"Electrifying your pathway to success through in-depth market research"
The global SiC based power electronics and inverter market size was USD 542.2 million in 2020. 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 analysis, the global market exhibited a stellar growth of 21.5% in 2020. The market is projected to grow from USD 663.1 million in 2021 to USD 5,816.5 million by 2028 at a CAGR of 36.4% during the 2021-2028 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 SiC based semiconductors in a wide range of industries. This includes automotive, IT & telecommunication, aerospace & defense, and consumer electronics industries across the developed and developing countries. The material’s adoption from the above-mentioned industrial sectors has enhanced the sale of these power electronics and inverters worldwide. Using wide-bandgap semiconductors minimizes conductance loss at high temperatures, low switching loss, and relatively lesser input loss than traditional power semiconductors. The increasing demand for developing advanced ICs (Integrated Circuits) operating at higher temperatures and voltage levels and 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, SiC based power electronics and inverter industry has been facing challenges to maintain the economic impact across several industrial applications. In the short term COVID-19 impact on the market, several industrial sectors have been affected. The international manufacturing sector was already slow in 2019 due to the tension amongst the dominant countries. The market 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 boom in the future, as demand for more Sic based semiconductors, devices, and products abounds in the automotive and industrial sectors, accelerating the GDP growth of developing and developed economies. Also, global trade values and investments in the automotive, industrial, consumer electronics, and many more industries are expected to enhance the market during the forecast period.
Furthermore, the rising need for automated devices, which provides enhanced performance and life, surged the demand for SiC components and their applications worldwide. Therefore, the market is expected to lead exponential market growth in the coming years, uplifting the global SiC market over the forecast period.
Request a Free sample to learn more about this report.
Increasing Expansion of Connected Technologies to Augment SiC based Power Electronics and Inverter 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 and inverters. These technologies converge into a single device or system with such an advanced product. The convergence of these technologies has created expanded opportunities for companies manufacturing such devices, thereby creating a new ecosystem to generate increased revenue.
Likewise, embedding Artificial Intelligence (AI) into the product has also increased the demand from end-use applications such as IGBT (Insulated Gate Bipolar Transistor), BJT (Bipolar Junction Transistor), etc. as these are the most predominant applications of these machines.
Furthermore, the application of SiC based products in industrial operations & the consumer electronics manufacturing industry has increased, including connectivity for automation, security, transportation, energy management, etc. Hence these applications are expected to create an extended market opportunity for market growth.
Universal Regulations & Standards to Magnify Global Growth
SiC based power electronics and inverter products are expected to see a huge surge in demand, with the continuous emergence of advanced technologies. The growth is expected to 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 demands for the SiC based modules, 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. 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 power electronics and inverters are complex due to the involvement of several applications. Also, depending on the level of customization, the overall installation and programming procedures are often challenging for manufacturers. This is one of the key factors hampering the adoption of SiC based products.
Furthermore, another drawback of SiC based inverter devices is to find authorized technology partners for their installations and maintenance services. For installation, many companies have to pay a neutral third outsourced party to create, program, and plan out the costs related to logistics and manufacturing. This extends the procedure of installation and increases the hidden expenses for SiC based products. These are the major factors that are obstructing market growth.
Power Electronics Segment to Hold Dominant Share Backed by High Adoption in Industry Applications
By type, the market is segmented into power electronics and inverters.
The demand for power electronics is expected to grow significantly during the forecast period. Power electronics dominate the silicon carbide industry owing to their capability of reducing energy loss. SiC increases the life as well as the efficiency of power electronics. Moreover, the enhanced performance from devices, such as power modules, charge-time, performance, and increasing the range of electrical vehicles (EVs), is augmenting the adoption of SiC based products.
Furthermore, the market demand for SiC based inverters is expected to grow moderately compared 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.
To know how our report can help streamline your business, Speak to Analyst
Automotive Segment to Exhibit Highest CAGR Backed by High Demand from Automotive Power Semiconductor
By end-use industry, the market is segmented into automotive, consumer electronics, IT & telecommunication, aerospace and defense, and others.
The automotive sub-segment is estimated to exhibit a robust growth of 39.8% CAGR due to increasing EVs from various automobile manufacturers. The SiC semiconductor devices can be installed in electro-mechanical computing systems, industrial and commercial motor drives, and high-temperature sensors in the 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 & telecommunication 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 and Inverter Market Size, 2020 (USD Million)
To get more information on the regional analysis of this market, Request a Free sample
Asia Pacific is projected to hold the largest market share, owing to the robust economic growth of countries such as India, China, & Japan. Along with that, the strong economic growth in the ASEAN manufacturing sector is expected to fuel the development of the regional market. The region is further experiencing substantial growth in the demand for SiC and GAN (Gallium-nitride) solutions from sectors such as automotive and consumer electronics. Furthermore, favorable regulatory framework & regulation by government agencies for increasing investments in the manufacturing industry are expected to substantially impact the growth of the market. As a result, the SiC based power electronics and inverter market is anticipated to gain significant impetus across the region.
Countries such as China & Japan are experiencing soaring demand due to the presence of several manufacturers in the region. These manufacturers offer various products, focusing on marketing strategies to cater to the demand from emerging economies such as India, Malaysia, and 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 power electronics & inverters and is expected to display steady growth in the forthcoming years. Significant investments in the automotive sector by local players are anticipated to create demand for SiC based products, with various options and categories based on the prevalent market trends. This is expected to boost the market growth in the region.
The market in Europe is expected to experience considerable growth during the forecast period and hold a strong position. This is owing to the technological advancements, along with the increasing focus on R&D activities, in the region. Moreover, the presence of major automotive manufacturers in the region will bode well for market growth.
To know how our report can help streamline your business, Speak to Analyst
The Middle East & Africa, 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. This is due to the demand for assisting innovative applications such as advanced computing, autonomous vehicles, electric vehicles, etc. Hence, technology advancements with these SiC based products are expected to provide solutions for these applications with reduced wastage of power, energy, and increased life. Thereby sustaining the growth of the market in both these regions.
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 compared to other markets in the power electronic solutions domain. The market is growing with 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 global market. They cover 83% - 88% of the market. These prominent companies are working to enhance their product expertise by investing in research and development. They focus on a brand name, building a strong customer base, and adopting the latest technologies to remain at the top. These companies are also focusing on developing SiC based solutions for other industrial applications, such as robotics, automation, etc. 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
To get information on various segments, share your queries with us
The SiC based power electronics and inverter market research report provides a detailed analysis of the type and end-use Industries. It provides information along with 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 factors mentioned above, 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 stood at USD 542.2 million in 2020.
In 2028, the market is expected to be worth USD 5,816.5 million.
The market will exhibit a stellar CAGR of 36.4% during the forecast period (2021-2028).
Asia Pacific stood at USD 235.6 million in 2020.
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.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry