ID: MRFR/SEM/4980-CR | December 2018 | Region: Global | 100 pages
SiC Power Semiconductor Market Overview
A variety of compounds SiC Power Semiconductor or Sic is highly favoured in different industries due to multiple performance benefits. Higher critical electrical field alongside superior thermal conductivity and operating temperature of high level are few of the properties which differentiate its performance across industry frameworks. An improved power management framework in hybrid electric vehicles is the need of the hour; this eventually drives the market development as well. However, the higher cost of the wafer which is related to the creation of SiC Power Semiconductor is one obstruction that may play foul in the market development process. As per the recent prediction, SiC Power Semiconductor Market might experience a growth at a CAGR of 26.3% which is equivalent to the valuation of USD 1,359.2 Mn by the end of the forecast period which is 2018-2023. This report would provide a detailed analysis of SiC Power Semiconductor Market size growth current and future trends and so on.
Impact of Covid-19 on the market
The recent outbreak of covid 19 has impacted economies and industries across countries on lockdown stages, travel restrictions and different business shutdowns. Naturally, the impact was on the overall semiconductor industry as well. It affected both the demand and supply chain modules. Shutdowns and closure of semiconductor plants aggravated the downward supply train especially during 2019. The reflection of these effects is observed in the demand for Silicon Carbide (SiC) Power Semiconductor.
However, it is highly anticipated that SiC Power Semiconductor Market would go up considerably between the forecast period of 2021-2023.
The enhanced material capability caused by the increasing R&D market is believed to be the main drive behind the SiC Power Semiconductor Market. The increasing advantages of the automotive industry such as meeting customer expectations, performance and charge time, increasing range provide a huge drive in the market.
The increasing demand for the electronic vehicle is the reason behind the growth opportunity of SiC Power Semiconductor market. For example, the number of electronic cars has been increased on road by 41% in 2020 owing to the falling price and increasing variety.
The lack of a skilled workforce is also one of the restraints that might slow down the growth of the SiC Power Semiconductor Market.
Additionally, there are issues related to the designing of SiC MOSFETs, the limitation in infrastructure alongside rigid rules and regulation are also some of the potential restraints which might be hampering the overall growth prospect of the Global SiC Power Semiconductor Market.
One of the major challenges to the development of SiC-based power devices is the high cost of Wafer. Though the silicon semiconductors are expected to be replaced by SiC Power Semiconductor, the cost of SiC Power Semiconductor is on the higher side. The two primary precursors to process SiC layers in chips, IGBTs & MOSFETs are high-purity SiC powder and high-purity silane (SiH4). Indeed, the availability of high purity SiC powder is limited due to fewer suppliers and high costs.
As per the recent prediction, Silicon Carbide Power Semiconductor Market might experience a growth at a CAGR of 26.3% which is equivalent to the valuation of USD 1,359.2 Mn by the end of the forecast period which is 2018-2023. The revamp in R & D activities will definitely drive for superior material capabilities and eventually play a pivotal role in the SiC Power Semiconductor Market growth. Additionally, With Electric car registration increased by 41% in 2020, there would be ample growth opportunities in the SiC Power Semiconductor Market.
The Silicon Carbide (SiC) Power Semiconductor Market size is segregated based on end-users, geography and wafer size. And, the market can be expected to grow in the forecast period.
The market is somewhat bifurcated SiC Schottky Diode, SiC Hybrid Modules, SiC MOSFET, and others based on a variation of the product. The market is dominated by The SiC Schottky diodes segment with largest market that is shared.
If we go by the application, the SiC Power Semiconductor Market is divided into different segments such as industrial, Aerospace, Medical and so on. Though, the largest share is held by the automotive sector primarily because of the huge demand for the power electronics among automotive industries. In short, with better reliability and superior efficiency, the capability to function at elevated temperatures, high voltage capability, and reduced size SiC becomes ideal for the application in electric motor vehicle industry. This is one of the reasons behind the growth of the market as well. Applications:
The expected growth rate of the automotive industry is a little higher than 30.2% for the forecast period. With the adoption rate of SiC Power Semiconductor in all-electric vehicles (xEV) and plug-in hybrid (PHEV) increasing, the growth of this segment becomes inevitable. Although most of the power electronics in vehicles are silicon-based at present, improvement in efficiency level and power density became the need of the hour with the latest EV Designs. And SiC Power Semiconductor is slowly but steadily becoming the preferred material in this aspect for sure!
