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Press Release: Silicon Carbide Market to Surpass US$ 11,965.9 Million By 2027
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Silicon carbide (SIC) is a chemical compound that is also known as carborundum. Basically, it is a compound of silica and carbon. It is capable of delivering high power switching applications.
The global silicon carbide market is projected to surpass US$ 11,965.9 million by the end of 2027, in terms of revenue, growing at CAGR of 15.3% during the forecast period (2020 to 2027).
Drivers
Escalating demand for semiconductors devices is propelling the market growth of the silicon carbide. 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 again 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 2019 and more than 80 million passenger cars were produced around the world in 2017. Hence, increasing production of automobiles around the globe is majorly driving the market growth of the silicon carbide.
Regionally, Asia-pacific dominated the global silicon carbide market in 2019, reporting 55.3% market share in terms of revenue, followed by Europe and North America, respectively.
Figure 1. Global Silicon Carbide Market, Revenue Share (%), By Region, 2019
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.
Market Opportunities
The growing popularity of black silicon carbide that is gaining huge demand from automotive and steel industries is expected to serve major opportunities. Black silicon carbide is crystalline in nature with and is widely used across grinding and polishing, abrasives, wear-resistant, and refractory products due to resistance to oxidation and thermal shock and high-temperature strength property. Moreover, black silicon carbide is cost-effective as compared to green silicon carbide.
Increasing application of the product in the aviation and aerospace industry is projected to bring new market opportunities over the forecast period. Silicon carbide is a suitable product for developing lightweight structural components of aircraft. For instance, silicon carbide is used in conjunction with titanium to produce titanium matrix composites that are highly corrosion-resistant, are comparable to stiffness and tensile strength of aerospace metals. Moreover, they are 40% to 70% lighter than other materials used in the aerospace application.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2019 | Market Size in 2019: | US$ 3,821.4 Mn |
| Historical Data for: | 2017 to 2019 | Forecast Period: | 2020 to 2027 |
| Forecast Period 2020 to 2027 CAGR: | 15.3% | 2027 Value Projection: | US$ 11,965.9 Mn |
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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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Figure 2. Global Silicon Carbide Market – Opportunity Analysis
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. 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 3. Global Silicon Carbide Market, Revenue Share (%), By Product Type, in 2019
On the basis of product type, black SiC dominated the global silicon carbide market in 2019 with around 57.0% of market share in terms of revenue, followed by green SiC and others, respectively.
Figure 4. Global Silicon Carbide Market – Value Chain Analysis
Global Silicon Carbide Market - Impact of Coronavirus (Covid-19) Pandemic
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.
Competitive Section
Key players are operating in the global silicon carbide market are 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.
Few Recent Developments
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 2019. The growth in the Indian steel sector has been driven by the domestic availability of raw materials such as iron ore and cost-effective labor.
However, the high cost of the silicon carbide-based electronic devices due to low manufacturing volume and yield is affecting the demand for the product. This factor is expected to restrict the market growth of the silicon carbide over the forecast timeframe.
Key features of the study:
Detailed Segmentation:
“*” marked represents similar segmentation in other categories in the respective.
*Browse 50 market data tables* and 45 figures* on "Global Silicon Carbide Market” – global forecast to 2027
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