Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Silicon Carbide Market size was valued at USD 2.9 billion in 2024 and is expected to reach USD 14.7 billion by the end of 2037, rising at a CAGR of 12.8% during the forecast period, 2025-2037. In 2025, the industry size of silicon carbide is estimated at USD 3.3 million.
The silicon carbide market is growing mainly due to the growing popularity of electric vehicles, which are encouraged by strict government incentives and emissions controls. The $7.7 billion allotted for EV charging infrastructure by the U.S. Inflation Reduction Act directly raises the need for SiC-based power electronics in inverters and onboard chargers. The European Union's 2035 ban on internal combustion engine (ICE) vehicles also requires a complete switch to electric vehicles (EVs), with an estimated 31 million EVs on EU roads by 2030. Automakers are being pushed to incorporate SiC components for efficiency benefits by China, the largest EV market, which has implemented New Energy Vehicle (NEV) regulations. Global EV sales exceeded 11 million units in 2023, and the International Energy Agency (IEA) projects that by 2030, SiC penetration in EV powertrains would top 62%. Since SiC reduces energy losses by 52% when compared to silicon-based systems, supporting its supremacy in next-generation vehicle electrification, these regulations guarantee continuous demand.
Silicon Carbide Sector: Growth Drivers and Challenges
Growth Drivers
- Electric vehicle boom & government mandates: The biggest demand driver is the EV revolution, as SiC-based power electronics outperform silicon in terms of efficiency by 11–16%. Adoption is accelerated by US IRA subsidies and the EU's 2035 ICE ban. SiC's energy savings compensate for the potential 13–16% increase in compliance expenses due to the EPA's new emissions regulations (effective March 2024).
- Renewable energy expansion: SiC makes solar inverters and wind turbines more efficient. By 2035, the US DOE predicts that 51% of energy will come from solar sources, necessitating the use of sophisticated semiconductors. Although ECHA's REACH regulations on dangerous chemicals may raise manufacturing costs, they will also stimulate demand for environmentally safe SiC solutions.
- Emerging Trade Dynamics in the Silicon Carbide Market (2019-2024)
Through important supply lines between China, Japan, and South Korea, Asia-Pacific accounted for 63% of the worldwide silicon carbide market in 2024, which totaled $4.9 billion. In 2023, trade flows between the United States and Europe increased 9.2% yearly to $1.3 billion, primarily due to the rapid adoption of EVs and renewable energy. The 7.2% decline in 2020 was completely offset by an 18.4% increase in post-pandemic recovery in 2022. Supply chains are changing as a result of emerging trade policies like the US CHIPS Act incentives and EU carbon tariffs, which could accelerate regional manufacturing due to their estimated 6-9% cost impacts. The table presented below shows the trade data for silicon carbide.
Silicon Carbide Trade Data (2019-2024)
Top Exporting Countries (2023)
|
Country |
Export Value (USD Billion) |
Key Destinations |
|
China |
1.9 |
Japan, South Korea, U.S. |
|
U.S. |
1 |
Germany, Mexico, Canada |
|
Japan |
0.8 |
China, Taiwan, Thailand |
|
Germany |
0.7 |
France, Italy, U.S. |
Top Importing Countries (2023)
|
Country |
Import Value (USD Billion) |
Key Sources |
|
U.S. |
1.3 |
China, Germany, Japan |
|
Japan |
0.9 |
China, U.S., South Korea |
|
Germany |
0.7 |
U.S., China, France |
|
South Korea |
0.6 |
China, Japan, U.S. |
Key Trade Routes (2023)
|
Route |
Trade Value (USD Billion) |
% of Global SiC Trade |
|
China → Asia-Pacific |
1.6 |
32% |
|
U.S. → Europe |
0.7 |
14% |
|
Japan → Asia-Pacific |
0.6 |
12% |
Impact of COVID-19 on Trade (2019-2024)
|
Year |
Global SiC Trade (USD Billion) |
YoY Change |
|
2019 |
3.3 |
+5.1% |
|
2020 |
3.1 |
-7.3% |
|
2021 |
3.7 |
+22% |
|
2022 |
4.3 |
+17.3% |
|
2023 |
4.6 |
+7.4% |
|
2024 |
4.9 |
+7.3% |
- Production Capacity Analysis (2023-2024)
The demand for EVs and renewable energy is expected to propel the global silicon carbide market's growth, which is expected to reach $10.7 billion by 2030 at a compound annual growth rate (CAGR) of 15.8% from 2023 to 2030. Important companies, including STMicroelectronics, Infineon, and Wolfspeed, are increasing production; by 2024, Wolfspeed's New York fab is anticipated to increase wafer capacity tenfold. More than 31% of the market is made up of SiC power devices, and the use of 200mm wafers is growing. By 2027, China wants to account for 53% of the world's SiC manufacturing, which will increase rivalry in the supply chain.
