The Industry Analysis of Compound Semiconductor Market

Overview

Compound semiconductors are created from two or more components. GaAs, InP, GaP, and other combinations of components from Group III and Group V of the Periodic Table of the elements make up the majority of compound semiconductors. ZnSe, CdTe, and other compound semiconductors are produced from Groups II and VI. It is also feasible to create compound semiconductors like SiC by combining elements from the same group (IV).

In recent years, the special properties of the crystals of compound semiconductors have become more important for certain applications. And, because of their fundamental material properties, they can do impossible things with silicon. This is resulting in the expanding compound semiconductor market size.

The global compound semiconductor market was valued at USD 39.53 billion in 2022 and is expected to grow to USD 73.71 billion at a CAGR of 6.4% during the forecast period.

Major Growth Driving Factors

• Growing Use of Smartphones: Smartphones have significantly increased worldwide, and fast internet services offered by numerous service providers are becoming increasingly common. Smartphone usage directly affects semiconductor demand because they are compound semiconductors' largest and most important consumers.
• Increasing Demand for SiC Devices: The primary factor expected to boost the compound semiconductor market growth during the predicted period is the constantly growing requirement for SiC appliances in power electronics, as it has ten times more breakdown stability and three-time thermal conductivity than silicon-based appliances. Moreover, it lessens the device's complexity and process cost, enhancing its dependability and making it appropriate for a wide range of high-voltage devices, including wind turbines, solar inverters, and power supplies.
• Consumer Electronics Sector: With the diversity of benefits these devices offer, greater usage of compound semiconductor epitaxial wafers, particularly in the consumer electronics industry, is predicted to have a beneficial impact on compound semiconductor market share.

Top Report Findings:

• One of the main factors fueling the demand and expansion of the global market is the sharp increase in the need for compound semiconductors across a variety of data centers worldwide, as data centers frequently use transceivers to accept or send signals that further improve speed and improve productivity.
• Compound semiconductor market segmentation is based on product, application, type, and region.

Compound Semiconductor Market Trends

• LED and Lasers Manufacturing: Compound semiconductors' capacity to detect light, and emit light in the form of LEDs and lasers for various fiber optics, as well as the declining cost of LED manufacturing and installation, which leads to wider use of LEDs in fixtures and lamps, are expected to lead to significant compound semiconductor market growth opportunities over the forecasted period.
• Potential use of GaN in 5G Infrastructure: GaN's increasing use in 5G infrastructure construction results from a growing demand for technologies that could improve 5G wireless base station performance, efficiency, and value. This demand will drive market demand and growth over the next few years.

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Segment Review

Power Electronics Holds the Largest Market Share

The rapidly expanding adoption of power electronics modules in smart home devices, which is anticipated to develop significantly with the purchase of advanced consumer electronics, is responsible for the segment market's expansion.

Moreover, in the upcoming years, it is anticipated that significant developments in the field of optoelectronics, such as plasmonic nanostructures, perovskite transistors, minuscule light bulbs, low-cost 3D imaging, bigger Li-Fi, and optically active quantum dots, would drive the market's expansion.

The Telecommunication Held the Greatest Market Share

The telecommunications sector held the biggest compound semiconductor market share, primarily driven by increased demand and use of semiconductor elements in various wireless and mobile communications due to their higher efficiency and speed.

Additionally, the market for this segment is expected to increase significantly due to the increasing integration of cutting-edge technologies like the Internet of Things, Artificial Intelligence, and Machine Learning, particularly in developing nations like India, South Korea, China, and Indonesia.

Geographical Analysis

Asia Pacific: The growth of the compound semiconductor market in Asia Pacific region is primarily driven by rising consumer electronics use in nations like China and India, as well as the spread of wireless communication technology. The area has experienced substantial development potential for a number of novel and cutting-edge technologies, as well as a change in consumer preferences towards creative and intelligent solutions, all of which are anticipated to impact market expansion positively.

North America: To meet the region's demands for high power, high performance, and longer life cycles, the North American region is anticipated to experience the highest growth rate over the coming years. This growth is primarily accelerated by the growing deployment of gallium nitride technology in radar, communication systems, and electronic warfare. Compound semiconductors are also expanding due to increased focus by American and Canadian government organizations on developing low-energy gadgets that enable continuous operation for extended periods without harming the environment.

Recent Developments

• ON Semi it has declared the inauguration of their new silicon carbide facility in Hudson for August 2022. With this new facility, the business will more than fivefold its capacity for silicon carbide and guarantee the timely supply of vital components to its clients. SiC is extremely important for enabling efficiency in EV charging, as well as energy infrastructure, and it also greatly aids in the decarbonization process.
• The newest integrated ambient light and proximity sensor from ams OSRAM, which offers precise color, reliable proximity detection, and illuminance readings, was released in June 2022. The TCS3720 is a new under-screen sensor from OSRAM primarily intended for smartphone displays with higher refresh rates and frequency.

Frequently Asked Questions

• How huge is the compound semiconductor materials market?
• What is the evaluated market size of compound semiconductors?
• What is the market growth rate of the compound semiconductor?
• Who are the compound semiconductor market key players?
• Which segment holds the largest market share?

Polaris Market Research has segmented the compound semiconductor market report based on product, application, type, and region:

By Product

• LED
• Optoelectronics
• Power Electronics
• Diode
• Bare Die
• Module
• Others

By Application

• General Lighting
• Telecommunication
• Military, Defense, and Aerospace
• Automotive
• Power Supply
• Datacom
• Consumer Display
• Commercial
• Consumer Devices
• Others

By Type

• GaN
• GAAS
• SiC
• INP
• SIGE
• GAP
• Others

By Region

• North America (U.S., Canada)
• Europe (France, Germany, UK, Italy, Netherlands, Spain, Russia)
• Asia Pacific (Japan, China, India, Malaysia, Indonesia, South Korea)
• Latin America (Brazil, Mexico, Argentina)
• Middle East & Africa (Saudi Arabia, UAE, Israel, South Africa)