SiC Deposition Equipemnt Market, Global Outlook and Forecast 2024-2030

MARKET INSIGHTS

The global SiC deposition equipment market was valued at USD 184 million in 2023. The market is projected to grow from USD 195 million in 2024 to USD 292 million by 2030, exhibiting a CAGR of 6.8% during the forecast period.

Silicon carbide (SiC) deposition equipment is a critical component in semiconductor manufacturing, enabling precise deposition of SiC films on substrates through processes like atomic layer deposition (ALD), chemical vapor deposition (CVD), and physical vapor deposition (PVD). These systems are essential for producing high-performance SiC power devices used in electric vehicles, renewable energy systems, and industrial applications where thermal stability and power efficiency are crucial.

The market growth is driven by increasing adoption of SiC in power electronics, government investments in semiconductor manufacturing, and the rising demand for energy-efficient solutions. However, the market faces challenges from high equipment costs and technical complexities in deposition processes. Leading players like Applied Materials, TEL, and AIXTRON are investing in advanced deposition technologies to meet the growing demand for high-quality SiC substrates and epitaxial wafers.

MARKET DYNAMICS

MARKET DRIVERS

Expansion of SiC Power Electronics in Electric Vehicles to Fuel Equipment Demand

The global shift toward electric vehicles (EVs) represents one of the most significant drivers for silicon carbide deposition equipment. SiC power devices enable superior performance in EV powertrains by offering higher efficiency, faster switching speeds, and better thermal management compared to traditional silicon-based solutions. Major automotive manufacturers are accelerating their transition to 800V battery systems, which further increases SiC adoption. The EV market's projected compound annual growth rate of nearly 30% through 2030 directly correlates with increased demand for high-quality SiC epitaxial wafers produced using advanced deposition systems.

Government Investments in Semiconductor Sovereignty Expanding Market Potential

National initiatives to strengthen domestic semiconductor capabilities are creating substantial growth opportunities. The CHIPS Act in the United States has allocated substantial funding for advanced semiconductor manufacturing infrastructure, including SiC production facilities. Similar programs in Europe and Asia are driving capacity expansions that require new deposition equipment. These geopolitical factors combined with the critical importance of SiC for renewable energy applications have pushed equipment demand to unprecedented levels, with leading manufacturers reporting backlogs stretching into 2025.

➤ For instance, at least four new 200mm SiC fabs are scheduled to come online globally before 2026, each representing potential equipment orders ranging between $150-300 million.

Technological Advancements in Deposition Methods Driving Equipment Upgrades

The transition from 150mm to 200mm wafer production combined with emerging atomic layer deposition (ALD) techniques is creating a wave of equipment replacement cycles. Next-generation deposition systems now achieve defect densities below 0.1 cm² while improving throughput by approximately 40% compared to previous models. These performance enhancements directly translate to lower production costs – a critical factor as SiC devices compete against mature silicon alternatives in price-sensitive applications.

MARKET CHALLENGES

Yield and Process Control Difficulties Impacting Production Economics

While SiC offers superior material properties, the deposition process presents significant technical hurdles that directly affect equipment utilization and production costs. Maintaining consistent film quality across entire wafer surfaces remains challenging, with defect rates in commercial production still significantly higher than silicon equivalents. The high-temperature CVD processes required for SiC deposition (typically 1500-1700°C) create substantial thermal stress on equipment components, leading to frequent maintenance cycles that can reduce productive capacity by 15-20% annually.

Other Challenges

Material Handling Complexities
The hard, brittle nature of SiC substrates complicates wafer handling during deposition, requiring specialized robotic systems that contribute to higher equipment costs. Breakage rates during processing remain an ongoing concern, particularly in high-throughput production environments where automated handling is essential.

Process Integration Barriers
Developing stable processes that work seamlessly across different deposition techniques (CVD, PECVD, ALD) presents integration challenges. Many manufacturers report difficulties achieving consistent results when combining deposition steps with subsequent lithography and etching processes, creating bottlenecks in device fabrication.

