Compound Semiconductor Market Trends, Growth, & Share-2031

(MENAFN- Straits Research) Compound semiconductors' notable performance advantages are absolutely essential for a growing range of technological applications. Speeds greater than those of compound semiconductors like GaAs and InP cannot be achieved by silicon. Compound semiconductors have the ability to emit and receive a variety of electromagnetic radiation, from high-frequency ultraviolet and visible light to long-wavelength infrared light. Compound semiconductor materials can also sense and emit light in the form of LEDs for general lighting and communications (lasers and receivers for fiber optics). Compound semiconductor wafers are employed in many different industries, such as photovoltaics, spintronics, microelectronics, and others. They enable faster switching at high power with improved energy efficiency and support better performances. An epitaxial wafer is made by depositing layers of single silicon carbide crystals several micrometers thick on a polished wafer. Precision control of thickness, carrier concentration, and defect density is required to enable its seamless production.
Market Dynamics
Rising Demand for LED Technology Drives the Market
Epitaxial wafers are semiconducting compound substrates that are used in a variety of applications, such as photovoltaics, photonics, and microelectronics. Compound semiconductor epitaxial wafers are widely used in LED lighting technology, which is encouraging the industry's expansion on a global scale. The replacement of conventional lighting products with LED lighting in the residential, commercial, and industrial sectors is largely driven by the rise in demand for energy-efficient lighting products, which help to reduce electricity consumption. Most LED lights have multiple I.C.s in them. These integrated circuits are now made using epitaxial wafer chips rather than silicon wafers due to their higher efficiency. To enhance the semiconductor wafer's performance, the manufacturer epitaxially coats this compound semiconductor wafer. The electrical properties of the silicon wafer improve as the epitaxial layer spreads over it, increasing the power capacity of LED lighting and, to some extent, the market growth.
New Innovative Advancements give an Opportunity for Exponential Growth
A few of the novel materials that are anticipated to be utilized in the development of the following generation of smart technologies include superconductors, carbon nanotubes, and compound semiconductors like GaN. The new varieties of cable, power electronics, cable insulators, cable dielectrics, and energy storage devices are the fundamental elements of a smart grid and smart infrastructures. It is also anticipated that greater adoption of these technologies will boost demand for GaN and other compound semiconductors as the market matures. It is also anticipated that incorporating state-of-the-art compound semiconductor devices and modules will promote new smart infrastructure efficiencies, such as raising power system control & reliability, reducing costs, and extending equipment lifespan. Thus, it is anticipated that the development of smart technologies will have a significant positive impact on the compound semiconductor epitaxial wafer market.
Regional Analysis
Asia Pacific region is the highest contributor to the market and is expected to grow at a CAGR of 12.4% during the forecast period. Asia-Pacific is the area of the world with the fastest growth. It is the most lucrative market for compound semiconductor technologies because of the availability of high-end enhanced technologies, growing demand for smart electronics, and expansion of the manufacturing industries. The market is also being expanded by a number of beneficial non-profit organizations that support packaging technologies. Due to the various initiatives, these organizations take to build power infrastructure using cutting-edge technologies, the market for compound semiconductors in the region is growing. Asia-Pacific currently holds the top spot in the global market for compound semiconductors, and this region is expected to grow at the fastest rate with the highest CAGR. Businesses in all sectors are becoming more aware of the importance of improved semiconductor technologies to ensure efficient power management as a result of a rise in demand for high-voltage operating devices. The high demand for power modules and automated switching devices is expected to cause the market to expand more quickly.
Europe is expected to witness dynamic growth in the compound semiconductor market, with a CAGR of 9.2% during the forecast period. Compound semiconductor market participants have access to lucrative opportunities in Europe. A growing Chinese presence in both Western and Eastern Europe, as well as the expansion of the European economy, are the main factors driving the market. Europe is one of the major markets for cutting-edge compound semiconductors. Large players are acquiring small semiconductor firms in order to expand their market share and provide next-generation technologies through their product lines. There are several opportunities for growth for European compound semiconductor technology vendors as a result of the adoption of advanced electronic vehicles, an increase in the number of digital electronic devices, and advanced virtual systems. The region is anticipated to experience a high growth rate for the advanced packaging market during the forecast period due to the development of the consumer electronics industry, the adoption of cutting-edge technologies like advanced driver assistance in automobiles, and the demand for low-power consumption devices in the region, which in turn drives the market growth.
North America is expected to witness a significant CAGR of 7.1% in the compound semiconductor market during the forecast period. North America is one of the major contributors to the global market for semiconductors used in machinery, automobiles, and electronics as a result of the rising demand for compound semiconductor devices and technologies in the region. The need for compound semiconductors has increased as a result of the increased use of advanced packaging techniques driven by the demands of various industries for intelligent and smart technology platforms. The use of microcontrollers and microprocessors in consumer electronics and electric vehicles is also anticipated to have a significant impact on the market for compound semiconductors during the forecast period. The early adoption of new technology and the abundance of U.S.-based companies facilitate the exploration of newer applications of the technologies. In the highly fragmented market, businesses have used merger and acquisition strategies to increase their market share.
The LAMEA region is expected to witness a moderate CAGR of 10.1% in the global compound semiconductor. In a variety of industries in LAMEA, the adoption of cutting-edge technologies is relatively slow. Latin America and the Middle East are important regions for the compound semiconductor industry. It is anticipated that the rising demand for cutting-edge technologies in countries like Dubai, Abu Dhabi, Oman, Jordan, and others will provide a chance for the compound semiconductor market to grow. It is anticipated that the establishment of major market players' manufacturing and distribution networks in LAMEA will have a significant impact on the market's expansion. In a number of industries, including energy and power, electric vehicles, inverters, consumer electronics, and others, LAMEA is gradually adopting cutting-edge technology. The power module's expected growth in applications like refrigerators and air conditioners is advantageous for the market.
Key Highlights

