SiC Thermal Process Equipment Market, Global Outlook and Forecast 2024-2030

MARKET INSIGHTS

The global SiC thermal process equipment market was valued at USD 208 million in 2023 and is projected to reach USD 655 million by 2030, exhibiting a robust CAGR of 19.9% during the forecast period. This accelerated growth trajectory reflects the surging demand for silicon carbide (SiC) semiconductor manufacturing across multiple industries.

SiC thermal process equipment comprises specialized high-temperature systems that perform critical heat treatment processes including oxidation, sintering, and annealing of silicon carbide materials. These precision systems - such as vertical oxidation furnaces - create controlled thermal environments exceeding 1600°C to enable controlled oxide layer formation on SiC wafers, which is fundamental for enhancing device performance and reliability in power electronics applications.

The market expansion is primarily driven by the automotive industry's rapid adoption of SiC-based power electronics for electric vehicles, coupled with increasing investments in 5G infrastructure and renewable energy systems. Regionally, Asia Pacific dominates demand due to concentrated semiconductor manufacturing, while North America shows strong growth potential with new fab construction projects. Key technological advancements focus on improving temperature uniformity and process control to meet the exacting requirements of next-generation SiC power devices.

MARKET DYNAMICS

MARKET DRIVERS

Rising Adoption of SiC in Power Electronics to Fuel Thermal Process Equipment Demand

The global shift toward energy-efficient power electronics is accelerating the adoption of silicon carbide (SiC) semiconductors, which is directly driving demand for specialized thermal process equipment. SiC devices offer superior properties compared to traditional silicon, including higher thermal conductivity and breakdown voltage, making them ideal for electric vehicles, renewable energy systems, and industrial power applications. The global SiC power device market is projected to grow at a 34% CAGR through 2030, creating parallel demand for oxidation furnaces, annealing systems, and RTP equipment capable of processing these advanced materials at extreme temperatures up to 1800°C.

Automotive Industry Electrification as Key Growth Catalyst

The automotive sector's rapid transition toward electrification is creating unprecedented demand for SiC-based power modules in EV inverters, onboard chargers, and DC-DC converters. Leading automakers are increasingly adopting 800V architectures where SiC's advantages become particularly pronounced, requiring specialized thermal processing during device manufacturing. With electric vehicle production expected to reach 40 million units annually by 2030, equipment manufacturers are scaling up production of high-temperature capable furnaces that can handle the precise thermal budgets required for SiC power device fabrication.

Government initiatives supporting semiconductor self-sufficiency are further stimulating market growth:

➤ Major economies have committed over $50 billion in semiconductor manufacturing incentives since 2022, with SiC receiving particular attention for its strategic importance in energy and defense applications.

MARKET RESTRAINTS

High Equipment Costs and Long ROI Periods Dampen Adoption

While the SiC device market expands rapidly, the thermal process equipment sector faces significant penetration barriers due to the substantial capital investment required. A single high-temperature oxidation furnace for SiC processing can cost between $1.5-3 million, with full production lines requiring investments exceeding $50 million. This creates challenging ROI timelines, particularly for smaller semiconductor manufacturers. The complex maintenance requirements and specialized handling needs for ultra-high temperature systems further increase total cost of ownership, making capacity expansion decisions highly measured in the current economic climate.

Other Constraints

Material Handling Complexities
SiC wafer processing presents unique handling challenges at elevated temperatures above 1600°C, requiring specialized wafer carriers and furnace components made from expensive, exotic materials. These material constraints limit throughput and increase operational costs compared to conventional silicon processing equipment.

Process Control Difficulties
Maintaining precise temperature uniformity across large wafer batches at extreme temperatures remains technically challenging, with even minor temperature gradients potentially causing significant yield losses in finished devices. This requires sophisticated sensor arrays and control systems that contribute to both equipment costs and operational complexity.

MARKET OPPORTUNITIES

Emerging 200mm SiC Wafer Transition Opens New Equipment Upgrade Cycle

The industry's transition from 150mm to 200mm SiC wafer production represents a significant opportunity for equipment manufacturers. This transition requires complete furnace reconfigurations or replacements to accommodate larger wafer sizes while maintaining tight thermal uniformity specifications. With leading wafer suppliers planning 200mm production ramp-ups through 2025, thermal equipment providers are developing specialized systems that can deliver 30-50% throughput improvements while meeting the stricter contamination control requirements of larger wafer formats.

Additionally, the growing adoption of vertical integration strategies by power device manufacturers is creating demand for customized thermal processing solutions:

➤ Leading SiC chipmakers are increasingly bringing epitaxy and thermal processing in-house to control quality and protect proprietary processes, driving demand for dedicated rather than foundry-style equipment configurations.

