SiC and GaN Power Semiconductor Market

SiC and GaN Power Semiconductor Market Outlook from 2024 to 2034

Future Market Insight (FMI), in its latest report, estimates the global SiC & GaN power semiconductor market size to reach US$ 2,170.8 million in 2024. Sales are predicted to soar at an impressive CAGR of 27.1%, courtesy of which the global market valuation will total a staggering US$ 23,718.0 million by 2034.

SiC and GaN Power Semiconductor Market Insights

SiC and GaN Power Semiconductor Market Dynamics

With trends like electric vehicle revolution, industrial automation, and renewable energy integration gaining momentum, the importance of power semiconductors increases significantly. These electronic devices are mainly used as switches and find applications in power electronics, including automobiles and mobile devices, etc., that need controlled and stabilized power supply.

Compound semiconductors, including gallium nitride (GaN) and silicon carbide (SiC), offer numerous benefits over traditional silicone-based semiconductors. They work more efficiently at high temperatures, high power densities, higher voltages, and higher frequencies. As a result, their demand is rising rapidly.

GaN and SiC power semiconductors are increasingly adopted in applications such as industrial PV inverters, motor devices, power supplies, and others. High adoption of these applications will provide the impetus for the growth of the SiC & GaN power semiconductor market through 2034.

The rise of renewable energy sector is ushering a new life into SiC and GaN power semiconductor industry. Several governments and regulatory bodies globally are launching new initiatives to facilitate the adoption of eco-friendly energy sources.

For instance, in 2021, the European Commission introduced the European Solar Initiative to scale up Europe's solar PV industrial ecosystem. Such initiatives are anticipated to generate high demand for power semiconductors like SiC and GaN through 2034.

Key Factors Propelling Demand for SiC & GaN Power Semiconductors

Escalating demand for energy-efficient electronic devices and systems is set to boost sales growth. SiC and GaN power semiconductors offer excellent performance when it comes to lower energy loss, making them suitable where efficiency is paramount.

High preference for silicon carbide (sic) power devices over conventional silicon semiconductors due to their multiple advantages will fuel their demand. Similarly, the shift towards renewable energy sources and surging adoption of hybrid and electrified vehicles are predicted to propel SiC & GaN power semiconductor demand.

Sudip Saha

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Factors Limiting SiC and GaN Power Semiconductor Market Growth

Lack of formalized testing and qualification processes can hamper market growth. Complexity of designing an efficient and reliable circuit with SiC & GaN components can be difficult. High initial investment and construction costs can deter adoption. Similarly, supply chain disruptions and shortages can hinder SiC and GaN production.

Opportunities for the SiC and GaN Power Semiconductor Industry

Growth of 5G network technology is set to create growth opportunities for SiC and GaN power semiconductors manufacturers. The high efficiency of SiC power devices is fueling their adoption in industrial device applications.

Another key factor creating growth prospects for the market is the escalating demand for compact and efficient power electronics in consumer electronics. Subsequently, increased focus on energy efficiency in automotive systems is leading to the adoption of SiC and GaN devices.

Latest SiC & GaN Power Semiconductor Market

A key trend observed in the silicon carbide and gallium nitride power devices industry is a collaboration between semiconductor manufacturers to accelerate innovation and market movement. Increased availability of gallium nitride (GaN) in RF microwave applications due to its high-frequency capabilities will propel demand.

Advances in packaging technology are increasing thermal efficiency and reliability of power semiconductors. This will positively impact the SiC and GaN power electronics market during the projection period.

Historical Performance Vs. Future SiC and GaN Power Semiconductor Demand Outlook

From 2019 to 2023, global sales of SiC & GaN power semiconductors grew at a CAGR of 9.4%, reaching a market size of US$ 1,747.3 million in 2023. This growth was fueled by increased demand for power semiconductors in electric vehicles (EVs), power storage devices, and other applications.

Future Forecast for SiC and GaN Power Semiconductor Market

Over the forecast period, the global SiC & GaN power semiconductor industry is poised to rise at a CAGR of 27.1%. Total valuation at the end of 2034 is predicted to reach US$ 23,718.0 million, spurred by rising popularity of electric vehicles and adoption of industrial automation.

The transition toward renewable energy resources is acting as a catalyst triggering SiC and GaN power semiconductor sales. This is because these power semiconductors are increasingly used in renewable energy systems to enhance their efficiency and performance.

As technology continues to evolve, manufacturers are focusing on developing novel solutions with high performance and improved efficiency. This will bode well for the market during the assessment period.