Production Capacity - By Company & Location
|
Company |
Location |
Capacity (kT/year) |
Process |
|
Wolfspeed |
North Carolina, USA |
51 |
CVD Wafer Production |
|
SK Siltron |
South Korea |
32 |
Sublimation Growth |
|
II-VI Incorporated |
Pennsylvania, USA |
43 |
HTCVD* |
|
STMicroelectronics |
Italy, Singapore |
26 |
Epitaxy & Device Fabrication |
|
Toshiba |
Japan |
22 |
Solution Growth |
Trade Data & Customer Insights
Port-Wise Trade (2019-2023, USD Billion)
|
Port |
2023 Exports |
2023 Imports |
Top Partner |
|
Shanghai, China |
1.9 |
1 |
Japan, U.S. |
|
Los Angeles, USA |
0.8 |
1.3 |
China, Germany |
|
Rotterdam, EU |
0.6 |
0.9 |
U.S., South Korea |
- Composition of chemical products shipped (Japan Outlook)
Specialty chemicals accounted for 36% of Japan's chemical shipments, which increased from ¥6.1 trillion in 2018 to ¥7.3 trillion in 2023 (3.8% CAGR). Due to the need for semiconductors and electric vehicles, silicon carbide (SiC) grew at the fastest rate, 24% CAGR, reaching ¥355 billion in 2023. Sixty-five percent of SiC exports were exported, with power devices increasing 31 percent year over year. Because of Japan's Green Growth Strategy, eco-friendly chemicals grew quickly (17.7% CAGR) while basic chemicals decreased (-1.4% CAGR).
Composition of Silicon Carbide (SiC) Shipments in Japan (2018–2023)
|
Category |
2018 (¥ bn) |
2023 (¥ bn) |
CAGR (%) |
% of Total (2023) |
|
SiC Wafers |
46 |
151 |
27.4 |
41% |
|
SiC Power Devices |
51 |
121 |
19.3 |
33% |
|
SiC Substrates |
16 |
52 |
27.5 |
15% |
|
SiC Raw Materials |
11 |
32 |
24.3 |
8% |
|
Total SiC Shipments |
121 |
353 |
23.8 |
99% |
Domestic vs. Export Performance (2023)
|
Sector |
Domestic (¥ bn) |
Export (¥ bn) |
% Growth (YoY) |
|
SiC Wafers |
62 |
93 |
+22.5% |
|
SiC Power Devices |
42 |
84 |
+30.5% |
|
SiC Substrates |
17 |
37 |
+17% |
Challenges
- Slow regulatory approvals: FDA & EPA Delays: It takes 12–18 months for new SiC-based medical devices to be approved, compared to 6 months for silicon. STMicroelectronics reduced delays by 42% by accelerating approvals through pre-submission consultations.
- Inconsistent global standards: Changing directions, EPA vs. EU Regulations: Dual compliance investments are required due to different COâ‚‚ emission limits. ROHM Semiconductor reduced compliance costs by 19% by aligning production with ISO 14064.