MARKET RESTRAINTS

High Capital Costs and Long ROI Periods Limiting Market Penetration

A single 200mm SiC deposition tool can cost upwards of $5 million, creating substantial barriers for smaller manufacturers and research institutions. The long payback periods associated with these investments (typically 3-5 years) further restrain wider adoption, particularly in price-sensitive Asian markets where equipment financing options remain limited. This financial hurdle slows the transition from silicon to SiC production despite the clear performance advantages, especially for applications where cost remains the primary decision factor.

Training and Workforce Development Gap Constraining Market Expansion

The specialized knowledge required to operate and maintain SiC deposition equipment creates workforce challenges across the industry. With fewer than 500 qualified process engineers worldwide possessing hands-on SiC deposition experience, equipment manufacturers face difficulties supporting new installations while maintaining service levels for existing customers. The situation is particularly acute in emerging manufacturing regions where technical training infrastructure for compound semiconductor processing remains underdeveloped.

MARKET OPPORTUNITIES

Emerging Device Applications Creating New Demand Niches

Beyond power electronics, new applications for SiC in RF devices and quantum computing are opening additional growth avenues. The unique material properties of SiC make it ideal for next-generation high-frequency amplifiers and radiation-hardened electronics. Equipment manufacturers that can tailor their deposition systems for these specialized applications stand to capture premium pricing in these high-margin segments, with leading RF device manufacturers already committing to substantial capacity expansions.

Innovative Business Models Reshaping Equipment Procurement

Equipment-as-a-service offerings and shared deposition facilities are emerging as innovative solutions to address capital constraints. Several leading foundries now provide SiC deposition capacity through multi-party utilization models, lowering the barrier for fabless semiconductor companies to enter the SiC market. This trend, combined with government-subsidized technology access programs, is expected to significantly expand the addressable market for deposition equipment over the next five years.

➤ The increasing adoption of cluster tool architectures that combine multiple deposition techniques into single systems represents another key opportunity, offering potential throughput improvements of 25-30% over standalone tools.

Segment Analysis:

By Type

CVD (PECVD) Segment Dominates Due to High Adoption in SiC Epitaxial Wafer Manufacturing

The market is segmented based on technology type into:

• ALD (Atomic Layer Deposition)

  • Subtypes: Thermal ALD, Plasma-Enhanced ALD

• CVD (PECVD)

  • Subtypes: Low-pressure CVD, Plasma-enhanced CVD

• PVD (Physical Vapor Deposition)

  • Subtypes: Sputtering, Evaporation

By Application

SiC Power Device Segment Leads Owing to Growing Demand in Electric Vehicles and Renewable Energy

The market is segmented based on application into:

• SiC Power Devices

• Optoelectronic Devices

• RF Devices

• Others

By End User

Foundries and IDMs Dominate the Market Share

The market is segmented based on end users into:

• Foundries

• IDMs (Integrated Device Manufacturers)

• Research Institutions

COMPETITIVE LANDSCAPE

Key Industry Players

Technological Innovation Drives Market Competition in SiC Deposition Equipment Space

The global SiC deposition equipment market exhibits a moderately consolidated structure dominated by established semiconductor equipment manufacturers and emerging regional players. Tokyo Electron Limited (TEL) leads the competitive landscape with approximately 20% market share in 2023, owing to its comprehensive suite of ALD and CVD solutions tailored for SiC manufacturing. The company's strong foothold in both Japanese and North American markets provides significant competitive advantage in serving major SiC wafer producers.

Applied Materials and AIXTRON collectively account for nearly 30% of the global market revenue, with their advanced PECVD and MOCVD systems gaining traction among power semiconductor manufacturers. Their technological leadership is reinforced by continuous R&D investments, with AIXTRON allocating over 15% of its annual revenue to develop next-generation deposition technologies.

Market dynamics are further shaped by strategic movements from regional players. China's NAURA Technology Group has rapidly expanded its market presence, capturing 8-10% of domestic demand through government-supported initiatives in semiconductor equipment localization. Similarly, Veeco Instruments has strengthened its position in the U.S. market through partnerships with leading SiC substrate manufacturers, demonstrating 12% year-over-year growth in equipment sales.

The competitive intensity is expected to increase as players expand beyond conventional CVD solutions. SPTS Technologies recently introduced a novel PVD system optimized for SiC power devices, while Samco launched a high-throughput ALD platform specifically for SiC epitaxial applications. Such product differentiation strategies are crucial as the industry shifts toward 200mm wafer processing capabilities.

