The Compound Semiconductor Market Size was valued at USD 42.9 billion in 2023 and is expected to reach USD 80.67 billion by 2031 and grow at a CAGR of 8.2% over the forecast period 2024-2031.
Compound semiconductors, formed from two or more elements of varying or identical groups within the periodic table, undergo manufacturing processes utilizing a range of deposition techniques like chemical vapor deposition and atomic layer deposition. These materials exhibit unique attributes such as high temperature and heat resistance, heightened frequency, increased sensitivity to magnetism, and accelerated operation, along with optoelectronic capabilities, all of which contribute to their growing demand. Furthermore, the declining manufacturing costs of compound semiconductors have broadened their applications in electronic and mobile devices. Their ability to emit and detect light, enabling functionalities such as general lighting through LEDs and lasers, as well as receivers for fiber optics, further fuels market demand. Reductions in manufacturing and installation expenses associated with LEDs have expanded their usage in lamps and fixtures across various sectors. With megacities focusing on infrastructure development to accommodate expanding populations, governments are incentivizing the adoption of energy-efficient lighting solutions to lower electricity consumption costs for consumers.
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KEY DRIVERS:
Compound semiconductors are widely used in LED applications.
The increasing demand for SiC (Silicon Carbide) devices in power electronics is driven by several factors. Compared to silicon-based devices, SiC devices boast ten times the breakdown electric field strength and three times the thermal conductivity. This unique property streamlines device complexity and cost, enhancing reliability and rendering them suitable for various high-voltage applications like solar inverters, power supplies, and wind turbines. The surge in demand for power electronics fuels the expansion of the SiC power device market. Power electronics play a vital role in efficiently controlling and converting electrical power. The escalating demand for power electronics across diverse sectors such as aerospace, medical, and defense plays a pivotal role in driving the adoption of SiC power devices.
RESTRAINTS:
The primary obstacle to the growth of the compound semiconductor market stems from the substantial expenditure involved throughout the industry's supply chain processes. The total average expenditure per compound semiconductor device, encompassing both upstream and downstream expenditures, significantly exceeds that of pure silicon semiconductor devices. This discrepancy arises due to the complexity and novelty of all processes involved, necessitating advanced technologies and costly state-of-the-art equipment. Furthermore, there is a lack of familiarity and expertise among engineering professionals and executives within the compound semiconductor industry regarding manufacturing processes. Additionally, the commercial synthesis of compound semiconductors in high-temperature environments results in higher costs compared to the easily extractable silicon raw material obtained from naturally occurring silica. Moreover, factors such as fewer foundry and fab facilities and the absence of advanced technology-based equipment in final phases like assembly, testing, and packaging contribute to higher costs
OPPORTUNITIES:
Efficiency, performance, and value are crucial requirements for 5G wireless base stations. GaN solutions play a pivotal role in fulfilling these requirements. Compared to Laterally Diffused Metal-Oxide-Semiconductor (LDMOS), GaN-on-SiC offers substantial improvements in efficiency and performance for 5G base stations. Additionally, GaN-on-SiC provides benefits such as enhanced thermal conductivity, heightened robustness and reliability, improved efficiency at higher frequencies, and comparable performance in a smaller-sized MIMO array. The integration of GaN technology in power amplifiers for all transmission cells in the network, including micro, macro, pico, and femto/home routers, is anticipated to have a significant impact on the deployment of next-generation 5G networks.
CHALLENGES:
Designing compound semiconductor devices involves a high degree of complexity. The primary challenge for designers lies in achieving enhanced efficiency while simultaneously minimizing costs and simplifying the structure. Additionally, the diverse requirements of various applications further compound the design complexities of power and RF devices. The rise in efficiency extends the operating time of battery-powered products, thereby reducing the electricity consumption of wireless base stations and similar applications.
IMPACT OF RUSSIAN UKRAINE WAR
The semiconductor industry initially expected to manage the crisis impact with existing contingency plans, but concerns are growing over longer-term consequences if the conflict persists, particularly regarding the availability and cost of vital raw materials such as neon and palladium. Ukraine and Russia are significant suppliers of these materials, with Ukraine contributing 70-80% of the global neon supply crucial for deep-ultraviolet lithography. The ongoing conflict jeopardizes the consistent supply of these materials, potentially leading to price increases and production disruptions. To address these challenges, companies in the compound semiconductor market are advised to diversify their material sources, explore advancements in recycling technologies for neon, and innovate in product development. These strategic moves aim to mitigate risks associated with supply chain disruptions and capitalize on emerging market opportunities.
