The compound semiconductor market is projected to grow at a CAGR of 8.52% during the forecast period.
Compound semiconductors are made from two or more elements. Most compound semiconductors are made from a 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.
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.
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 silicon 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.
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.
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.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Growth Rate | CAGR of 8.52% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
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| Geographical Segmentation | Americas, Europe, Middle East, and Africa, Asia Pacific |
| List of Major Companies in the Compound Semiconductor Market |
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| Customization Scope | Free report customization with purchase |