Product Code: 68929
The global silicon carbide market is projected to register a CAGR of over 16% during the forecast period (2021-2026).
The market was negatively impacted due to COVID-19 in 2020. The disruption in the global supply chain, coupled with reduced demand from various end-user industries, has negatively impacted the demand for silicon carbide. The global automotive industry witnessed a decline in sales in 2020, which was approximately 78 million units, much below 90.4 million units sold in 2019. Additionally, reduced demand from other industries such as aerospace and defense, electronics industry, etc., owing to work stoppages, supply chain disruptions, and labor shortages, has impacted the demand for silicon carbide. However, the condition is expected to recover in 2021, which will restore the growth trajectory of the market studied over the forecast period.
- Over the medium term, major factors driving the market studied are strong demand from the steel manufacturing & steel processing industry and rapidly growing demand from the electronics industry.
- On the flip side, high material and fabrication costs and the negative impact of the COVID-19 pandemic are expected to hinder the growth of the market.
- The rising penetration of electric vehicles is expected to offer various opportunities for the growth of the market.
- By application, the electronics and semiconductor segment is expected to dominate the market owing to the properties offered by silicon carbide, such as outstanding power switching frequency, performance, and power rating compared to silicon.
- Asia-Pacific region dominated the market, globally, with the largest consumption from countries such as China, India, and Japan.
Key Market Trends
Increasing Usage in Electronics and Semiconductor Segment
- Silicon carbide is a semiconductor containing silicon and carbon. Grains of silicon carbide can be molded together to form very hard ceramics that are used in applications requiring high endurance.
- Silicon carbide is widely used in manufacturing semiconductors due to its properties, like the ability to work at high temperature or high voltage, or both and reduced form factor.
- The declining semiconductor sector registered positive growth in 2020, due to robust demand from data centers, consumer electronics manufacturing, as employees of many sectors preferred work from home options throughout 2020. According to the Semiconductor Industry Association (SIA), the global semiconductor industry sales stood at USD 439.0 billion in 2020, registering an increase of 6.5% compared to the 2019 total of USD 412.3 billion. Furthermore, global sales for the month of December 2020 were USD 39.2 billion, an increase of 8.3% compared to December 2019 and 2.0% less than the total from November 2020.
- In North America, especially in the United States, the electronics industry is expected to grow at a moderate rate. An increase in the demand for new technological products is expected to help the market expansion in the future.
- The German electronic industry is Europe's biggest and the fifth-largest, globally. The electrical and electronics industry accounted for 11% of the total German industrial production and about 3% of the country's gross domestic product (GDP).
- The United Kingdom is the largest European market for high-end consumer electronics products, with about 18,000 UK-based electronics companies in the market.
- Furthermore, the demand for smart consumer electronics is growing exponentially, globally, creating opportunities for the silicon carbide market to grow.
- Due to all the factors mentioned above for silicon carbide, its market is expected to grow rapidly over the forecast period.
Asia Pacific to Dominate the Market
- Asia Pacific is expected to dominate the market for silicon carbide during the forecast period. In countries, like China, India, and Japan, due to the increasing demand for advance and upgraded technology across various sectors, including electronics, automotive, and defense, the demand for silicon carbide has been increasing in the region.
- The region is dominating the semiconductor market, which is supported by government policies owing to which the demand for silicon carbide is projected to increase further.
- China is one of the major consumers of semiconductors, and it is trying to ramp up semiconductor production. In 2019, Beijing, the capital of China, highlighted semiconductors as a key area of the Made in China 2025 plan, a government initiative that aimed to boost the production of higher-value products. China is aiming to produce 70% of the semiconductors it uses by 2025.
- According to the reports of the Department of Electronics and Information Technology, over 2,000 semiconductor chips are designed in India every year. The increasing production of semiconductors may propel the silicon carbide market in the future.
- The India Electronics and Semiconductor Association (IESA) signed an MoU with the Singapore Semiconductor Industry Association (SSIA) to establish and develop trade and technical cooperation between the electronics and semiconductor industries of both countries. This is expected to result in the development of various breakthrough semiconductor manufacturing technologies that may further increase the scope for the consumption of silicon carbide in semiconductor manufacturing in India.
