Silicon Carbide (SiC) Market Size, Share, Growth, Forecast 2030

Silicon Carbide (SiC) Market for Electric Vehicles Industry Prospective:

The global silicon carbide (SiC) market for electric vehicles size was worth around USD 878 million in 2022 and is predicted to grow to around USD 9686.4 million by 2030 with a compound annual growth rate (CAGR) of roughly 35% between 2023 and 2030.          

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Silicon Carbide (SiC) Market for Electric Vehicles: Overview

A cutting-edge technology called silicon carbide (SiC) will take the role of silicon in many applications. When attempts were made to raise the effectiveness and range of such vehicles, while lowering the weight and cost of the complete vehicle and thereby improving the power density of control electronics, the notion of employing SiC for EVs emerged. Silicon carbide technologies that fulfill design requirements and significantly improve system performance and reliability over time can be used to improve power electronics for EVs.

Key Insights

• As per the analysis shared by our research analyst, the global Silicon Carbide (SiC) Market for Electric Vehicles is estimated to grow annually at a CAGR of around 35% over the forecast period (2023-2030).
• In terms of revenue, the global Silicon Carbide (SiC) Market for Electric Vehicles size was valued at around USD 878 million in 2022 and is projected to reach USD 9686.4 million, by 2030.
• The growing sales of EVs across the globe are expected to drive the silicon carbide market for electric vehicles growth during the forecast period.
• Based on the application, the Traction Inverter segment is expected to dominate the market during the forecast period.
• Based on the vehicle type, the Passenger Vehicles segment is expected to capture the largest market share over the forecast period.
• Based on the voltage, the Up to 800V segment is expected to dominate the market over the forecast period.
• Based on region, the Asia Pacific is expected to dominate the market during the forecast period.

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Silicon Carbide (SiC) Market for Electric Vehicles: Growth Drivers

The ability to operate at higher temperatures drives market growth

Compared to typical silicon-based devices, SiC power devices can function at significantly greater temperatures, negating the need for cooling mechanisms and large heat-sink materials. Thermal management of silicon power devices like insulated gate bipolar transistors (IGBTs), which have maximum operating temperature and acceptable junction temperature restrictions, becomes more difficult when power levels grow, like in the case of traction inverters that power the motors in electric vehicles (EVs). Specifically in a traction inverter where power levels can exceed 100 kW, this difficulty necessitates the introduction of cooling components in powertrain systems, such as large copper blocks with water jackets. These cooling parts enlarge, weigh down, and raise the price of the car. SiC, on the other hand, has a substantially greater permissible junction temperature range of 175°C and above. SiC has a two to three times better heat conductivity than silicon as well. Thus, this is expected to propel the silicon carbide market for electric vehicles expansion over the forecast period.

Silicon Carbide (SiC) Market for Electric Vehicles: Restraints

High costs hinder market growth

Manufacturing SiC-based power electronics and components often cost more than their conventional silicon-based equivalents. SiC technology adoption by EV manufacturers may be hampered by high upfront costs. According to secondary analysis, retail prices for 100-A discrete SiC MOSFETs at 650 V and 1,200 V in September 2021 were almost precise multiples of 3 compared to the cost of Si IGBTs. The SiC device occupies 3 to 4 less space on a machined wafer, however, this still holds. Thus, the aforementioned facts hamper the silicon carbide market for electric vehicles expansion over the forecast period.

Silicon Carbide (SiC) Market for Electric Vehicles: Opportunities

The growing product launch offers a lucrative opportunity for market growth

The growing product launch is expected to offer a lucrative opportunity for silicon carbide market for electric vehicles growth during the forecast period. For instance, in June 2023, to improve power density and efficiency in on-board charging (OBC) and DC-DC applications, Infineon Technologies introduced 1200 V CoolSiC MOSFETs in TO263-7 for automotive applications. Moreover, in March 2023, the first inverter made with silicon carbide (SiC) semiconductors was created, as reported by DENSO CORPORATION, a top supplier to the mobility industry. The new Lexus RZ, the automaker's first specifically designed battery electric vehicle (BEV) model, will feature this inverter, which is integrated inside the eAxle, an electric drive module created by BluE Nexus Corporation.

