Silicon Carbide Market Size, Share, Market Research and Industry Forecast Report 2020-2027 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: Silicon Carbide Market


The global silicon carbide market size was valued at USD 2.52 billion in 2019 and is expected to register a CAGR of nearly 16.1% from 2020 to 2027. The growing steel industry is anticipated to drive the growth as the silicon carbide (SiC) is used as a deoxidizing agent in the steel industry and is a major raw material in refractories production. The refractories made of silicon carbide exhibit high thermal conductivity that is ten times higher than fireclay refractories. Global crude steel production increased by 4.5% from 2017 to 2018. Thus, increasing steel production is likely to propel the demand for refractories, which in turn is anticipated to augment the growth of the market in near future.

In U.S., demand for steel is driven by the construction sector, which accounted for about 46% of the global demand in 2018. The crude steel production in the country increased by 6.1% from 2017 to 2018. The increasing steel production to meet the rising demand from various end-use industries is anticipated to boost the need for refractories, which in turn is likely to fuel the SiC market growth over the coming years.
Along with the growing demand for SiC from the steel industry, the market is also driven by the electronics industry, wherein the product is used for manufacturing semiconductors.The growing utilization of renewable energy sources for power generation around the globe is anticipated to stimulate the demand for silicon carbide semiconductors as they exhibit tremendous speed, exceptional toughness over silicon.

Although silicon is being replaced by SiC in the semiconductors sector, the product faces challenges from other materials, such as gallium nitride in power modules as gallium nitride transistors. These transistors are cost-effective and can operate at lower voltages compared to silicon carbide, therefore, may act as a major restraint for the market growth.

Product Insights of Silicon Carbide Market

Black silicon carbide accounted for a 55.3% revenue share of the silicon carbide market in 2019 owing to the increasing consumption of steel and growing automobile and construction industries. It is crystalline in nature with a hardness of Mohs 9.1 and is produced in furnaces at temperatures greater than 2300 degree Celsius from silica sand and coke.

Black silicon carbide has applications in abrasives, grinding and polishing, wear-resistant, and refractory products on account of its properties such as low density, resistant to oxidation and thermal shock, high strength, high thermal conductivity, high temperature strength, high hardness, wear-resistance, excellent chemical resistance, and low thermal expansion. It is cost effective compared to green silicon carbide.

Green silicon carbide is the purest form of the product with a hardness of Mohs 9.4. It is made from silica sand and coke and is hexagonal in shape. It is harder and costlier than its counterpart. It is replacing silicon chips in semiconductors as it provides better efficiency and form factor.

Application Insights of Silicon Carbide Market

Automotive segment accounted for a volume share of 17.9% in 2019 owing to the rising penetration of electric vehicles, in which silicon carbide is used for manufacturing power electronic devices that operate at elevated temperatures. According to the International Energy Agency, the global sales of electric vehicles are anticipated to reach 44 million per year by 2030, which in turn is likely to propel the demand for electronic devices such as inverters and MOSFET. The increasing production of these devices to meet the global demand from the automotive industry is anticipated to augment market growth over the forecast period.

Electrical and electronics is one of the fast growing segments in terms of revenue owing to the rising demand for power modules in semiconductors. Silicon carbide semiconductor exhibits a larger critical electric field, wider band gap, and higher thermal conductivity. According to the Department of Electronics and Information Technology (DeitY), nearly 2,000 chips are designed in India every year. The increasing production of semiconductors is anticipated to drive the market growth in the forthcoming years.

Aerospace is anticipated to expand at a CAGR of 17.6% in terms of revenue from 2020 to 2027 owing to the increasing passenger traffic and demand for airplanes. Nearly 39,200 new passenger and freighter aircraft are likely to be needed over the next 20 years. Silicon carbide is used for manufacturing aerospace parts, such as electrical components, scanning mirrors, and space-based telescopes.

In military and defense, superior properties of silicon carbide, such as extreme hardness and excellent mechanical strength make it suitable in the production of military aircraft body and vehicle armor. The product is also used in various other applications such as optic substrates, scanning systems, and sensor pods that are used in military and defense.

Regional Insights of Silicon Carbide Market

Asia Pacific accounted for a volume share of 59.4% in 2019 owing to the growing manufacturing sector in countries such as India and China. In India, rising investments in infrastructure coupled with a need to satisfy the housing for a large population is triggering the demand for crude steel, which in turn is likely to propel the market growth over the coming years. According to the Make in India initiative undertaken by the government of India, the country is expected to invest nearly USD 650 billion in urban infrastructure over the next 20 years.

In North America, leading automobile makers are manufacturing lightweight vehicles that are economical, emit low carbon dioxide, and yet provide superior performance due to rising environmental concerns in the region. Growing demand for lightweight vehicles is encouraging silicon carbide abrasive manufacturers to capitalize on this trend by engaging in long term contracts and by offering various products that meet the requirements of automakers. This is expected to spur market growth over the forecast period.

Europe is anticipated to expand at a CAGR of 7.5% in terms of volume from 2020 to 2027 owing to the growing aerospace and defense industries and established automotive industry. Recently, the European Union allocated USD 585.19 million in 2019 and 2020 to the European Defense Industrial Development Programme to boost the growth of the defense industry, which in turn is anticipated to augment market growth over the coming years.
Moreover, growth in the manufacturing sector along with the increase in disposable income is expected to boost the demand for electronics and automobiles in Europe. As per the reports of Eurostat, the disposable income in Europe rose by 18% from 2000 to 2016, which is an average growth rate of 1% over the year. Thus, growing end-use industries such as aerospace and defense, automotive, and electronics are anticipated to drive the regional product demand.

Market Share Insights of Silicon Carbide Market

AGSCO Corporation; Carborundum Universal Limited; Dow Chemical Co.; Entegris, Inc.; ESD-SIC b.v.; ESK-SIC GmbH; Grindwell Norton Ltd; and Saint Gobain Ceramic Materials GmbH are the major market players. These companies are adopting various strategies such as mergers and acquisitions, and joint ventures to expand their product portfolio and to gain greater market share.

In January 2019, Entegris, Inc. and Versum Materials, Inc. announced that they have agreed for a strategic merger. The combined company is expected to retain the Entegris name and would be headquartered in Billerica, Massachusetts. This strategy was adopted to accelerate the diversification of the product portfolio and to provide specialty materials to the growing semiconductor industry.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Silicon Carbide Market Research Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2030. For the purpose of this study, this market research report has segmented the global silicon carbide market report on the basis of product, application, and region:

Product Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  
Black Silicon Carbide
  
Green Silicon Carbide

Application Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  
Steel
  
Automotive
  
Aerospace
  
Military & Defense
  
Electrical & Electronics
  
Healthcare
  
Others