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Compound Semiconductor Market Research Report Information By Type (GaN, GaAs, and SiC), By Group (Group IV-IV [Headsets, Boards, Sensors, and Electrodes], Group III-V, and Group II-VI), By Product (LED, Optoelectronics, RF Devices, and Power Electronics), By Application (Electronics & Consumer Goods, Aerospace & Defense, and Others), and By Region (North America, Europe, Asia-Pacific, Middle East & Africa, and South America) - Forecast till 2032

ID: MRFR/SEM/8651-HCR | 100 Pages | Author: Aarti Dhapte| July 2024

Global Compound Semiconductor Market Overview:

Compound Semiconductor Market Size was valued at USD 34.15 billion in 2021. The Compound Semiconductor market industry is projected to grow from USD 36.69 billion in 2022 to USD 68.62 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.1% during the forecast period (2024 - 2032). Increased demand for compound semiconductor epitaxial wafer especially in consumer electronics industry is driving the growth of the market.

Compound Semiconductor Market

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Covid-19 Analysis

Post-COVID-19, the Compound Semiconductor market size was valued at USD 34.15 billion in 2021 and is projected to reach USD 68.62 billion by 2032, growing at a CAGR of 8.1% from 2024 to 2032. Due to a major impact on key companies in the supply chain, the COVID-19 outbreak has had a significant impact on the growth of the compound semiconductor market solution in 2020. 

However, one of the key reasons driving the market expansion during the COVID-19 pandemic is the increase in demand for compound semiconductors such as power semiconductors, transistors, and integrated circuits (ICs) solutions across key sectors. Instead, the COVID-19 epidemic caused a number of challenges for the market, including a shortage of competent workers and delays or cancellations of projects due to partial or total lockdowns around the world. Additionally, the market opportunity for compound semiconductors after COVID-19 is anticipated to be strengthened by the spike in demand for industrial and consumer electronics solutions.

Compound Semiconductor Market Trends

  • Wide application in telecommunications, aerospace, defense

Materials that display electrical conductivity halfway between conductors and insulators are referred to as semiconductors. Compound semiconductors are created simultaneously from two or more separate periodic table groups of chemical elements. Compound semiconductor-based devices have several distinctive characteristics, including high electron mobility and bandgap, increased frequency, better current and voltage holding capacity, temperature resistance, breakdown electric fields, quicker operation, and improved microwave signal generation. 

Silicon cannot operate at speeds that are greater magnitudes than compound semiconductors like GaAs and InP. Compound semiconductors can also produce and receive a wide range of electromagnetic radiation, from long-wavelength infrared light to high-frequency ultraviolet and visible light. Compound semiconductor materials also have a sensor capacity and emit light in communications and general lighting (LEDs). 

Compound semiconductors are frequently used in telecommunications, aerospace, defense, automotive, medical, electronics, and information technology (IT) sectors. Additionally, they are widely used in signage displays, general illumination, and automobile lighting. The periodic table's group III and group V elements, also referred to as III-V materials, are utilized to create the compound semiconductors used in LEDs.

Additionally, a growing tendency towards using wafers in the automobile industry is helping to drive the market's expansion to some level. In addition, the high cost of wafer fabrication is a serious challenge to expanding the compound semiconductor sector. The average cost of a compound semiconductor is substantially higher than that of a pure silicon semiconductor device. This is primarily because each stage of the production process uses sophisticated and complex technologies. 

However, the primary factors anticipated to drive the market growth during the forecast period include the rising adoption of compound semiconductors in smart technologies and rising Internet of Things (IoT) wafer penetration.

Compound Semiconductors Market Segment Insights:

Compound Semiconductors Type Insights

Based on the type, the compound semiconductor market has been segmented into GaN, GaAs, SiC, InP. GaN to dominate the compound semiconductor market in 2020. GaN is capable of high-speed switching and device downsizing because of its high breakdown voltage and low conduction resistance properties. GaN devices are tiny (low parasitic capacitance), allowing for high-speed switching, high electron mobility and density, and easy shrinking. In contrast to conventional silicon devices, which need a larger chip surface to lower on-resistance, GaN devices can be easily miniaturized.

