Silicon Carbide Market size was over USD 1.15 Billion in 2023 and is set to reach USD 7.16 Billion by the end of 2036, witnessing around 15.1% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of silicon carbide is assessed at USD 1.31 Billion. The growth of the market can be attributed to the growing investment in SiC manufacturing facilities which is expected to boost its production and development. Silicon Power Group, based in the United States, is to invest USD 121.73 million in starting a manufacturing plant in Odisha, India, to produce 150 millimeters of silicon carbide.
In addition to these, a factor that is believed to fuel the market growth of silicon carbide is the rising demand for switchgear. Silicon carbide has a higher breakdown voltage, therefore, it can handle high voltages in a much better way in comparison to silicon. This makes silicon carbide suitable for high-voltage switchgear applications.
Growth Drivers
Challenges
Base Year |
2023 |
Forecast Year |
2024-2036 |
CAGR |
15.1% |
Base Year Market Size (2023) |
USD 1.15 Billion |
Forecast Year Market Size (2036) |
USD 7.16 Billion |
Regional Scope |
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Product (Black SiC, Green SiC)
The black SiC segment in the silicon carbide market is estimated to gain the largest revenue share of about 54% in the year 2036. The growth of the segment can be attributed to the rising manufacturing of iron and steel with the help of electric arc furnaces. On the other hand, the increasing use of black silicon carbide in wide applications such as grinding and metalworking is also expected to drive the growth of the segment. Black SiC ensures higher durability, versatility, and quality during SiC application.
Application (Energy & Power, Transportation, Steel & Metallurgy, Electronics & Optoelectronics, Space Research, Automotive, Telecommunication, Industrial)
Silicon carbide market from the electronics & optoelectronics segment is expected to garner a significant share of around 30% in the year 2036. The rising demand for electronic chips followed by higher expenditure on them is expected to augment the growth of the segment. In 2022, the total expenditure on chip equipment increased by 10%, amounting to around USD 98 billion, worldwide. Moreover, the growing infrastructure of semiconductor manufacturing companies is also expected to drive the segment’s growth.
Our in-depth analysis of the global market includes the following segments:
Device |
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Product |
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Wafer Size |
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Application |
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APAC Market Forecast
The market share of silicon carbide in Asia Pacific, amongst the market in all the other regions, is projected to be the largest with a share of about 38% by the end of 2036. The growth of the market can be attributed majorly to the increasing manufacturing of steel in the region. Asia Pacific has large bases for steel manufacturing moreover, many international companies have established their business in the region. In 2022, China manufactured more than 1 billion tonnes of crude steel, which constitutes 52.9% of global output and an increase from 123 million tonnes in 2012.
North American Market Statistics
The North America silicon carbide market is estimated to be the second largest, registering a share of about 25% by the end of 2036. The growth of the market can be attributed majorly to the rising expenditure to expand the manufacturing base of semiconductors that boosts the semiconductor manufacturing equipment quality in the region and picks up the pace with Asia Pacific. India’s new legislation plan for boosting the semiconductor industry includes an investment of USD 52 billion for boosting production. Out of which, USD 13.2 billion is dedicated to R&D, and the training of the workforce, and USD 500 million will be utilized for strengthening the communication for overseas semiconductor supply chains.
Author Credits: Rajrani Baghel
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