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The global SiC based power electronics and inverter market size was USD 446.3 million in 2019. The global impact of COVID-19 has been unprecedented and staggering, with SiC based power electronics and inverters witnessing a positive demand shock across all regions amid the pandemic. Based on our in depth analysis, the global market will exhibit a stellar growth of 21.5% in 2020. The market is projected to grow from USD 542.2 million in 2020 to USD 3,888.2 million by 2027 at a CAGR of 32.5% during the 2020-2027 period. The rise in CAGR is attributable to this market’s demand and growth returning to pre-pandemic levels once the pandemic is over.
The market is anticipated to grow exponentially, during and post COVID-19, owing to the use of this equipment in a wide range of industries, such as automotive, IT & telecommunication, aerospace & defense, and consumer electronics, across developed and developing countries. The adoption of silicon carbide (SiC) in the above-mentioned industrial sectors has enhanced the sale of these power electronics and inverters worldwide. The market is expected to grow substantially during the period 2020–2027 due to the various advantages of using SiC. These include minimal conductance loss at high temperatures, low switching loss, and relatively lesser input loss compared to traditional power semiconductors. The increasing demand for developing advanced integrated circuits (ICs) operating at higher temperatures and voltage levels, along with the continually developing electronics industry, is among the major drivers for this market.
COVID-19 Pandemic: Disruptions in the Manufacturing Sector to Hinder Growth Prospects
Since the onset of COVID-19 in early 2020, the SiC based power electronics & inverter industry has been facing challenges to manage the economic impacts of the pandemic on the various applications across the industry chain. In terms of the short-term COVID-19 impact on the market, several industrial sectors have been affected. The international manufacturing sector was already slowing in 2019, owing to the tensions amongst dominant countries, and is further projected to decline due to the economic disturbances and hampered supply chain activities triggered by COVID.
However, SiC market players are expected to flourish in the future, as the demand for a greater number of SiC based devices and products is escalating in the automotive and industrial sectors, underpinned by the GDP growth of developing economies. Also, global trade values and investments in the automotive, industrial, consumer electronics, and many other industries are expected to enhance the SiC based power electronics & inverter market growth during the forecast period.
Furthermore, the rising need for automated devices, which provide enhanced performance and life, has surged the demand for SiC components and their applications all over the world. Therefore, in the coming years, the market is expected to experience exponential growth, uplifting the global SiC market over the forecast period.
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Increasing Expansion of Connected Technologies to Augment Market Growth
Connected technologies, such as the Internet of Things (IoT) and wireless communications, are ranked as the most important applications for SiC based power electronics & inverters and are expected to have a huge potential in increasing this market’s size. These technologies converge into a single device or system with advanced SiC-powered electronics, inverters, and other devices. The convergence of these technologies has created expanded opportunities for companies manufacturing such devices, thereby creating a new ecosystem in order to generate increased revenues.
Likewise, embedding Artificial Intelligence (AI) into SiC based power electronics has also increased the demand from end-use applications such as IGBT, BJT, etc. as these are the most predominant applications of these machines. This is owed to their increased adoption to enhance efficiency and reduce the operational costs for companies.
Furthermore, the application of SiC based products in industrial operations and in the consumer electronics industry has increased, which includes connectivity for automation, security, transportation, and energy management. Hence, these applications are expected to create extended opportunities in the global market.
Universal Regulations & Standards to Magnify Global Growth
SiC based power electronics & inverter products are expected to see a huge surge in demand, with the continuous emergence of advanced technologies. The growth is expected to get aid from the significant changes initiated in the development and operations of regulations and standard governing authorities.
The new standards and compliances will open up new markets and demand avenues for the SiC-based devices as manufacturers are expected to move towards placing bulk orders. This will assist the manufacturers of emerging technologies as they are investing heavily in components manufacturing and with formalized standards, the growth of these companies is expected to augment in the coming years.
High Maintenance & Manufacturing Costs Associated with SiC Devices to Restrain Market Growth
The designing, manufacturing, and application of SiC-based devices are complex processes due to the involvement of several applications. Also, depending on the level of customization, the overall installation and programming procedures are often a challenge for manufacturers. This would be one of the key factors hampering the adoption of SiC-based products. Furthermore, one of the key challenges faced by the owner/user of these devices is to find authorized technology partners for installations and maintenance services. For installation, many companies have to pay a neutral third outsourced party for assistance in creating, programming, and planning out the costs related to logistics and manufacturing. This extends the procedure of installation and might increase the hidden expenses for SiC-based products. Therefore, this is likely to restrain the market in the coming years.
Power Electronics Segment to Hold Dominant Share Backed by High Adoption in Industry Applications
By type, the market is segmented into power electronics & inverters.
The demand for power electronics is anticipated to grow significantly during the forecast period. Power electronics dominate the silicon carbide industry, and the trend is anticipated to continue in the upcoming years. The dominance is owed to the capability of the SiC material in reducing energy loss and hence increases the life as well as the efficiency of power electronics. Moreover, the enhanced performance of SiC devices, such as power modules, charge-time, performance, and in extending the range of electrical vehicles (EVs), operating effectively and efficiently at higher temperatures is essential.
