Market Trends of Silicon Carbide Power Semiconductor Industry
This section covers the major market trends shaping the Silicon Carbide Power Semiconductor Market according to our research experts:
Automotive Industry is Expected to Register Significant Growth
- Research activities are being conducted into the usage of silicon carbide (SiC) devices within automotive powertrains. However, due to recent advancements, it is gradually becoming a feasible solution. For instance, Tesla, which uses a rapid charging solution, is already using SiC within their vehicle architectures currently. In addition, electric cars are becoming common on the road nowadays with prices coming down and range going up. According to the International Energy Agency, plug-in electric light vehicle sales across the globe reached around 6.6 million in 2021.
- SiC semiconductors are ideal for applications, such as onboard chargers and inverters, being used within the plug-in hybrid (PHEV) and fully electric vehicles (EVs). This is because their energy efficiency is significantly higher compared to traditional silicon.
- Also, to ensure that EVs can operate over long distances and charge within a reasonable timeframe, the vehicle's power electronics must be capable of handling high temperatures. SiC semiconductors benefit from more than 95% energy efficiency. Only 5% of energy is lost as heat during power conversion, such as recharging the vehicle with a high-power rapid-charger.
- In Japan, the University of Tokyo has been working with Mitsubishi Electric Corporation to enhance the reliability of SiC semiconductor devices. Earlier, Mitsubishi Electric revealed a new ultra-compact SiC inverter designed for hybrid vehicles, with mass commercialization targeted around 2021.
- Moreover, Delphi Technologies and Cree have partnered to create the former's inverters, combined with Cree's SiC MOSFETs. It has significantly reduced the power module's overall temperature while enabling higher power outputs to support an extended range for hybrid and fully electric automobiles. These inverters are also 40% lighter and 30% more compact than competing models.
- Further, in May 2021, Infineon Technologies launched a new power module with CoolSiC MOSFET technology for automotive applications. The use of SiC instead of Si ensures higher efficiency in converters in electric vehicles. For example, Hyundai Motor Group reported that it was able to increase the range of its vehicles by more than 5% because of efficiency gains resulting from the lower losses of this SiC solution compared to the Si-based solution, with the help of the traction inverters based on Infineon's CoolSiC power module.
- Moreover, in March 2021, as part of the Industrial Strategy Challenge Fund led by the UK Research and Innovation, the UK government awarded GBP 4.8 million to Swansea University to manufacture silicon carbide (SiC) power semiconductor devices and create more efficient power electronics for transportation, homes, and industry, and help the nation achieve its net-zero ambitions.
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Asia Pacific to Witness the Fastest Growth
- The Asia Pacific dominates the global SiC power semiconductor market, pertaining to global semiconductor market growth, which is also supported by government policies. Furthermore, the region's semiconductor industry is driven by China, Taiwan, Japan, and South Korea, which together account for around 65% of the global discrete semiconductor market. In contrast, others like Thailand, Vietnam, Singapore, and Malaysia also contribute significantly to the region's dominance in the market.
- According to the Indian Electronics and Semiconductor Association, India's semiconductor component market is expected to be worth USD 32.35 billion by 2025, displaying a CAGR of 10.1% (2018-2025). The country is a lucrative destination for worldwide R&D centers. Therefore, the government's ongoing Make In India initiative is expected to result in investments in the semiconductor market.
- Moreover, the region is an electronics hub that produces millions of electronic devices every year for exporting to other countries and consumption in the area. This high production of electronic components and devices largely contributes to the market share of the studied market. For instance, the increasing demand for consumer electronics in India has also facilitated the regional market's growth. According to IBEF, demand for electronics hardware in India is expected to reach USD 400 billion by FY2024, which will further drive market growth.
- China is the world's largest producer of electricity. The country's energy demand is expected to increase, thereby resulting in growth in energy production. For instance, according to the IEA, in China, sales of electric vehicles have more than doubled; further, in 2021, it sold approximately 3.3 million more electric cars than in other countries.
- The automotive industry has been increasing in China, and the country is playing an increasingly important role in the global automotive market. The Government of China sees its automotive industry, including the auto parts sector, as one of its pillar industries. The government expects China's automobile output to reach 30 million units by 2020 and 35 million units by 2025.
- Further, the electric vehicle market is gaining momentum in India, owing to the government's ambitious plans and initiatives. Public authorities in India have made several electric vehicle-related policy announcements over the past few years, showing strong commitment, concrete action, and significant ambition to deploy electric vehicles in the country.
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