Compound Semiconductors Group Insights

Based on group, the Compound Semiconductor Market has been segmented into groups iv-iv, group iii-v, and group ii-vi. Group iii-v accounted for the highest market share in the compound semiconductor market in 2020. They have an advantage over silicon-based semiconductors due to their superior power efficiency and distinctive optical characteristics. Over the projected period, the demand for Group II-VI compound semiconductors is expected to increase due to the expansion of the optoelectronics sector.

Compound Semiconductors Product Insights

Based on product, the Compound Semiconductor Market has been segmented into LED, optoelectronics, RF devices, and power electronics. Power Electronics accounted for the highest market share in the compound semiconductor market in 2020. Smart home appliances are predicted to increase in popularity with the purchase of cutting-edge consumer electronics Power utilizes power electronics modules. 

GaN has developed into a crucial component for power electronics, allowing businesses to provide their client's effective solutions: Smartphones, tablets, and intelligent wearables are just a few examples of wireless consumer electronics whose performance has been improved by GaN technologies. According to the MRFR, the reasons above will continue to fuel the segment's growth throughout the forecast period.

Compound Semiconductors Application Insights

Based on application, the Compound Semiconductor Market has been segmented into electronics & consumer goods and telecommunication. Telecommunication accounted for the highest market share in the compound semiconductor market in 2020 due to the growing need for wireless communication and semiconductors in mobile devices. Switches and power amplifiers for cell phones are made with GaAs substrates. Their use in wireless communication is expanding due to their superior speed and efficiency to silicon semiconductor.

Compound Semiconductors Regional Insights

By Region, the study segments the market into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. Asia Pacific accounted for the largest share of revenue in 2021. High product penetration and a surge in consumer electronics manufacturing sector demand. Consumer electronics are anticipated to continue to rise in the area due to the region's rapid urbanization and increased disposable income. 

The region with the highest increase over the projection period was also examined. The demand for consumer electronics products is rising, and wireless communication technologies are becoming increasingly prevalent. The region has experienced significant growth potential for cutting-edge technologies, and shifting consumer preferences toward smart and creative solutions have significantly fueled recent regional growth and are expected to do so in the future.

It is expected that the North America region will exhibit the fastest CAGR during the forecast period. demand from the American, Canadian, and Mexican end-use sectors. By moving closer to the area, foreign manufacturers are forced to expand their target markets, which is encouraging capacity growth and acquisitions.

Further, the countries considered in the scope of the Compound Semiconductors market are the US, Canada, Mexico, UK, Germany, France, Italy, Spain, Switzerland, Austria, Belgium, Denmark, Finland, Greece, Hungary, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Slovakia, Sweden, Romania, Ireland, China, Japan, Singapore, Malaysia, Indonesia, Philippines, South Korea, Hong Kong, Macau, Singapore, Brunei, India, Australia & New Zealand, South Africa, Egypt, Nigeria, Saudi Arabia, Qatar, United Arab Emirates, Bahrain, Kuwait, and Oman, Brazil, Argentina, Chile, and others.

Compound Semiconductors Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the Compound Semiconductors market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. 

Competitors in the Compound Semiconductors industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.Strong R&D capabilities allow Integra to attain a competitive advantage over its peers, maintain a technological edge over its competitors, and stay ahead of industry trends.

Key Companies in the Compound Semiconductors market include

  • STMicroelectronics NV

  • NXP Semiconductor N.V.

  • Texas Instruments Inc.

  • Renesas Electronics Corporation

  • Infineon Technologies AG

  • SK siltron Co., Ltd.

  • Sumitomo Electric Industries, Ltd.

  • JX Nippon Mining & Metals


  • Shin-Etsu Chemical Co., Ltd.


