA), registrations of electric cars increased by 41% in 2020, and around 3 million electric cars were sold globally. The rapid adoption of EV vehicles over fuel-based vehicles can play an important role in achieving the target of limiting the global temperature rise to 1.5°C, above pre-industrial times as decided in the Paris Agreement by the United Nations (UN).
However, the adoption of EVs must be supplemented with increasing investments in the construction of EV charging stations. The government of America has allocated capital of US$ 15 billion to build 500,000 EV charging stations. Similarly, on 10 April 2020, the Government of China invested US$ 1.42 billion (RMB 10 billion) to expand the charging network for EVs by 50% within the country. Around 600,000 charging points were established in 2020. Silicon carbide is used in EV charging infrastructure to deliver higher voltages and a higher level of power as compared to a silicon-based charging infrastructure. A SiC fast DC charging solution can deliver 33% more power in 25% of the area, and with 50% lower losses.
Key features of the study:
Detailed Segmentation:
“*” marked represents similar segmentation in other categories in the respective
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