Compound Semiconductor Market Size, Share, Opportunities, And Trend By Material Type (Group II-VI, Group III-V, Group IV-IV), By Fabrication Process (Hydride Vapor Phase Epitaxy (HVPE), Metalorganic Vapor Phase Epitaxy (MOVPE), Atomic Layer Deposition (ALD), Others), By End-User Industry (Automotive, Communication And Technology, Consumer Electronics, Healthcare, Energy And Power, Others), And By Geography - Forecasts From 2025 To 2030

The compound semiconductor market is projected to grow at a CAGR of 8.52% during the forecast period.

Compound Semiconductor Market Trends:

Compound semiconductors are made from two or more elements. Most compound semiconductors are made from the combination of elements from Group 3 and Group 5 of the periodic table of elements (GaAs, InP, and others). Other compound semiconductors are made from Groups 2 and 4 (CdTe, ZnSe, and others). It is possible to make semiconductors using different elements within the same group (4) to make compound semiconductors such as Silicon Carbide (SiC). Compound semiconductors are more fragile and have a large application base. This material is used in electronic film coatings, electronic wafers, and the fabrication of integrated circuits, increasing its demand in the market.

Compound Semiconductor Market Drivers:

The automotive industry is using compound semiconductors for power devices in segments such as charging infrastructure and EV/HEV. Owing to environmental concerns, the demand for electric vehicles is increasing, boosting the need for compound semiconductors in the market.

Healthcare has various applications for compound semiconductors, such as in-memory power management devices, discrete devices, microcontrollers, sensors, and motion micro-electromechanical systems. Many new technologies are developed using these semiconductors for a more reliable, specific, and integrative approach to diagnosis and treatment.

The growing demand for consumer electronics with growth in urbanization will boost the demand for compound semiconductors. For instance, LEDs also use these semiconductors. The demand for LEDs has grown recently due to their various advantages, such as lower energy consumption, longer life, smaller size, improved physical robustness, etc.

The telecommunication industry is witnessing an increasing demand for compound semiconductors owing to the rising penetration of smartphones and the burgeoning adoption of LTE and 5G networks. This growth is largely driven by the introduction of smartphones powered by GaAs-based solar cells coupled with an increase in the number of smartphones and other smart devices in the market.

Compound Semiconductor Market Restraints:

The high costs involved in the complete industry processes in the supply chain are a major factor limiting the compound semiconductor market growth. The overall estimated cost of all supply chain operations (including the full upstream and downstream expenditure) per compound semiconductor is significantly higher than the average price per pure silicone semiconductor device. This is mostly because both systems are complicated and modern, use innovative technology, and include state-of-the-art, high-priced equipment. There is also a lack of familiarity and expertise in the engineering community and executives of compound semiconductor industry players.

Compound Semiconductor Market Geographical Outlook:

• The Asia Pacific is estimated to witness growth in the forecast period

The Asia Pacific region is expected to witness the fastest growth due to the huge demand for electronic devices, wireless technologies, automation, and transportation industries, and the established semiconductor and electronics industry during the forecast period. An increase in research and development will also boost the demand for compound semiconductors.

North American and European markets to see a boost in demand for compound semiconductors due to the growing aerospace & defense and IT & Telecommunication industries. Major players in these regions will also drive the compound semiconductors market’s growth.

Compound Semiconductor Market Key Developments:

• In September 2024, the Indian Government, in partnership with the US Government, launched the National Security Fab for compound semiconductors. The fab aims to boost the manufacturing of infrared, gallium nitride, and silicon carbide semiconductors in India.

Compound Semiconductor Market Major Players:

The major players in the compound semiconductor market are Sumitomo Electric Industries, Ltd., Toshiba Corporation, SCIOCS, Mitsubishi Chemical Corporation, Qorvo, Inc., Texas Instruments Incorporated, GaN Systems, and Kyma Technologies. These companies compete with each other on the grounds of new product launches, entering into a merger agreement, or acquiring another company. These players are very competitive and take active advantage of the growing needs in the compound semiconductor market.

