Globally, the size of the Compound Semiconductor Market is set to grow at a CAGR of 11.10% to hit USD 212.57 Billion by 2030 driven by the increasing demand for high-speed transceivers in the data center. Compound semiconductors are created by combining components in the same periodic table. It is a unique type of semiconductor that comes with high-temperature resistance. The optoelectronic feature of this conductor is suitable for a wide range of applications. Due to its rising benefits, the demand for the compound semiconductor industry is constantly surging. Synthesis of these semiconductors is done through deposition technology. The unique properties of this component attract plenty of end users.
Some of the exceptional functions of semiconductors are high band gap, high voltage, high current, and microwave signals. Technology applications have a high need for compound semiconductors. These semiconductors are estimated to have a higher magnitude than silicone. Also, a high-frequency ultraviolet spectrum is visible in semiconductors. These semiconductor raw are mainly used in photovoltaic, microelectronics, and spintronics. Increased energy efficiency is achievable through these semiconductors.
For more thickness of these semiconductors, the epitaxial wafer is used. Defect sensitivity, carrier concentration, and thickness are enabled in this component for enhanced performance. The consumer electronics market has the highest demand for compound semiconductors. The merging trend of wafers in the automotive industry is another factor leading to high demand. All these factors will raise the overall compound semiconductor market value by 4465 billion by 2026.
The outbreak of covid 19 is leading to unprecedented changes in the global markets. The losses and challenges are more during this period. The supply chain disruptions are hampering market operations. The compound semiconductor market has few strong key players. There are tier one and tier two key players in the market witnessing developments in this period.
However, the compound semiconductor market has been affected due to the covid 19. The regions such as North America and the Asia Pacific are witnessing high losses. Also, South Korea faced a complete shutdown of compound semiconductor facilities for 45 days. It has led to high losses in the Asia Pacific region. Also, Mexico is facing massive supply chain disruption. Further, a low production rate is another challenge in the compound semiconductor industry. However, post covid 19, the effects of the market look positive. More developments are anticipated to happen in the next few years.
The growing use of compound semiconductors in LEDs is a crucial driver of the compound semiconductor market. LEDs are rapidly replacing other traditional light sources. The demand for incandescent and fluorescent bulbs is massive. The penetration of LED light is high in automotive, general lighting, and signages. LED contains semiconductor materials that belong to the tier 3 segment of the periodic table. The growing use of LED light will bring a positive impact on the compound semiconductor market.
Also, the demand from crucial end users is a demand-driving factor of the market. Today, the need for high-speed transceivers is high. Especially, data centers have high requirements for these transceivers. The new age transceivers come in compound semiconductors. These semiconductors can increase the quality and speed of the transceivers. This demand from the end users of the market will lead to high growth.
Also, this driver will contribute to Compound Semiconductor Market Revenue. The rising investments from the market are yet another driver. The electrical vehicle market has a high need for compound semiconductors. They come with high heat resistance capability that leads to more adoption. This driver will bring favorable changes in the compound semiconductor market.
The increasing demand for compound semiconductors in the defense sector will lead to growth opportunities. In recent years, the adoption of semiconductors in the aerospace, military, and defense sectors is high. The avionics market uses RF devices that will lead to a wide range of scope for the compound semiconductor market. The military sector is expected to allocate separate investments for compound semiconductors. The use of more technologies such as GaAs and InP will further boost the growth of this market.
All these growth opportunities will improve the supply rate of the market in the future. Moreover, the rising government initiatives to enhance the compound semiconductor market will lead to higher growth. Today, many governments encourage the use of semiconductors. There are plenty of benefits of this technology. Energy efficiency is one o the prominent feature of semiconductors. Due to its wide range of benefits, governmental initiatives are rising. These factors will expand Compound Semiconductor Market Size.
High material cost is a crucial restraint of the market. The entire industry process and supply chain operations of the market are expensive. The average material cost for the compound semiconductor is comparatively higher than silicone conductors. It is a market restraining factor that can decline the overall adoption rate.