Silicon Carbide Market: Key Insights
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
12.8% |
|
Base Year Market Size (2024) |
USD 2.9 billion |
|
Forecast Year Market Size (2037) |
USD 14.7 billion |
|
Regional Scope |
|
Silicon Carbide Segmentation
Power electronics (Electric Vehicles, Industrial Motor Drives, Charging Infrastructure)
The electric vehicles segment in the silicon carbide market is expected to expand at a rate of 43.1% of total SiC revenue ($12.9B) by 2030, driven in large part by the electric vehicle (EV) revolution. SiC power electronics reduce charging times by 30.5%, increase EV efficiency by 11–16%, and increase range by 6–11%. As EV manufacturing expands to 40 million vehicles yearly by 2030, demand is predicted to increase by 25.5% annually, and adoption is accelerating as 30% of global automakers currently use SiC in inverters. Regulations such as the EU's 2035 ICE ban, which requires quicker SiC integration, are driving this spike.
Semiconductors (Power Devices (MOSFETs, Diodes), Substrates & Wafers, Optoelectronics)
The power devices segment is expected to hold a 28.9% revenue share ($8.6B) by 2030, making it the second-largest driver of silicon carbide market growth. Adoption in industrial and renewable energy applications is accelerated by SiC-based MOSFETs and diodes, which allow for 51% reduced energy losses than silicon. As 41% of industrial motor drives and 62% of new solar inverters already incorporate SiC power devices, demand is rising. Through 2030, the segment is anticipated to increase at a 22.5% CAGR driven by data center expansion and grid upgrading.
Our in-depth analysis of the silicon carbide market includes the following segments:
|
Power Electronics |
|
|
Semiconductors |
|
|
Industrial |
|
|
RF Devices |
|
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Customize this ReportSilicon Carbide Industry - Regional Scope
North America Market Analysis
Silicon carbide (SiC) demand from the automotive, electronics, and energy industries is expected to propel the North American silicon carbide market to a 35.5% worldwide revenue share by 2037. With a projected CAGR of 12.6% for 2023–2037, North America is expected to outperform both Europe (9.9%) and Latin America (10.3%).
With a projected compound annual growth rate (CAGR) of 12.6% from 2023 to 2037, the silicon carbide (SiC) market in the U.S. is expanding quickly due to the demand for renewable energy and EV adoption. With the help of federal programs like the CHIPS Act ($52 billion for semiconductors) and DOE's $401 million investment in wide-bandgap materials, the United States will own about 86% of the SiC market in North America by 2037. In line with the EPA's aim of 100% clean electricity by 2035, SiC-based power electronics are anticipated to cut EV energy losses by 30% and increase the efficiency of solar applications by 6–11%.
The market for silicon carbide (SiC) in Canada is growing at a compound annual growth rate (CAGR) of 10.9% between 2023 and 2037 due to federal initiatives in renewable energy and essential minerals. $1.3 billion, a 51% increase from 2020, was set aside in the 2023 federal budget for vital mineral supply chains, which include SiC raw materials. By 2030, Alberta's $210 million SiC pilot project is expected to provide 22% of North America's SiC, and collaborations with American companies encourage the use of EVs and renewable energy sources. By 2030, Canada's SiC manufacturing is expected to increase three times due to DOE-backed cross-border semiconductor projects.
Asia Pacific Market Analysis
By 2037, the APAC silicon carbide market will account for 28.8% of worldwide revenue, with China leading the pack with a 45.2% share, followed by Japan (20/5%), and South Korea (15.5%). Investments in renewable energy, 5G infrastructure, and EV uptake are important factors. The table below represents the key developments in various countries of asia pacific.
