Despite a temporary slowdown in BEV shipments, the SiC market remains on a long-term growth trajectory.
At Yole Group, analysts expect the power SiC market to exceed $10 billion by 2029, driven by a strong rebound anticipated in 2026. Indeed, the CAGR between 2024 and 2023 should be close to 20%.
Poshun Chiu, Senior Technology & Market Analyst at Yole Group said: “SiC adoption has accelerated since 2018-2019, primarily led by Tesla, the early disruptor in automotive electrification. In 2024, Tesla continued to dominate the SiC-based BEV segment with nearly two million units shipped, although that figure is down 5% from 2023.”
Meanwhile, other OEMs, especially from China, are gaining ground. BYD, Nio, Geely, and Xiaomi are expanding their SiC-based BEV portfolios.
Despite these positive trends, the overall market deceleration has impacted the revenue growth of key SiC suppliers such as STMicroelectronics and onsemi, though Infineon Technologies continues to grow, supported by its diversified applications across both automotive and industrial sectors.
A complex supply-demand situation is now emerging
While many players are expanding capacity, especially in transitioning from 6-inch to 8-inch wafers, current end-system demand may not yet justify this scale.
Ezgi Dogmus, PhD, Activity Manager, Compound Semiconductors at Yole Group said: “Industry feedback suggests that total announced capacity could outpace short-term SiC device consumption. Suppliers are now adjusting production volumes on a per-order basis and slowing down some expansion plans to match market realities for 2024 and 2025.”
Key factors to monitor include wafer quality, yield, and supply chain efficiency. As competition intensifies, vertical integration becomes more critical. Leading companies, including STMicroelectronics, onsemi, Wolfspeed, and Infineon Technologies, are doubling down on internal wafer manufacturing and module production to meet their billion-dollar revenue targets.