Silicon Carbide (SiC) Market for Electric Vehicles: Challenges

Limited production capacity and lack of standardization pose a major challenge to market growth

SiC wafer and device production capacity is still limited, especially for larger-diameter wafers. This restriction may result in a lack of supplies and more volatile prices. Additionally, since the technology is still developing, creating industry standards for SiC-based devices might be difficult. Interoperability might be hampered and the market could become unpredictable due to a lack of standards. Thus, acting as a major challenge for the market expansion over the forecast period.

Silicon Carbide (SiC) Market for Electric Vehicles: Segmentation

The global Silicon Carbide (SiC) Market for Electric Vehicles is segmented based on application, vehicle type, propulsion type, product, voltage, and region.

Based on the application, the global market is bifurcated into Traction Inverter, On-Board Charger (OBC), and DC-DC Converter. The Traction Inverter segment is expected to dominate the market during the forecast period. The traction inverter emerges as a crucial area for innovation as the automobile industry places an increasing emphasis on efficiency and sustainability. To solve critical issues in the EV ecosystem, SiC-equipped traction inverters offer increased energy efficiency, longer driving ranges, and optimum battery use. Thereby, driving the segment growth.

Based on the vehicle type, the global Silicon Carbide industry for Electric Vehicles is bifurcated into Passenger Vehicles and Commercial Vehicles. The Passenger Vehicles segment is expected to capture the largest market share over the forecast period. As passenger electric cars surpass commercial vehicles in terms of sales and manufacturing, this trend is anticipated to continue. Cost-effectiveness and government incentives are driving up consumer EV adoption, which is a factor in the market domination of passenger EVs.

Based on the propulsion type, the global Silicon Carbide Market for Electric Vehicles is bifurcated into Battery Electric Vehicles (BEVs), Hybrid Electric Vehicles (HEVs) and Plug-in Hybrid Electric Vehicles (PHEVs).

Based on the product, the global industry is bifurcated into SiC MOSFETs and SiC Diodes.

Based on the voltage, the global Silicon Carbide (SiC) Market for Electric Vehicles is bifurcated into Up to 800V and more than 800V. The Up to 800V segment is expected to dominate the market over the forecast period. This voltage range enables EV makers to create lightweight, compact power electronics systems that improve the performance and range of the vehicles. Additionally, it makes SiC components easier to integrate effectively, lowering switching losses and raising overall efficiency.

Silicon Carbide (SiC) Market: Report Scope

Silicon Carbide Market for Electric Vehicles: Regional Analysis

Asia Pacific is expected to dominate the market during the forecast period

The Asia Pacific is expected to dominate the global silicon carbide market for electric vehicles over the forecast period because of the electric vehicle industry's rapid expansion, which has been fueled by government regulations, environmental concerns, and technical developments. Government funding, research spending, and collaborations with SiC producers have sped up the creation and use of SiC technology within the Chinese electric vehicle ecosystem. China has a competitive edge in the manufacture of SiC due to its existing supply chain infrastructure and strong manufacturing capabilities, which also increase cost-efficiency and scalability. On the other hand, Europe holds a substantial market share over the forecast period. The region's market growth is attributed to the growing adoption of EVs as well as rising government initiatives such as tax reimbursement, subsidy, and others.

Silicon Carbide (SiC) Market for Electric Vehicles: Competitive Analysis

The global Silicon Carbide (SiC) Market for Electric Vehicles is dominated by players like:

• Mitsubishi Electric
• Wolfspeed Inc.
• STMicroelectronics
• Onsemi
• GeneSiC Semiconductor
• Infineon Technologies
• Robert Bosch GmbH
• ROHM CO. LTD.
• Microchip Technology Inc.
• Alpha and Omega Semiconductor
• Toshiba Corporation
• Littelfuse Inc
• Fuji Electric Co. Ltd.
• WeEn Semiconductors and Solitron Devices Inc.

The global Silicon Carbide (SiC) Market for Electric Vehicles is segmented as follows:

By Application

• Traction Inverter
• On-Board Charger (OBC)
• DC-DC Converter

By Vehicle Type

• Passenger Vehicles
• Commercial Vehicles

By Propulsion Type

• Battery Electric Vehicles (BEVs)
• Hybrid Electric Vehicles (HEVs)
• Plug-in Hybrid Electric Vehicles (PHEVs)

By Product

• SiC MOSFETs
• SiC Diodes

By Voltage

• Up to 800V
• More than 800V

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa