News: Markets
28 May 2024
SiC and GaN power semiconductor market growing at 22.9% CAGR from $1.41bn in 2024 to $11.08bn in 2034
The global SiC and GaN power semiconductor market will rise at a compound annual growth rate CAGR of 22.9% from $1.41bn in 2024 to $11.08bn in 2034, forecasts a report by Fact.MR.
Due to characteristics that make them suitable for high-temperature and high-frequency applications, SiC and GaN power semiconductors are finding extensive use in the automotive, renewable energy, industrial, and consumer electronics sectors.
In the automotive sector, they are used in the manufacturing of energy-efficient electric and hybrid vehicles. Due to their effective energy conversion ability, SiC and GaN power semiconductors in industrial settings are used in renewable energy inverters and motor drives. Ongoing R&D activity worldwide is set to enhance the features of SiC and GaN power semiconductors even more over the coming years.
“The miniaturization trend in consumer electronics is a key factor driving high demand,” notes Fact.MR.
Innovation and acquisition enhancing product offerings
The SiC and GaN power semiconductor market is highly competitive. Industry giants are adopting product expansion strategies including mergers and acquisitions to boost their product offerings and market reach.
For example, in October 2023 Infineon Technologies AG announced the acquisition of GaN Systems Inc. Meanwhile, in 2023, Japan’s Flosfia began offering power chips made from gallium oxide, which can offer even higher energy efficiencies than GaN and SiC.
Regional dynamics: automotive and renewable energy sectors
SiC and GaN power semiconductors have become integral to automotive manufacturing in the USA, spurred by stringent regulations governing vehicle safety and greenhouse gas emissions. As auto-makers strive to incorporate fuel-efficient components into their vehicles, the adoption of SiC and GaN power semiconductors has surged in automotive system production. Their high energy efficiency plays a crucial role in enhancing the performance of electric vehicle power trains.
The SiC and GaN power semiconductor market in the USA is hence forecasted to grow at a 23.4% CAGR from $149.9m in 2024 to $1.22bn in 2034.
Meanwhile, China stands out as a major hub for semiconductor manufacturing. The nation's robust production capabilities and extensive export of consumer electronics have fueled the demand for SiC and GaN power semiconductors. Additionally, the increasing popularity of renewable energy sources like solar panels and distributed energy storage systems has driven the use of SiC and GaN power semiconductors in the production of these systems. Moreover, the growing trend for industrial automation has further fueled the growth of the SiC and GaN power semiconductor market in China, which is forecasted to grow at a 22.9% CAGR from $154.4m in 2024 to $1.21bn in 2034.
SiC power module sales to reach US$3.64bn by 2034
Among the array of semiconductor materials used in power modules, silicon carbide stands out as the most prevalent, due to its ability to minimize energy loss during power conversion. This inherent advantage translates into reduced reliance on expensive cooling systems, making SiC an increasingly appealing choice for semiconductor purchasers.
Another notable benefit of SiC power modules is their exceptionally low switching loss, particularly in applications like EV chargers and solar inverters. This technical advantage further boosts SiC power module manufacturers as they broaden their product offerings and market presence.
These trends underscore the projection that the demand for SiC power modules will continue to surge over the next decade, with sales growing at a 22.6% CAGR from $476.3m in 2024 to $3.64bn by 2034.
