Market Research Report
Global Silicon Carbide Market - 2021-2028
|Global Silicon Carbide Market - 2021-2028|
Published: December 22, 2021
Content info: 180 Pages
Delivery time: 2 business days
The Silicon Carbide market size was worth US$ XX million in 2020 and is estimated to reach US$ XX million by 2028, growing at a CAGR of XX% during the forecast period (2021-2028).
Silicon carbide or carborundum is a material formed by the combination of silicon and carbon and exists in nature as a mineral named moissanite, which is extremely rare. However, it has been produced synthetically for application as an abrasive since 1893. Further, silicon carbide could be sintered into extremely tough and durable ceramics employed in manufacturing bulletproof vests, car clutches, and brakes. Additionally, the electronic application of carborundum includes the manufacture of LEDs, semiconductors and radio detectors. The compound exhibits several remarkable chemical properties that enable it to be utilized in heating elements, nuclear fuel particles and claddings.
The application of silicon carbide in the manufacture of automobile parts significantly boosts the growth of the respective market. Further, its applications in steel production and the manufacture of abrasives and cutting tools also act as market drivers for the global silicon carbide market.
Extensive applications of silicon carbide in the automobile industry
The automobile market is a trillion-dollar industry that finds enormous market potential in modernity. Though fuel technologies are evolving from fossil fuel-based engines to electronic ones, the physical and mechanical structures of the vehicles remain similar and require sturdy and easily manufacturable materials. As per data, more than 69.8 million cars were sold globally in 2021, in which passenger cars dominated the market with a colossal number of 55.8 million units. In U.S., the overall sales of automotive witnessed an overall 7.22% growth rate.
Due to the extreme versatility and hardness of silicon carbide, it finds enormous applications in the automotive sector as materials used in the manufacture of brake disks that needs to function effectively in cases of emergencies. Major automobile manufacturers such as Porche, Bugatti, Ferrari, Lamborgini, among others, prefer silicon carbide or brake disks rather than other materials. Additionally, silicon carbide also finds application as an oil additive used in fuels to reduce harmonics, friction and emissions.
The colossal growth of the automotive market, when coupled with the large-scale preference of silicon carbide as a raw material for the production of various mechanical parts and engine oil, points to excessive growth in the demand and production of silicon carbide in the global market. As a result, the application of silicon carbide in the automobile market could be recognized as a major market driver that sustains and enriches the respective market.
The extortionate price as well as the availability of cheaper alternative
Though the properties exhibited by silicon carbide are extremely attractive for various end-user markets such as abrasives and automotive, the high price of the respective product and the availability of cheaper products such as aluminum oxide act as a major constraint for the silicon carbide market.
For instance, silicon carbide price ranges from US$ 863-871 per metric tonne. On the contrary, it is only US$ 600-800 per metric tonne, due to the difference in the price range of the silicon carbide compared to its alternative, which is cheaper, with almost similar properties, the market demand for the respective product experiences slight to moderate decrease. As a result, the extortionate price of silicon carbide and the availability of alternative materials for similar purposes act a major market restrain that restricts the market growth of the global silicon carbide market.
COVID-19's influence on the global silicon carbide market is disastrous for various reasons. The disturbances in silicon carbide manufacture and supply chain are the most visible among them. Like any other chemical, Silicon carbide requires precise chemical conditions and technology to be manufactured. The COVID-19 pandemic-related shutdown shut down factories and industries that made silicon carbide, disrupted the supply chains of raw materials needed to make silicon carbide, and the logistics of final products.
Furthermore, the impact of COVID-19 on the end-user segment of the global silicon carbide market was also disastrous as several end-user segments such as the automotive market, abrasives market, steel production market, among others when into a state of chaos, with losses experienced in sales as well as production. Since the overall production in these end-user segments was drastically affected, the demand for silicon carbide in these industries drastically reduced, thereby reducing the overall demand of the global silicon carbide market.
By end-user, the silicon carbide market is segmented into telecommunication, energy & power, automotive, renewable power generation, defense, power electronics and others.
The automotive sector dominates the end-user segment of the silicon carbide market due to the growing demand for cars in modernity.
The automotive sector is one of the fastest-growing economies the world over and is expanding with enormous potential due to the transition towards a greener fuel economy. According to the Global Organization of Motor Vehicle Manufacturers, vehicle production has grown from 31,223,533 to 40,338,546 between 2020 and 2021. The Asia-Pacific depicted the highest percentage of increase in car production in the period between 2020-2021, leaving all the region behind.
Further, the global transition towards a sustainable future, particularly in the automotive market, also boosts the automotive market and its production. As a larger number of people are switching towards electric and hybrid cars, the production in the automotive sector experienced a humongous growth. Due to the extensive increase in demand and production of vehicles, the demand for silicon carbide utilized in this industry is skyrocketing, thereby helping the automotive sector dominate the end-user segment of the global silicon carbide market.
The growing population and higher adoption of automotive help the Asia-Pacific dominate the global silicon carbide market.
The first and foremost reason is the population explosion in the region. According to the United Nations Sexual And Reproductive Health Agency, the Asia-Pacific accounts for almost 60% of the global population. The region's population density is 158.54km2, with a growth rate of 0.49%.
Secondly, due to the large-scale adoption of automotive among the Asia-Pacific population. As per Global Organization of Motor Vehicle Manufacturers, vehicles production in Asia-Pacific increased from 1,78,18,598 in 2019 to 2,26,85,914 in 2020, registering an extensive growth of 27% during the period.
Due to the high population and high rate of vehicle adoption, automotive sector is rapidly growing in Asia-Pacific, thereby supplementing the global silicon carbide market since the silicon carbide market finds application in the manufacture of various parts used in automotive.
The Silicon Carbide market is competitive due to the presence of many key players and advancements in manufacturing and materials technology. Some of the key players in the market include TOSHIBA CORPORATION, Fuji Electric Co., Ltd., Microsemi, Central Semiconductor Corp., SANKEN ELECTRIC CO., LTD., Ascatron AB, United Silicon Carbide Inc., Renesas Electronics Corporation, SK Siltron and Global Power Technologies Group, among other domestic and global players. The companies are adopting various new strategies to dominate the market, such as launching new schemes, acquisitions and collaborations, contributing to the global growth of Silicon Carbide for the education market.
For instance, on May 15, 2019,
Overview: The company manufactures semiconductors and intends to become the largest silicon wafer manufacturer globally. The company was established in 1983 and is currently headquartered in Gyeongsangbuk-do, South Korea. The company employs around 3,056 people around the globe.
Key Development: In March 2020, The silicon carbide division of Saint-Gobain S.A. was acquired by OpenGate Capital, a global private equity firm. OpenGate's strategy of acquiring firms that will benefit from a new owner that engages with management to drive the next era of growth is shown by the transaction with Saint-Gobain.
The global Silicon Carbide market report would provide access to an approx: 69 market data tables, 81 figures and 180 pages.
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