The global compound semiconductor materials market is set to reach around US$ 24.3 billion in 2023. By 2033, the market valuation is forecast to cross US$ 69.02 billion by 2033, with a CAGR of 11%.
Compound Semiconductor Materials Industry Future Outlook - E-mobility to Emerge as Gamechanger
Electric vehicles (EV) are emerging as a critical application area in the compound semiconductor industry, as myriads of EV manufacturers are resorting to MOSFETs or SiC Schottky barrier diodes (SBD) in DC-DC converters.
| Attributes | Details |
|---|---|
| Compound Semiconductor Materials Market CAGR (2023 to 2033) | 11% |
| Compound Semiconductor Materials Market Size (2023) | US$ 24.3 billion |
| Compound Semiconductor Materials Market Size (2033) | US$ 69.02 billion |
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Global compound semiconductor materials sales increased at a CAGR of 9.1% during the historical period. The total market size reached from US$ 15.70 billion in 2018 to US$ 22.27 billion at the end of 2022.
The compound semiconductor photovoltaic materials market is expanding significantly due to the rising demand for renewable energy sources and the growing awareness of how traditional energy sources affect the environment. As a result, by 2033, high demand for compound semiconductor materials might be anticipated.
Materials called compound semiconductor photovoltaics are frequently used to create solar cells, which turn sunlight into electricity. The creation of novel and cutting-edge solar cell materials is anticipated to further accelerate industry expansion.
In terms of efficiency and cost-effectiveness, perovskite solar cells, which use a hybrid organic-inorganic compound based on lead or tin halide as the light-harvesting layer, have demonstrated encouraging results.
Despite finding immense usage in various end-use applications, such as sensor systems, wind turbines, and military systems, the growth of the global compound semiconductor market is underpinned by the telecommunication industry.
5G connectivity is offering huge opportunities for compound semiconductor manufacturers for telecom applications. Growth of the telecommunication industry is primarily driven by rising demand for radio frequency (RF) semiconductor devices. Furthermore, the telecom sector is making rapid advances in both developed and developing regions across the globe.
Technological shift from 3G to 4G/LTE and now into 5G connectivity has escalated network traffic through smartphones and triggered increased network interferences across communication channels. Usage of compound semiconductor materials is scaling up in wireless communication, given their high efficiency and speed over silicon-based semiconductors.
As the telecom industry moves towards deployment of 5G connectivity, RF content used per smartphone is likely to shore up, thus translating into increased demand for compound semiconductor materials and devices.
In an effort to fulfill the requirements for 4G and 5G, including linear and saturated efficacy, it is quintessential to incorporate power amplifiers developed with compound semiconductor materials and devices. As such themes gain momentum, players in the compound semiconductor materials market are well-placed for better returns.
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With a share of 21.2% in 2022, the growth of novel and sophisticated GaN-based devices, such as GaN power transistors and GaN-based LEDs, are the key drivers of this market. These gadgets are suited for use in next-generation electronics applications, since they perform and use resources more effectively than their conventional equivalents.
Overall, the demand for high-performance and energy-efficient devices in various applications is likely to fuel the growth of the GaN sector in the compound semiconductor materials business in the upcoming years.
With smartphone transition from 4G to 5G connectivity, gallium arsenide (GaAs) is expected to be mainstream technology for sub-6GHz rather than complementary metal oxide semiconductors (CMOS).
FMI finds that compound semiconductor materials derived from GaAs are considered to be the sole technology that can fulfill rising power level and linearity requisites specified by reductions in antenna board space, as well as MIMO technology and carrier aggregation.
Given its high power efficiency and distinct optical properties, GaAs is gaining an edge over silicon-based semiconductors and, as such, is finding use in LEDs, lasers, and solar cells for Internet of Things (IoT), 5G, and smart automobiles.
Moving forward, growth in the optoelectronics industry is to fuel the demand for GaAs-based semiconductor materials over decades ahead. These materials feature huge band gaps, and thus are prevalent in optoelectronics for short-wavelength use cases.
Players in the compound semiconductor materials sector continue to tap into Asia Pacific (APAC) for value-capture opportunities. The regional market is primarily driven by surging integrated circuit (IC) production in China, which is poised to see a significant CAGR of 12.1% by 2033.
China represents the APAC market, as the country leads the global semiconductor market. This is attributable to cost-effective manufacturing practices in the country, further reducing overall operational expenses (OPEX) and boosting profit margins.
Moving ahead, growth of the electronics manufacturing industry, as well as huge subsidies for large-scale LED capacity build-up in China, is further driving the compound semiconductor materials business in APAC. That said, a visible drop in semiconductor production due to the COVID-19 pandemic is expected to have a severe impact on demand for compound semiconductor materials in APAC.
India is likely to have a CAGR of 13.1% by 2033. India is making strides towards a greener, cleaner future, with a focus on electric mobility. Compound semiconductor materials are necessary for the manufacture of the power electronics used in electric vehicle technology, which is anticipated to experience rapid expansion in the nation over the next few years.
Many different industries, including telecommunications, automotive, aerospace, and defense, use compound semiconductor materials extensively. Due to the rising demand for these materials in the electronics industry, the compound semiconductor materials sector in Germany is predicted to expand rapidly.
When it comes to research and development spending, Germany is one of the top nations in the European Union, which has sparked the creation of cutting-edge products and technology. Germany had a consistent market share of 4.2% in 2022.
To keep Germany's position as a global leader in high-tech manufacturing, the German government is also making significant investments in the growth of the semiconductor industry.
Due to the rising need for high-speed and high-frequency electronic devices across numerous industries, the market in Australia is predicted to experience considerable expansion in the upcoming years. Australia was expanding at a market share of 0.7% in 2022.
Compound semiconductor materials, which are crucial for the creation of diverse mining equipment, including sensors and communication gadgets, are produced in Australia, which has a significant position in the worldwide mining industry.
In Australia, the mining sector is anticipated to expand in the next few years, which increases demand for minerals for compound semiconductors.
As the global compound semiconductor materials market is characterized by the presence of several small- and large-scale players, manufacturers are honing in on acquisition of core competencies associated with diverse product offerings. For instance,
Due to the existence of technology-driven businesses concentrating on differentiating from a product offering aspect, the market is highly fragmented. Compound semiconductor materials and devices have been widely adopted in electronics, automotive, and renewable energy systems in recent years, and this trend is expected to continue in the years to come.
Recent Developments
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The rising need for high-speed and high-frequency electronic devices increases demand.
Adoption of 5G connection in different industries drives sales.
The United States Expanded at a market share of 16.1% in 2022.
The rising demand for telecommunications, automotive, aerospace, etc. offers growth in the region.
Australia is anticipated to expand at a market share of 0.7% in 2022.
