Compound Semiconductor Market Report Scope & Overview:

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.

Compound-Semiconductor-Market Revenue Analysis

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  • Compound semiconductors are widely used in LED applications.

  • The demand for SiC devices in power electronics is on the rise.

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.


  • Compound semiconductors incur high material and fabrication expenses.

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


  • The prospective application of GaN in the development of 5G infrastructure.

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.


  • The design complexity of compound semiconductors.

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.


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.


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.



  • GaN

  • Gallium Arsenide (GAAS)

  • Silicon Carbide (SiC)

  • Indium phosphide (INP)

  • Silicon germanium (SIGE)

  • Gallium phosphide (GAP)

  • Others


  • 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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  • 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.



North America

  • US

  • Canada

  • Mexico


  • 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

Company Landscape Analysis



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.

Compound Semiconductor Market Report Scope:

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.

Frequently Asked Questions

 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.



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 Poland Romania Hungary Turkey Rest of Eastern Europe

12.3.2 Western Europe Germany France UK Italy Spain Netherlands Switzerland Austria 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 UAE Egypt Saudi Arabia Qatar Rest of the Middle East

11.5.2 Africa Nigeria South Africa 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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Secondary Research

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This step involves the triangulation of data wherein our team analyses the interview transcripts, online survey responses and observation of on filed participants. The below mentioned chart should give a better understanding of the part 1 of the primary interview.

Primary Research

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Data Bank Validation

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