By Wafer Size
It is expected for the 4-inch segment to grow at higher CAGR of 46.5% during forecast period. These 4-inch silicon wafers are usually used in fields of research because of their better reactivity when compared to nano/micron-sized particles. Their growth is expected to be quite good during the period of forecast. The growing usage and demand for the 4-inch silicon carbide wafers in different products like high-power devices, optoelectronics, high-frequency power devices and high-temperature devices. IGBTs, MOSFETs and the other semiconductor materials are responsible for the growth in the SiC Power Semiconductor Market.
If we go by the bifurcation of Silicon Carbide (SiC) Power Semiconductor Market, it consists of Europe, North America, Asia- Pacific, Middle East, LATAM, and Africa.
Although, the SiC Power Semiconductor Market which is going to dominate the most is the market in the APAC region and that too with almost 34.5% of the share during the forecast period. Usually, the global market for semiconductor is dominated by APAC. Hence, there are high chances that they will dominate the global market for SiC Power Semiconductor as well. Additionally, government policies are also in sync with the scope of growth for the SiC Power Semiconductor Market. APAC also happens to be the biggest market of consumer electronics with the presence of both producer and consumer. Therefore, the demand and supply ratio is already in favour of the region as well. To be precise, the demand for wide bandgap IGBT semiconductors will be the biggest driver for the market. As far as, EV and Automotive markets are concerned, APAC remains in the first position.
With China being the primary production country of electric vehicles already, the demand for sic semiconductors will also grow eventually. This will impact the overall market share of the APAC region. Moreover, adequate infrastructure and the ever-growing production for electric vehicles supported by industry-friendly policy and regulations in several countries like India, South Korea and China will also drive the overall production scope of silicon carbide semiconductor in the APAC region.
With the adoption of new strategies related to Technology launches, acquisitions, and R&D activities, the key players are leaving no stone unturned to make the market for Silicon Carbide Power Semiconductor. This market is expected to be dominated by companies like Microsemi Corporation, Power Integrations, Infineon Technologies AG, General Electric, STMicroelectronics, Fairchild Semiconductor, Toshiba Corporation, NXP Semiconductors, Tokyo Electron, Renesas Electronics Corporation, ROHM, Cree and so on.
Also, it's been pointed out that long-term agreements cover almost more than US$900 million for the 2019-2020 period. Some of the organizations that have gone for long-term wafer supply agreements are STMicroelectronics, Infineon Technologies, ON Semiconductor and so on.
Moreover, in the year 2020, there was already a deal made amongst ON Semiconductor, Infineon and GTAT, with GTAT being a unique boule-supplier. There have been multiple reports of remarkable announcements and encouraging investments by Chinese players as well.
Recent developments would include the introduction of new automotive (AECQ101) and industrial-grade next-generation 1200V silicon carbide (SiC) diodes by ON Semiconductor of Phoenix, Arizona in April 2021.
Additionally, we observed the introduction of a new line of 650 V silicon carbide (SiC) MOSFET devices by ON Semiconductor in February 2021. This would be a great help for applications that demand high power density, efficiency, and reliability.
Frequently Asked Questions (FAQ) :
The SiC power semiconductor market is predicted to grow at a 26.3% CAGR between 2018- 2023.
The SiC power semiconductor market is predicted to reach USD 1,359.2 million by 2023.
The Asia Pacific region will dominate the SiC power semiconductor market.
Key players profiled in the SiC power semiconductor market report include Infineon Technologies AG, ON Semiconductor, Cree Inc., STMicroelectronics NV, and Mitsubishi Electric Corporation, among others.
Major end users of SiC power semiconductor market include electronics, industrial, automotive, energy and power, telecommunication, and others.