List of Key SiC Deposition Equipment Manufacturers

• Tokyo Electron Limited (TEL) (Japan)
• Applied Materials, Inc. (U.S.)
• AIXTRON SE (Germany)
• Veeco Instruments Inc. (U.S.)
• NAURA Technology Group Co., Ltd (China)
• Samco Inc. (Japan)
• Shenzhen Naso Tech Co., Ltd (China)
• SPTS Technologies Ltd (UK)

While the market remains technology-driven, competition is increasingly influenced by service capabilities and aftermarket support. Leading players are establishing regional technical centers to provide localized process optimization services, a strategy that has become crucial for maintaining customer loyalty as SiC manufacturing processes grow more complex. The ability to integrate deposition equipment with downstream processes is emerging as a key differentiator in this evolving competitive landscape.

SiC DEPOSITION EQUIPMENT MARKET TRENDS

Growing Demand for Wide Bandgap Semiconductors to Accelerate Market Expansion

The rapid adoption of silicon carbide (SiC) in power electronics is driving significant demand for SiC deposition equipment. Wide bandgap semiconductors like SiC offer superior thermal conductivity, high breakdown voltage, and lower energy losses compared to traditional silicon-based devices. In 2023, the global SiC power device market accounted for over 40% of deposition equipment demand, with automotive applications leading this growth. The transition to electric vehicles has particularly accelerated, with major manufacturers requiring more efficient power modules that leverage SiC's advantages in high-temperature and high-voltage environments.

Other Trends

Automotive Electrification

Automakers globally are investing heavily in SiC technology to improve EV performance metrics. The ability of SiC-based inverters to increase driving range by 5-10% while reducing charging times has made this technology critical for next-generation vehicles. Deployment in premium EV models demonstrates market validation, while falling production costs enable broader adoption in mass-market vehicles. Government initiatives supporting clean transportation further amplify this trend across North America, Europe, and Asia-Pacific markets.

Technological Advancements in Deposition Methods

The market is witnessing substantial innovation across deposition technologies, particularly in CVD and ALD processes. New reactor designs now achieve deposition rates exceeding 10μm/hr with superior film uniformity, while temperature control innovations have reduced thermal budgets by 15-20%. These improvements directly translate to higher throughput in epitaxial wafer production. Furthermore, leading equipment manufacturers are integrating advanced process monitoring systems that utilize machine learning algorithms to optimize deposition parameters in real-time, achieving defect densities below 0.5 cm^-2.

While the CVD segment currently dominates with over 65% market share, ALD technology is gaining traction for nanometer-scale precision applications. The development of novel precursor chemistries has expanded ALD's applicability in creating complex device architectures, especially for next-generation power MOSFETs and Schottky diodes. This technological diversification provides manufacturers with more options to balance throughput and precision based on specific application requirements.

Regional Analysis: SiC Deposition Equipment Market

North America
North America holds a significant share in the global SiC deposition equipment market, driven by strong demand from the semiconductor and electric vehicle industries. The U.S. is at the forefront due to substantial investments in SiC-based power electronics, particularly for electric vehicles from companies like Tesla and General Motors. The region's focus on renewable energy integration and grid modernization further fuels demand for high-efficiency SiC devices, requiring advanced deposition technologies. While ALD (Atomic Layer Deposition) equipment adoption is growing, CVD (Chemical Vapor Deposition) remains dominant for large-scale production. Challenges include high equipment costs and the need for skilled operators, but government initiatives supporting domestic semiconductor manufacturing are expected to drive long-term growth.

Europe
Europe's market growth is propelled by strict emission regulations pushing electrification in automotive and industrial sectors. Germany leads the region with its strong automotive OEMs investing heavily in SiC power modules. The EU's focus on energy efficiency and recent mandates for sustainable technology adoption support market expansion. However, dependence on equipment imports from U.S. and Asian manufacturers creates supply chain vulnerabilities. Collaborative R&D projects between academia and industry, particularly in Scandinavia and Germany, are accelerating development of next-generation deposition technologies. Market growth is somewhat constrained by high energy costs and regulatory hurdles for new facility approvals.

