PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1514887
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1514887
Compound Semiconductor Materials Market size was valued at USD 40.06 Million in 2023, expanding at a CAGR of 3.7% from 2024 to 2032.
There is a growing need for efficient and high-speed electronic devices in consumer electronics, automotive, and telecommunication sectors. Moreover expanding applications of compound semiconductors in solar cells and other renewable energy systems due to their higher efficiency and reliability compared to silicon-based systems. However, issues related to material defects, thermal management, and integration with existing silicon technologies can slow down adoption. Increased government funding and initiatives aimed at promoting semiconductor research and development can create growth opportunities. The vision of AtmaNirbharta in electronics & semiconductors was implemented to approve the Semicon India program with a total outlay of INR 76,000 crore for the development of the semiconductor and display manufacturing ecosystem in India.
Compound Semiconductor Materials Market- Market Dynamics
Wide applications in the telecommunication and defense industry
Compound semiconductor materials play a critical role in advancing the capabilities of telecommunication and defense technologies. Their unique properties enable the development of high-performance, high-speed, and reliable devices essential for modern communication networks and sophisticated defense systems. GaAs (Gallium Arsenide) is widely used in the manufacture of high-frequency and high-speed electronic devices such as mobile phones, satellite communications, and radar systems. GaAs devices can operate at higher frequencies and are more efficient than silicon-based devices. According to the data, In 2021, there were approximately 1.15 billion active mobile subscribers. With 419 million users as of 2022, Reliance Jio, also known as Jio, is one of the telecom businesses with the fastest rate of growth in the world.
Compound Semiconductor Materials Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 3.7% over the forecast period (2024-2032)
Based on type segmentation, GaN was predicted to show maximum market share in the year 2023
Based on application segmentation, IT and Telecom were the leading types in 2023
Based on region, Asia Pacific was the leading revenue generator in 2023
The Global Compound Semiconductor Materials Market is segmented based on Type, Application, Product, Group, and Region.
The market is divided into four categories based on type: GaN, GaAs, SiC, and InP. Due to its high breakdown voltage and low conduction resistance, GaN can be used for high-speed switching and device downsizing. GaN devices have a low parasitic capacitance, which makes them small enough to enable facile downsizing, rapid electron mobility, and high switching speeds. Unlike traditional silicon devices, GaN devices are easily miniaturized and require a bigger chip surface to minimize on-resistance.
The market is divided into four categories based on application: Electronics and Consumer Goods, Aerospace and Defense, IT and Telecom, and Others. With the largest market value share, IT and telecom are predicted to rise significantly during the investigation. The growing need for semiconductor components in wireless and mobile communications is the reason behind this. Additionally, the incorporation of various emerging technologies like machine learning, artificial intelligence, and the Internet of Things is increasing the need for high-speed semiconductor devices, which is favorably impacting the compound semiconductor market.
Compound Semiconductor Materials Market- Geographical Insights
Due to increased product penetration and a spike in demand from the consumer electronics manufacturing sector, Asia Pacific dominated the market. Consumer electronics are predicted to continue to develop in the region due to increased disposable income and rapid urbanization, which will support market growth. The region has seen significant development potential for new and cutting-edge technologies, and the tendency of consumers gravitating towards clever and creative solutions has significantly fueled regional growth in the recent past and is expected to sustain itself in the years to come. For instance, The Semicon India Program, for which the Government committed an outlay of INR 760 billion, is aimed to provide support to companies/consortiums that are engaged in inter-alia silicon semiconductor fabs, display fabs, compound semiconductors/silicon photonics/ sensors fabs, semiconductor packaging and semiconductor.
Prominent players in the compound semiconductor materials are STMicroelectronics NV, NXP Semiconductor N.V., Texas Instruments Inc., Infineon Technologies AG, Sumitomo Electric Industries Ltd. Etc. Businesses are also concentrating on gaining core skills associated with a range of service offerings through a variety of strategies, such as vertical integration along the value chain, strategic alliances, and mergers and acquisitions. The major firms have resorted to capacity expansion and acquisitions as a means of meeting the growing demand in the regional marketplaces. For instance, In April 2024, The UK's Compound Semiconductor Applications (CSA) Catapult and the Malaysian company SMD Semiconductor signed a memorandum of understanding (MoU) in the House of Commons in London.
In May 2024, The Indian software company Zoho invested USD 700 million in the chip manufacturing sector. Zoho is considering the production of compound semiconductors and is seeking incentives from the Indian government.
In March 2024, Heraeus invested in Compound Semiconductor Technology Co., a China-headquartered material supplier of premium industrial diamonds. This strategic partnership aims to drive innovations in the semiconductor industry by leveraging diamond's unique thermal conductivity and electrical insulation properties.
GLOBAL COMPOUND SEMICONDUCTOR MATERIALS MARKET KEY PLAYERS- DETAILED COMPETITIVE INSIGHTS
STMicroelectronics NV
NXP Semiconductor N.V.
Texas Instruments Inc.
Renesas Electronics Corporation
Infineon Technologies AG
SK Siltron Co. Ltd.
Sumitomo Electric Industries Ltd.
JX Nippon Mining & Metals
FURUKAWA CO. LTD.
Shin-Etsu Chemical Co. Ltd.
SHOWA DENKO K.K.
Xiamen Powerway Advanced Material Co.
Freiberger Compound Materials GmbH
WIN Semiconductors Corp
IQE PLC
Others