Global SiC Power Semiconductor Market: Report Summary
Market Research Future (MRFR) assumes striking growth of 26.3% CAGR in the global SiC power semiconductor market over the forecast period of 2018-2023. The global SiC power semiconductor market was valued at USD 345.2 Mn in 2017 and is due to reach USD 1,359.2 Mn by the end of 2023.
Silicon carbide (SiC) devices are promising components for application in high performance power system and offer various advantages over traditional silicon technology devices which have limited performance owing to inherent material characteristics. SiC is being increasingly preferred over Si technology devices since they offer the advantages of higher critical electrical field, higher thermal conductivity, higher operating temperature, and higher current density, allowing significant performance improvement which is fostering the growth of the market.
The rise in the installation of solar photovoltaic panels for generation of electricity induces high demand for SiC power semiconductor devices since they are a propitious solution to the energy requirements of photovoltaic panels. Fast switching speed, low switching loss, high voltage blocking capability, and high operating temperatures help provide multiple performance benefits and achieve maximum power. The governments in developing countries are investing heavily in solar power projects to solve the longstanding energy problems being faced by developing countries which creates a conducive environment for the growth of the global SiC power semiconductor market.
Design complexity and high costs associated with SiC MOSFET remains a significant hurdle to the growth of the global SiC power semiconductor market. Being a relatively new technology, SiC semiconductor devices have intricate design which involves tedious designing techniques. Lack of expertise for complex designing along with high cost of fabrication and bulky packaging is a pressing challenge for market growth.
The advent of 5G mobile communications is expected to create lucrative opportunities for the growth of the global SiC power semiconductor market. Mobile communications rely on digital infrastructure entirely, and silicon carbide is used in the production of semiconductors for 5G communication. It is expected that by 2020 5G will be deployed across various developed and developing nations which will augur the growth of the market.
The global SiC power semiconductor market has been segmented on the basis of device, wafer size, application, and end user.
Based on device, the global SiC power semiconductor market has been segmented into SiC discrete devices and SiC bare die devices. The SiC discrete devices segment includes MOSFET, Diode, and Module. The SiC discrete devices segment accounted for the largest share in 2017 and is anticipated to grow at a CAGR of 25.2% over the forecast period. The segment will attain a valuation of USD 838.5 Mn and retain its dominance over the forecast period. The SiC bare die devices segment is expected to be the fastest growing segment at a CAGR of 28.2% over the forecast period.
On the basis of wafer size, the global SiC power semiconductor market has been segmented into 2-inch, 4-inch, and 6-inch and above. The 4-inch segment held the largest share of the market in 2017 and attained a valuation of USD 157.1 Mn. The 4-inch segment is expected to maintain its lead over the forecast period while the 6-inch and above segment are expected to grow at the fastest rate of 28.6% over the forecast period. The 6-inch and above wafers are gaining traction over the others owing to the cost advantage it provides that has prompted manufacturers to shift to 6-inch wafers.
Application-wise segmentation of global SiC power semiconductor market includes power grids, RF devices & cellular base stations, railway traction, industrial motor drives, EV motors, power supply & inverter, and others. The power supply and inverter segment accounted for the largest share of the global market in 2017 and is expected to enjoy the pole position over the forecast period. SiC-based semiconductors find heavy application in energy storage, solar inverters, and hybrid electric vehicles since they help in reduction of battery load and improve fuel efficiency. In EV motors, conventional silicon-insulated gate bipolar transistor (SiIGBT) traction inverter are being progressively replaced with SiC-based semiconductors which have driven the EV motors segment. The EV motors segment is projected to be the fastest growing application segment over the forecast period with a CAGR of 30.1%.
On the basis of end user, the global SiC power semiconductor market has been segmented into telecommunication, electronics, automotive, energy & power, industrial, and others. The energy & power segment held the largest share of the global market in 2017 with a valuation of USD 71.5 Mn. The automotive segment is expected to be the fastest growing segment owing to heightened use of SiC power devices in automotive parts to improve performance and comply with regulatory emission norms. The automotive segment is anticipated to capture a CAGR of 30.3% over the forecast period.
North America, Europe, Asia Pacific, and the Rest of the World (RoW) are the key markets for SiC power semiconductor market.