Country-wise Insights

The section below sheds light on nations leading the global industry. The United States, Japan, Korea, and China are set to remain leading end-users of SiC & GaN power devices owing to the booming semiconductor industry and the rise of electric vehicles.

Electric and Hybrid Vehicle Adoption Propelling Demand in the United States

The United States SiC & GaN power semiconductor market value is forecast to grow significantly, tolating US$ 3,804 million by 2034. Demand for SiC & GaN power semiconductors in the nation will surge at an impressive CAGR of 27.6% over the next ten years.

Growing adoption of electric vehicles (EVs) is a prominent factor fueling demand for high-performance energy semiconductors such as SiC and GaN in the United States. This is because these semiconductors are essential to increase the performance and energy efficiency of the EV powertrain.

Escalating popularity of renewable energy systems such as solar and wind energy in the United States is creating the need for capable advanced power electronics, where SiC and GaN semiconductors excel. These semiconductors enhance the efficiency of renewable energy systems.

The surging trend towards industrial automation in various industries is anticipated to uplift demand for SiC and GaN power semiconductors in the United States. This is because these powerful semiconductors offer high efficiency, low switching losses, and improved thermal performance in automation systems.

Growth of EV and Renewable Energy Sectors Boosting Sales in China

Future Market Insights’ latest analysis predicts China SiC & GaN power semiconductor market to thrive at a staggering 31.1% CAGR during the forecast period. Sales of SiC and GaN power semiconductors in the country will total around US$ 6,019.2 million by 2034.

China is emerging as a key player in the electric vehicle sector due to growing environmental concerns and favorable government support. This, in turn, is positively impacting SiC & GaN power semiconductor sales.

SiC and GaN power semiconductors are widely used in motor drives, powertrains, lighting systems, LiDAR autonomous control, and other automotive applications. Thus, growing popularity of electric vehicles in China will boost sales growth through 2034.

There is also a surge in demand for high-performance semiconductors as adoption of renewable energy systems such as solar and wind energy continues to increase. SiC and GaN power semiconductors can handle the high power requirements of these systems and improve their performance.

Category-wise Insights

The section below sheds some light on leading segments along with their projected growth rates. Companies can use this information to offer demanding products to solidify their positions in the global industry.

By material type, the SiC segment will retain its market dominance, holding a share of 78.3% by 2034. Based on component, the transistors segment will thrive at a robust CAGR of 28%. By application, the automotive segment is set to account for a revenue share of 74.0% in 2034.

Demand Remains High for Silicon Carbide (SiC) Power Semiconductors

Market Growth Outlook by Material Type

The latest analysis predicts the SiC power semiconductor segment to grow at 26.6% CAGR during the next decade. It will total a valuation of US$ 18,564 million by 2034, holding around 78.3% of the global SiC & GaN power semiconductor market share.

Growing usage of SiC in electric vehicles and renewable energy systems like solar inverters is boosting segment growth. SiC semiconductor’s ability to handle high voltages and temperatures makes them popular in these high-power applications.

Silicon carbide (SiC) has become the most important resource to be used when dealing with new wide-bandgap, which allows less losses and more switching speed. SiC semiconductors offer higher efficiency than silicon, mainly due to significantly lower energy loss and reverse charge. This leads to more switching power and less energy required in the switch-on and switch-off phase.

GaN segment, however, is catching up and is set to rise at a higher CAGR of 29.1% through 2034. This can be attributed to GaN’s high-frequency capabilities and other advantages.

Transistors Category Witnessing Impressive Growth Owing to Wide Applications

Market Growth Outlook By Component

As per the latest report, transistor segment is poised to grow at a staggering CAGR of 28.0% through 2034. This is attributable to escalating adoption of transistors, especially metal-oxide-semiconductor field-effect transistors (MOSFETs), for a wide range of applications in power electronics.

Silicon carbide transistors are increasingly used in high-voltage power converters as they can meet the stringent requirements regarding size, weight, and/or efficiency of these applications. The excellent properties of silicon carbide (SiC) enable the design of fast-switching unipolar devices as opposed to IGBT (Insulated Gate Bipolar Transistor) switches.

WBG transistors have the tendency to switch faster and can work at higher frequencies than silicon. The unique combination of these features makes these transistors attractive for demanding circuits used in automotive applications, especially electric vehicles and hybrid electric vehicles (HEVs).

