The global silicon carbide market is expected to reach USD 4.49 billion by 2020, according to a new study by Grand View Research, Inc. Positive outlook on steel manufacturing, for which SiC is used as a deoxidizing agent is expected to drive silicon carbide demand.

In addition, silicon carbide is an essential element in the manufacturing of semiconductors which is expected to witness significant growth over the next six years. Revitalizing automobile industry, especially in Asia Pacific, is also expected boost the demand for silicon carbide.

Steel and energy were the largest end use application segments for SiC, accounting for 302 kilo tons of total demand in 2013. Increasing demand for steel and energy in emerging markets of India and China, driven by infrastructure development, is expected to be a key factor for demand growth over the forecast period.

Silicon carbide is also extensively used in electronics and semiconductors applications, owing to its superior properties, that accounted for over 255 kilo tons of demand in 2013.

Global silicon carbide demand was 1,060.1 Kilo tons in 2013 and is expected to reach 2,769.0 Kilo tons by 2020, growing at a CAGR of 15.2% from 2014 to 2020.

Black silicon carbide is most dominant product, with demand estimated at 745 6 Kilo tons in 2013 due to its wider application scope in comparison to other forms of silicon carbide.

Asia Pacific was the largest regional market for silicon carbide, with revenue exceeding USD 870 million in 2013. The presence of key end user industries such as steel and automotive is expected to boost demand in the region.

In addition, the region is also expected to witness fastest growth, at an estimated CAGR of 16.8% from 2014 to 2020.

Medical and healthcare end use application is expected to witness fastest growth at an estimated CAGR of 16.5% from 2014 to 2020. Increasing demand for advanced medical and healthcare in countries such as India, China, and Japan is expected to drive demand in this application.