IMPACT OF ECONOMIC SLOWDOWN
The compound semiconductor market is undergoing shifts influenced by the global economic slowdown, impacting its dynamics across various aspects. Despite economic challenges, the market continues to see advancements in technologies like multiwavelength optoelectronic synapses, aimed at enhancing processing efficiency and image recognition precision, thereby transforming industries such as IT, robotics, and automotive. Additionally, there is a surge in demand for materials like Gallium Nitride (GaN) and Silicon Carbide (SiC) due to their superior properties and applications in electronic components and optoelectronic devices, fostering market growth opportunities. Moreover, companies are strategically collaborating and forming agreements to secure essential materials and address rising demands, exemplifying a proactive stance towards market challenges. Regionally, significant investments in the U.S. aim to enhance compound semiconductor solutions for consumer electronics and telecom applications, while the UK leads in Europe, and Germany anticipates rapid growth driven by advancements in the automotive sector. In Asia-Pacific, China's increased investments in semiconductor research position it as a key player, while the Middle East and Latin America experience growth propelled by technological advancements and digital transformation efforts.
BY TYPE
GaN
Gallium Arsenide (GAAS)
Silicon Carbide (SiC)
Indium phosphide (INP)
Silicon germanium (SIGE)
Gallium phosphide (GAP)
Others
BY PRODUCT
LED
RF Devices
Optoelectronics
Power Electronics
The Compound Semiconductor Market is segmented based on product categories, including LED, optoelectronics, RF devices, and Power Electronics. Power electronics emerged as the leading segment in the compound semiconductor market, accounting for the highest market share. The increasing popularity of smart home appliances, coupled with the purchase of advanced consumer electronics, is expected to drive the demand for power electronics modules. GaN has become a vital component for power electronics, enabling companies to offer effective solutions to their clients. Wireless consumer electronics such as smartphones, tablets, and intelligent wearables have witnessed enhanced performance through GaN technologies. According to MRFR, these factors are anticipated to sustain the growth of this segment throughout the forecast period.
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BY APPLICATION
General Lighting
Military, Defense, and Aerospace
Power Supply
Commercial
Consumer Devices
Telecommunication
Automotive
Datacom
Consumer Display
Others
The telecommunication sector dominates the compound semiconductor market, driven by the growing adoption of compounds like GaAs, GaN, InP, and SiGe. It is projected to hold the largest market share throughout the forecast period.
In 2023, Asia Pacific dominated the revenue share, driven by extensive product penetration and heightened demand in the consumer electronics manufacturing sector. The region is poised for continued growth, fueled by rapid urbanization and increasing disposable income, which are anticipated to sustain the upward trend in consumer electronics. Moreover, the region exhibits the highest growth potential for advanced technologies, with shifting consumer preferences toward smart and innovative solutions further propelling regional expansion, both presently and in the foreseeable future.
In contrast, North America is expected to witness the fastest Compound Annual Growth Rate (CAGR) during the forecast period, driven by robust demand from end-use sectors in the United States, Canada, and Mexico. Foreign manufacturers are increasingly targeting the region, leading to market expansion, capacity growth, and acquisitions as they strive to cater to the burgeoning demand in this dynamic market landscape.
REGIONAL COVERAGE:
North America
US
Canada
Mexico
Europe
Eastern Europe
Poland
Romania
Hungary
Turkey
Rest of Eastern Europe
Western Europe
Germany
France
UK
Italy
Spain
Netherlands
Switzerland
Austria
Rest of Western Europe
Asia Pacific
China
India
Japan
South Korea
Vietnam
Singapore
Australia
Rest of Asia Pacific
Middle East & Africa
Middle East
UAE
Egypt
Saudi Arabia
Qatar
Rest of the Middle East
Africa
Nigeria
South Africa
Rest of Africa
Latin America
Brazil
Argentina
Colombia
Rest of Latin America
The key players in the compound semiconductor market are Nichia Corporation, Samsung Electronics, NXP Semiconductor, Infineon Technologies, Taiwan Semiconductor, QORVO, CREE, Renesas Electronics Corporation, Stmicroelectronics, Texas Instruments Incorporated & Other Players.