SiC and GaN Power Device Usage Remains High in Automotive Applications

Market Growth Outlook By Application

When it comes to SiC & GaN power semiconductor usage, the automotive industry leads from the forefront. The target segment is set to thrive at 26.9% CAGR during the assessment period, accounting for a revenue share of 74.0% in 2034.

The use of semiconductors within automobiles continues to increase. The increased semiconductor value in cars comes from chips used in advanced driver-assistance systems for safety and autonomous-driving features, as well as in the electrification of engine drive systems as the world moves toward a more carbon-neutral environment.

Silicon carbide and gallium nitride are capable of operating at higher frequencies, voltages, and temperatures. This is making them more efficient and ideal for high-performance automotive applications.

The escalating demand for EVs and the recognized benefits of power semiconductors are encouraging major investments in SiC and GaN technologies in automotive industries. As the major players continue to invest heavily in research and development, the market is set to witness the introduction of more and more semiconductors for automotive applications.

Competition Landscape

Key players are focusing on providing tailored SiC & GaN power semiconductor solutions to meet the specific needs of their clients. They are constantly looking to develop advanced power semiconductors for novel applications.

Various companies are employing strategies like partnerships, distribution agreements, and collaborations to stay ahead of the competition. For instance, recently, Vitesco Technologies entered into a strategic partnership with Canada-based GaN Systems Inc., a leading developer of Gallium Nitride power transistors.

The market is also witnessing mergers and acquisitions as companies look to strengthen their presence in attractive regions. For instance, recently, Transphorm, Inc., a prominent leader in manufacturing wide bandgap gallium nitride (GaN) semiconductor technologies, was acquired by Renesas Electronics Corporation.

Key Players in the SiC & GaN Power Semiconductor Market

• STMicroelectronics N.V.
• Infineon Technologies
• Wolfspeed, Inc.
• ROHM Semiconductor
• On Semiconductor Corp
• NXP Semiconductors N.V.
• Microsemi Corporation
• Qorvo (United Silicon Carbide Inc.)
• IQE PLC
• AGC Inc.
• Genesic Semiconductor Inc.
• Panasonic Corporation
• Semikron Danfoss
• DACO SEMICONDUCTOR CO., LTD.

Key Developments in the SiC & GaN Power Semiconductor Market

• In January 2023, Japan-based Fuji Electric Co., Ltd. introduced the MICREX-VieW FOCUS Evolution for monitoring and control systems.
• In 2021, ON Semiconductor, a leading American semiconductor supplier, introduced novel silicon carbide MOSFET module solutions for charging electric and hybrid vehicles.
• In February 2022, STMicroelectronics, headquartered in Switzerland, released different automotive High Side Drivers in a popular PowerSSO-16 package style.
• In February 2023, Wolfspeed, Inc., a prominent manufacturer of wide-bandgap semiconductors, and ZF announced partnered to develop a joint innovation lab to advance in Silicon Carbide systems and devices.

Key Coverage in Global SiC and GaN Power Semiconductor Market Research Report

• Adjacent Study on Global SiC and GaN Power IC Market, SiC and GaN Power Transistors Market, and SiC and GaN Power Module Market
• Top Players in Wide Bandgap Power Semiconductor Market
• Scope of High-voltage SiC and GaN Devices Market in India
• Emerging Trends in SiC and GaN Power Switching Devices Market
• Market Dynamics of Market Dynamics of SiC and GaN Power Electronics in Developed and Developing Regions
• Overview of Wide Bandgap Power Semiconductor Market in the United Kingdom
• Latest Trends in SiC and GaN Power Transistors
• Future Outlook for High-voltage SiC and GaN Devices Globally
• Challenges and Opportunities in SiC and GaN Power Switching Devices Industry

SiC and GaN Power Semiconductor Market Segmentation

By Material Type:

• SiC
• GaN

By Component:

• Diodes
• Transistor
• Power Module
• Hybrid Devices

By Application:

• Automotive
  • Powertrain
  • On-board Charger
  • Fast & Wireless Charging
  • On-board DC/DC Converter
  • Motor Drive
  • xEV Components
  • Traction Inverters
  • Lighting System
  • LiDAR Autonomous Control
  • Others
• Industrial
  • Power Supplies
  • Charging Equipment
  • Power Storage
  • Motor Drives
  • PV Inverter
  • Traction Motor Components
  • Communication Equipment
  • Lighting System
  • Robotics Control System
  • Others

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia & Oceania
• Middle East and Africa