MARKET CHALLENGES

Technology Transition Risks Create Adoption Hesitation

The rapid evolution of SiC device architectures presents continuous challenges for thermal equipment providers. Manufacturers face difficult decisions whether to invest in current-generation technology or wait for next-generation solutions that may better address emerging process requirements like gate oxide reliability enhancement or reduced thermal budgets. This technological uncertainty, combined with the substantial capital commitments required, creates hesitation in the buying cycle that can delay market expansion.

Equipment Reliability Considerations
Extended operation at extreme temperatures accelerates component degradation in thermal processing systems. Hot zone replacements in SiC oxidation furnaces may be required every 12-18 months compared to 3-5 years for silicon processing equipment, significantly impacting total cost of ownership and maintenance scheduling complexities.

Workforce Development Needs
The specialized nature of SiC thermal processing requires highly trained technicians with skills spanning semiconductor manufacturing, high-temperature material science, and advanced process control. The current industry shortage of personnel with this specific expertise creates bottlenecks in both equipment operation and maintenance across the supply chain.

Segment Analysis:

By Type

SiC High Temperature Oxidation Furnace Segment Leads Due to Critical Role in Device Performance Enhancement

The market is segmented based on type into:

• SiC High Temperature Oxidation Furnace

  • Subtypes: Vertical Furnace Systems, Horizontal Furnace Systems

• SiC Annealing Equipment

• SiC Rapid Thermal Processing (RTP) Systems

• SiC Sintering Equipment

• Others

By Application

SiC Power Device Segment Dominates with Growing EV and Power Electronics Demand

The market is segmented based on application into:

• SiC Power Devices

• Semiconductor Manufacturing

• Research & Development

• Aerospace & Defense

• Others

By End User

Semiconductor Foundries Lead Adoption for Mass Production Requirements

The market is segmented based on end user into:

• Semiconductor Foundries

• IDMs (Integrated Device Manufacturers)

• Research Institutions

• Component Manufacturers

COMPETITIVE LANDSCAPE

Key Industry Players

Technological Innovation and Strategic Expansion Drive Market Competition

The global SiC thermal process equipment market is characterized by a mix of established players and emerging competitors, each vying for dominance in this high-growth sector. JTEKT Thermo Systems and Centrotherm currently lead the industry, leveraging their decades of expertise in semiconductor manufacturing equipment. Their dominance stems from proprietary technologies in high-temperature processing and strong relationships with major SiC wafer producers.

While Japanese and European manufacturers traditionally held technological advantages, Chinese firms like NAURA and Shenzhen S.C New Energy Technology are rapidly closing the gap through aggressive R&D investments. The Chinese government's focus on semiconductor independence has accelerated domestic capabilities, with local companies now capturing approximately 35% of the Asia-Pacific market according to recent industry reports.

Mid-sized specialists are carving out profitable niches through innovation. Tystar Corporation has differentiated itself with advanced gas delivery systems for SiC oxidation furnaces, while LAPLACE-SEMI focuses on cost-effective solutions for emerging markets. These companies are increasingly forming strategic partnerships with universities and research institutes to develop next-generation thermal processing technologies.

The competitive landscape is further intensified by vertical integration strategies. Major players like Kokusai Electric and Sumitomo Heavy Industries are expanding their offerings to provide complete SiC manufacturing solutions, from crystal growth equipment to thermal processing systems. This trend is forcing smaller, single-product companies to either specialize in specific process steps or seek acquisition opportunities.

List of Leading SiC Thermal Process Equipment Manufacturers

• JTEKT Thermo Systems (Japan)

• Centrotherm (Germany)

• Tystar Corporation (U.S.)

• Toyoko Kagaku (Japan)

• CETC-48 (China)

• Applied Materials (U.S.)

• NAURA (China)

• Shenzhen S.C New Energy Technology (China)

• Shandong Leguan (China)

• LAPLACE-SEMI (China)

• ULVAC (Japan)

• Sumitomo Heavy Industries (Japan)

• Annealsys (France)

SiC THERMAL PROCESS EQUIPMENT MARKET TRENDS

Surge in Electric Vehicle Adoption Accelerates Demand for SiC Thermal Processing

The rapid expansion of the electric vehicle (EV) industry has become a primary driver for silicon carbide (SiC) thermal process equipment. SiC power devices are increasingly favored in EV applications due to their superior thermal conductivity, energy efficiency, and voltage resistance compared to traditional silicon-based components. The thermal processing stage is critical for ensuring device reliability, with oxidation furnaces and annealing systems playing pivotal roles in manufacturing high-performance SiC wafers. The global EV market's projected growth at a 23% CAGR through 2030 will continue to fuel investments in specialized thermal processing solutions.

Other Trends

Technological Advancements in High-Temperature Processing

Manufacturers are developing next-generation thermal processing systems with enhanced temperature control capabilities, addressing the industry's need for precision in SiC wafer fabrication. Advanced oxidation furnaces now achieve temperature uniformity within ±1°C at operating ranges exceeding 1700°C, a critical requirement for consistent gate oxide formation. Furthermore, the integration of AI-driven process monitoring has reduced wafer rejection rates by 15-20% in leading semiconductor fabs, significantly improving production yields.

