SiC, GaN power semiconductor sales to surge 27.1% CAGR through 2034

SiC and GaN power semiconductor market is poised for exponential growth between 2024 and 2034. According to Future Market Insight (FMI), the global market is expected to reach USD 2,170.8 million in 2024, driven by rising demand for energy-efficient and high-performance power electronics. By 2034, the market is forecast to achieve a staggering USD 23,718.0 million, with a remarkable CAGR of 27.1% over the assessment period.

Currently, the SiC segment dominates the global market, holding a prominent value share of 78.3%. This can be attributed to the rising adoption of SiC power semiconductors in diverse applications, including automotive. However, the GaN segment will grow at a higher CAGR of 29.1% through 2034.

Several factors are anticipated to fuel the growth of the SiC and GaN power semiconductor industry during the next ten years. These include growing demand for electric and hybrid vehicles, growth of the renewable energy sector, and high adoption of industrial automation.

Silicon carbide (SiC) and gallium nitride (GaN) power semiconductors are becoming the ideal replacements for conventional silicon-based semiconductors. This is because they offer advantages like higher efficiency, lower power losses, and higher operating temperatures.

The increasing adoption of SiC and GaN power semiconductors in power electronics applications, such as inverters and motor drives, is a key growth-shaping trend. Similarly, the high penetration of 5G technology and adoption of industrial automation systems will propel demand for SiC & GaN power semiconductors.

The market is predicted to benefit from the growing renewable energy sector. This is because these power semiconductors are widely used in PV inverters, power storage devices, and other applications.

The need for SiC and GaN power semiconductors is anticipated to soar as industries like renewable energy and electric vehicles continue to develop and demand greater performance and efficiency from power electronics. Hence, a robust CAGR has been predicted for the target market.

Improvements in semiconductor manufacturing processes are facilitating the development of more efficient and compact SiC and GaN devices. Key players strive to develop efficient and affordable power semiconductors to encourage adoption.

Key takeaways
The SiC & GaN power semiconductor industry is predicted to reach USD 23,718.0 million by 2034, recording a 27.1% CAGR. With a market share of 78.3% for 2034, the SiC segment will retain its dominance.

By component, the transistor segment is set to grow at a robust CAGR of 28.0% through 2034. Based on application, the automotive segment is forecast to account for a revenue share of 74.0% in 2034. China is poised to emerge as the most lucrative market, registering a CAGR of 31.1%. Sales in the United States are estimated to total USD 3,804 million by 2034.

 “Transition toward renewable energy and growing popularity of electric vehicles is anticipated to create lucrative growth prospects for the SiC & GaN power semiconductor industry through 2034.".” opines Sudip Saha, managing director at Future Market Insights (FMI) analyst.

Growth opportunities
First, we will see the electrification of transportation. The shift towards EVs and hybrid vehicles is fueling demand for energy-efficient power modules. Renewable energy systems will see Increasing investments in wind and solar power installations that are accelerating the need for high-performance semiconductors.

Next, data centers and 5G deployment. Rising demand for faster networks and efficient data center operations presents a lucrative opportunity. In industrial automation, the growing adoption of robotics and automation is driving the integration of SiC and GaN in industrial power systems.

Growth, trends, and opportunities
We will see growing demand for green energy solutions. Stringent energy-efficiency regulations worldwide are encouraging the adoption of SiC and GaN components. Technological innovation will be around enhanced thermal conductivity, high voltage tolerance, and compact designs that make these semiconductor packaging highly desirable.

Next, we will see supportive policies. Government incentives for clean energy projects are driving R&D and manufacturing investments. Rising EV penetration is also there. The global EV market is expected to surpass USD 900 billion by 2030, boosting the adoption of SiC and GaN semiconductors.

SiC and GaN power semiconductor market is highly competitive, with major players like Infineon Technologies AG, STMicroelectronics N.V., ROHM Co, ON Semiconductor, and others holding a significant share.

Vendors are continuously looking forward to product development, innovation, and strategic alliances to stay ahead of the competition. They are making significant investments in R&D to enhance the functionality and efficiency of SiC & GaN power semiconductors to meet the increasing demand from industrial automation, power electronics, automotive, and renewable energy sectors.

Some developments have happened. In 2020, a new 1200V silicon carbide (SiC) MOSFET for high power industrial applications was introduced by Toshiba Electronics Europe GmbH. In 2021, ON Semiconductor, a leading American semiconductor supplier, launched new silicon carbide MOSFET module solutions for charging electric and hybrid vehicles. In January 2023, Japan-based Fuji Electric Co., Ltd. launched the MICREX-VieW FOCUS Evolution for monitoring and control systems.

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