  • Xiamen Powerway Advanced Material Co.

  • Freiberger Compound Materials GmbH

  • WIN Semiconductors Corp

  • IQE PLC among others

Compound Semiconductors Industry Developments

June 2022: - ams Ledtech, a Taiwanese company, used OSLON UV 3636 UV-C LEDs for a sanitization function in its new BioLED intelligent air purifier, OSRAM revealed. At a dosage rate of 3.6mJ/cm2, the BioLED's OSLON UV 3636 LEDs may inactivate up to 99.99% of viruses, including SARS-CoV-2.

June 2022: Vitesco and Infineon Technologies have a contract for the delivery of silicon carbide power semiconductors. As part of the new relationship with Infineon, SiC devices are being specifically developed for Vitesco's e-mobility applications..

May 2022: A new generation of 1200V SiCFETs was unveiled by Qorvo. In onboard chargers for electric vehicles, industrial battery chargers, industrial power supplies, DC/DC solar inverters, welding machines, uninterruptible power supplies, and induction motors, the new UF4C/SC series of 1200V Gen 4 SiCFETs (from recently acquired UnitedSiC) is designed for 800V bus architectures.

Compound Semiconductors Market Segmentation:

Compound Semiconductors Type Outlook

  • GaN

  • GaAs

  • SiC

Compound Semiconductors Group Outlook

  • Group IV-IV

  • Group III-V

  • Group II-VI

Compound Semiconductors Product Outlook

  • LED

  • RF Devices

  • Power Electronics

  • Others

Compound Semiconductors Application Outlook

  • Electronics & Consumer Goods

  • Aerospace & Defense

  • Others

Compound Semiconductors Regional Outlook

  • North America

    • US

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • UK

    • Rest of Europe

  • Asia-Pacific

    • China

    • Japan

    • India

    • Rest of Asia-Pacific

  • Middle East & Africa

  • South America

    Intended Audience

  • Electronics & Consumer Goods Industry

  • Technology Investors

  • Regulatory Industries

  • Government Bodies

Report Attribute/Metric Details
Market Size 2021 USD 34.15 billion
Market Size 2022 USD 36.69 billion
Market Size 2032 USD 68.62 billion
Compound Annual Growth Rate (CAGR) 8.1% (2024-2032)
Base Year 2023
Forecast Period 2024-2032
Historical Data 2018-2020
Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered Type, Group, Product, Application, and Region
Geographies Covered North America, Europe, Asia Pacific, Middle East & Africa, and South America
Countries Covered The U.S, Canada, Mexico, Germany, France, UK, China, Japan, India, Australia, South Korea, UAE, and Brazil
Key Companies Profiled SK siltron Co., Ltd., Sumitomo Electric Industries, Ltd, JX Nippon Mining & Metals, FURUKAWA CO., LTD., Shin-Etsu Chemical Co., Ltd., SHOWA DENKO K.K, Xiamen Powerway Advanced Material Co., Freiberger Compound Materials GmbH, WIN Semiconductors Corp, IQE PLC
Key Market Opportunities  Commercialization of 5G services.
Key Market Dynamics Rising investments in the development of electric vehicles. Increasing government initiatives for adoption of 5G. Increasing demand for high-speed transceivers in the data center.

Frequently Asked Questions (FAQ) :

Compound Semiconductor Market was valued at USD 34.15 billion in 2021

Compound Semiconductor Market is projected to reach USD 68.62 billion in 2032

Compound Semiconductor market Size is predicetd to hit at a CAGR of 8.1% by 2032

Asia Pacific would dominate the global compound semiconductor market.

SK siltron Co., Ltd., Sumitomo Electric Industries, Ltd, JX Nippon Mining & Metals, FURUKAWA CO., LTD., Shin-Etsu Chemical Co., Ltd., SHOWA DENKO K.K, Xiamen Powerway Advanced Material Co., Freiberger Compound Materials GmbH, WIN Semiconductors Corp, IQE PLC, and other.

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