The size of the global compound semiconductor market was worth USD 39 Billion in 2023. The global market is anticipated to grow at a CAGR of 6.4% from 2024 to 2029 and be worth USD 56.59 billion by 2029 from USD 41.50 billion in 2024.
Two or more elements from the same or different periodic table groups are joined to form the compound semiconductor. The growth in the compound semiconductor market has been noticed more during recent years with the rise in its application in electronic and mobile devices. The technology used in the manufacturing of compound semiconductors is chemical vapor deposition, atomic layer deposition, etc. There are some unique properties of compound semiconductors, which are high-temperature resistance, high band gap, operates fast with enhanced frequency. The market is also expecting some technological advancements and some specific product design developments in compound semiconductors.
Thereby reducing the device's complexity and operational cost, which enhances its reliability and increases its suitability for high-voltage applications for a wider range. High-voltage applications include solar inverters and power suppliers. Power electronics can control and conversion of electrical power in an effective and efficient way. This resulted in an increase in demand for power electronics driving the market growth. The proliferation of the GaN use in the development of the 5G infrastructure, with the increase in the need for the technology incorporation, could deliver better performance and value for the 5G wireless base stations, which also has the ability in rising demand for the compound semiconductor market. There will be a positive impact on the market growth with a variety of advantages offered in consumer electronics by compound semiconductors.
There is also high expenditure involved in the complete supply chain of the compound semiconductor market industry process. There is a comparatively high average expenditure per product in the supply chain process involved in the compound semiconductors than the pure silicon semiconductor devices. The complex process, employment of new advanced technology, and high-priced equipment in the semiconductor industry are the primary reasons for the high cost. Lack of standardization and expertise in the manufacturing process is also a restraint. These are more expensive than Si raw materials because of the commercial synthesis of the compound semiconductors under high temperatures. Device fabrication is also a costlier process restraining the adoption of compound semiconductors. Lack of equipment with advanced technologies, the final phase process, such as assembling, testing, and packaging, becomes costlier. These restraints create a negative impact on the market and resist the entry of new market players. At last, the growth and development of the compound semiconductor market are hindered by these restraints that directly affect the number of market players.
In the compound semiconductor market, GaN semiconductor has a great market opportunity in the coming years. The GaN compound semiconductor can have a potential in the 5G wireless base stations as the 5G infrastructure requires technologies having the delivery efficiency, performance, and value that these vital requirements can be met through the GaN solutions. Some other advantages of GaN use include high thermal conductivity, reliability, better efficiency, high robustness, and high frequency. Some power amplifiers are obtaining benefits from all transmission cells in the network resulting in a noticeable impact on the 5G deployment in the coming generation.
REPORT METRIC |
DETAILS |
Market Size Available |
2023 to 2029 |
Base Year |
2023 |
Forecast Period |
2024 to 2029 |
CAGR |
6.4% |
Segments Covered |
By Type, Product, Application, and Region. |
Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
Market Leaders Profiled |
LM Ericsson Telefon ABSumitomo Electric Industries, Wolfspeed Inc., Analog Devices, Taiwan Semiconductor Manufacturing Company Ltd, Nichia Corporation, Samsung Electronics, Canon Inc., Freescale Semiconductor Inc., Infineon Technologies, and Others. |
The Gallium Nitride (GaN) is expected to have a large market share in the compound semiconductor market because of the features and advantages of the GaN. The GaN can emit UV and visible light and can withstand high temperatures and voltages, making it more in demand in the applications of lighting and power transistors. It also produces silicon chips in an easy and fast way, makes to the adoption of the GaN by many companies. The essentiality of Gallium nitride technology is becoming more essential in some applications, such as in places where a physical limit has been reached with silicon usage in the power conversion platform.
Power electronics is projected to have a large market share in the compound semiconductor market. The wider applications of the power electronics module in smart home appliances will drive market growth. GaN is becoming important in power electronics and enabling companies to give efficient solutions to customers. For instance, the efficiency has been enhanced by the GaN in wireless electronic devices.
Telecommunications accounted to have a high share in the compound semiconductor market. It had a market share of 40% in 2022, and the same trend is expected to see in the coming years. The rise in the demand for semiconductors used in the applications of wireless and mobile communication. Compound semiconductors also have high efficiency over silicon semiconductors and drive their usage in advanced communication technologies. The emerging new technologies demand high-speed and efficient semiconductors.
Asia-Pacific region is expecting to have high market revenue in the compound semiconductor market during the forecast period. This region is having a rise in consumer electronic devices and increased adoption of wireless communication technologies by the people. The shift in consumer preference towards smart and innovative solutions drives market growth. In the North American region, the U.S. holds a high share of the compound semiconductor market. The region owing to the increased investment by the key vendors, will propel the compound semiconductor market in the consumer electronics and IT and telecommunication sector.
Companies playing a prominent role in the global compound semiconductor market include LM Ericsson Telefon ABSumitomo Electric Industries, Wolfspeed Inc., Analog Devices, Taiwan Semiconductor Manufacturing Company Ltd, Nichia Corporation, Samsung Electronics, Canon Inc., Freescale Semiconductor Inc., Infineon Technologies, and Others.
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In 2022, the Lucid Air of the Lucid Motor, which is a pure-electric car and has high performance, is no longer employed with its silicon carbide power device solutions. An agreement was also made for the production and supply of SiC devices. These are announced by Wolfspeed.
By Type
Gallium Arsenide (GaAs)
Gallium Nitride (GaN)
Gallium Phosphide (GaP)
Silicon Carbide (SiC)
By Product
LED
RF
Optoelectronics
Power Electronics
By Application
Telecommunications
Information & Communication Technology
Defense & Aerospace
Consumer Electronics
Healthcare
Automotive
By Region
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