SiC Substrates Market Size & Growth Report to 2030

The global SiC (Silicon Carbide) substrates market size is projected to grow at a higher CAGR of over 19% during the forecast period from 2024 to 2030. The surge in the demand for power electronics, particularly in sectors like electric vehicles, renewable energy, and power supply units, underscores the pivotal role played by SiC substrates. Distinguished by their superior electrical properties, these substrates offer advantages over traditional silicon, making them integral to applications requiring high-frequency operation and elevated temperature resistance. The automotive industry’s shift towards electric vehicles amplifies the need for SiC substrates, enhancing efficiency in powertrains and charging systems. Furthermore, SiC substrates find extensive use in the renewable energy sector, optimizing energy conversion in solar and wind power applications. Initiatives promoting energy efficiency, government support, technological advancements, and the expanding telecommunications sector further contribute to the market’s dynamic growth. As industries increasingly recognize the diverse benefits of SiC substrates, from improved efficiency to reduced energy losses, the market continues to evolve, driven by innovation, awareness, and a sustainable approach to power electronics.

Market Snapshot:

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Market Drivers:

• Rising Demand for Power Electronics: A pivotal factor propelling the SiC Substrates Market is the escalating demand for power electronics across diverse sectors. Industries such as electric vehicles (EVs), renewable energy systems, and power supply units are increasingly incorporating SiC substrates due to their superior electrical properties. These substrates facilitate efficient power conversion and management, addressing the evolving needs of modern electronic applications.
• Advantages Over Silicon Substrates: SiC substrates offer distinct advantages over conventional silicon substrates. Their higher critical breakdown electric field, wider bandgap, and superior thermal conductivity make them indispensable for applications requiring high-frequency operation, elevated temperature resistance, and enhanced power handling capabilities. This comparative advantage drives their adoption in critical electronic systems.
• Growing Adoption in Electric Vehicles (EVs): The automotive industry’s transition towards electric vehicles amplifies the demand for robust and efficient power electronics solutions. SiC substrates emerge as a preferred choice for EV powertrains, battery management systems, and onboard chargers, given their ability to withstand higher temperatures and power levels, thereby contributing to the vehicle’s performance and efficiency.
• Expanding Renewable Energy Sector: The proliferation of renewable energy sources, including solar and wind power, necessitates advanced power electronics for efficient energy conversion and distribution. SiC substrates find extensive application in inverters, converters, and power conditioning units within renewable energy systems, enhancing their overall efficiency, reliability, and sustainability.
• Increasing Focus on Energy Efficiency: Global initiatives aimed at promoting energy efficiency across industries foster the adoption of SiC substrates. Their intrinsic properties enable electronic devices and systems to operate more efficiently, minimize energy losses, and reduce overall power consumption, aligning with sustainability goals and regulatory standards.
• Rapid Technological Advancements: The SiC Substrates Market benefits significantly from continuous technological advancements and innovations. Manufacturers and researchers continually refine manufacturing processes, optimize material properties, and develop new substrate designs to meet evolving industry requirements, enhance product performance, and achieve cost-effectiveness.
• Government Initiatives and Support: Supportive government policies, incentives, and initiatives aimed at accelerating the adoption of energy-efficient technologies, electric vehicles, and renewable energy sources create a conducive environment for the SiC Substrates Market. Regulatory frameworks, subsidies, and funding opportunities encourage industries to invest in SiC-based solutions, fostering market growth and development.
• Increasing Investments in Semiconductor Industry: Robust investments in the semiconductor industry, particularly in research and development activities, propel innovation and advancement in SiC substrate technologies. Collaborative efforts between industry stakeholders, academic institutions, and research organizations drive product innovation, technology transfer, and market expansion.

Market Insights:

Market Analysis by Wafer Diameter:

The global SiC substrates market is bifurcated into wafer diameter, application, end-use industry, and geography. On the basis of wafer diameter, the market is further segmented into 2-inch, 4-inch, and 6-inch and above. The 4-Inch wafer diameter segment is estimated to hold a significant revenue share in the benchmark year. The 4-inch wafer diameter strikes a balance between cost-effectiveness and scalability, making it a versatile choice for various applications. Its widespread adoption across industries like power electronics, RF devices, and LEDs indicates a broad market appeal and consistent demand. Manufacturers and end-users frequently leverage 4-inch wafers due to their optimal size for balancing production efficiency, cost considerations, and performance requirements.

