Ultra High Purity Silicon Carbide Market Size, Share & Trends Analysis Report By Application (Semiconductor, LEDs), By Region (North America, Europe, APAC, CSA, MEA), And Segment Forecasts, 2020 - 2027

Report Overview

The global ultra high purity silicon carbide market size to be valued at USD 79.0 million by 2027 and is expected to grow at a compound annual growth rate (CAGR) of 14.8% during the forecast period. Growing demand from the semiconductors industry is projected to fuel market growth over the coming years. Ultra-high purity silicon carbide products display high thermal conductivity, low defect density, high resistivity, and uniform electric behavior. These properties are essential to gain optimum performance in semiconductor devices. These products reduce the impurities for high and optimum performance and hence are often used in applications where impurities can create challenges, such as process contamination and uniformity.

The U.S. accounted for a volume share of 89.3% in the global market in 2019 and is projected to grow at a lucrative pace from 2020 to 2027. The U.S. is also likely to maintain its market position on account of increased emphasis on emerging technologies, such as 5G, artificial intelligence, and quantum computing. However, the rising cost of innovation, particularly for the designing and manufacturing of semiconductors, can create challenges for the U.S. market over the short term.

Stability in the production of semiconductors in the country has benefited the market growth in the recent past. The stability has created a base for steady manufacturing jobs and source for overseas exports. However, increasing production capacity outside the U.S. can create challenges for the local semiconductors industry. For instance, in 2019, six new production facilities were started outside the U.S., out of which four are being built in China.

In the short run, the market is projected to witness sluggishness on account of the outbreak of COVID-19. A decline in the demand for automotive electronics, consumer electronics, and industrial electronics is anticipated to hinder market growth in 2020. The demand for consumer electronics in the country is projected to witness a fall of 2% to 15% in 2020 from 2019.

Ultra High Purity Silicon Carbide Market Trends

The growth of ultra-high purity silicon carbide market has been aided by the consistent production of semiconductors all around the world. The market for ultra-high purity silicon carbide is driven by the rising demand from steel industry, electrical, and semiconductor industries. The growth of ultra-high purity silicon carbide semiconductors is expected to increase due to the need for electric vehicles. The growing use of renewable energy sources for electricity generation globally. Another key factor expected to drive market growth in the coming years is the growing demand for light-emitting diodes. Ultra-high purity silicon carbide is used in the removal of impurities from LEDs.

The enormous cost of the chip required to produce silicon carbide-based semiconductors is one of the major constraints in this market. In the short term, the rising cost of advancements, particularly in the design and production of semiconductors, may present challenges to the U.S. market. The semiconductors industry in the United States may face challenges as production capacity expands outside of the country.

New technologies, such as artificial intelligence, 5G technology, and quantum computing, are expected to open up new growth opportunities for the market vendors. Increased adoption of these technologies especially in the United States is expected to continue to drive market growth.

Application Insights

Semiconductor emerged as the largest segment in 2019 and accounted for a volume share of 87.3% in 2019. Impurities can create challenges during the manufacturing of semiconductors and next-generation power devices. In such applications, ultra-high purity silicon carbide removes impurities to improve the performance.

Ultra-high purity silicon carbide possesses excellent properties, such as high corrosion resistance, strength, temperature, frequency, and purity, which makes it suitable for next-generation power devices, such as power converters of hybrid and electric vehicles, power inverters for air conditioners & industrial equipment, high voltage switches, DC/AC converters for wind and solar power, and thin-film coatings.

Ultra-high purity silicon carbide products have a small lattice mismatch with gallium nitride and high thermal conductivity, which makes them suitable to use as a substrate material for new generation light-emitting diodes (LEDs). The substrate material also determines life, brightness, color, and other performance indicators. The products ensure low levels of impurities during the manufacturing of LEDs.

Regional Insights

Asia Pacific held the largest volume share of 48.0% in 2019 owing to the rising demand from electronics and subsequently semiconductor industries. Countries including South Korea, Taiwan, Japan, and China are among the top 10 producers of semiconductors in the world. Asia Pacific represented over 45% of the share in global semiconductor production.

A positive trend in the production of consumer electronics, industrial electronics, computer hardware, mobile phones, electronic component, and LEDs in the Asian countries is projected to benefit market growth over the long term. For instance, as per the Ministry of Electronics and Information Technology (MeitY), the production value of electronics products in India has increased from USD 24.24 billion in 2014 to USD 76.80 billion in 2019.

North America accounted for the second-largest revenue share in 2019. Demand for power electronics is likely to benefit the vendors in the North American region. Power electronics products are smaller in size and lighter in weight and are increasingly being preferred in the end-use industries. Additionally, awareness regarding energy conservation and renewable energies, with a focus on the reduction of greenhouse gases, has forced manufacturers to use power electronics products.

Key Companies & Market Share Insights

The global market belongs to a niche segment, with a low number of manufacturers present in the market. In the recent past, the market has witnessed few developments from the production as well as the supply side. In August 2017, Pallidus, Inc. launched M-SiC, an ultra-pure silicon carbide product for silicon carbide power devices. This move was aimed at capturing new opportunities in the aerospace, electric vehicles, and energy industries.

In October 2018, Bridgestone Corporation, a Japanese tire & rubber manufacturer, transferred its ultra-high purity silicon carbide component business to Maruwa Co., Ltd., which is a Japanese manufacturer of ceramics for electronic and industrial applications. Products under this business are used in the manufacturing of components for semiconductor production equipment and semiconductor devices.

Recent Developments

• In June 2022, Momentive Technologies, a multinational company of advanced materials technology based in Cleveland, Ohio, announced the acquisition of CoorsTek's crucibles product line. Customers of silicon semiconductors will benefit from a full range of crucible sizes to meet their advanced needs and requirement.

• In March 2022, during a recent ESG committee meeting, LG Innotek revealed that it had finalized the '2040 Carbon Neutrality Plan.' LG Innotek expects to gain momentum for its ESG planning with this declaration.

Some prominent players in the global ultra high purity silicon carbide market include:

• Washington Mills

• CoorsTek Inc.

• JJISCO Inc.

• Pacific Rundum Co., Ltd.

• American Elements

• LG Innotek

Ultra High Purity Silicon Carbide Market Report Scope

Global Ultra High Purity Silicon Carbide Market Segmentation

This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global ultra high purity silicon carbide market report based on application and region:

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Semiconductor

  • LEDs

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • Japan

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa