Compound Semiconductor Market Size, Share - Forecast to 2026
Global Compound Semiconductor Materials Market Insights
The global compound semiconductor materials market is expected to generate revenue amounting to USD 32.02 billion in 2020, and is projected to reach to USD 46.15 billion by 2026, growing at a CAGR of 6.28% over the forecast period. Growing usage in various electronic applications, including electronic film coatings, electronic wafer, and integrated circuits, is expected to drive the market growth during the forecast period. Growing industrialization along with increase in data transactions, is also projected to boost the global semiconductor market over the coming years.
Increasing implementation of GaN and SiC in the semiconductor industry is one of the major factors driving the market growth. Increasing demand for compound semiconductors in military, defense, and aerospace among other industries is also supporting the market growth. Growth in electronics manufacturing sector across various regions including North America, Europe, and Asia Pacific, is further projected to propel the market of compound semiconductor materials.
Compound semiconductor materials offer high radiation resistance property and are widely used in scientific applications, such as rocket coatings and jumpsuit coatings among others. However, high material and fabrication costs associated with compound semiconductors and complex manufacturing process, are likely to hamper the market growth during the forecast period.
Global Compound Semiconductor Materials Market Size: By Segmentation
The global compound semiconductor materials market is segmented on the basis of type into gallium nitride (GAN), gallium arsenide (GAAS), silicon carbide (SIC), indium phosphide (INP), silicon germanium (SIGE), and gallium phosphide (GAP). The gallium based semiconductors - gallium nitride (GAN), gallium arsenide (GAAS), and gallium phosphide (GAP) are expected to hold the largest market share in the global compound semiconductors materials market during the forecast period. They are widely used in transistors, LEDs, lasers, solar cells and smart vehicles among others. Gallium based semiconductors offer higher power efficiency and unique optical properties over silicon-based semiconductors. These are some of the major factors expected to drive the market growth during the forecast period. The silicon carbide segment is expected to grow at a significant CAGR over the coming years. Silicon carbide is used in many applications including military systems, sensor systems, solar power inverters and other power supplies, and wind turbines among others.
On the basis of product, the global compound semiconductor materials market is segmented into LED, optoelectronics, RF devices, and power electronics. The RF devices segment is further segmented into RF power, and RF switching among others. The power electronics segment is expected to grow at a high CAGR during the forecast period. The increasing demand for SiC and GaN power semiconductors in applications such as hybrid and electric vehicles, power supplies, and photovoltaic (PV) inverters are driving the segment growth.
On the basis of application, the market is segmented into general lighting, telecommunication, military, defense, and aerospace, automotive, power supply, datacom, consumer displays & devices, and commercial among others. The power supply application segment is expected to hold the largest market share in the global compound semiconductor materials market during the forecast period. Compound semiconductor devices allow users to operate in the double-conversion mode and maintain high efficiencies. They also increase in power quality, and reduce cost. The hybrid moduled compound semiconductors can reduce power loss up to 45%, and full GaN-based devices can reduce power loss up to 100%. These are some of the major factors expected to boost the market for power supply application during the forecast period.
Global Compound Semiconductor Materials Market Size: By Region
On the basis of region, the market of compound semiconductor materials is segmented into North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa. The Asia Pacific region is expected to dominate the market and also estimated to expand at a rapid pace during the forecast period. The presence of prominent vendors such as Nichia, Samsung Electronics, San’an, and Rohm among others are driving the market growth in the region. The commercialization of 5G services in developing countries such as China, South Korea, and Japan, is also driving demand for compound semiconductors in the region. Rapid urbanization and the expansion of consumer electronics market in the region is driving the market growth for compound semiconductor materials.
Company Profiles: Compound Semiconductor Market
The major companies profiled in the Compound Semiconductor Market include Nichia, Samsung Electronics, Osram, Qorvo, Skyworks, Cree, GAN Systems, Infineon, Mitsubishi Electric, and NXP among others. The Companies are investing in innovation/R&D, brand building, and fostering strong relationships with customers to enhance their competitive position.
Please note: This is not an exhaustive list of companies profiled in the report.
In May 2020, OSRAM, the subsidiary of AMS, launched a new OSRAM 24V TEC Flex family that offers uniform illumination for a broad range of indoor and outdoor applications. TEC Flex Tunable White (TW) can be used for continuously modulating the color temperature from 2700 K to 6500 K while maintaining a high color yield.
In March 2020, ON Semiconductor entered into a 5-year agreement with GT Advanced Technologies (GTAT) (U.S.) for the production and supply of silicon carbide material. With this agreement, GTAT will produce and supply its CrystX silicon carbide (SiC) material to ON Semiconductor.
In February 2020, Qorvo completed the acquisition of Decawave (Ireland), a pioneer in ultra-wideband (UWB) technology and provider of UWB solutions for mobile, automobile, and IoT applications.
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The global compound semiconductor market has been studied from the year 2017 till 2026. However, the CAGR provided in the report is from the year 2018 to 2026. The research methodology involved three stages: Desk research, Primary research, and Analysis & Output from the entire research process.
The desk research involved a robust background study which meant referring to paid and unpaid databases to understand the market dynamics; mapping contracts from press releases; identifying the key players in the market, studying their product portfolio, competition level, annual reports/SEC filings & investor presentations; and learning the demand and supply side analysis for the compound semiconductor market.
The primary research activity included telephonic conversations with more than 50 tier 1 industry consultants, distributors, and end-use product manufacturers.
Finally, based on the above thorough research process, an in-depth analysis was carried out considering the following aspects: market attractiveness, current & future market trends, market share analysis, SWOT analysis of the companies, and customer analytics.
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