Samsung Electronics-Company Financial Analysis
RECENT DEVELOPMENT
In June 2022: Vitesco and Infineon Technologies entered into a contract for the supply of silicon carbide power semiconductors. As part of their new collaboration, Infineon is specifically developing SiC devices tailored for Vitesco's e-mobility applications.
In May 2022: Qorvo introduced a new generation of 1200V SiCFETs. The UF4C/SC series, derived from the recently acquired UnitedSiC, is designed for use in onboard chargers for electric vehicles, industrial battery chargers, power supplies for industrial applications, DC/DC solar inverters, welding machines, uninterruptible power supplies, and induction motors. These SiCFETs are engineered for 800V bus architectures.
| Report Attributes | Details |
|---|---|
| Market Size in 2023 | US$ 42.9 Billion |
| Market Size by 2031 | US$ 80.67 Billion |
| CAGR | CAGR of 8.2% From 2024 to 2031 |
| Base Year | 2023 |
| Forecast Period | 2024-2031 |
| Historical Data | 2020-2022 |
| Report Scope & Coverage | Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook |
| Key Segments | • By Type (Gallium Nitride, Silicon Carbide, Indium Antimonide, Gallium Phosphide, Gallium Arsenide, Indium Phosphide, Silicon Germanium, Cadmium Selenide, Cadmium Telluride, Zinc Selenide, Others) • By Product (LED, RF Devices, Optoelectronics, Power Electronics) • By Application (General Lighting, Military, Defense, And Aerospace, Power Supply, Commercial, Consumer Devices, Telecommunication, Automotive, Datacom, Consumer Display, Others) |
| Regional Analysis/Coverage | North America (US, Canada, Mexico), Europe (Eastern Europe [Poland, Romania, Hungary, Turkey, Rest of Eastern Europe] Western Europe] Germany, France, UK, Italy, Spain, Netherlands, Switzerland, Austria, Rest of Western Europe]), Asia Pacific (China, India, Japan, South Korea, Vietnam, Singapore, Australia, Rest of Asia Pacific), Middle East & Africa (Middle East [UAE, Egypt, Saudi Arabia, Qatar, Rest of Middle East], Africa [Nigeria, South Africa, Rest of Africa], Latin America (Brazil, Argentina, Colombia, Rest of Latin America) |
| Company Profiles | Nichia Corporation, Samsung Electronics, NXP Semiconductor, Infineon Technologies, Taiwan Semiconductor, QORVO, CREE, Renesas Electronics Corporation, Stmicroelectronics and Texas Instruments Incorporated. |
| Key Drivers | • Compound semiconductors are widely used in LED applications. • The demand for SiC devices in power electronics is on the rise |
| RESTRAINTS | • Compound semiconductors incur high material and fabrication expenses. |
The Compound Semiconductor Market was valued at USD 42.9 billion in 2023.
The expected CAGR of the global Compound Semiconductor Market during the forecast period is 8.2%.
The North America region is anticipated to record the Fastest Growing in the Compound Semiconductor Market.
The Power Electronics segment is leading in the market revenue share in 2023.
The Asia Pacific region with the Highest Revenue share in 2023.
