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SiC Component Supply Warrants Attention as EV Market Grows by 2030

Published: 10.23.2023

The electric vehicle (EV) market is expected to grow at a 20% compound annual growth rate (CAGR) through 2030, reaching sales volumes of 64 million units, according to a report by McKinsey & Company. This represents a fourfold increase from the estimated 10 million EV sales report by the International Energy Agency in 2022.

With the upsurge trend in EV production, component supply warrants attention to be sufficient to meet this demand, especially in the supply of silicon carbide (SiC) and SiC MOSFETs warrants special attention. SiC is a semiconductor material that is used in a variety of EV components, including power modules, onboard chargers, and DC-DC converters.

SiC offers a number of advantages over traditional silicon semiconductors, including higher efficiency, higher power density, better thermal performance, and lower total system cost for powertrains. These advantages make SiC ideal for use in EV components, where it can help to improve vehicle range, performance, and reliability.

Additionally, the SiC wafer market is relatively small, which can constrain supply. McKinsey estimates that the SiC wafer market will need to grow by a factor of 10 over the next decade to meet the demand for EV components.

Between 2018 and 2022, there was a significant increase in the anticipated market share of Electric Vehicles in the global light-vehicle market by the year 2030. Projections rose from approximately 17 million units to 64 million units during this period and the growth can be attributed to several factors, including the expectation that EVs will become cost-competitive with traditional internal-combustion vehicles in many countries by the year 2024 or 2025.

Furthermore, regulatory initiatives and investments in EVs and charging infrastructure, driven by the aim to achieve net-zero emissions targets, have played a pivotal role in this expansion.

The market for SiC devices, currently valued at approximately $2 billion, is expected to experience substantial growth, reaching a projected value of $11 billion to $14 billion by the year 2030. This growth is estimated to occur at a CAGR of approximately 26%. The surge in sales of Electric Vehicles has led to an increased demand for SiC devices, particularly in their application in inverters.

It is anticipated that around 70 percent of the demand for SiC devices will come from the EV sector. Notably, China, where there is a high expected demand for Electric Vehicles, is projected to drive approximately 40 percent of the overall demand for SiC devices in the production of EVs.

The widespread adoption of EVs presents a substantial opportunity for participants within the SiC industry. The advice is directed towards Electric Vehicle manufacturers and their suppliers, emphasizing the need for collaborative efforts to guarantee an ample supply of these crucial components, in order to meet the increasing demand.

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