Compound Semiconductor Market - By Deposition Technologies, By Type, By Product, By Application and Forecast, 2024 - 2032

Compound Semiconductor Market Size

The global compound semiconductor market was valued at USD 44.5 billion in 2023 and is anticipated to grow at a CAGR of 10.9% between 2024 and 2032.
 

The compound semiconductor industry is growing due to the unique properties of these materials, which support high-frequency, high-power, and efficient operation across advanced applications. As demand rises in telecommunications (especially for 5G and satellite communications), electric vehicles, and renewable energy, compound semiconductors outperform silicon with better power efficiency, heat resistance, and compactness. They’re also ideal for rugged environments like aerospace and defense, where reliability under extreme conditions is crucial. Increased R&D investment further supports these materials' adoption in emerging technologies, driving their growth across multiple high-tech industries.
 

For instance, In August 2022, Qorvo, Inc announced the release of the highest gain 100-watt L-band (1.2–1.4 GHz) compact solution: a GaN-on-SiC PAM aimed for commercial and defense radar applications. The QPA2511 GaN-on-SiC PAM provides an integrated two-stage amplifier solution with 60% power-added efficiency in a circuit footprint 70% lower than analogous two-stage solutions. This exceptional performance cuts total system power usage dramatically. Their resilience in harsh environments makes them suitable for aerospace and defense. Additionally, advancements in photonics and optoelectronics are unlocking further applications, accelerating market expansion.
 

Compound Semiconductor Market Trends

The rollout of 5G networks globally is one of the major driving forces behind the growth of the compound semiconductor industry. 5G requires high-frequency semiconductors for efficient data transmission, and compound semiconductors like Gallium Nitride (GaN) and Gallium Arsenide (GaAs) are ideal for these applications due to their superior performance at high frequencies. They enable faster speeds, lower latency, and higher power efficiency, which are critical for 5G infrastructure such as base stations, antennas, and signal processing equipment. As telecom companies and governments invest heavily in 5G networks, the demand for these advanced materials will continue to surge, driving significant growth in the market.
 

The transition to electric vehicles (EVs) is another major driver for the compound semiconductor market. EVs rely heavily on power electronics to manage energy flow, power the electric drivetrain, and ensure efficient battery charging and discharging. Compound semiconductors like Silicon Carbide (SiC) and GaN are increasingly being used in power devices such as inverters, onboard chargers, and electric motor controllers because they offer better efficiency, thermal performance, and voltage handling compared to traditional silicon-based semiconductors. With the growing global demand for EVs, driven by environmental policies and consumer preference for sustainable transportation, the market for compound semiconductors in automotive applications is poised for rapid expansion.
 

Compound Semiconductor Market Analysis

A major challenge for the compound semiconductor industry is the high production costs associated with materials like GaN, SiC, and InP, which require specialized manufacturing techniques and equipment, making them more expensive than traditional silicon-based semiconductors. Additionally, the complex manufacturing processes involved limit scalability and efficiency, which can hinder broader adoption, especially in cost-sensitive sectors. The limited supply of raw materials, such as gallium and indium, also presents supply chain risks and price instability. Moreover, silicon-based solutions remain a strong competitor, as they continue to dominate many low-cost, high-volume applications, further restricting the market's growth.
 

The compound semiconductor market presents significant opportunities in the future, driven by advancements in 5G technology, electric vehicles (EVs), and renewable energy systems. As 5G networks expand globally, the demand for high-frequency and power-efficient semiconductors will grow, particularly in communication infrastructure. The automotive sector's shift towards EVs and autonomous driving will drive further adoption of compound semiconductors for power management, sensors, and connectivity. Additionally, the transition to clean energy technologies, such as solar and wind, will increase the need for compound semiconductors in power conversion systems. Growing investments in semiconductor manufacturing, especially in emerging markets, also open new growth avenues. With rising industrial automation and IoT applications, compound semiconductors are poised to play a critical role in smart cities and connected devices.
 

Based on type, the compound semiconductor market is divided into GaN, gallium arsenide (GAAS), silicon carbide (SiC), indium phosphide (INP), silicon germanium (SIGE), gallium phosphide (GAP), and Others. The GaN segment is expected to reach a value of USD 25 billion by 2032.
 

• GaN offers excellent performance in high-power applications, outperforming traditional semiconductors like silicon. Its wide bandgap allows it to handle higher voltages, frequencies, and temperatures, making it ideal for power electronics, RF (radio frequency) devices, and high-efficiency systems.
   
• GaN plays a critical role in 5G infrastructure due to its ability to efficiently operate at high frequencies and deliver greater power output with minimal energy loss. Its use in power amplifiers for base stations and telecom equipment is driving significant growth in the market.

Based on deposition technologies, the market is divided into Chemical Vapor Deposition (CVD), Molecular Beam Epitaxy, Hydride Vapor Phase Epitaxy (HVPE), Ammonothermal, Liquid Phase Epitaxy, Atomic Layer Deposition (ALD), and Others. The circuit protection segment is the fastest growing segment with an anticipated CAGR of 12.6% between 2024 and 2032.
 

• MBE allows for the precise control of thin film deposition at the atomic level, enabling the production of high-quality, defect-free semiconductor layers. This is crucial for advanced applications like high-frequency devices, optoelectronics, and quantum computing, where material purity and layer uniformity are critical.
   
• MBE is extensively used in the production of semiconductors for RF (Radio Frequency) devices, lasers, and LEDs, which are integral to 5G infrastructure, optical communication, and consumer electronics. As demand for these devices rises, so does the adoption of MBE.

