PUBLISHER: Acute Market Reports | PRODUCT CODE: 1507923
PUBLISHER: Acute Market Reports | PRODUCT CODE: 1507923
The market for Automotive SiC Power devices is expected to witness a CAGR of 22% during the forecast period of 2024 to 2032, driven by the increasing demand for high-performance and energy-efficient solutions in the automotive industry. SiC (Silicon Carbide) Power devices offer numerous advantages over traditional silicon-based devices, including higher power density, lower switching losses, and improved thermal conductivity. The market revenue for Automotive SiC Power devices has been on a steady rise, and it is projected to continue its growth trajectory in the coming years. While precise revenue figures are subject to market dynamics and specific timeframes, the increasing adoption of SiC Power devices in electric vehicles (EVs), hybrid electric vehicles (HEVs), and charging infrastructure is expected to contribute to robust revenue growth. Factors such as advancements in SiC device manufacturing, expanding EV market penetration, stringent emission regulations, and growing investments in charging infrastructure are driving this growth. As the market continues to evolve, key players in the automotive and semiconductor sectors are investing in research and development activities to further enhance the performance and cost-effectiveness of SiC Power devices.
Increasing Demand for Electric Vehicles (EVs)
The rising demand for electric vehicles is a significant driver for the growth of the Automotive SiC Power devices market. As the automotive industry shifts towards electrification, SiC Power devices play a crucial role in improving the performance and efficiency of EVs. According to the International Energy Agency (IEA), the global electric car stock exceeded 10 million vehicles in 2020, representing a significant increase from previous years. Various governments worldwide are implementing stringent emission regulations and providing incentives to promote electric vehicle adoption, further driving the demand for SiC Power devices.
Advantages over Silicon-based Devices
SiC Power devices offer several advantages over traditional silicon-based devices, making them increasingly attractive for automotive applications. These advantages include higher power density, lower switching losses, improved thermal conductivity, and higher temperature tolerance. SiC Power devices have higher energy efficiency compared to silicon-based devices, resulting in improved overall vehicle efficiency and extended driving range. The lower switching losses of SiC devices enable higher switching frequencies, leading to faster charging times for electric vehicles. SiC Power devices can operate at higher temperatures, reducing the need for complex cooling systems and contributing to enhanced vehicle reliability.
Growing Charging Infrastructure
The expansion of charging infrastructure to support the growing electric vehicle market is another driver for the Automotive SiC Power devices market. As the charging infrastructure network expands, the demand for efficient power devices, such as SiC, increases to enable faster and more reliable charging capabilities. Governments and private entities worldwide are investing in the development of charging stations, both for public and private use, to address the range anxiety concerns of electric vehicle owners. The deployment of high-power charging stations, capable of delivering fast charging speeds, necessitates the use of advanced power devices like SiC Power devices. With the growing popularity of fast-charging networks, the demand for SiC Power devices is expected to rise, as they can handle high power levels efficiently.
Cost and Manufacturing Challenges
One significant restraint for the Automotive SiC Power devices market is the cost and manufacturing challenges associated with SiC devices. While SiC Power devices offer superior performance, their production involves complex manufacturing processes, leading to higher production costs compared to traditional silicon-based devices. This cost disparity poses a challenge for widespread adoption, particularly in price-sensitive markets. Additionally, the availability of high-quality SiC wafers, which are a key component in device manufacturing, can be limited and costly. The scarcity and higher cost of SiC wafers further impact the overall cost-effectiveness of SiC Power devices. These factors hinder the scalability and affordability of SiC devices, limiting their adoption in the automotive industry. The manufacturing process of SiC Power devices involves complex steps, including crystal growth, wafer fabrication, and device packaging, which contribute to higher production costs. According to industry reports, the price of SiC wafers can be several times higher than silicon wafers, impacting the overall cost of SiC Power devices. The limited number of SiC wafer suppliers and their production capacity pose challenges in meeting the growing demand for SiC devices, leading to potential supply constraints and higher costs. The cost and manufacturing challenges associated with SiC Power devices act as a restraint, requiring continued efforts to enhance manufacturing processes, improve economies of scale, and explore alternative materials or manufacturing techniques to mitigate these challenges and make SiC Power devices more cost-effective and accessible in the automotive industry.
EVs Segment Dominates the Application Market
The application segment of Automotive SiC Power devices encompasses Electric Vehicles (EVs), Hybrid Electric Vehicles (HEVs), and Charging Infrastructure. Among these segments, EVs are expected to have the highest CAGR during the forecast period of 2024 to 2032 and generated the highest revenue in 2023. The increasing global focus on reducing carbon emissions and the growing adoption of electric mobility drive the demand for SiC Power devices in EVs. SiC devices offer higher efficiency, faster charging capabilities, and improved overall vehicle performance, contributing to an enhanced driving range. With governments worldwide implementing stringent emission regulations and providing incentives for electric vehicle adoption, the EV market is experiencing significant growth. This growth, coupled with technological advancements in SiC Power devices, is driving the demand for SiC-based solutions in EV applications. Additionally, the charging infrastructure segment plays a critical role in supporting the expanding EV market. With the proliferation of public and private charging stations, there is a need for efficient power devices to enable fast and reliable charging. As a result, SiC Power devices are increasingly utilized in charging infrastructure to facilitate high-power charging and enhance the charging experience for EV users. While HEVs also benefit from SiC Power devices' advantages, the higher growth potential and revenue generation in the EV segment contribute to its prominence in the Automotive SiC Power devices market.
