The global market for automotive Silicon Carbide Market is expected to grow at a CAGR of 12.5 % during the forecast period of 2022 to 2030.
This demand is being driven by the rapid adoption of technologies that produce zero emissions. The global pandemic (Covid-19) and the subsequent shutdown of production activities had a direct impact on new order bookings, which ultimately led to the shortfall for the fiscal year 2020. The imposition of social distance, in conjunction with restrictions on movement, had an immediate and direct impact on the rate of productivity achieved by local manufacturers.
Increasing Demand for Electric Vehicle is the Key Motivating Factor
It is anticipated that the demand for silicon carbide would be driven by the growing adoption of technologies that produce zero emissions, which has led to an increase in the global demand for electric vehicles. As per The International Energy Agency (IEA), 2021 electric vehicle registrations climbed by 41% in 2020, and around 3 million electric vehicles were sold all over the world.
The rapid adoption of electric vehicles, as opposed to fuel-based vehicles, can play an important role in achieving the goal of limiting the global temperature rise to 1.5 degrees Celsius above pre-industrial times, as decided by the United Nations in the Paris Agreement. This target was established in order to combat the effects of climate change (UN). Nevertheless, rising investments in the installation of electric vehicle charging stations are required to complement the widespread use of electric vehicles (EVs).
High Manufacturing and Processing Cost is Negating the Market Growth
Since silicon carbide does not exist as a naturally occurring mineral, it must be synthesized through the use of several furnace processes. SiC materials are made commercially under high-temperature conditions, and the resulting products are significantly more expensive than silicon. The decreased number of available fabrication facilities is just one of the many factors that contribute to the higher overall cost of device manufacturing for foundries.
Doping in SiC is difficult to manufacture due to a number of factors, including its chemical inertness and its poor diffusion coefficient. The current production procedures result in numerous distinct kinds of material faults being produced in SiC substrates.
Product Flaws are the Biggest Challenges that Companies are Seeking to Overcome
It is common to find micropipes, which are holes of a micrometer or smaller, dispersed throughout SiC materials, particularly crystals. SiC devices are subject to a variety of flaws throughout the manufacturing process of bigger wafers. These problems include stacking faults, dislocations, and prototype inclusions, among others. These flaws are brought about by a silicon and carbon precursor balance that is less than ideal, in addition to a local instability in either pressure or temperature. These faults have an effect on the efficiency of the device and cause a degradation in its electrical characteristics.
APAC Emerged as Global Leader
In terms of revenue, the Asia-Pacific region held the largest share of the global silicon carbide market in 2021. This region reported a market share of 55% in 2021, coming in ahead of Europe and North America, respectively. It is anticipated that the market in APAC will continue to have the greatest size throughout the forecast period. The most important markets for electric vehicles and hybrid electric vehicles in Asia are China, Japan, South Korea, and India.