The global compound semiconductor market was valued at US$50.606 billion in 2019 and is expected to grow at a CAGR of 10.95% over the forecast period to reach US$94.409 billion in 2025. Compound semiconductors are made from two or more elements. Most of the compound semiconductors are made from the 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 Group 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. A compound semiconductor has a large application base like this material is used in electronic film’s coatings, electronic wafer, fabrication of integrated circuits which makes the demand for compound semiconductor in the market. Compound semiconductors are even used in conventional microelectronics, analog integrated circuits, and digital integrated circuits. Factors like high-temperature resistance due to the high bandgap, faster operation and optoelectronic properties due to the direct bandgap are some of the key advantages augmenting the demand for compound semiconductors over the forecast period. The compound semiconductor market will be driven by next-generation 5G technologies which would require greater speed and minimum latency.
The compound semiconductor market is segmented by type, fabrication process, end-user industry, and geography. By type, the market has been segmented into group II-VI, group III-V and group IV-IV. By end-user industry, the market has been segmented into automotive, communication and technology, consumer electronics, healthcare, energy and power, and others. On the basis of fabrication process, the market has been segmented into Hydride Vapor Phase Epitaxy (HVPE), Metalorganic Vapor Phase Epitaxy (MOVPE), Atomic Layer Deposition (ALD) and others. Healthcare has various applications of compound semiconductors like in-memory power management devices, discrete devices, microcontrollers, sensors, and motion micro-electromechanical systems. A lot of new technologies are developed using compound semiconductors for a more reliable, specific, and integrative approach to diagnosis and treatment.
The automotive industry is using compound semiconductors for power devices in segments such as charging infrastructure and EV/HEV. Compound semiconductors are used for manufacturing LEDs. GaN is used for making white LEDs and they can be made on substrate sapphire, SiC or silicon. Silicon is a very common substrate and SiC substrates are very expensive in the semiconductor market. The telecommunication industry to grow the demand for compound semiconductor due to the increasing penetration of smartphones and the increasing 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. Moreover, increasing the adoption of LEDs in the consumer electronics segment is further expected to boost this segment’s growth.
Regionally the Compound Semiconductor market is classified into North America, South America, Europe, Middle East, and Africa, and the Asia Pacific The report also analyses 16 countries across these regions with complete analysis and forecast along with prevailing market trends and opportunities which each of these countries present for the manufacturers. Asia Pacific region is expected to witness the fastest growth due to huge demand for electronic devices, wireless technologies, automation, and transportation industries, and established semiconductor and electronics industry in the region over the forecast period. North America and Europe market to see a boost in demand for compound semiconductors due to the growing aerospace & defense and IT & Telecommunication industry in the region.
Prominent key market players in the Compound Semiconductor market include Sumitomo Electric Industries, Ltd., Toshiba Corporation, SCIOCS, Mitsubishi Chemical Corporation, Qorvo, Inc, Texas Instruments Incorporated, GaN Systems and Kyma Technologies. The global compound semiconductor market is highly competitive with key market players competing by way of continually innovating new applications and technologies. M&A and partnerships are some of the key strategies being implemented by key market players to gain a larger market share.