1. Executive Summary | Compound Semiconductor Materials Market 1.1. Global Market Outlook 1.2. Demand-side Trends 1.3. Supply-side Trends 1.4. Technology Roadmap Analysis 1.5. Analysis and Recommendations 2. Market Overview 2.1. Market Coverage / Taxonomy 2.2. Market Definition / Scope / Limitations 3. Market Background 3.1. Market Dynamics 3.1.1. Drivers 3.1.2. Restraints 3.1.3. Opportunity 3.1.4. Trends 3.2. Scenario Forecast 3.2.1. Demand in Optimistic Scenario 3.2.2. Demand in Likely Scenario 3.2.3. Demand in Conservative Scenario 3.3. Opportunity Map Analysis 3.4. Investment Feasibility Matrix 3.5. PESTLE and Porter’s Analysis 3.6. Regulatory Landscape 3.6.1. By Key Regions 3.6.2. By Key Countries 3.7. Regional Parent Market Outlook 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 4.1. Historical Market Size Value (US$ Million) Analysis, 2018 to 2022 4.2. Current and Future Market Size Value (US$ Million) Projections, 2023 to 2033 4.2.1. Y-o-Y Growth Trend Analysis 4.2.2. Absolute $ Opportunity Analysis 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Material Type 5.1. Introduction / Key Findings 5.2. Historical Market Size Value (US$ Million) Analysis By Material Type, 2018 to 2022 5.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Material Type, 2023 to 2033 5.3.1. Gallium Arsenide 5.3.2. Gallium Nitride 5.3.3. Indium Phosphide 5.3.4. Zinc Selenide 5.3.5. Silicon Carbide 5.3.6. Gallium Phosphorous 5.3.7. Aluminium Gallium Indium Phosphide 5.3.8. Aluminium Gallium Arsenide 5.4. Y-o-Y Growth Trend Analysis By Material Type, 2018 to 2022 5.5. Absolute $ Opportunity Analysis By Material Type, 2023 to 2033 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 6.1. Introduction / Key Findings 6.2. Historical Market Size Value (US$ Million) Analysis By Application, 2018 to 2022 6.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Application, 2023 to 2033 6.3.1. Laser 6.3.2. Optical Fibres 6.3.3. Photovoltaic Cells 6.3.4. Optical Devices 6.3.5. LED Epitaxial Wafers 6.3.6. Power Amplifiers 6.3.7. Others 6.4. Y-o-Y Growth Trend Analysis By Application, 2018 to 2022 6.5. Absolute $ Opportunity Analysis By Application, 2023 to 2033 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. Introduction 7.2. Historical Market Size Value (US$ Million) Analysis By Region, 2018 to 2022 7.3. Current Market Size Value (US$ Million) Analysis and Forecast By Region, 2023 to 2033 7.3.1. North America 7.3.2. Latin America 7.3.3. Europe 7.3.4. South Asia 7.3.5. East Asia 7.3.6. Oceania 7.3.7. MEA 7.4. Market Attractiveness Analysis By Region 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 8.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 8.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 8.2.1. By Country 8.2.1.1. The USA 8.2.1.2. Canada 8.2.2. By Material Type 8.2.3. By Application 8.3. Market Attractiveness Analysis 8.3.1. By Country 8.3.2. By Material Type 8.3.3. By Application 8.4. Key Takeaways 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 9.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 9.2.1. By Country 9.2.1.1. Brazil 9.2.1.2. Mexico 9.2.1.3. Rest of Latin America 9.2.2. By Material Type 9.2.3. By Application 9.3. Market Attractiveness Analysis 9.3.1. By Country 9.3.2. By Material Type 9.3.3. By Application 9.4. Key Takeaways 10. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 10.