News: Markets
25 February 2021
SiC-based power electronics & inverter market to reach $3888.2m by 2027
The global silicon carbide (SiC)-based power electronics & inverter market is projected to reach $3888.2m by 2027, rising at a compound annual growth rate (CAGR) of 32.5% during the forecast period, estimates Fortune Business Insights in its report ‘SiC Based Power Electronics & Inverter Market, 2020-2027’. The market was just $446.3m in 2019.
Growing presence of semiconductor startups to transform market landscape
Silicon carbide (SiC) and gallium nitride (GaN) based semiconductors are rapidly being adopted in the power electronics industry due to their superior properties, such as the ability to withstand high voltages. Recognizing the potential of these materials, innovative startups have emerged. For example, UK-based Anvil Semiconductors develops SiC-based power systems that have wide applicability across industries, including traction systems in the rail industry. Similarly, Belgium-based EpiGan manufactures GaN-on-silicon epiwafers for power switching applications, especially for 5G networks. As these startups continue to innovate, SiC-based power electronics & inverter products should therefore see escalating demand in the near future, reckons the report.
COVID-19 impact
The sudden eruption of the COVID-19 pandemic in March 2020 ushered in a period of massive supply chain disruptions in the electronics industry. With strict lockdowns and social distancing measures in place, manufacturing and production activities in the industry have taken a severe blow. However, these events have not had serious ramifications for the SiC-based power electronics & inverter market growth. In fact, the market registered a healthy CAGR of 21.5% and reached $542.2m in 2020. This can be attributed to the strong demand for consumer electronics and the increasing adoption of connected devices amid the pandemic.
Market segments
Based on type, the market has been bifurcated into power electronics and inverters. On the basis of end-use industry, the market has been segregated into automotive, consumer electronics, IT & telecoms, aerospace & defense, and others. By applications segment, automotive led the market with a share of 47.8% in 2019. By geographic region, China led with a share of 49.2%.
Driving factor - creation of SiC electronics to boost market
Leading companies in the automotive electronics domain have been innovating next-generation SiC-based power electronics & inverter solutions to meet the evolving energy demands of consumers. For example, in June 2018 Bosch announced plans to building a SiC semiconductor manufacturing facility. According to Bosch, using SiC- rather than silicon-based devices can reduce energy lost as heat by 50%. Another example is the 2019 partnership between Delphi and Cree, in which Cree’s SiC MOSFETs were combined with Delphi’s inverters to reduce the power module’s overall temperature while facilitating higher output. Such innovations in the automotive electronics domain are rapidly raising the potential of this market.
Regional insights - rapid growth of ASEAN manufacturing sector to drive Asia-Pacific market
The Asia-Pacific region is expected to dominate the SiC-based power electronics & inverter market during the forecast period due to the phenomenal progress displayed over the past decade by the manufacturing sector in the ASEAN countries, which have a strong electronics manufacturing base and have excelled in semiconductor development. In 2019, the Asia-Pacific market stood at $188.7m.
In Europe, the robust presence and high-tech investments by the region’s auto giants will stimulate the regional market for SiC-based power electronics & inverter, forecasts the report. In North America, the widespread adoption of consumer electronics will foster long-term growth of the market, it adds.
Competition in this market is set to intensify as key players are actively entering contractual partnerships with fellow participants. These partnerships aim to expand market footprint in a mutually coordinated manner while augmenting each other’s R&D capacities as well as production capabilities for SiC-based power electronics & inverter devices.
www.fortunebusinessinsights.com/sic-based-power-electronics-and-inverter-market-104880