Asia Pacific is the largest market and stood at USD 139.1 Mn in 2017. The launch of various energy efficient projects in the region is a major driver of the APAC market for SiC power semiconductor. A booming population and increasing urbanization in the region has prompted the government to undertake various solar power initiatives which have further accelerated the market growth. Increase in demand for SiC power semiconductors in from countries such as China, India, and Japan creates a conducive environment for the growth of the SiC power semiconductors in APAC. Development of EV charging in China is also fueling the growth of the market. The APAC market is expected to grow at a CAGR of 24.9% over the forecast period while Europe is anticipated to emerge as the fastest growing market for SiC power semiconductor over the forecast period.
The Europe market for SiC power semiconductors is expected to showcase expeditious growth which can be attributed to the prolific growth of the automotive industry in the region. The Europe market is projected to capture a CAGR of 28.1% over the forecast period.
Mitsubishi Electric Corporation, STMicroelectronics NV, ON Semiconductor, Cree Inc., Infineon Technologies AG, and others are the notable players operating in the global SiC power semiconductor market.
1.1 Competitive Overview
The silicon carbide (SiC) power semiconductor market has witnessed an intense competition among the top manufacturers of SiC diodes and transistors. The growth of these vendors majorly depends upon the market conditions, government support, and industry development. Thus, it becomes necessary for the vendors to provide energy efficient and cost-effective components to maintain their market position and gain a competitive advantage. Thus, the vendors are constantly focusing on research & development and product expansion strategies to maintain their stronghold on the market.
Infineon Technologies AG, Cree Inc., ROHM Semiconductor Co. Ltd, STMicroelectronics, Fuji Electric Co. Ltd, ON Semiconductor, General Electric Co., Renesas Electronics Corporation, Microchip Technology Inc., and Mitsubishi Electric Corporation are among the major players holding a prominent share in the SiC power semiconductor market. These players continuously focus on developing SiC wafers that are highly reliable and efficient to minimize the power loss in the network and stay competitive in the market and expand their reach to the customers. Although international players are dominating the market, regional and foreign players with small market shares also have a prominent presence here. Apart from technological innovations and development of existing product portfolio, the major players have entered into various partnerships and strategic alliances with local companies to expand their presence to various geographies.
Infineon Technologies AG dominates the SiC power semiconductor market holding a share of 10.29%. Over the past few years, the company has launched several products, integrated with advanced technologies. The company is majorly focused on the automotive sector and provides SiC power semiconductors for driverless vehicles. Moreover, the company has gained a competitive advantage by partnerships and collaborations with players from various industries.
ON Semiconductor is also one of the prominent players in the SiC power semiconductor market holding 9.05% of the total market. The company focuses on developing high-performance products and integrating them with its widespread technology portfolio. In addition to this, the company has successfully maintained strategic partnerships with well-known semiconductor companies, resulting in the expansion of its market to developing economies.
Mitsubishi Electric Corporation holds a share of 7.18% in the SiC power semiconductor market. The company’s broad portfolio of innovative and high-quality products has enabled it to develop power devices for wide range of applications such as home electronics, industrial machinery, and railway trains. The company is focusing on tapping various industry verticals across geographies to expand its market reach.
STMicroelectronics holds a market share of 5.76%. The company’s product portfolio of electronic applications caters to industries including telecommunication, energy and power, and automotive, among others. The company focuses on integrating emerging technologies such as Internet of Things (IoT) and smart technology in their existing portfolio of semiconductor devices to gain a competitive edge in SiC power semiconductor market.
Cree Inc. holds the fifth position in the SiC power semiconductor market with 5.20% of the total market. Wolfspeed, a subsidiary of Cree Inc., comprises a broad portfolio of field-tested SiC power solutions for various industry verticals. It majorly focuses on innovation and commercialization of SiC and GaN solutions to gain most of the market share.
Apart from the above-mentioned players, other players including Renesas Electronics Corporation, Fuji Electric Co. Ltd, ROHM Semiconductor Co. Ltd, Microchip Technology Inc., and General Electric Co. among others also have a considerable presence in the SiC power semiconductor market. These players focus on collaborating with other businesses with strong market presence to expand their market reach thereby, diversifying their product portfolio.