North America is the compound semiconductor market in 2023, accounting for a share of over 30.6%. The U.S. market is growing rapidly due to increasing investments in high-performance applications such as 5G infrastructure, electric vehicles (EVs), renewable energy, and defense technologies. The U.S. has a strong presence in R&D and innovation, supported by leading companies and government initiatives like the CHIPS Act, which provides substantial funding to boost domestic semiconductor manufacturing and reduce reliance on imports. Additionally, the rise in defense and aerospace projects, requiring advanced semiconductor materials for radar, satellite, and secure communication systems, is fueling demand. With a growing focus on self-sufficiency and leadership in next-generation technologies, the U.S. is positioned for strong growth in the compound semiconductor sector.
 

China's compound semiconductor industry is growing due to several factors, including its expanding consumer electronics market, where compound semiconductors are essential for high-performance devices such as smartphones, tablets, and wearables. The country’s push towards 5G and industrial automation also contributes significantly, as compound semiconductors are crucial for high-speed communication networks and industrial control systems. Additionally, the increasing demand for renewable energy technologies, such as solar inverters, which rely on compound semiconductors for efficiency, is boosting the market. China’s efforts to reduce reliance on foreign semiconductor suppliers, alongside its investments in local semiconductor production facilities, are also fostering growth. These factors, combined with the country's robust manufacturing ecosystem, position China as a leader in the global market.
 

Germany's compound semiconductor market is growing due to the country's strong automotive industry, which is adopting advanced semiconductors for electric vehicles (EVs) and autonomous driving systems. The rise of Industry 4.0, with its focus on automation and smart manufacturing, is driving demand for high-performance semiconductors in industrial applications. Germany's leadership in renewable energy, particularly in solar power, is also fueling the need for compound semiconductors in energy-efficient power conversion systems. Additionally, the government's support for semiconductor R&D through initiatives like "Digital Hub Initiative" is contributing to market growth.
 

Saudi Arabia's market is growing as part of its Vision 2030 initiative, which aims to diversify the economy and invest in technology-driven sectors. The country’s focus on developing smart cities like NEOM is driving demand for advanced semiconductors in IoT, smart infrastructure, and communication systems. Additionally, Saudi Arabia's investments in the defense sector, particularly in advanced radar and communication systems, are contributing to the market's expansion. The government’s efforts to foster innovation through partnerships with global technology companies further support the growth of the market in the region
 

Compound Semiconductor Market Share

Wolfspeed Inc. leverages its expertise in silicon carbide (SiC) technology to innovate high-performance compound semiconductors that address the stringent requirements of the optocoupler market. With a focus on sectors such as automotive, renewable energy, and power electronics, Wolfspeed emphasizes durability, high efficiency, and thermal management in its products. Its investment in research and development fosters continuous advancements in SiC-based devices, which offer superior energy savings and power density. Additionally, Wolfspeed’s strategic partnerships and supply chain optimizations ensure it meets global demand efficiently, enhancing its competitive edge and broadening its market reach.
 

Infineon Technologies AG strengthens its position in the optocoupler and compound semiconductor industries by prioritizing high-quality, application-specific solutions tailored to automotive, industrial, and consumer electronics markets. Infineon’s approach focuses on enhancing the safety, reliability, and energy efficiency of its semiconductors to meet the evolving needs of applications requiring precise isolation and signal integrity. With extensive R&D efforts, Infineon continues to develop optocouplers and related semiconductors that align with market trends in electrification and automation. The company’s well-established distribution channels and strong customer support further solidify its reputation as a reliable provider, enabling it to maintain a robust presence globally.
 

Compound Semiconductor Market Companies

Major players operating in the compound semiconductor industry are:

• Wolfspeed, Inc.
• Infineon Technologies AG
• Qorvo, Inc.
• Skyworks Solutions, Inc.
• STMicroelectronics N.V.
• Samsung Electronics Co., Ltd.
• Taiwan Semiconductor Manufacturing Company (TSMC)
   

Compound Semiconductor Industry News

• In August 2022 - ON Semi announced the inauguration of its silicon carbide (SiC) facility in Hudson, New Hampshire. The site is expected to increase its production capacity by five times year-over-year and almost quadruple its employees in Hudson by the end of 2022.
   
• June 2022 - Analog Devices Inc. announced the availability of an 800MHz to 12.8GHz synthesizer for high-performance ultra-wideband data converter and synchronization applications. By providing an ultra-clean clock source to drive the signal sampling process, the new ADF4377 synthesizer achieves excellent signal-to-noise performance.
   

The compound semiconductor market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD billion & units) from 2021 to 2032, for the following segments:

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Market, By Deposition Technologies

• Chemical Vapor Deposition (CVD)
• Molecular Beam Epitaxy
• Hydride Vapor Phase Epitaxy (HVPE)
• Ammonothermal
• Liquid Phase Epitaxy
• Atomic Layer Deposition (ALD)
• Others

Market, By Type

• GaN
  • Aluminum Gallium Nitride (AlGaN)
  • Indium Gallium Nitride (INGAN)
• Gallium Arsenide (GAAS)
  • Aluminum Gallium Arsenide (ALGAAS)
• Silicon Carbide (SiC)
• Indium phosphide (INP)
• Silicon germanium (SIGE)
• Gallium phosphide (GAP)
  • Aluminum gallium phosphide (ALGAP)
• Others

Market, By Product

• LED
• Optoelectronics
• RF Devices
  • RF Power
  • RF Switching
  • Other RF Devices
• Power Electronics
  • Discrete
    • Transistor
      • Metal oxide field-effect transistor (MOSFET)
      • High electron mobility transistor (HEMT)
  • Diode
    • Schottky Diode
    • PIN Diode
  • Bare Die
  • Module

Market, By Application

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

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• MEA
  • UAE
  • Saudi Arabia
  • South Africa