The crucial reason for high industry costs is the complexity of manufacturing. Also, it is a procedure that involves new technologies. All these create high industry and fabrication costs for the market. This restraint of the market can affect the price. The overall product price can grow in upcoming years.
The complexity of compound semiconductors design is a significant market challenge. A high level of design complexity is a prevalent issue in the compound semiconductor market. It has more than one component from the periodic table the complexities are higher. Today, the designers of the market require a less complex design and low-cost product. However, both these aspects are unachievable in this market. The requirements of this semiconductor are varying.
It is leading to sophisticated designs and structures of these semiconductors. It is leading to difficulties in technologies in the compound semiconductor is deployed. This challenge of the market can lead to less adoption rate of the semiconductor. Further, the substitutes for semiconductors are a major challenge. There are cost-effective and less complex semiconductors that can take over the demand. The availability of these substitutes can impede this market growth.
Compound Semiconductor Market Forecast shows a positive growth trend. The market has power electronics and power supply segments with high demand. The development of hybrid vehicles will lead to the immense adoption of power electronic semiconductors.
This segment of the market is estimated to contribute the highest profits. Further, the key drivers such as the penetration of LED will positively impact the market. Also, the need for high-speed transceivers will boost overall growth. However, the high material cost is a restraining factor in the market. Also, complexity in design is a market challenge that can affect market growth. The overall growth trend is stable with rising demand in the defense industry.
The Asia Pacific is anticipated to record the highest Compound Semiconductor Market Share. It is a region that has exceptional growth for semiconductors from various verticals. Japan, Taiwan, China, and India are countries with top key players. The defense, aerospace, and military sectors have high adoption of compound semiconductors.
Commercialization of 5G will provide exceptional growth opportunities for compound semiconductors. The chains market will have a high production rate. However, there are simply chain disruptions in these markets in the next few years. Still, new developments by key players will lead to more growth.
There are few key players in the compound semiconductor market competitive landscape. Key players are creating an easy design for compound semiconductors in the upcoming years. Also, more initiatives are taken to increase awareness. Further, market acquisitions, collaborations, partnerships, and expansions are part of the competitive landscape.
The compound semiconductor market is diversified into Asia Pacific, Europe, and North America. The Asia Pacific will dominate other regional players in the market. Emerging markets such as India, China, and Japan have a high demand for semiconductors. Also, industrialization and growing urbanization are factors deriving market demand.
The booming consumer electronics market will bring high scope for semiconductors. Further, North America and Europe are other key regions. The demand is surging due to high requirements from end users. Also, these regions have high investments in the market. New developments and product launches are expected in North America. Europe will have the highest expansion rate in the forecast period.
|Market Size||USD 212.57 Billion|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type, Product, Application and Region|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Nichia Corporation (Japan), Samsung Electronics (South Korea), AMS AG (Austria), Qorvo, Inc. (US), Skyworks Solutions, Inc. (US), Cree Inc. (US), GaN Systems, Inc. (Canada), Infineon Technologies AG (Germany), Mitsubishi Electric Corporation (Japan), NXP Semiconductors NV (Netherlands), and ON Semiconductor (US).|
|Key Market Opportunities||Commercialization of 5G services.|
|Key Market Drivers||
Compound Semiconductor Market is set to grow at a CAGR of 11.10% to hit USD 212.57 Billion by 2030
Players included in the compound semiconductor market report are AMS AG (Austria), Nichia Corporation (Japan), Samsung Electronics (South Korea), Skyworks Solutions, Inc. (the US), Qorvo, Inc. (the US), Infineon Technologies AG (Germany), Cree Inc. (US), GaN Systems, Inc. (Canada), NXP Semiconductors NV (Netherlands), Mitsubishi Electric Corporation (Japan), and ON Semiconductor (US).
The compound semiconductor market report includes type, product, and application for review.
North America would dominate the global compound semiconductor market.
Some of the more common compound semiconductors include: GaN, GaAs, SiC, InP, SiGe, GaP, InSb and Others
A compound semiconductor is semiconductor that is composed of elements from two or more different groups of the periodic table, and is synthesized through deposition technologies.