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 10.2.1. By Country 10.2.1.1. Germany 10.2.1.2. United Kingdom 10.2.1.3. France 10.2.1.4. Spain 10.2.1.5. Italy 10.2.1.6. Rest of Europe 10.2.2. By Material Type 10.2.3. By Application 10.3. Market Attractiveness Analysis 10.3.1. By Country 10.3.2. By Material Type 10.3.3. By Application 10.4. Key Takeaways 11. South Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 11.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 11.2.1. By Country 11.2.1.1. India 11.2.1.2. Malaysia 11.2.1.3. Singapore 11.2.1.4. Thailand 11.2.1.5. Rest of South Asia 11.2.2. By Material Type 11.2.3. By Application 11.3. Market Attractiveness Analysis 11.3.1. By Country 11.3.2. By Material Type 11.3.3. By Application 11.4. Key Takeaways 12. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 12.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 12.2.1. By Country 12.2.1.1. China 12.2.1.2. Japan 12.2.1.3. South Korea 12.2.2. By Material Type 12.2.3. By Application 12.3. Market Attractiveness Analysis 12.3.1. By Country 12.3.2. By Material Type 12.3.3. By Application 12.4. Key Takeaways 13. Oceania Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 13.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 13.2.1. By Country 13.2.1.1. Australia 13.2.1.2. New Zealand 13.2.2. By Material Type 13.2.3. By Application 13.3. Market Attractiveness Analysis 13.3.1. By Country 13.3.2. By Material Type 13.3.3. By Application 13.4. Key Takeaways 14. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 14.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 14.2.1. By Country 14.2.1.1. GCC Countries 14.2.1.2. South Africa 14.2.1.3. Israel 14.2.1.4. Rest of MEA 14.2.2. By Material Type 14.2.3. By Application 14.3. Market Attractiveness Analysis 14.3.1. By Country 14.3.2. By Material Type 14.3.3. By Application 14.4. Key Takeaways 15. Key Countries Market Analysis 15.1. USA 15.1.1. Pricing Analysis 15.1.2. Market Share Analysis, 2022 15.1.2.1. By Material Type 15.1.2.2. By Application 15.2. Canada 15.2.1. Pricing Analysis 15.2.2. Market Share Analysis, 2022 15.2.2.1. By Material Type 15.2.2.2. By Application 15.3. Brazil 15.3.1. Pricing Analysis 15.3.2. Market Share Analysis, 2022 15.3.2.1. By Material Type 15.3.2.2. By Application 15.4. Mexico 15.4.1. Pricing Analysis 15.4.2. Market Share Analysis, 2022 15.4.2.1. By Material Type 15.4.2.2. By Application 15.5. Germany 15.5.1. Pricing Analysis 15.5.2. Market Share Analysis, 2022 15.5.2.1. By Material Type 15.5.2.2. By Application 15.6. United Kingdom 15.6.1. Pricing Analysis 15.6.2. Market Share Analysis, 2022 15.6.2.1. By Material Type 15.6.2.2. By Application 15.7. France 15.7.1. Pricing Analysis 15.7.2. Market Share Analysis, 2022 15.7.2.1. By Material Type 15.7.2.2. By Application 15.8. Spain 15.8.1. Pricing Analysis 15.8.2. Market Share Analysis, 2022 15.8.2.1. By Material Type 15.8.2.2. By Application 15.9. Italy 15.9.1. Pricing Analysis 15.9.2. Market Share Analysis, 2022 15.9.2.1. By Material Type 15.9.2.2. By Application 15.10. India 15.10.1. Pricing Analysis 15.10.2. Market Share Analysis, 2022 15.10.2.1. By Material Type 15.10.2.2. By Application 15.11. Malaysia 15.11.1. Pricing Analysis 15.11.2. Market Share Analysis, 2022 15.11.2.1. By Material Type 15.11.2.2. By Application 15.12. Singapore 15.12.1. Pricing Analysis 15.12.2. Market Share Analysis, 2022 15.12.2.1. By Material Type 15.12.2.2. By Application 15.13. Thailand 15.13.1. Pricing Analysis 15.13.2. Market Share Analysis, 2022 15.13.2.1. By Material Type 15.13.2.2. By Application 15.14. China 15.14.1. Pricing Analysis 15.14.2. Market