Silicon Carbide Ceramics Market

The global silicon carbide ceramics market is projected to witness healthy growth during the forecast period, 2020–2026. The prominent factor favoring the growth of the global market is the increasing industrial output, the need for high-performance machinery, and technological advancements in industrial automation are expected to encourage consumption of silicone carbide ceramics in machine (i.e., industrial) manufacturing. Silicon carbide ceramics is one of the toughest ceramic types of advanced ceramic. Increasing penetration of advanced ceramics in mining, metallurgic, and sporting goods has created growth opportunities for the market. Other than that, country-level political alliances are providing scope for industrial development and likely to offer favorable conditions for industrial automation. As the silicon carbide ceramics are largely consumed on an industry level, industrial reforms are expected to drive the market growth. Driven by these factors, high prices associated with the ceramic material is restraining the market growth. Increasing the adoption of substitute products is another factor expected to further challenge the demand over the forecast period.

Silicon carbide ceramics are widely used in the electrical and electronics industry and have emerged as the most viable material for next-generation semiconductors. This is due to its superior high-temperature, high-frequency, and high-voltage performance compared to other counterparts. Furthermore, silicon carbide ceramics also provide end users with design and structural flexibility. They are widely used in the production of electric vehicles, semiconductor devices, LEDs, electronic circuits, and others.

According to the German Electrical and Electronic Manufacturers' Association (ZVEI), the global electronics and electrical industry was valued at USD 4,499.22 billion in 2016 and is estimated to reach USD 5,180.00 billion by the end of 2019. Asia-Pacific is the leading region in the manufacturing of electronics, which was valued at USD 3,312.39 billion, followed by Europe accounting for USD 622.45 billion in 2016. Thus, the increasing demand for electronic devices is the key factor expected to boost the demand for silicon carbide ceramics during the review period.

Moreover, the increasing demand for advanced ceramics (AD) in industrial applications is boosting the growth of the global market. Factors such as increasing urbanization in emerging countries and industrialization are complementing the global demand. Moreover, demand for the AD is directly proportional to the demand for silicon carbide ceramics. As per the Oxford Economics, the global industrial output is seen growing at addressable growth at 2.5%. The emergence of China as a manufacturing hub, along with industrial expansion in the Asia-Pacific region is fueling the demand for silicon carbide ceramics.

Thus, the positive outlook in the key end-use industry is driving the growth of the silicon carbide ceramics market globally.

Silicon carbide ceramics are being increasingly used in niche markets, including energy, ballistic, sporting goods, and jewelry. Naturally occurring silicon carbide is known as Moissanite, which possesses excellent hardness, thermal conductivity, and optical properties similar to diamond. Owing to these properties, silicon carbide ceramics are increasingly being used in jewelry applications. Demand for jewelry over the past seven years was productive and is further expected to provide substantial gains over the assessment period.

As mentioned above, silicon carbide ceramics exhibits excellent hardness. They have been used in the production of sporting goods such as golf sticks and other custom goods. Increasing demand for tough and safer modern military equipment has increased the usage of silicon carbide in ballistic, used in military equipment. Taking into account the respective market growth of sporting goods, jewelry and ballistics, demand for silicon carbide ceramic is expected to grow.

Ceramic materials are generally expensive ceramics are one of the costly ceramics. According to the Ceramic Industry journal, silicon carbide ceramic is the most expensive ceramic material among the advanced ceramic category, and the price change observed in the material is minimum. High prices have been the most concerned factor among the price-sensitive consumers, i.e., mid-scale enterprises and pose as a major growth barrier. As per the industry experts, there will not be any possibility for the price change. Therefore, a similar price trend is expected to be seen over the forecast period, restraining the global demand. Owing to the high price, consumers are looking for a suitable substitute, which may restrain the growth of this market. For instance, the oxide-based ceramic material is being favorable in mining applications. Thus, the high cost of silicon carbide ceramic is likely to hamper the market growth during the review period.

Demand for silicon carbide proportionately affects the demand for silicon carbide ceramic. The increasing competition of its substitute is expected to challenge the growth of this market. Specifically, the increasing adoption of gallium nitride (GaN) in aerospace and defense, industrial manufacturing, and electronics and electrical industries is challenging the market growth. Silicon carbide and GaN have been commonly used in the semiconductor industry for many years. However, the market adoption of silicon carbide has not reached the levels the industry has been hoping for. As GaN offers better performance than silicon, several issues have held back its adoption. GaN devices are capable of operating at high voltage and low leakage current, which makes it superior to silicon carbide ceramic devices. Also, silicon carbide ceramics are costlier than GaN and used in similar applications. As per industry experts, the trend is expected to continue during the forecast period and continue challenging the growth of silicon carbide ceramics.