Expansion of 5G Infrastructure Creates New Application Frontiers

The global rollout of 5G networks is creating substantial demand for SiC-based RF power amplifiers, which require specialized thermal processing for optimal performance. Base stations utilizing SiC devices demonstrate 30-40% better power efficiency than conventional alternatives, driving telecom operators to upgrade infrastructure. Thermal process equipment manufacturers are responding with modular furnace designs capable of handling both power electronics and RF device production, enabling fab operators to diversify their product portfolios while maintaining process consistency across applications.

Regional Manufacturing Capacity Investments

Governments worldwide are implementing policies to strengthen domestic semiconductor supply chains, with SiC receiving particular attention due to its strategic importance. The CHIPS Act in the United States has allocated $52 billion for semiconductor manufacturing, while China's 14th Five-Year Plan prioritizes compound semiconductor development. These initiatives are triggering a wave of fab constructions, with industry analysts predicting a 45% increase in global SiC thermal processing capacity by 2026 to meet anticipated demand from both established and emerging markets.

Regional Analysis: SiC Thermal Process Equipment Market

North America
The North American SiC thermal process equipment market is driven by strong demand from the semiconductor and power electronics industries, particularly in the United States. The CHIPS Act, allocating $52.7 billion for domestic semiconductor manufacturing, has accelerated investments in advanced SiC fabrication facilities. Major players like Wolfspeed and ON Semiconductor are expanding production capabilities, fueling demand for high-precision thermal processing tools. However, stringent environmental regulations on manufacturing emissions pose compliance challenges for equipment suppliers. The region focuses on high-temperature oxidation furnaces for SiC power device production, with an emphasis on energy efficiency and process control.

Europe
Europe’s market growth is supported by robust R&D initiatives in automotive and renewable energy applications, where SiC devices are increasingly adopted. The EU’s Green Deal Industrial Plan prioritizes semiconductor sovereignty, indirectly benefiting local equipment manufacturers. Germany and France lead in demand due to their strong industrial bases, though reliance on imports for specialized equipment persists. Companies like Centrotherm and Annealsys provide localized solutions, but competition from Asian suppliers remains intense. The region shows a growing preference for annealing systems with advanced temperature uniformity, crucial for SiC wafer processing.

Asia-Pacific
Asia-Pacific dominates the global market, accounting for over 60% of SiC thermal equipment demand, according to industry estimates. China’s aggressive expansion in third-generation semiconductors has spurred massive investments in domestic manufacturing. Local players like NAURA and CETC-48 are gaining traction with cost-competitive alternatives to Western and Japanese suppliers. Japan retains technological leadership, with firms like Kokusai Electric supplying high-temperature batch systems for tier-1 SiC fabs. Meanwhile, South Korea’s focus on electric vehicle components drives steady demand. Despite growth, tariff disputes and IP protection concerns occasionally disrupt supply chains.

South America
The region remains a niche market, with Brazil showing moderate interest in SiC for industrial motor drives and renewable projects. Limited local semiconductor infrastructure means most equipment is imported from North America or Asia at premium costs. Political instability and fluctuating currencies deter large-scale investments, though multinationals are beginning to establish assembly hubs in free trade zones. SiC annealing equipment sees sporadic demand from research institutes rather than volume production lines.

Middle East & Africa
This emerging market is exploring SiC applications in oil & gas sensing and solar energy conversion, but adoption is in early stages. Saudi Arabia’s Vision 2030 includes semiconductor development goals, attracting equipment vendors through industrial partnerships. The lack of localized technical expertise and high capital requirements delay widespread deployment. Some nations import compact RTP systems for prototyping, while full-scale production facilities remain years away. Strategic collaborations with European and Chinese suppliers may gradually unlock the region’s potential.

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 Thermal Process Equipment Market?

-> The Global SiC Thermal Process Equipment market was valued at USD 208 million in 2023 and is projected to reach USD 655 million by 2030, at a CAGR of 19.9% during the forecast period.

Which key companies operate in Global SiC Thermal Process Equipment Market?

-> Key players include JTEKT Thermo Systems, Centrotherm, Tystar Corporation, Toyoko Kagaku, CETC-48, AMAT, NAURA, Shenzhen S.C New Energy Technology, Shandong Leguan, and LAPLACE-SEMI, among others.

What are the key growth drivers?

-> Key growth drivers include rising demand for SiC power devices, expansion of electric vehicle (EV) infrastructure, and increasing investments in semiconductor manufacturing.

Which region dominates the market?

-> Asia-Pacific leads the market, driven by semiconductor manufacturing growth in China, Japan, and South Korea, while North America remains a key innovation hub.

What are the emerging trends?

-> Emerging trends include advancements in high-temperature oxidation furnace technology, automation in thermal processing, and integration of Industry 4.0 solutions.