Silicon Carbide Market Analysis

Silicon Carbide Market Analysis

Based on type, the silicon carbide market is segmented into black SiC and green SiC. The black SiC segment held a share of around 50% in 2022 and is expected to grow at a lucrative pace by 2032. The black SiC segment is characterized by its black color and hardness & abrasive properties. Black silicon carbide is often used in abrasive applications and is widely used for grinding, cutting & polishing in the metalworking, automotive, aerospace, and construction industries. Black SiC also plays an important role in ensuring the quality, durability, and versatility of cutting & grinding applications. These factors contribute to the overall market growth.
 

Based on application, the market is segmented into automotive, energy & power, industrial aerospace & defense, electronics & optoelectronics, and steel & metallurgy. The electronics & optoelectronics segment held a dominant silicon carbide market share with a market size of over 200 million in 2022. Silicon carbide has emerged as the material of choice in electronic applications due to its excellent electrical properties. SiC-based power semiconductors, such as diodes and transistors, have higher efficiency, faster switching, and lower power loss than their silicon-based counterparts. The rising demand for electronic devices in various industries, such as automobiles, renewable energy, and commercial electronics, is driving the use of SiC electronics. Furthermore, the transition to renewable energy is also increasing the demand for silicon carbide in photovoltaic applications. SiC is used in photovoltaic (PV) inverters that convert solar energy into usable electricity. SiC-based power electronics in photovoltaic inverters provide higher performance & reliability as well as improve solar power conversion & integration. The rising deployment of solar & wind power systems around the world is driving the demand for SiC-based electronics in this segment.
 

Asia Pacific is the dominant region in the global silicon carbide market with a share of over 30% in 2022. The region has the largest silicon carbide industry in the world and has witnessed substantial growth in recent years. It is expected to continue the growth trajectory over the forecast period. The increasing demand for SiC-based electronic devices in the regional automotive segment can be attributed to their role in enhancing the performance and range of electric vehicles, which in turn, is driving the SiC market growth in Asia Pacific.
 

Rising market shares, the demand for energy solutions, and government initiatives to promote electric & renewable energy vehicles are also leading to market growth. The Asia Pacific region is home to some of the world's largest auto industries including China, Japan, and South Korea. The growing use of Electric Vehicles (EVs), renewable energy, and other energy-efficient technologies in the region can be attributed to government incentives & efforts to reduce pollution. These incentives/programs include financial support, financial assistance, and policies to encourage the use of SiC in electrical energy. Government support has created a favorable environment for the silicon carbide industry growth in the region.