Passenger Cars Dominates the Market by Type
The vehicle type segment in the automotive SiC power devices market comprises Passenger Cars, Commercial Vehicles, and Two-wheelers. Among these segments, passenger cars are expected to exhibit the highest CAGR during the forecast period 2024 to 2032 and generated the highest revenue in 2023. The increasing demand for electric passenger cars, driven by government incentives, environmental concerns, and consumer preferences for sustainable transportation, fuels the growth of SiC Power devices in this segment. Passenger cars offer a significant market opportunity due to their large consumer base and potential for electrification. Additionally, passenger car manufacturers are actively incorporating SiC Power devices to enhance vehicle efficiency, extend driving range, and provide a superior driving experience. Commercial vehicles, including buses, trucks, and vans, also benefit from the advantages of SiC Power devices, such as improved energy efficiency and higher power density. However, the higher initial cost of SiC Power devices and the complex requirements of commercial vehicle applications may hinder their widespread adoption. Two-wheelers, including motorcycles and scooters, are another important segment in the automotive market. While the adoption of SiC Power devices in two-wheelers is growing, their market share and revenue generation are relatively lower compared to passenger cars and commercial vehicles. The affordability factor and the size constraints of two-wheelers pose challenges in implementing SiC Power devices extensively. Nonetheless, as the demand for electric two-wheelers increases, driven by urban commuting needs and government policies, the adoption of SiC Power devices is expected to grow gradually.
APAC Remains the Global Leader
Asia Pacific is expected to exhibit the highest CAGR during the forecast period of 2024 to 2032 and accounted for the highest revenue percentage in 2023. The region's dominance can be attributed to several factors, including the presence of key automotive manufacturing hubs, such as China, Japan, and South Korea. These countries have been actively promoting electric mobility through government initiatives, subsidies, and favorable policies, leading to a surge in the adoption of SiC Power devices. Additionally, Asia Pacific boasts a robust charging infrastructure network, further driving the demand for SiC Power devices in electric vehicles. North America is another significant market for SiC Power devices, driven by the growing emphasis on electric vehicles and stringent emission regulations. The United States, in particular, has witnessed substantial investments in EV charging infrastructure, bolstering the demand for SiC Power devices in this region. Europe also holds a considerable market share in the Automotive SiC Power devices market. The region has been at the forefront of sustainable transportation initiatives, with several countries setting ambitious targets for EV adoption. Europe's focus on reducing carbon emissions and the presence of major automobile manufacturers contribute to the demand for SiC Power devices. While Asia Pacific experiences the highest CAGR, North America and Europe generate significant revenue due to the presence of established automotive industries and higher purchasing power. Other regions, such as Latin America and the Middle East, are witnessing gradual growth in the adoption of SiC Power devices, primarily driven by increasing awareness of electric mobility and supportive government policies.
Innovation Remains as the Key to Enhance Market Share
The competitive landscape of the Automotive SiC Power devices market is characterized by the presence of several key players who are actively contributing to market growth through their innovative solutions and strategic initiatives. These companies are focused on enhancing their product portfolios, expanding their customer base, and establishing strong partnerships across the value chain. Among the top players in the market, Infineon Technologies AG holds a prominent position. The company offers a wide range of SiC Power devices catering to various automotive applications. Infineon Technologies AG focuses on research and development to improve device performance, reliability, and cost-effectiveness. The company also emphasizes collaborations with automotive manufacturers and suppliers to ensure seamless integration of their SiC Power devices into vehicles. Other key player players include Cree, Inc., ROHM Semiconductor, STMicroelectronics, ON Semiconductor, Mitsubishi Electric Corporation, and Toshiba Corporation. These companies offer a diverse portfolio of SiC Power devices and are actively involved in research and development activities to enhance their product offerings and gain a competitive edge. Key players are investing in research and development, product innovation, and strategic collaborations to strengthen their market position. These companies are leveraging their expertise to meet the growing demand for efficient and high-performance SiC Power devices in the automotive industry. As the market evolves, competition is expected to intensify further, with an increased focus on cost optimization, scalability, and customized solutions to cater to the specific needs of automotive customers.
Historical & Forecast Period
This study report represents an analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends & technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. The key data points that enable the estimation of Automotive SiC Power Devices market are as follows:
Research and development budgets of manufacturers and government spending
Revenues of key companies in the market segment
Number of end users & consumption volume, price, and value.
Geographical revenues generated by countries considered in the report
Micro and macro environment factors that are currently influencing the Automotive SiC Power Devices market and their expected impact during the forecast period.
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top-down and bottom-up approach for validation of market estimation assures logical, methodical, and mathematical consistency of the quantitative data.
Market Segmentation
Application
Power Rating
Vehicle Type
End User
Distribution Channel
Technology
Price Range
Region Segment (2022-2032; US$ Million)
North America
U.S.
Canada
Rest of North America
UK and European Union
UK
Germany
Spain
Italy
France
Rest of Europe
Asia Pacific
China
Japan
India
Australia
South Korea
Rest of Asia Pacific
Latin America
Brazil
Mexico
Rest of Latin America
Middle East and Africa
GCC
Africa
Rest of Middle East and Africa
Key questions answered in this report
What are the key micro and macro environmental factors that are impacting the growth of Automotive SiC Power Devices market?
What are the key investment pockets concerning product segments and geographies currently and during the forecast period?
Estimated forecast and market projections up to 2032.
Which segment accounts for the fastest CAGR during the forecast period?
Which market segment holds a larger market share and why?
Are low and middle-income economies investing in the Automotive SiC Power Devices market?
Which is the largest regional market for Automotive SiC Power Devices market?
What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
Which are the key trends driving Automotive SiC Power Devices market growth?
Who are the key competitors and what are their key strategies to enhance their market presence in the Automotive SiC Power Devices market worldwide?
FIG. 14Market Positioning of Key Automotive SiC Power Devices Market Players, 2023
FIG. 15Global Automotive SiC Power Devices Market - Tier Analysis - Percentage of Revenues by Tier Level, 2023 Versus 2032