Semiconductor devices for high-temperature apps revolutionizing advanced tech markets

According to the latest study from BCC Research, the "Semiconductor Devices for High-Temperature Applications: Market Opportunities" is expected to increase from $11.8 billion in 2024 to $18.5 billion by the end of 2029, at a compound annual growth rate (CAGR) of 9.4% from 2024 through 2029.

This report analyzes the global market for semiconductor devices for high-temperature applications. It segments the market by material, device type, operating temperature, industry, and region, covering North America, Europe, Asia-Pacific, and the Rest of the World.

This report is especially relevant today due to the increasing government spending on defense and the growing demand for vehicle electrification, which drives market growth. It provides critical insights into market trends, growth opportunities, and emerging challenges, making it essential for stakeholders like automotive manufacturers, industrial companies, defense firms, and investors. Understanding these dynamics helps companies make informed decisions, drive innovation, and maintain a competitive edge in the market for high-temperature semiconductor devices.

Factors driving market's growth include:
UWBG Materials: Ultrawide Bandgap (UWBG) materials like diamond and gallium oxide can handle higher voltages and temperatures, making them ideal for advanced electronics.

High-Temperature Electronics: These are crucial for harsh environments (e.g., aerospace and defense) and can operate efficiently at temperatures between 200 °C and 400°C, thanks to materials like silicon carbide (SiC) and gallium nitride (GaN).

Electric Aircraft and EVs: The rise of electric aircraft and EVs drives demand for high-performance semiconductors that can handle high power and temperature requirements.

Facts:

• Silicon dominates the high-temperature semiconductor market with a 71.2% share, and its market value is expected to reach $12,833.7 billion by the end of 2029 due to its widespread use and cost-effectiveness.
• The market for III-V Materials such as gallium nitride and silicon carbide is growing at 10.6% annually because they perform better at high temperatures and in harsh conditions.
  
  
• The automotive, industrial, and instrumentation segment is the largest due to the high demand for semiconductors in applications like engine control units, robotics, and transmission control units.

Emerging startups:

Camgraphic Ltd builds graphene transceivers for advanced photonic communications in various applications, including ADAS.

SweGaN produces GaN epitaxial wafers for satellite, communications, and defense applications, leveraging the company's QuanFINE technology for next-gen high-power devices.

VisIC Technologies develops high-voltage GaN devices for power conversion, leveraging its expertise in GaN-based RF technology to create (usually off) MIS-HEMT transistors.

Projected size and growth rate of semiconductor devices for high-temperature apps market
The global market for semiconductor devices for high-temperature applications was valued at $10.9 billion in 2023 and is projected to reach $18.5 billion by the end of 2029, at a CAGR of 9.4% from 2024 to 2029.

Factors driving growth
The key market drivers include the emergence of III-V Materials, consisting of silicon carbide, gallium nitride, and others. Additionally, growing demand for high-temperature electronics across industries such as industrial and instrumentation, automotive, and energy and power further boosts market growth.

Dominant industry segment
The automotive, industrial, and instrumentation segments will continue to dominate the global market for semiconductor devices for high-temperature applications, due to the higher adoption rate of these devices across industries that need high operating temperatures.

Regional market
The Asia-Pacific region is the leading revenue generator for the global market for semiconductor devices for high-temperature applications. In 2023, it accounted for $6.5 billion in revenue, representing about 59.7% of the global market. This is due to substantial government investments in the defense sector, and increasing demand for EVs, especially across China.