Share Analysis, 2022 15.14.2.1. By Material Type 15.14.2.2. By Application 15.15. Japan 15.15.1. Pricing Analysis 15.15.2. Market Share Analysis, 2022 15.15.2.1. By Material Type 15.15.2.2. By Application 15.16. South Korea 15.16.1. Pricing Analysis 15.16.2. Market Share Analysis, 2022 15.16.2.1. By Material Type 15.16.2.2. By Application 15.17. Australia 15.17.1. Pricing Analysis 15.17.2. Market Share Analysis, 2022 15.17.2.1. By Material Type 15.17.2.2. By Application 15.18. New Zealand 15.18.1. Pricing Analysis 15.18.2. Market Share Analysis, 2022 15.18.2.1. By Material Type 15.18.2.2. By Application 15.19. GCC Countries 15.19.1. Pricing Analysis 15.19.2. Market Share Analysis, 2022 15.19.2.1. By Material Type 15.19.2.2. By Application 15.20. South Africa 15.20.1. Pricing Analysis 15.20.2. Market Share Analysis, 2022 15.20.2.1. By Material Type 15.20.2.2. By Application 15.21. Israel 15.21.1. Pricing Analysis 15.21.2. Market Share Analysis, 2022 15.21.2.1. By Material Type 15.21.2.2. By Application 16. Market Structure Analysis 16.1. Competition Dashboard 16.2. Competition Benchmarking 16.3. Market Share Analysis of Top Players 16.3.1. By Regional 16.3.2. By Material Type 16.3.3. By Application 17. Competition Analysis 17.1. Competition Deep Dive 17.1.1. SK Siltron Co., Ltd. 17.1.1.1. Overview 17.1.1.2. Product Portfolio 17.1.1.3. Profitability by Market Segments 17.1.1.4. Sales Footprint 17.1.1.5. Strategy Overview 17.1.1.5.1. Marketing Strategy 17.1.2. Sumitomo Electric Industries, Ltd. 17.1.2.1. Overview 17.1.2.2. Product Portfolio 17.1.2.3. Profitability by Market Segments 17.1.2.4. Sales Footprint 17.1.2.5. Strategy Overview 17.1.2.5.1. Marketing Strategy 17.1.3. JX Nippon Mining & Metals 17.1.3.1. Overview 17.1.3.2. Product Portfolio 17.1.3.3. Profitability by Market Segments 17.1.3.4. Sales Footprint 17.1.3.5. Strategy Overview 17.1.3.5.1. Marketing Strategy 17.1.4. FURUKAWA CO., LTD. 17.1.4.1. Overview 17.1.4.2. Product Portfolio 17.1.4.3. Profitability by Market Segments 17.1.4.4. Sales Footprint 17.1.4.5. Strategy Overview 17.1.4.5.1. Marketing Strategy 17.1.5. Shin-Etsu Chemical Co., Ltd. 17.1.5.1. Overview 17.1.5.2. Product Portfolio 17.1.5.3. Profitability by Market Segments 17.1.5.4. Sales Footprint 17.1.5.5. Strategy Overview 17.1.5.5.1. Marketing Strategy 17.1.6. SHOWA DENKO K.K. 17.1.6.1. Overview 17.1.6.2. Product Portfolio 17.1.6.3. Profitability by Market Segments 17.1.6.4. Sales Footprint 17.1.6.5. Strategy Overview 17.1.6.5.1. Marketing Strategy 17.1.7. Xiamen Powerway Advanced Material Co. 17.1.7.1. Overview 17.1.7.2. Product Portfolio 17.1.7.3. Profitability by Market Segments 17.1.7.4. Sales Footprint 17.1.7.5. Strategy Overview 17.1.7.5.1. Marketing Strategy 17.1.8. Freiberger Compound Materials GmbH 17.1.8.1. Overview 17.1.8.2. Product Portfolio 17.1.8.3. Profitability by Market Segments 17.1.8.4. Sales Footprint 17.1.8.5. Strategy Overview 17.1.8.5.1. Marketing Strategy 17.1.9. WIN Semiconductors Corp 17.1.9.1. Overview 17.1.9.2. Product Portfolio 17.1.9.3. Profitability by Market Segments 17.1.9.4. Sales Footprint 17.1.9.5. Strategy Overview 17.1.9.5.1. Marketing Strategy 17.1.10. IQE PLC 17.1.10.1. Overview 17.1.10.2. Product Portfolio 17.1.10.3. Profitability by Market Segments 17.1.10.4. Sales Footprint 17.1.10.5. Strategy Overview 17.1.10.5.1. Marketing Strategy 18. Assumptions & Acronyms Used 19. Research Methodology
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Compound Semiconductor Materials Market
