According to the Fact.MR market research report, the global SiC and GaN power semiconductor market will grow from $1.41 billion in 2024 to $11.08 billion in 2034 at a compound annual growth rate of 22.9%.
Due to their suitability for high-temperature and high-frequency applications, SiC and GaN power semiconductors are used in a wide range of applications in automotive, renewable energy, industrial, and consumer electronics. In the automotive sector, they can build energy-efficient electric and hybrid vehicles. Due to their efficient energy conversion capabilities, SiC and GaN power semiconductors in industrial environments are used in renewable energy inverters and motor drives. Due to their low switching and high temperature stability, SiC devices can reduce the efficiency of EV systems and extend battery life. On the other hand, it can also reduce the size and weight of electric vehicles and improve overall performance. Industry insiders point out that the trend of miniaturization of consumer electronics is a key factor driving high demand.
The SiC and GaN power semiconductor markets are highly competitive, and industry giants are adopting expansion strategies to increase their product offerings and market coverage. For example, in October 2023, Infineon Technologies announced the acquisition of GaN Systems, and in 2023, Flosfia of Japan began offering power chips made from oxidized crops. It is reported that the energy efficiency of such chips is even higher than that of GaN and SiC.
Figure: The SiC and GaN power semiconductor market is growing at a compound annual growth rate of 22.9%.
Chinese companies such as Tianke Heda and Tianyue Advanced are also actively catching up and have achieved remarkable results. China's strong production capacity and large exports of consumer electronics are driving the demand for SiC and GaN power semiconductors. In addition, the growing popularity of renewable energy sources, such as solar panels and distributed energy storage systems, is driving the use of SiC and GaN power semiconductors in the production of these systems. Moreover, the growing trend of industrial automation is further driving the growth of the SiC and GaN power semiconductors market in China, which is expected to grow from USD 154.4 million in 2024 to USD 1.21 billion by 2034 at a CAGR of 22.9%.
In 2023, the market size of SiC power semiconductors (including SiC-SBDs, SiC-FETs, and SiC power modules) is expected to increase by 34.3% year-on-year to 229.3 billion yen (about 1.47 billion US dollars), and it is expected that by 2035, the SiC power device market will expand to 5.33 trillion yen (about 34.1 billion US dollars), which is 30.2 times higher than in 2022. According to the Yole Market Report, the SiC power device market is expected to reach $10 billion in 2029.
The market for SiC power semiconductors will continue to drive the expansion of the SiC power semiconductor market by the market for electric vehicles and resources such as solar power generation and renewable energy, with industry insiders forecasting sales to grow from $476.3 million in 2024 to $3.64 billion in 2034 at a CAGR of 22.6%.