Furthermore, the market demand for SiC-based inverters is expected to grow moderately in comparison to power electronics during the forecast period. The growth is attributed to the increasing adoption of inverters as they offer numerous benefits, such as improved electrical performance, compact size, & power management, resulting in high reliability.
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Automotive Segment to Exhibit Highest CAGR Supported by High Demand for Automotive Semiconductors
By end-use industry, the market is grouped into automotive, consumer electronics, IT & telecommunication, aerospace and defense, and others.
The automotive sub-segment is estimated to exhibit a robust CAGR of 34.1%, owing to the increasing business of EVs from various automobile manufacturers. SiC-based semiconductor devices can be installed in electro-mechanical computing systems, industrial and commercial motor drives, and high-temperature sensors in the auto industry.
Furthermore, the market is also driven by the consumer electronics industry, wherein the product is used to power semiconductors. Also, the growing utilization of SiC solutions for IT & telecommunications around the globe is anticipated to stimulate the demand for SiC discrete devices as they provide tremendous speed and exceptional toughness over other power semiconductors.
Asia Pacific SiC Based Power Electronics & Inverter Market Size, 2019 (USD Million)
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Asia Pacific is projected to hold the largest market share, owing to the robust economic growth of countries such as India and China. Along with that, the strong economic growth in the ASEAN manufacturing sector is expected to fuel the development of the SiC based power electronics & inverter market in the region. The market in Asia Pacific is expected to exhibit substantial growth in the demand for SiC and GaN (Gallium-Nitride) solutions from sectors such as automotive and consumer electronics. Furthermore, favorable regulatory frameworks and regulations by governments for increasing investments in the manufacturing industry are expected to have a substantial impact on the growth of the market. As a result, the major market would gain significant impetus across the region.
Countries such as China & Japan are experiencing soaring demand due to the presence of several manufacturers. These manufacturers offer a variety of products, focusing on marketing strategies to cater to the demand from emerging economies such as India and Malaysia, along with other economies, such as the MEA and South America. Owing to the increasing development in comparison with western economies, major players are expanding business opportunities centered on these developing markets.
North America is expected to be a prominent market for SiC-based solutions and is expected to display steady growth in the forthcoming years. Significant investments in the automotive sector by local players are anticipated to create a huge demand for SiC-based products, with a variety of options and categories, based on the prevalent market trends.
The market in Europe is expected to experience considerable growth during the forecast period and hold a strong position. This is owed to the technological advancements, along with the increasing focus on R&D activities, in the region. Moreover, the large presence of automotive manufacturers in the region will bode well for market growth.
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The Middle East & Africa region, along with South America, is expected to exhibit moderate growth as compared to other regions. This is due to the shift in the demand for SiC-based products from North America & Europe to Asia Pacific.
Key Players to Focus on Developing Advanced SiC-based Technologies to Expand Product Portfolios
The market is moderately fragmented as this is a relatively new market when compared to other markets in the power electronics domain. The market is growing powered by increasing technological advancements and there are many well-known brands in the market, along with some regional players, to cater to the increasing demands.
STMicroelectronics, Cree, Inc., ON Semiconductor, ROHM CO., LTD., Infineon Technologies AG, NXP Semiconductor N.V., ABB Group, Renesas Electronics Corporation, Fuji Electric Co, Ltd., and Mitsubishi Electric Corp. are considered among the prominent players in the SiC-based power electronics & inverter market, covering around 83% - 88% of the market. The leading share of these players is owed to their dominant presence in the power electronics and semiconductor market. This is attributable to the companies’ product expertise, investments in research and development, popular brands, a strong customer base, adoption of the latest technologies, etc. Along with that, these companies are focusing on developing SiC-based solutions for additional use cases so that they can cater to other industrial applications. Further, these players are anticipated to have significant opportunities to expand their businesses during the forecast period by adopting strong business strategies such as marketing and advertising, merger and acquisitions, etc.
An Infographic Representation of SiC Based Power Electronics and Inverter Market
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The market research report provides a detailed market analysis of the type and end-use Industries, along with focusing on key aspects, such as leading companies and their business overview, types, and leading applications of the product. Besides, it offers insights into the competitive landscape, SWOT analysis, current market trends, and highlights key drivers and restraints. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.
Value (USD million)
Type, End-use Industry, Geography
By End-use Industry
Fortune Business Insights says that the market size stood at USD 446.3 million in 2019.
In 2027, the market is expected to be worth USD 3,888.2 million.
The market will exhibit a stellar CAGR of 32.5% during the forecast period (2020-2027).
The Asia Pacific market value stood at USD 188.7 million in 2019.
Within the type criterion, the power electronics segment is expected to lead the market during the forecast period.
Universal regulations & standards are expected to fuel market growth.
STMicroelectronics, Cree, Inc., ON Semiconductor, ROHM CO., LTD., and Infineon Technologies AG are the key market players.
The automotive segment is expected to hold the highest share in the market.
The automotive segment is expected to grow significantly during the forecast period in the China market.
The increasing expansion of connected technologies is a vital trend in the market.
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