• 2-Inch Wafer Diameter: SiC substrates with a 2-inch wafer diameter are often employed in specific applications where size constraints and cost considerations play a crucial role. While less common in large-scale applications, 2-inch wafers may find usage in niche markets or research and development activities.
• 4-Inch Wafer Diameter: The 4-inch wafer diameter represents a standard size that strikes a balance between cost-effectiveness and scalability. This diameter is widely adopted across various industries and applications, offering a versatile choice for manufacturing power devices, RF devices, and LEDs.
• 6-Inch and Above Wafer Diameter: Larger wafer diameters, such as 6-inch and above, cater to applications demanding scalability and increased production volumes. These larger substrates are often preferred in industries with high-throughput requirements, such as power electronics for electric vehicles, where larger wafer sizes can enhance efficiency and reduce manufacturing costs.

Market Analysis by Application:

On the basis of application, the global SiC substrates market is further segmented into power devices, RF devices, LEDs, and others. The power devices segment is estimated to hold the largest revenue share of the global market in the benchmark year 2023. Renowned for their superior electrical properties, including a wide bandgap and high thermal conductivity, SiC substrates have found widespread application in critical components like power inverters, converters, and switches. The surge in demand for electric vehicles (EVs) and the growing emphasis on efficient power management systems in renewable energy projects have significantly elevated the importance of SiC substrates in power devices. The ability of SiC substrates to handle elevated temperatures and power levels positions them as essential components in power electronics, contributing to increased efficiency and reliability. Industry trends, particularly the global shift towards energy-efficient technologies and the broader adoption of greener solutions, further bolster the prominence of SiC substrates in the power devices segment.

• Power Devices: Power devices represent a crucial application area for SiC substrates, where their superior electrical properties, high-temperature stability, and efficiency make them ideal. These devices include power inverters, converters, and switches used in electric vehicles, renewable energy systems, and power supply units. The demand for SiC substrates in power devices has seen substantial growth with the increasing adoption of electric vehicles, the expansion of renewable energy projects, and the need for efficient power conversion.
• RF Devices (Radio Frequency Devices): SiC substrates find application in RF devices, including high-frequency amplifiers and communication components. The unique properties of SiC, such as high electron mobility and thermal conductivity, make it suitable for RF applications requiring high performance. The expanding telecommunications sector, particularly with the deployment of 5G networks, has contributed to the growing demand for SiC substrates in RF devices.
• LEDs (Light-Emitting Diodes): SiC substrates are used in the manufacturing of LEDs, providing a stable and efficient platform for producing high-brightness LEDs. The superior thermal conductivity of SiC contributes to improved LED performance and longevity. As the demand for energy-efficient lighting solutions increases, the use of SiC substrates in LED applications is likely to witness continued growth.
• Others: The “Others” category encompasses various applications where SiC substrates are utilized, including sensors, optoelectronic devices, and high-power electronic components in diverse industries. The versatility of SiC substrates allows them to be applied in a range of emerging technologies and specialized electronic devices, contributing to market expansion.

The SiC substrates market research report presents the analysis of each segment from 2020 to 2030 considering 2022 as the base year for the research. The compounded annual growth rate (CAGR) for each respective segment is calculated for the forecast period from 2023 to 2030.

Historical & Forecast Period

• 2020-21 – Historical Year
• 2022 – Base Year
• 2023-2030 – Forecast Period

Market Segmentation:

By Wafer Diameter:

• 2-Inch
• 4-Inch
• 6-Inch and Above

By Application:

• Power Devices
• RF Devices
• LEDs
• Others

By End-Use Industry:

• Electronics & Semiconductors
• Automotive
• Aerospace & Defense
• Energy & Power
• Others

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Regional Analysis:

Geographically, the Asia Pacific dominated the global SiC substrate market in the benchmark year and estimated to hold the largest revenue share around 1/3 market share by the end of the analysis period 2030. The Asia Pacific has cultivated a formidable presence in the semiconductor and electronics industry, bolstered by manufacturing powerhouses such as China, Japan, South Korea, and Taiwan. These nations have harnessed their extensive infrastructure, technological prowess, and skilled workforce to drive advancements in SiC substrate production. Their robust semiconductor ecosystems have facilitated significant investments in research, development, and manufacturing, enabling them to meet the escalating global demand for SiC substrates effectively. Moreover, Asia Pacific’s strategic focus on emerging technologies, including electric vehicles, renewable energy systems, and telecommunications infrastructure, has propelled the region to the forefront of SiC substrate innovation and adoption.

