Power SiC market growing at 20% CAGR 2025-31 to $11bn

AI infrastructure is emerging as a major growth opportunity: Yole forecasts a $2 billion market for compound semiconductor substrates used in power electronics by 2031, including datacentre infrastructure.

In AI datacentres and future AI infrastructure, power SiC is enabling next-generations of high-performance power supply.

The industry is undergoing a major transformation, driven by more than $30 billion of investments in the global scale to meet growing demands with the transition from 150mm to 200mm manufacturing platform.

China is strengthening its position across the entire value chain, from wafers to devices.

Higher voltages, larger wafers, and broader SiC penetration are driving the next wave of innovation.

AI is driving an unprecedented demand for power in datacentres which will require new power architectures, creating significant opportunities for power SiC technologies while in EVs, SiC enables higher efficiency, higher power density, and lower energy losses.

“The next phase of power SiC growth will be driven not only by electric vehicles, but also by the accelerating electrification of energy and digital infrastructure,” says Yole’s Poshun Chiu, “

Despite a temporary slowdown in EV demand during 2024 and 2025, the automotive market is entering a new growth phase with the increasing deployment of 800V battery electric vehicles, which require significantly more SiC content than previous platforms.

By 2031, 800V platforms are expected to represent approximately half of global BEV shipments, making automotive the largest contributor to Power SiC revenue over the entire forecast period.

With power requirements continuing to increase, the industry is working on improving the efficiency of PSU. The migration from 48/54 V rack distribution to three-phase sidecar HVDC architectures and, ultimately, to 800 VDC/±400, becomes a necessary step for VDC power architectures designed for AI factories.

“Power SiC is no longer an automotive-only story,” says Yole’s Ahmad Abbas, “the emergence of AI datacentres is creating a new demand driver alongside EVs, renewable energy, and energy storage, making the market more diversified and resilient.”

As AI datacentres, electrification, and energy transition reshape power infrastructure requirements, power SiC is becoming a critical enabling technology.