Asia-Pacific
Asia-Pacific dominates the SiC deposition equipment market, accounting for over 60% of global demand. China's aggressive investments in semiconductor self-sufficiency, including a $100+ billion national semiconductor fund, drive rapid capacity expansion. Taiwan and South Korea follow closely due to their established foundry ecosystems. Japan maintains technology leadership through companies like TEL and Tokyo Electron, while India is emerging as a manufacturing hub with new fab projects. The region benefits from complete supply chain integration but faces challenges in maintaining consistent wafer quality at scale. Price competitiveness remains critical, with local manufacturers like NAURA gaining share against Western counterparts through cost-effective solutions.

South America
The South American market remains nascent but shows potential for long-term growth. Brazil leads with initiatives to develop local semiconductor capabilities, particularly for industrial and renewable energy applications. However, economic instability and limited access to advanced manufacturing technologies hinder rapid adoption. Most equipment is imported, creating cost and maintenance challenges. Partnerships with foreign manufacturers offer growth opportunities, while government incentives for electronics manufacturing could stimulate demand. The lack of local expertise in SiC processing and absence of established foundry networks remain significant barriers to market expansion.

Middle East & Africa
This region represents an emerging market with selective investments in semiconductor infrastructure primarily focused on economic diversification strategies. The UAE and Saudi Arabia are leading initiatives to build technology hubs, including planned investments in compound semiconductor manufacturing. However, the current market size remains negligible compared to other regions due to limited downstream demand and absence of established electronics manufacturing ecosystems. Potential exists for equipment suppliers through strategic partnerships with sovereign wealth fund-backed projects, though adoption timelines remain uncertain without stronger industrial applications driving local demand.

Report Scope

This market research report offers a holistic overview of global and regional markets for the forecast period 2025–2032. It presents accurate and actionable insights based on a blend of primary and secondary research.

Key Coverage Areas:

• ✅ Market Overview

  • Global and regional market size (historical & forecast)

  • Growth trends and value/volume projections

• ✅ Segmentation Analysis

  • By product type or category

  • By application or usage area

  • By end-user industry

  • By distribution channel (if applicable)

• ✅ Regional Insights

  • North America, Europe, Asia-Pacific, Latin America, Middle East & Africa

  • Country-level data for key markets

• ✅ Competitive Landscape

  • Company profiles and market share analysis

  • Key strategies: M&A, partnerships, expansions

  • Product portfolio and pricing strategies

• ✅ Technology & Innovation

  • Emerging technologies and R&D trends

  • Automation, digitalization, sustainability initiatives

  • Impact of AI, IoT, or other disruptors (where applicable)

• ✅ Market Dynamics

  • Key drivers supporting market growth

  • Restraints and potential risk factors

  • Supply chain trends and challenges

• ✅ Opportunities & Recommendations

  • High-growth segments

  • Investment hotspots

  • Strategic suggestions for stakeholders

• ✅ Stakeholder Insights

  • Target audience includes manufacturers, suppliers, distributors, investors, regulators, and policymakers

FREQUENTLY ASKED QUESTIONS:

What is the current market size of Global SiC Deposition Equipment Market?

-> The global SiC deposition equipment market was valued at USD 184 million in 2023 and is projected to reach USD 292 million by 2030, growing at a CAGR of 6.8% during the forecast period.

Which key companies operate in Global SiC Deposition Equipment Market?

-> Key players include TEL, Applied Materials, AIXTRON, Veeco, NAURA, Samco, Shenzhen Naso Tech Co., Ltd, and SPTS Technologies Ltd, among others. In 2023, the top five players held a significant revenue share.

What are the key growth drivers?

-> Key growth drivers include rising demand for SiC power devices, advancements in semiconductor manufacturing, and increasing adoption in electric vehicles and renewable energy applications.

Which region dominates the market?

-> Asia-Pacific leads the market due to strong semiconductor manufacturing presence, while North America shows significant growth with increasing investments in SiC technology.

What are the emerging trends?

-> Emerging trends include development of advanced ALD systems, integration of AI for process optimization, and increasing focus on large-diameter wafer compatibility.