Silicon carbide market seen topping $13 billion by 2035

The global silicon carbide market is projected to more than double to $13.26 billion by 2035, driven by electric vehicles, renewable energy and power-hungry AI datacenters. The shift to 200mm wafers and broader adoption in automotive and industrial power electronics are expected to keep demand rising.

Why it matters: - Silicon carbide is moving from a niche material to a core input for EV powertrains, renewable energy systems and advanced power electronics. - The market's growth points to a wider shift toward higher-efficiency semiconductor materials that can cut energy losses and improve performance. - The report projects the market will reach $13.26 billion by 2035, up from $5.14 billion in 2025, at a 9.9% CAGR.

What happened: - Market Research Future published a forecast for the global silicon carbide market on August 27, 2026. - The report says demand is being driven by electric vehicles, renewable energy and efficiency needs in power electronics. - The report includes a sample request, purchase page and full report.

The details: - Silicon carbide traction inverters are described as having 50% lower switching losses than conventional silicon IGBTs. - The lower losses support longer driving range, which strengthens the case for silicon carbide in electric vehicles. - Hyundai, Porsche and Chinese automakers are integrating silicon carbide into vehicle platforms. - The report projects more than 18 million silicon carbide-equipped EVs will be produced annually by 2030. - The industry is shifting from 150mm wafers to 200mm, or 8-inch, wafers. - The larger wafer format lowers cost per die by about 1.8x. - Wolfspeed's Siler City facility and STMicroelectronics' Catania expansion are among the investments supporting that transition. - The larger wafer size is opening design wins in solar inverters and industrial motor drives. - Black silicon carbide held 45.6% of the market in 2025. - Black silicon carbide is used mainly in steel manufacturing and abrasives. - Green silicon carbide is the fastest-growing product segment, at 14.8% CAGR. - Green silicon carbide is used for polishing and lapping semiconductor wafers and in high-purity electronics. - Electronics and semiconductors was the largest application segment, with a 37.8% share. - Automotive was the fastest-growing application, at 11.6% CAGR. - Asia-Pacific led the market with 48.9% share and was also the fastest-growing region. - China and Japan are key regional growth drivers because of substrate production and precision manufacturing. - North America is expanding with support from the U.S. CHIPS Act. - Europe is growing on demand from automotive and renewable energy industries. - Wolfspeed, STMicroelectronics and Infineon Technologies are among the key players in a moderately concentrated market.

Between the lines: - Silicon carbide demand is being pulled by both consumer-facing EV adoption and behind-the-scenes infrastructure needs, which makes the market less dependent on a single industry cycle. - The 200mm wafer transition matters because cost reduction is often what determines whether a material moves into broader commercial use. - AI datacenter growth adds another demand pillar for high-efficiency power conversion, not just transportation and energy. - The report's mention of machine learning in crystal growth suggests manufacturers are looking for process gains as much as capacity expansion.

What's next: - The report expects silicon carbide content per vehicle to rise as EV adoption broadens. - Machine learning is expected to improve crystal growth yields and reduce production costs. - SiC modules are expected to play a larger role in grid modernization, including solid-state transformers and energy storage systems. - Closed-loop recycling could become more important as manufacturers look to lower feedstock costs and meet environmental requirements. - The market's next phase will likely be shaped by capacity additions, wafer-size transitions and long-term supply agreements with automotive and industrial customers.