- The government launched new schemes to promote electronics production in India, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), and the scheme for modified Electronics Manufacturing Clusters (EMC 2.0) alongside Production Linked Incentive (PLI). According to the PLI scheme, the government is likely to offer incentives as manufacturers increase production in India, with USD 5.5 billion available over five years. This is likely to boost the production of electronics in the country.
- Furthermore, the growing steel industry in countries, like India and China, is anticipated to drive the market of silicon carbide as it is used as a deoxidizing agent in the steel industry and is a major raw material in refractory production.
- The demand for silicon carbide power modules, like inverters and MOSFET, is increasing in electric vehicles as power inverters play a major role in efficient energy management in electric vehicles. Usage of MOSFET can save energy losses and result in increased electric vehicle performance.
- Moreover, in May 2020, China announced a 6.6% increase in its defense budget to about USD 178.2 billion. The country's recent plans are to build a fully modern military on par with the United States by 2027. The country has been investing in aircraft carriers and stealth aircraft in the past few years. Moreover, it plans to increase the number of aircraft carriers to about five to six, worldwide, including Beijing's backyard, the South China Sea (SCS).
- The factors mentioned above, coupled with government support, contribute to the increasing demand for silicon carbide during the forecast period.
The silicon carbide market is fragmented, with players accounting for a marginal share of the market. Some key players in the market include Saint-Gobain, AGSCO Corp, ESD-SIC BV, CUMI EMD, and Entegris.
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
TABLE OF CONTENTS
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Drivers
- 4.1.1 Strong Demand from Steel Manufacturing and Steel Processing Industry
- 4.1.2 Rapidly Growing Demand from Electronics Industry
- 4.2 Restraints
- 4.2.1 High Material and Fabrication Cost
- 4.2.2 Negative Impact of COVID-19 Pandemic
- 4.3 Industry Value Chain Analysis
- 4.4 Industry Attractiveness - Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Consumers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products and Services
- 4.4.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION (Market Size by Revenue)
- 5.1 By Product
- 5.1.1 Green SiC
- 5.1.2 Black SiC
- 5.1.3 Other Products
- 5.2 By Application
- 5.2.1 Steel Manufacturing
- 5.2.2 Energy
- 5.2.3 Automotive
- 5.2.4 Aerospace and Defense
- 5.2.5 Electronics and Semiconductor
- 5.2.6 Other Applications
- 5.3 By Geography
- 5.3.1 Asia Pacific
- 22.214.171.124 China
- 126.96.36.199 India
- 188.8.131.52 Japan
- 184.108.40.206 South Korea
- 220.127.116.11 Rest of Asia Pacific
- 5.3.2 North America
- 18.104.22.168 United States
- 22.214.171.124 Canada
- 126.96.36.199 Mexico
- 5.3.3 Europe
- 188.8.131.52 Germany
- 184.108.40.206 United Kingdom
- 220.127.116.11 Italy
- 18.104.22.168 France
- 22.214.171.124 Rest of Europe
- 5.3.4 South America
- 126.96.36.199 Brazil
- 188.8.131.52 Argentina
- 184.108.40.206 Rest of South America
- 5.3.5 Middle-East and Africa
- 220.127.116.11 Saudi Arabia
- 18.104.22.168 South Africa
- 22.214.171.124 Rest of Middle-East and Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Share (%)**/Ranking Analysis
- 6.3 Strategies Adopted by Leading Players
- 6.4 Company Profiles
- 6.4.1 AGSCO Corp
- 6.4.2 Cree Inc.
- 6.4.3 CUMI EMD
- 6.4.4 Entegris
- 6.4.5 ESD-SIC bv
- 6.4.6 ESK-SIC GmbH
- 6.4.7 Fuji Electric Co. Ltd
- 6.4.8 GE (GENERAL ELECTRIC)
- 6.4.9 Hongwu International Group Ltd
- 6.4.10 Infineon Technologies AG
- 6.4.11 KYOCERA Corporation
- 6.4.12 Microsemi
- 6.4.13 Renesas Electronics Corporation
- 6.4.14 ROHM CO. LTD
- 6.4.15 Saint-Gobain
- 6.4.16 SNAM Group
- 6.4.17 STMicroelectronics
- 6.4.18 TOSHIBA ELECTRONIC DEVICES & STORAGE CORPORATION
- 6.4.19 UnitedSiC
- 6.4.20 WASHINGTON MILLS
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Rising Penetration of Electric Vehicles
- 7.2 Other Opportunities