COVID-19 Vaccine Impact on Ultra High Purity Silicon Carbide Market Is Expected At A CAGR Of 3.2% 2027
Ultra High Purity Silicon Carbide Market Growth & Trends
The global ultra high purity silicon carbide market size is expected to reach USD 79.0 million by 2027, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 14.8% from 2020 to 2027. The rising penetration of electric vehicles and the growth of the renewable energy sector are projected to provide growth opportunities to market vendors.
Power supplies and photovoltaic inverters are among the significant application areas of silicon carbide (SiC) semiconductors. Moreover, SiC power electronics are adopted in electric vehicle charging products, wind energy infrastructure, and industrial motor drives. Thus, the demand for electric vehicles is expected to boost the growth of ultra-high purity silicon carbide semiconductors. The growing utilization of renewable sources of energy for power generation around the globe is anticipated to drive the market for SiC power semiconductors.
The development of emerging technologies, such as quantum computing, artificial intelligence, and 5G technology, is also anticipated to provide new opportunities for market vendors. Increasing penetration of these technologies, particularly in the U.S., is likely to remain a key factor contributing to the market growth. Companies in the U.S. have invested large sums in these technologies, thereby positively impacting the development of semiconductors required for artificial intelligence, supercomputers, and data centers. For instance, R&D investments in the U.S. semiconductor industry have increased at a CAGR of 6.6% from 1999 to 2019. In the U.S., R&D investments for 2019 amounted to USD 39.8 billion, which was around 17% of its sales, the highest among all the countries.
The increasing demand for light-emitting diodes (LEDs) is another key factor projected to fuel market growth over the coming years. Ultra-high purity silicon carbide is used to remove the impurities in LEDs. The LED lighting market is anticipated to register a growth rate of 13.4% from 2020 to 2027 owing to the decline in prices, stringent regulations related to lighting technologies, and efforts taken by various governments in the direction of sustainable development.
Companies in South Korea are involved in the development of silicon carbide technology, which is projected to remain a key driving factor in the long term. For instance, POSCO, one of the leading steel manufacturers in the globe, invested 10 years in the development of SiC single-crystal. In this project, POSCO is working on the development of 150-mm and 100-mm SiC substrate technology, which is close to commercialization. Another manufacturer SK Corporation (SKC) is likely to commercialize 150-mm SiC wafers.
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Ultra High Purity Silicon Carbide Market Report
Ultra High Purity Silicon Carbide Market Report Highlights
- In terms of both revenue and volume, semiconductor was the largest application segment in 2019. The growth of the segment is attributed to rising requirements of the increasing middle-class population, and thus indirect demand for electronics
- By application, LEDs are projected to expand at the fastest CAGR of 15.6% in terms of revenue from 2020 to 2027. Increasing awareness regarding global warming has created a positive impact on the demand for LEDs due to their energy efficiency
- The COVID-19 pandemic has created a severe impact on the end-use industries of ultra-high purity silicon carbide (UHPSiC). In terms of volume, demand for UHPSiC is projected to decline by nearly 10% in 2020 from 2019
- Asia Pacific was the largest regional market and accounted for a volume share of 48.0% in 2019. High volume production of electronics and LEDs in China, South Korea, and Taiwan is a key growth factor for the regional market