TABLE OF CONTENTS
1. Introduction
1.1 Market Definition
1.2 Scope
1.3 Research Assumptions
2. Industry Flowchart
3. Research Methodology
4. Market Dynamics
4.1 Drivers
4.2 Restraints
4.3 Opportunities
4.4 Challenges
5. Impact Analysis
5.1 Impact of Russia-Ukraine Crisis
5.2 Impact of Economic Slowdown on Major Countries
5.2.1 Introduction
5.2.2 United States
5.2.3 Canada
5.2.4 Germany
5.2.5 France
5.2.6 UK
5.2.7 China
5.2.8 Japan
5.2.9 South Korea
5.2.10 India
6. Value Chain Analysis
7. Porter’s 5 Forces Model
8. Pest Analysis
9. Compound Semiconductor Market, By Type
9.1 Introduction
9.2 Trend Analysis
9.3 Gallium Nitride
9.4 Silicon Carbide
9.5 Indium Antimonide
9.6 Gallium Phosphide
9.7 Gallium Arsenide
9.8 Indium Phosphide
9.9 Silicon Germanium
9.10 Cadmium Selenide
9.11 Cadmium Telluride
9.12 Zinc Selenide
9.13 Others
10. Compound Semiconductor Market, By Product
10.1 Introduction
10.2 Trend Analysis
10.3 LED
10.4 RF Devices
10.5 Optoelectronics
10.6 Power Electronics
11. Compound Semiconductor Market, By Application
11.1 Introduction
11.2 Trend Analysis
11.3 General Lighting
11.4 Military, Defense, and Aerospace
11.5 Power Supply
11.6 Commercial
11.7 Consumer Devices
11.8 Telecommunication
11.9 Automotive
11.10 Datacom
11.11 Consumer Display
11.12 Others
12. Regional Analysis
12.1 Introduction
12.2 North America
12.2.1 USA
12.2.2 Canada
12.2.3 Mexico
12.3 Europe
12.3.1 Eastern Europe
12.3.1.1 Poland
12.3.1.2 Romania
12.3.1.3 Hungary
12.3.1.4 Turkey
12.3.1.5 Rest of Eastern Europe
12.3.2 Western Europe
12.3.2.1 Germany
12.3.2.2 France
12.3.2.3 UK
12.3.2.4 Italy
12.3.2.5 Spain
12.3.2.6 Netherlands
12.3.2.7 Switzerland
12.3.2.8 Austria
12.3.2.9 Rest of Western Europe
12.4 Asia-Pacific
12.4.1 China
12.4.2 India
12.4.3 Japan
12.4.4 South Korea
12.4.5 Vietnam
12.4.6 Singapore
12.4.7 Australia
12.4.8 Rest of Asia Pacific
12.5 The Middle East & Africa
12.5.1 Middle East
12.5.1.1 UAE
12.5.1.2 Egypt
12.5.1.3 Saudi Arabia
12.5.1.4 Qatar
12.5.1.5 Rest of the Middle East
11.5.2 Africa
12.5.2.1 Nigeria
12.5.2.2 South Africa
12.5.2.3 Rest of Africa
12.6 Latin America
12.6.1 Brazil
12.6.2 Argentina
12.6.3 Colombia
12.6.4 Rest of Latin America
13. Company Profiles
13.1 Nichia Corporation
13.1.1 Company Overview
13.1.2 Financial
13.1.3 Products/ Services Offered
13.1.4 SWOT Analysis
13.1.5 The SNS View
13.2 Samsung Electronics
13.2.1 Company Overview
13.2.2 Financial
13.2.3 Products/ Services Offered
13.2.4 SWOT Analysis
13.2.5 The SNS View
13.3 NXP Semiconductor
13.3.1 Company Overview
13.3.2 Financial
13.3.3 Products/ Services Offered
13.3.4 SWOT Analysis
13.3.5 The SNS View
13.4 Infineon Technologies
13.4.1 Company Overview
13.4.2 Financial
13.4.3 Products/ Services Offered
13.4.4 SWOT Analysis
13.4.5 The SNS View
13.5 Taiwan Semiconductor
13.5.1 Company Overview
13.5.2 Financial
13.5.3 Products/ Services Offered
13.5.4 SWOT Analysis
13.5.5 The SNS View
13.6 QORVO
13.6.1 Company Overview
13.6.2 Financial
13.6.3 Products/ Services Offered
13.6.4 SWOT Analysis
13.6.5 The SNS View
13.7 CREE
13.7.1 Company Overview
13.7.2 Financial
13.7.3 Products/ Services Offered
13.7.4 SWOT Analysis
13.7.5 The SNS View
13.8 Renesas Electronics Corporation
13.8.1 Company Overview
13.8.2 Financial
13.8.3 Products/ Services Offered
13.8.4 SWOT Analysis
13.8.5 The SNS View
13.9 Stmicroelectronics
13.9.1 Company Overview
13.9.2 Financial
13.9.3 Products/ Services Offered
13.9.4 SWOT Analysis
13.9.5 The SNS View
13.10 Texas Instruments Incorporated
13.10.1 Company Overview
13.10.2 Financial
13.10.3 Products/ Services Offered
13.10.4 SWOT Analysis
13.10.5 The SNS View
14. Competitive Landscape
14.1 Competitive Benchmarking
14.2 Market Share Analysis
14.3 Recent Developments
14.3.1 Industry News
14.3.2 Company News
14.3.3 Mergers & Acquisitions
15. Use Case and Best Practices
16. Conclusion
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