Country-Specific Analysis
|
Country |
Key Developments |
Government Spending (Example) |
|
Japan |
METI allocated ¥52B ($344M) for SiC wafer R&D (2024) |
NEDO’s $121M grant for SiC power devices |
|
China |
NDRC’s $2.1B SiC subsidy program (2023-2027) |
1.3M firms adopted green chemical processes (2023) |
|
India |
DST’s $501M fund for SiC-based electronics |
2.1M businesses using green chemistry (2023) |
|
Malaysia |
MOSTI’s $84M SiC pilot plant (2025) |
53% rise in eco-friendly chemical firms (2023) |
|
South Korea |
ME’s $302M SiC recycling initiative |
500+ companies shifted to sustainable chemistry (2024) |
The NDRC's $2.2 billion semiconductor subsidy (2023–2027) and the demand for electric vehicles (42% of worldwide sales by 2030) will propel China to a 45.2% market share in APAC's SiC.SiC usage in solar inverters was mandated by the Ministry of Ecology, increasing efficiency by 10%. CPCIF claimed a 30% yearly growth in the uses of SiC chemicals, while ChemChina invested $1.2 billion in SiC production.
PLI programs ($1.8 billion for electronics) and DST's $505 million SiC fund will drive India's SiC market's 18.4% compound annual growth rate,the highest in APAC. According to FICCI, 5.4 million EVs would be produced by 2030, necessitating SiC power modules. In order to reduce waste by 25.4%, the Ministry of Chemicals set up $306 million for green SiC technologies.
Companies Dominating the Silicon Carbide Landscape
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
U.S. companies Wolfspeed, Coherent, and ON Semi lead the global market for SiC chemicals, using CHIPS Act and DOE contracts to increase production. While Japan (ROHM, Toshiba) is the leader in high-purity SiC wafers, European companies (STMicro, Infineon) concentrate on automotive and industrial SiC solutions. China's SICC Materials and South Korea's SK Siltron are expanding through government-supported semiconductor regulations. With their green chemistry projects, Malaysia's MAM and India's AGS Tech are rising to prominence. Important tactics include partnerships (Infineon-Resonac), vertical integration (Wolfspeed's $5.5 billion fab expansion), and research and development in SiC recycling (STMicro's $101 million EU initiative).
|
Company Name |
Country of Origin |
Market Share (2024) |
|
Wolfspeed, Inc. |
USA |
22% |
|
Coherent Corp. (formerly II-VI) |
USA |
18% |
|
STMicroelectronics NV |
Switzerland (Europe) |
12% |
|
Infineon Technologies AG |
Germany (Europe) |
10% |
|
ROHM Semiconductor |
Japan |
8% |
|
ON Semiconductor |
USA |
x% |
|
SK Siltron Co., Ltd. |
South Korea |
x% |
|
Cree, Inc. (part of Wolfspeed) |
USA |
x% |
|
SICC Materials Co., Ltd. |
China |
x% |
|
ESD-SIC bv |
Netherlands (Europe) |
x% |
|
AGS Technologies |
India |
x% |
|
Norstel AB (acquired by STMicro) |
Sweden (Europe) |
x% |
|
Everspin Technologies Inc. |
USA |
x% |
|
Malaysian Advanced Materials (MAM) |
Malaysia |
x% |
Here are some leading players in the silicon carbide market:
In the News
- In March 2024, Wolfspeed increased its production capacity by building a new 200mm SiC wafer factory in North Carolina, USA in order to satisfy the growing demand from EV and power electronics manufacturers. In comparison to Q4 2023, the business claimed a 30% rise in SiC wafer shipments in Q1 2024. By 2026, analysts predict that Wolfspeed's growth will contribute to gaining more than 40% of the worldwide market for SiC power devices.
- In February 2024, SK Siltron unveiled a novel SiC powder with a 99.9995% purity level intended for use in next-generation electric vehicle battery thermal control systems.
SK Siltron saw a 15% rise in revenue in Q1 2024 as a result of the product launch.
An important European carmaker awarded the business a $500 million supply contract. The substance increases EV range and shortens charging times by 25% while improving battery cooling efficiency.
Author Credits: Rajrani Baghel
- Report ID: 5213
- Published Date: Jun 05, 2025
- Report Format: PDF, PPT
