SiC Power Devices: A $8.9 Billion Market by 2028

Based on recent findings presented in Yole Intelligence's Power SIC 2023 report, the silicon carbide power devices sector is poised for substantial growth, forecasting a steady upward trajectory.

By the year 2028, analysts project this market to attain a significant valuation of approximately US$8.9 billion. This projected 31% annual growth rate expected from 2022 to 2028. Experts attribute this surge to the increasing demand within the Battery Electric Vehicle (BEV) sector, particularly within the 800V electric vehicle (EV) segment.

Silicon carbide (SiC) power devices offer inherent advantages such as superior efficiency and enhanced power density when compared to conventional silicon-based counterparts. These qualities render them particularly suitable for high-power applications, such as BEVs, solar inverters, and power grids.

BEVs, in particular, play a pivotal role in driving the expansion of the SiC power devices market. The growing concern for the environment and stringent governmental regulations are major drivers for the increasing demand for BEVs. These electric vehicles require higher power capabilities compared to traditional gasoline-powered cars, and SiC power devices significantly contribute to enhancing BEV efficiency and extending their operational range.

Within the BEVs segment, 800V EVs are anticipated to exhibit accelerated growth rates, surpassing the overall BEV market. 800V EVs offer the advantages of rapid charging and extended range in comparison to their 400V counterparts. SiC power devices are indispensable for 800V EVs due to their capability to handle the high voltages and currents required for these advanced vehicles.

The introduction of 8-inch SiC wafers has been a huge development for the SiC power devices market These larger wafers, as opposed to the current 4-inch variants, enable improved production yields and cost reductions, creating a huge drive for future market growth.

However, the SiC power devices market does face some challenges, notably the high cost associated with SiC wafers and a shortage of qualified suppliers. Nonetheless, the market is poised to overcome these obstacles due to the strong demand for SiC power devices in the BEV, solar inverter, and power grid sectors. Additionally, diverse applications such as industrial power supplies, motor drives, and rail systems contribute to the broad landscape of SiC power applications.

Prominent industry players, including Cree, Inc., Infineon Technologies AG, ROHM Co., Ltd., STMicroelectronics, and Wolfspeed, are making substantial investments in research and development aimed at enhancing SiC power device performance while simultaneously reducing production costs.