February 23, 2024

Projected High Demand from Semiconductor Industry to Boost the Growth of CVD Silicon Carbide Market

CVD silicon carbide is a compound semiconductor material with exceptional properties such as high thermal conductivity, high mechanical strength and hardness, low thermal expansion, high melting point, excellent corrosion and oxidation resistance, and extraordinary strength and durability at temperatures as high as 1400°C. CVD silicon carbide has superior thermal shock resistance as compared to other materials. It is extensively used in power electronics and devices that require efficient heat dissipation such as thermocouples, heating elements, semiconductor product substrates and wafer carriers. The unique properties of CVD silicon carbide makes it well suited for applications involving extreme conditions like high temperatures, harsh environments, high-speed operation and high-precision modules.

The global CVD Silicon Carbide Market is estimated to be valued at US$ 643.6 Mn in 2023 and is expected to exhibit a CAGR of 11% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
Emerging applications of CVD silicon carbide in the semiconductor industry is a key trend boosting the market growth. CVD silicon carbide acts as an ideal substrate in semiconductors owing to its matching crystal structure to silicon. Compared to silicon, CVD silicon carbide provides much higher thermal conductivity, low thermal expansion and high mechanical strength, making it suitable for applications requiring efficient heat dissipation. Growing demand for high-power semiconductors is fueling the need for CVD silicon carbide substrates. The capacity of CVD silicon carbide to enable thinner and smaller semiconductors with higher efficiency is increasing its adoption. Widening scope of semiconductor applications especially in areas like electric vehicles, 5G infrastructure and renewable energy is anticipated to drive significant market opportunities for CVD silicon carbide over the forecast period.

Porter’s Analysis

Threat of new entrants: Entry into CVD Silicon Carbide Market requires high investments for establishing production facilities. Established market players enjoy economies of scale.

Bargaining power of buyers: Presence of numerous silicon carbide suppliers reduces the bargaining power of individual buyers in this market.

Bargaining power of suppliers: Key raw materials for CVD silicon carbide like polycrystalline silicon carbide are supplied by few manufacturers globally increasing their bargaining power.

Threat of new substitutes: Other wide bandgap semiconductor materials like silicon gallium nitride pose potential threat to CVD silicon carbide market.

Competitive rivalry: Intense competition exists among established market players to capture additional market share through innovations.

Key Takeaways

The global CVD silicon carbide market is expected to witness high growth, exhibiting CAGR of 11% over the forecast period, due to increasing demand for wide bandgap materials from semiconductor sector. CVD silicon carbide finds wide usage in power devices, RF devices, and solar cells owing to its superior material properties.

Regionally, Asia Pacific dominates the global CVD silicon carbide market and is expected to maintain its leading position during the forecast period. This can be attributed to presence of numerous electronics and semiconductor manufacturing facilities in countries like China, Taiwan, Japan and South Korea.

Key players operating in the CVD silicon carbide are Tokai Carbon, Morgan Advanced Materials, Ferrotec, CoorsTek, AGC, SKC Solmics, Sgl Carbon, Toyo Tanso, Mersen, Zhicheng Semiconductor. Among these, Tokai Carbon, Morgan Advanced Materials, CoorsTek together account for over 45% of global market share due to their technologically advanced production facilities and long track record in CVD silicon carbide manufacturing.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it