Compound Semiconductor Market to Witness Rapid Increase in Consumption During 2021-2027

The Global Compound Semiconductor Market was valued at US$ 29.35 Billion in 2020 and is expected to reach US$ 47.23 Billion by 2027, with a CAGR of 6.2% during the forecast year (2021-2027).

The increase in demand for high speed and efficiency products and rising adoption of high-end technologies such as artificial intelligence, machine learning, and Internet of Things (IoT) in the communication sector are the prime factor boosting the compound semiconductor market growth. This is because, IoT applications cannot function without sensors and integrated circuits, so all IoT devices requires semiconductors, which thereby increases the demand for compound semiconductor globally. Furthermore, emerging technologies such Artificial Intelligence, digitalization are also positively impacting the growth of compound semiconductor market.

In addition, growth in the automotive industry has positively impacted the growth of compound semiconductor market. Semiconductors facilitate various benefits in a vehicle, like, in-car entertainment, power for battery management, and driver assistance, hence having a crucial role in the automotive industry. Owing to these properties, compound semiconductors are increasingly adopted by the next-generation vehicles. Moreover, many countries now have laid several policies on increasing the adoption for Advanced Driver Assistance System (ADAS) which is further expected to drive the compound semiconductor market. For instance, in July 2010, a legal framework was adopted by all countries present in Europe to accelerate the execution of ADAS technology. The European Union is working towards the early adoption of advanced technology to enhance passenger safety and give priority to innovative transport technologies. Thus, growth in the automotive industry, especially in passenger cars for commercial and private use is boosting the demand for spare parts, including compound semiconductors.

One of the major challenges faced by global compound semiconductor market is the high material and fabrication costs associated with compound semiconductors. The  average cost of a compound semiconductor device is higher than the average cost of per pure silicon semiconductor device. This is mainly because the production process is new, complex, requires high-priced state-of-the-art equipment and use advanced technologies. Additionally, they lack familiarity and require expertise in manufacturing processes by executives of compound semiconductor industry players.

Based on region, APAC region has dominated the compound semiconductor market globally and is expected to show similar growth trends in the coming years. This is due to the growing commercialization of 5G services in the major countries in the region. Countries such as China, Japan and South Korea have completed 5G verification tests based on existing networks and will start rolling up the 5G technology sooner. It is expected that led by these pioneering countries, Asia Pacific will be the largest 5G region in the world by 2025, thereby positively impacting the growth of compound semiconductors. The increasing demand for consumer electronics in several Asian countries such as China, Japan, Taiwan, the Philippines, and India has also attributed for increasing the demand of compound semiconductor globally. In addition, the development of several data centers in these nations by prime companies such as Facebook (US), Microsoft (US) and Google (US) is expected to increase the demand for compound semiconductors.

Compound Semiconductor Market Key highlights:

  • Based on product, light-emitting diodes (LED) has the most significant share in the compound semiconductor market.
  • Based on End-Use industry, consumer electronics is expected to witness the most lucrative growth rate during the forecast period
  • Based on Region, the Asia Pacific region has captured more than half of the global compound semiconductor market’s share in 2020 and expected to show a high growth rate in the forecast period
  • North America holds a significant share in the compound semiconductor market and expected to show similar trends in forecast period.

Compound Semiconductor Market Key News

  • In March 2020, ON Semiconductor entered into a 5-year agreement with GT Advanced Technologies (GTAT) (US) for the production and supply of silicon carbide material. With this agreement, GTAT will produce and supply its CrystX silicon carbide (SiC) material to ON Semiconductor. This agreement is valued at a potential of USD 50 million.
  • In October 2019, Cree, Inc. (Nasdaq: CREE), the global leader in silicon carbide (SiC) technology, announced its partnership with New York Center for Economic Advancement, Research, Engineering, Technology, and Science (NY CREATES), and announced its successful completion of the first silicon carbide test wafers at the State University of New York Polytechnic Institute (SUNY Poly) Albany campus

Global Compound Semiconductor Market Segmentation

Global Compound Semiconductor Market Type Outlook (Revenue, USD Billion, 2021-2027)

  • Gallium arsenide (GaAs)
  • Gallium nitride (GaN)
  • Silicon carbide (SiC)
  • Indium Phosphide (InP)
  • Silicon Germanium (SiGe)
  • Gallium Phosphide (GaP)
  • Others (Indium Antimonide (Insb), Cadmium Selenide (CdSe), Cadmium Telluride (CdTe), Zinc Selenide (ZnSe), Aluminium Indium Arsenide (AlInAs), Cadmium Zinc Telluride (CdZnTe) and Mercury Cadmium Telluride (MCT))

Global Compound Semiconductor Market Product Type Outlook (Revenue, USD Billion, 2021-2027)

  • LED
  • RF Devices
  • Power Electronic
  • Other Products

Global Compound Semiconductor Market End-Use Industry Outlook (Revenue, USD Billion, 2021-2027)

  • IT & Telecommunications Technology
  • Aerospace & Defense
  • Consumer electronics (Consumer Display, Consumer Devices)
  • Healthcare
  • Automotive
  • Other

Global Compound Semiconductor Market Region Outlook (Revenue, USD Billion, 2021-2027)

  • North America
    • Market Overview and Analysis
    • Key Country Analysis
      • US
      • Canada
  • Europe
    • Market Overview and Analysis
    • Key Country Analysis
      • Germany
      • UK
      • France
      • Italy
      • Spain
      • Rest of Europe
  • Asia Pacific
    • Market Overview and Analysis
    • Key Country Analysis
      • China
      • India
      • Japan
      • South Korea
      • Rest Of APAC
  • Latin America
    • Market Overview and Analysis
    • Key Country Analysis
      • Brazil
      • Argentina
      • Rest of LATAM
  • Middle East & Africa
    • Market Overview and Analysis
    • Key Country Analysis
      • GCC
      • Rest of MEA

List of Key Players of Global Compound Semiconductor Market

  1. Cree Inc.
  2. Nichia Corporation
  3. Samsung Electronics
  4. Qorvo
  5. NXP Semiconductor N.V.
  6. Taiwan Semiconductor Manufacturing Company Ltd.
  7. Renesas Electronics Corporation
  8. Texas Instruments Inc.
  9. STMicroelectronics NV
  10. Infineon Technologies AG

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