The Global Compound Semiconductor Market was valued at USD 29.35 Billion in 2020 and is projected to reach USD 47.23 Billion by 2027, growing at a CAGR of 6.2% during the forecast period (2021-2027).
Growing demand for mobile and wireless products and increasing usage of compound semiconductor in several other electronic products which include film coatings, integrated circuits and electronic wafer are expected to majorly drive the compound semiconductor market. Compound semiconductor has several unique properties like faster operation, high temperature resistance, high band gap and optoelectronic features and enhanced frequency, that further propels the market growth. As compared to silicon semiconductors, compound semiconductors like GaAs and InP perform at much better speed. Furthermore, compound semiconductors can generate broad range of electromagnetic spectrum ranging from high frequency ultraviolet visible light to long wavelength infrared light. These performance advantages are expected to boost the demand of compound semiconductor market over the forecast year.
Increasing application of compound semiconductors in light-emitting diodes (LED) is further expected to boost the compound semiconductor market. LEDs are now replacing several light sources, for instance, CFLs, fluorescent bulbs and incandescent bulbs. The rising use of LEDs in multiple applications that includes signage displays, general lighting and automotive lighting is expected to increase the demand for compound semiconductor. Moreover, increasing implementation of gallium nitride (GaN) and silicon carbide (SiC) in the compound semiconductor industry, are positively driving the growth of the compound semiconductor market. GaN is a high electron mobility transistor semiconductor that has ability to bear high voltages and temperatures and emit UV and visible light. Due to this, GaN is commonly used in power transistor and lighting applications.
Moreover, increasing use of compound semiconductor in several end-use industries such as defense & aerospace, automotive, healthcare and many others is also prominently driving the growth of compound semiconductor market. The rising use of RF power in defense and aerospace applications provides an opportunity for the growth of the compound semiconductor market in the coming years. RF power devices used in several avionics and radar systems helps in the growth of the market for military and aerospace applications. For instance, ON Semiconductor, a semiconductor supplier company manufactures advanced semiconductor solutions for military and aerospace applications and has received a superior security rating at its Pocatello, Idaho and Gresham, Oregon facilities by the U.S. Defense Security Service. In addition, the automotive industry too is using compound semiconductors in several power devices such as charging EV/HEV. Owing to environmental concerns the demand for electronic vehicles is increasing, this, in turn, will boost the demand for compound semiconductors in the market.
On the basis of product, the global compound semiconductor market is segmented as LED, RF Devices, Power Electronics and others. Among these, light-emitting diodes (LED) has the most significant share in the compound semiconductor market in the year 2020. This demand is mainly due to the various properties that LEDs possesses, such as longer life, lower energy consumption, smaller size and improved physical robustness among many others. Owing to these uses, many countries are now are now replacing several light sources, such as, CFLs, fluorescent bulbs and incandescent bulbs with LEDs. For instance, in April 2019, under the Indian government's energy efficiency program, 21 crores of LED bulbs were distributed all across country. Compound semiconductor is an important component in the LEDs and thereby impacting the growth of compound semiconductor globally.
On the basis of end-use industry, the global compound semiconductor market is segmented as IT &Telecommunication, Aerospace & Defense, Consumer electronics, Healthcare, Automotive and others. IT and Telecommunication accounted for the largest share in the compound semiconductor market in 2020. This is mainly because of the increasing penetration of smartphones and the adoption of LTE and 5G networks. IoT applications cannot work without sensors and integrated circuits, so all IoT devices requires semiconductors, which thereby increases the demand for compound semiconductor globally. Their use is further increasing in wireless communication on account of their high speed and efficiency over silicon semiconductors.
In addition, consumer electronics is expected to witness the most lucrative growth rate during the forecast period. Research & development have resulted in innovation in the consumer electronics industry and increased the adoption of several new products such as smart tabs, smartwatches, smart TVs and health-tracking devices among many others. For instance, Apple shipped 31 million units of its smartwatches in 2019, which is expected to be 50% more than the entire Swiss wrist watch industry. These smart watches use compound semiconductor, thereby fuelling the demand for compound semiconductors. In addition, a rising disposable income, improving standard of living especially in developing nations such as India, China, Brazil and many others has increased the consumer expenditure on latest consumer electronics, which thereby has increased the demand for compound semiconductors to be used in consumer electronics.
On the basis of region, compound semiconductor market can be segmented as North America, Europe, Asia Pacific, Latin America, MEA. Among these, 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. This is mainly due to the escalating demand of consumer electronic products along with significant penetration of wireless communication technologies in the region. Rapid urbanization and rising disposable income in the region are the major factors contributing to the expansion of consumer electronics, thereby fuelling the compound semiconductor market growth. Additionally, the presence of a huge semiconductor hub in China because of low manufacturing costs is also contributing to the growth of compound semiconductor in this region. Also, with the commercialization of 5G services in countries such as China, South Korea, and Japan, the demand for compound semiconductors is projected to rise during the forecast period.
Moreover, North America holds a significant share in the compound semiconductor market. Several factors such as presence of high-tech technology and developed infrastructure are driving the growth in this region. Additionally, the presence of key players such as Skyworks Solutions, Inc., Cree Inc., and Qorvo, Inc., in this region are also fuelling the growth of the compound semiconductor market in this region.
A few key players of global compound semiconductor market include, Cree Inc., Nichia Corporation, Samsung Electronics, Qorvo, NXP Semiconductor N.V., Taiwan Semiconductor Manufacturing Company Ltd., Renesas Electronics Corporation, Texas Instruments Inc., STMicroelectronics NV, Infineon Technologies AG among many others.
|Several government initiatives regarding the adoption of green technologies for electric vehicles is creating growth opportunities in the global compound semiconductor market. For instance, the Indian government-backed Energy Efficiency Services Ltd (EESL) has issued tenders for 20K EVs to be deployed across the country for government use. With this, the government aims an EV sales penetration of 30% for private cars, 70% for commercial cars, 40% for buses, and 80% for two and three-wheelers by 2030. This will eventually fuel the global compound semiconductor growth.
|Increase in investment and advent in technologies such as 5G, Big Data, and IoT that rely heavily on real-time data collection and transfer will positively drive the global compound semiconductor market growth.
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Section 1: Introduction
Section 2: Research Methodology
Section 3: Executive Summary
Section 4: Premium Insights
Section 5: Market Overview & Competitive Landscape
Section 6: Market Size and Share Analysis
Section 7: Market Dynamics
Section 8: Future Forecast & Impact of COVID-19
Section 9: Regional Market Size and Share Analysis
Section 10: Company Profile