The global compound semiconductor market size was worth USD 135 billion in 2023 and is projected to reach USD 337.02 billion by 2032, registering a CAGR of 10.70% during the forecast period (2024-2032).
Based on type, the global compound semiconductor market is bifurcated into III-V compound semiconductors, sapphire, IV-IV compound semiconductors, II-VI compound semiconductors, and others. The IV-IV compound semiconductors segment is the highest contributor to the market and is expected to grow at a CAGR of 10.5% during the forecast period.
Based on deposition technology, the global compound semiconductor market is bifurcated into chemical vapor deposition, hydride vapor phase epitaxy, molecular beam epitaxy, liquid phase epitaxy, ammon-thermal, atomic layer deposition, and others. The chemical vapor deposition segment is the highest contributor to the market and is expected to grow at a CAGR of 8.5% during the forecast period
Based on product, the global compound semiconductor market is bifurcated into power semiconductors, diodes & rectifiers, transistors, integrated circuits, and others. The power semiconductor segment is the highest contributor to the market and is expected to grow at a CAGR of 9.5% during the forecast period.
Based on application, the global compound semiconductor market is bifurcated into I.T. & telecom, industrial and energy & power, consumer electronics, aerospace & defense, automotive, and healthcare. The I.T. & telecom segment is the highest contributor to the market and is expected to grow at a CAGR of 10.2% during the forecast period
Asia Pacific region is the highest contributor to the market and is expected to grow at a CAGR of 12.4% during the forecast period.

Competitive Analysis:
The global compound semiconductor market's major key players are Cree Inc., Taiwan Semiconductor Manufacturing Company Ltd., Qorvo, NXP Semiconductor N.V., Renesas Electronics Corporation, Nichia Corporation, Samsung Electronics, Texas Instruments Inc., STMicroelectronics NV, and Infineon Technologies AG.
Market News:

In August 2022, Renesas Electronics Corporation launched new-generation Si IGBTs (Silicon Insulated Gate Bipolar Transistors) for electric vehicle inverters.
In October 2022, NXP Semiconductor N.V. launched NXP Matter-enabled development platforms to propel the creation of Matter devices for smart homes.

Global Compound Semiconductor Market: Segmentation
By Type

III-V Compound Semiconductors
II-VI Compound Semiconductors
Sapphire
IV-IV Compound Semiconductors

By Deposition Technology

Chemical Vapor Deposition
Molecular Beam Epitaxy
Hydride Vapor Phase Epitaxy
Ammono-thermal,
Liquid Phase Epitaxy
Atomic Layer Deposition

By Product

Power Semiconductor
Transistors
Integrated Circuits
Diodes & Rectifiers

By Application

IT & Telecom
Industrial and Energy & Power
Aerospace & Defense
Automotive
Consumer Electronics
Healthcare

By Regions

North America
Europe
Asia-Pacific
LAMEA

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