Furthermore, the Asia Pacific region’s dominance in the SiC Substrates Market is accentuated by its comprehensive supply chain capabilities, expansive market reach, and collaborative industry partnerships. The interconnected networks of suppliers, manufacturers, and technology providers across Asia Pacific facilitate seamless integration and scalability, catering to diverse application requirements worldwide. Additionally, the region benefits from supportive government policies, incentives, and initiatives that foster innovation, investment, and growth in the semiconductor sector. As a result, Asia Pacific has become a pivotal hub for SiC substrate development, manufacturing, and distribution, exerting considerable influence on market trends, technological advancements, and industry dynamics.

Competitive Assessment:

Some of the prominent market players operating in the global SiC substrates market are Wolfspeed Inc., II-VI Incorporated, STMicroelectronics, SK Siltron Inc., and Xiamen Powerway Advanced Material Co. Ltd. Companies are exploring markets by expansion, new investment, the introduction of new services, and collaboration as their preferred strategies. Players are exploring new geography through expansion and acquisition to gain a competitive advantage through joint synergy.

Recent Developments:

• In March 2023, DENSO CORPORATION disclosed the successful development of its inaugural inverter featuring silicon carbide (SiC) semiconductors. This advanced inverter is seamlessly integrated into the eAxle, an electric driving module engineered by Blue Nexus Corporation. Notably, this groundbreaking technology is slated for utilization in the upcoming Lexus RZ, marking the automotive manufacturer’s inaugural dedicated battery electric vehicle (BEV) model.
• In March 2023, Resonac Corporation unveiled its third generation of high-grade silicon carbide (SiC) epitaxial wafer, denoted as HGE-3G, and commenced large-scale production. The HGE-3G boasts superior quality compared to its predecessor, the second-generation high-grade SiC epi-wafer (HGE-2G), which has been in mass production until the present time.
• Meanwhile, in February 2023, U.S. chipmaker Wolfspeed announced its collaboration with German automotive supplier ZF to establish a 200-mm silicon carbide (SiC) wafer fabrication facility and a research and development center in Saarland, Germany. The commencement of construction is anticipated in the upcoming months, contingent on the approval of funds from the EU under the Important Projects of Common European Interest (IPCEI) framework. This new facility is an integral component of Wolfspeed’s comprehensive USD 6.5 billion global capacity development plan and is poised to support the company’s long-term revenue projection of USD 4 billion by fiscal year 2027.
• Furthermore, in August 2022, II-VI secured a substantial USD 100 million deal to supply silicon carbide (SiC) wafers to China for electric vehicle chip production. As part of the agreement, II-VI would furnish Dongguan Tianyu Semiconductor Technology with 150 mm SiC substrates, with deliveries scheduled to commence in the current quarter and extend through the conclusion of the calendar year 2023.

Key Companies:

• Wolfspeed Inc.
• II-VI Incorporated
• STMicroelectronics
• SK Siltron Inc.
• Xiamen Powerway Advanced Material Co. Ltd.
• Showa Denko KK
• Ascatron AB
• Cree, Inc.
• ROHM Co., Ltd.
• GeneSiC Semiconductor Inc.

Key Questions Answered by SiC Substrates Market Report

• Global SiC substrates market forecasts from 2023-2030
• Regional market forecasts from 2023-2030 covering Asia-Pacific, North America, Europe, Middle East & Africa, and Latin America
• Country-level forecasts from 2023-2030 covering 15 major countries from the regions as mentioned above
• SiC substrates submarket forecasts from 2023-2030 covering the market by wafer diameter, application, end-use industry, and geography
• Various industry models such as SWOT analysis, Value Chain Analysis about the market
• Analysis of the key factors driving and restraining the growth of the global, regional, and country-level SiC substrates markets from 2023-2030
• Competitive Landscape and market positioning of top 10 players operating in the market