Segmentation

• By Type
  • Gallium Arsenide (GaAs)
  • Gallium Nitride (GaN)
  • Silicon Carbide (SiC)
  • Gallium Phosphide (GaP)
  • Others
• By Group
  • Group II-VI
  • Group III-V
  • Group IV-IV
• By Fabrication Process
  • Chemical Vapor Deposition (CVD)
  • Hydride Vapor Phase Epitaxy (HVPE)
  • Metalorganic Vapor Phase Epitaxy (MOVPE)
  • Atomic Layer Deposition (ALD)
  • Others
• By End-user Industry
  • Automotive
  • Communication and Technology
  • Consumer Electronics
  • Healthcare
  • Energy and Power
  • Others
• By Geography
  • Americas
    • USA
  • Europe, the Middle East, and Africa
    • Germany
    • Netherlands
    • Others
  • Asia Pacific
    • China
    • Japan
    • Taiwan
    • South Korea
    • Others

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1. EXECUTIVE SUMMARY 

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE 

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities 

3.4. Porter’s Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations 

3.7. Strategic Recommendations 

4. TECHNOLOGICAL OUTLOOK

5. COMPOUND SEMICONDUCTOR MARKET BY TYPE

5.1. Introduction

5.2. Gallium Arsenide (GaAs)

5.3. Gallium Nitride (GaN)

5.4. Silicon Carbide (SiC)

5.5. Gallium Phosphide (GaP)

5.6. Others

6. COMPOUND SEMICONDUCTOR MARKET BY GROUP

6.1. Introduction

6.2. Group II-VI

6.3. Group III-V

6.4. Group IV-IV

7. COMPOUND SEMICONDUCTOR MARKET BY FABRICATION PROCESS

7.1. Introduction

7.2. Chemical Vapor Deposition (CVD)

7.3. Hydride Vapor Phase Epitaxy (HVPE)

7.4. Metalorganic Vapor Phase Epitaxy (MOVPE)

7.5. Atomic Layer Deposition (ALD)

7.6. Others

8. COMPOUND SEMICONDUCTOR MARKET BY END-USER INDUSTRY

8.1. Introduction

8.2. Automotive

8.3. Communication and Technology

8.4. Consumer Electronics

8.5. Healthcare

8.6. Energy and Power

8.7. Others

9. COMPOUND SEMICONDUCTOR MARKET BY GEOGRAPHY

9.1. Introduction

9.2. Americas

9.2.1. By Type

9.2.2. By Group

9.2.3. By Fabrication Process

9.2.4. By End-User Industry

9.2.5. By Country

9.2.5.1. United States

9.2.5.2. Canada

9.2.5.3. Mexico

9.3. Europe, Middle East, and Africa

9.3.1. By Type

9.3.2. By Group

9.3.3. By Fabrication Process

9.3.4. By End-User Industry

9.3.5. By Country

9.3.5.1. Germany

9.3.5.2. Netherlands

9.3.5.3. Others

9.4. Asia Pacific

9.4.1. By Type

9.4.2. By Group

9.4.3. By Fabrication Process

9.4.4. By End-User Industry

9.4.5. By Country

9.4.5.1. China

9.4.5.2. Japan

9.4.5.3. Taiwan

9.4.5.4. South Korea

9.4.5.5. Others

10. COMPETITIVE ENVIRONMENT AND ANALYSIS

10.1. Major Players and Strategy Analysis

10.2. Market Share Analysis

10.3. Mergers, Acquisitions, Agreements, and Collaborations

10.4. Competitive Dashboard

11. COMPANY PROFILES

11.1. Sumitomo Electric Industries, Ltd.

11.2. Toshiba Corporation

11.3. Mitsubishi Chemical Corporation

11.4. Qorvo, Inc.

11.5. Texas Instruments Incorporated

11.6. GaN Systems

11.7. Kyma Technologies

11.8. Sanken Electric Co., Ltd. 

11.9. Veeco Instruments Inc.

11.10. Yole Group

12. APPENDIX

12.1. Currency 

12.2. Assumptions

12.3. Base and Forecast Years Timeline

12.4. Key benefits for the stakeholders

12.5. Research Methodology 

12.6. Abbreviations 

Sumitomo Electric Industries, Ltd.

Toshiba Corporation

Mitsubishi Chemical Corporation

Qorvo, Inc.

Texas Instruments Incorporated

GaN Systems

Kyma Technologies

Sanken Electric Co., Ltd.

Veeco Instruments Inc.

Yole Group