What Has Been The Historical And Current Growth Of The Compound Semiconductor Market?
The compound semiconductor market has seen considerable growth due to a variety of factors.
• In the past few years, the compound semiconductor market size has seen substantial growth. It is projected to expand from $79.33 billion in 2024 to $85.94 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 8.3%. The historical growth can be accredited to factors such as the renewable energy sector, military and defense applications, the needs of industrial automation, the burgeoning medical device industry, and advancements in automotive electronics.
What are the Market Size and Expected Growth Rates for the Compound Semiconductor Market?
The Compound Semiconductor market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of compound semiconductors is projected to experience substantial expansion in the coming years, reaching an estimated $120.29 billion in 2029, with a compound annual growth rate (CAGR) of 8.8%.
This projected growth during the forecast period can be linked to advancements in space and satellite technology, breakthroughs in medical devices, evolution in automotive technology, and the incorporation of artificial intelligence and machine learning, alongside the development of IoT and wearable technology. The forecasted period is likely to see trends such as the demand for 5G technology and connectivity, the rise in electric vehicle (EV) utilization, growth in data centers and cloud computing, expansion of renewable energy, as well as progress in optoelectronics.
Which Key Drivers Are Propelling The Compound Semiconductor Market's Growth?
The compound semiconductors market is set to benefit from the projected surge in the electronics sector. This sector encompasses the production of electronic components for various products, including electronic equipment and consumer electronics, in which compound semiconductors play a crucial role in the creation of chips and microchips. Therefore, as the electronics market expands, so too will the demand for compound semiconductors. A case in point is data from Uswitch Limited, a UK-based firm offering comparison and switching services over the internet and phone. Their data reveals that at the start of 2022, mobile connections in the UK numbered 71.8 million, 4.2 million more than the population and up 3.8% from 2021, equating to around 2.6 million connections. It is predicted that the UK population will reach 68.3 million by 2025, with roughly 95% (approximately 65 million individuals) possessing a smartphone. Moreover, active mobile subscriptions in the UK (excluding machine-to-machine subscriptions) stood at 83.25 million at the end of March 2022, representing a roughly 2% increase from March 2021. Hence, this significant growth in the electronics sector is fueling the compound semiconductor market.
What Are The Key Segments Within The Global Compound Semiconductor Market?
The compound semiconductor market covered in this report is segmented –
1) By Type: Gallium Arsenide (GaAs), Silicon Carbide (SiC), Indium Phosphide (InP), Silicon Germanium (SiGe), Gallium Phosphide (GaP), Other Types
2) By Deposition Technologies: Chemical Vapor Deposition (CVD), Molecular Beam Epitaxy, Hydride Vapor Phase Epitaxy (HVPE), Ammonothermal, Liquid Phase Epitaxy, Atomic Layer Deposition (ALD), Other Deposition Technologies
3) By Application: General Lighting, Telecommunication, Military, Defense, And Aerospace, Automotive, Power Supply, Datacom, Consumer Display, Commercial, Consumer Devices, Other Applications
Subsegments:
1) By Gallium Arsenide (GaAs): Epitaxial Wafer, Substrates, RF Devices, Optoelectronic Devices
2) By Silicon Carbide (SiC): Power Devices, RF Devices, Substrates
3) By Indium Phosphide (InP): High-Speed Photodetectors, Laser Diodes, Substrates
4) By Silicon Germanium (SiGe): RF Devices, High-Speed Electronics, Integrated Circuits
5) By Gallium Phosphide (GaP): Light Emitting Diodes (LEDs), Laser Diodes, Photovoltaics
6) By Other Types: Zinc Selenide (ZnSe), Cadmium Telluride (CdTe), Other Emerging Compounds
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How Are New Trends Impacting The Size Of The Compound Semiconductor Market?
The rise of product innovations is a notable trend shaping the compound semiconductor market. To solidify their market presence, leading corporations in this market are focusing on creating innovative products. In a recent example, Qorvo, a US-based company known for its unique and high-performing RF solutions for advanced wireless devices, defense radar, and communications, introduced a 100-watt L-band (1.2-1.4 GHz) compact solution in August 2022. This solution is essentially an application-specific GaN-on-SiC power amplifier module (PAM) conceived for both commercially and military radar. Uniquely, the QPA2511 GaN-on-SiC PAM has an integrated two-stage amplifier solution offering 60% power-added efficiency and is packaged in a design that's 70% smaller than equivalent two-stage systems. This superior performance drastically decreases the system's overall power usage.
Who Are the Key Players In The Compound Semiconductor Market?
Major companies operating in the compound semiconductor market include:
• Nichia Corporation
• Samsung Electronics Co Ltd
• Qorvo Inc
• Wolfspeed Inc
• WIN Semiconductors Corp
• Infineon Technologies AG
• NXP Semiconductors NV
• Sumitomo Electric Industries Ltd
• Renesas Electronics Corporation
• Cree Inc
• Mitsubishi Electric Corporation
• Skyworks Solutions Inc
• Texas Instruments Incorporated
• Taiwan Semiconductor Manufacturing Company Ltd
• Advanced Wireless Semiconductor Company
• Analog Devices Inc
• Broadcom Inc
• GaN Systems Inc
• Microchip Technology Inc.
• Semiconductor Components Industries LLC
• ams-OSRAM AG
• STMicroelectronics NV
• Aixtron SE
• Applied Materials Inc
• ASML Holding NV
• CVD Equipment Corporation
• IQE PLC
• KLA Corporation
• Lumentum Holdings Inc.
What Are The Regional Insights Into The Compound Semiconductor Market?
Asia-Pacific was the largest region in the compound semiconductor market in 2024. North America is expected to be the fastest-growing region in the compound semiconductor market during the forecast period. The regions covered in the compound semiconductor market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
