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The wide bandgap semiconductors SiC (Silicon Carbide) and GaN (Gallium Nitride) have drawn a lot of attention in power applications. In fact, the unique properties of SiC and GaN materials have made them promising candidates for future high power, high frequency semiconductor devices, according to ScienceDirect.
These power semiconductors are widely used in motor drives, powertrains, lighting systems, LiDAR autonomous control, and other automotive applications, Future Market Insights reports.
There’s also been a surge in demand for high-performance semiconductors as adoption of renewable energy systems such as solar and wind energy continues to increase. SiC and GaN power semiconductors can handle the high power requirements of these systems and improve their performance.
“The global GaN and SiC power semiconductor market has witnessed significant growth and innovation over the past decade,” Skyquest says. “These advanced materials have emerged as transformative options for power electronics, addressing limitations of traditional silicon-based semiconductors.”
Major Market Acceleration Ahead
Based on these and other market trends, Fact.MR is now anticipating a major market acceleration for the SiC and GaN power semiconductor sector over the next 10 years. During that period, the market is expected to post a compound annual growth rate (CAGR) of nearly 23% before reaching $11.08 billion in 2034—up significantly from a current $1.41 billion.
Fact.MR says SiC and GaN power semiconductors are transforming the electronics sector by overcoming the limited features offered by conventional silicon-based semiconductors. These semiconductors are energy efficient and have thermal tolerance, both of which make SiC and GaN ideal for high-temperature and high-frequency applications.
“These semiconductors are finding extensive use in the automotive, renewable energy, industrial, and consumer electronics sectors,” the research firm says. For example, in the automotive sector, SiC and GaN power semiconductors are used in the manufacturing of energy-efficient elective and hybrid vehicles.
The market for SiC and GaN power semiconductors vary by geography:
- The U.S. market is currently evaluated at $149.9 million.
- Japan is set to hold 29.4% of the East Asia market share by 2034.
- The China market is approximated at $154.4 million right now.
The market is also highly competitive. Industry giants are adopting product expansion strategies such as mergers and acquisitions, Fact.MR reports, while mergers and acquisitions help companies increase their product offerings and market reach. For instance, Infineon Technologies AG recently announced the acquisition of GaN Systems Inc., and Flosfia began offering next-gen power chips made from gallium oxide.
Overall Outlook Remains Positive-But-Cautious
The broader semiconductor market has been through some ups and downs lately as the sector emerged from the pandemic, shook off the impacts of the global shortage and caught up with demand for certain products. According to KPMG’s Semiconductor Industry Confidence Index, the current score of 54 is similar to that of 2023, with a value above 50 indicating a more positive outlook than negative.
According to KPMG, 83% of semiconductor leaders project their company’s revenue to grow in 2024, which is in line with last year’s 81%. However, the rate-of-growth projections are slightly lower. This year, four in 10 leaders expect revenue growth of more than 10 percent. While still healthy, a full half of respondents (5 in 10) felt this way last year.
Automotive topped the survey as the most important application driving semiconductor company revenue, with wireless communications coming in second and cloud/data centers and the Internet of Things tied for third place on organizations’ top list of revenue drivers in 2024.
