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Compound Semiconductor Market

Compound Semiconductor Market Size, Share, and Analysis, By Type (Gallium Arsenide (GaAs), Gallium Nitride (GaN), Gallium Phosphide (GaP), and Silicon Carbide (SiC)), By Product (LED, RF, Optoelectronics, and Power Electronics), By Application (Telecommunications, Information & Communication Technology, Defense & Aerospace, Consumer Electronics, Healthcare, and Automotive), By Region (North America, Europe, Asia-Pacific, and Rest of the World), And Regional Forecast 2024-2034

Published on: Apr-2024
Report Code: FG ES 01944
No. of Pages: 170-350
Report Format: PDF

Compound Semiconductor Market is projected to exhibit a Compound Annual Growth Rate (CAGR) of 11.2% during the forecast span from 2024 to 2034. In 2023, the market size was assessed at USD 75.7 billion and is projected to reach USD 244.4 billion by the completion of 2034.

Product Overview

Compound semiconductors are materials that are composed of two or more elements from different groups in the periodic table, such as gallium arsenide (GaAs) or indium phosphide (InP). They consist of unique electronic properties which differ from elemental semiconductors such as silicon. These semiconductors can be customized to display specific electrical characteristics due to their diverse compositions. They play an important role in several electronic and optoelectronic applications, such as high-frequency devices, LEDs, lasers, solar cells, and microwave devices. Their accurate bandgap control allows efficient conversion of electrical energy to light, thereby making them essential in telecommunications, renewable energy, and advanced electronics. Thus, compound semiconductors are integral for the advancements of modern technology due to their multiple applications and superior performance characteristics.

Market Highlights

Compound Semiconductor Market is anticipated to grow at a robust rate, with projections indicating an 11.2% compound annual growth rate (CAGR) between 2024 and 2034

Compound Semiconductor Market is expected to reach USD 244.4 billion during the forecast period, due to growing demand for advanced electronic and optoelectronic devices. This growth is attributed to innovations in telecommunications, optoelectronics, and renewable energy sectors. In addition, the rising prevalence of smartphones, IoT devices, and high-speed communication networks increases the need for compound semiconductors in high-frequency and high-power applications. The emergence of electric vehicles and developments in 5G infrastructure are also contributing to the upward trajectory of the compound semiconductor market. Furthermore, innovations in technology such as the integration of compound semiconductors in photonic devices and power electronics present promising opportunities for the adoption of compound semiconductors. Therefore, the compound semiconductors market will witness sustained expansion due to changing technological trends and the growing scope of applications.

  Source: Fatpos Global

Compound Semiconductor Market Segmentation

Gallium Nitride (GaN) segment is anticipated to lead owing to its distinct properties and applications

Compound semiconductor market is segmented based on Type into Gallium Arsenide (GaAs), Gallium Nitride (GaN), Gallium Phosphide (GaP), and Silicon Carbide (SiC). The Gallium Nitride (GaN) compound semiconductor segment is expected to lead the market due to its unique properties and applications. GaN possesses superior electron mobility, along with a wider bandgap and excellent thermal conductivity as compared to other compound semiconductors like Gallium Arsenide (GaAs), Gallium Phosphide (GaP), and Silicon Carbide (SiC). These characteristics make GaN highly suitable for high-frequency and high-power applications, such as RF amplifiers to power electronics, LEDs, and laser diodes. Furthermore, continuous research and development initiatives are improving GaN fabrication methods, which results in cost reductions and wider market adoption. Thus, with its outstanding performance and growing application spectrum, Gallium Nitride (GaN) is expected to lead the compound semiconductor market during the forecasted period.

Power Electronics segment will dominate the industry due to its growing demand across diverse sectors

Compound Semiconductor Market is classified based on Products into LED, RF, Optoelectronics, and Power Electronics. The power electronics segment will dominate the compound semiconductor market as there is a surging demand for power electronic devices across diverse sectors such as automotive, industrial, renewable energy, and consumer electronics. These devices offer superior characteristics such as better efficiency, faster switching speeds, and thermal performance compared to conventional silicon-based alternatives. Furthermore, the shift towards electrification, which is evident by the rising adoption of electric vehicles, is further promoting the demand for modern power electronic components. Therefore, as industries look for better efficiency and performance in their power conversion systems, the power electronics segment is expected to emerge as the leader in the compound semiconductor market.

Source: Fatpos Global

Market Dynamics

Growth Drivers

Technological Advancements are Critical to Boosting the Adoption of Compound Semiconductors

Improvements in technology are important for encouraging the adoption of compound semiconductors. Continuous research and development activities are yielding new developments in material science, fabrication processes, and gadget design. These innovations improve the performance and versatility of compound semiconductor-based products, which results in the creation of new solutions. Moreover, with the advancements in technology, new applications are continuously emerging, which are further expanding the growth potential of the compound semiconductors market. Investment in research and development, along with collaboration between industry players, is again playing a crucial role in driving growth in the compound semiconductor market. These collective efforts are focused on pushing the boundaries of technology and ensuring that the market for compound semiconductors remains dynamic and responsive to industry needs.

Increasing Demand for High-Speed Communication Networks Will Aid the Market

Compound semiconductor market significantly benefits from the increasing demand for high-speed communication networks. This surge in demand is driven by the exponential growth of data traffic due to video streaming, cloud computing, and the Internet of Things (IoT). Consequently, there is a need for infrastructure that is capable of accommodating higher data rates and bandwidth requirements. Thus, compound semiconductor devices play a crucial role in meeting these demands due to their capacity to operate at higher frequencies and facilitate faster data transmission speeds. The deployment of 5G technology further depends on compound semiconductors for components such as high-frequency amplifiers and millimeter-wave transceivers. Therefore, as telecommunications networks continue to evolve, the demand for compound semiconductor-based solutions will witness growth, which highlights their important role in the modern communication ecosystem.


Complexity and High Initial Production Expenses can Limit the Growth of the Compound Semiconductor Market

Complex and costly nature of manufacturing these materials and devices is a major limitation of the compound semiconductor market. The fabrication of these devices requires special equipment and expertise, which contributes to high production expenses compared to silicon-based alternatives. Such higher costs present various challenges across those sectors that prioritize cost-effectiveness. Thus, overcoming these challenges requires continuous refinement of manufacturing processes, along with better yields and the exploration of economical production methods. Despite these obstacles, the compound semiconductor market seems to be promising due to its performance benefits and applications which include numerous industries. Furthermore, efforts to address manufacturing concerns can promote growth in the compound semiconductors market.

Recent Developments

  • Southern Guangdong province in China pledged 30 billion yuan or $4.37 billion for compound semiconductors, traditional semiconductors, and automotive semiconductor chips in 2023.
  • Changsha, China, initiated subsidies worth $7.2 billion in 2023 to boost the semiconductor industry, with a focus on third-generation semiconductors.
  • Between 2020 and 2022, US-based and foreign companies committed over $200 billion in private investments for semiconductor manufacturing.
  • Japan's Ministry of Economy, Trade and Industry approved $3.5 billion in subsidies in 2022 for a semiconductor foundry construction project.
  • In January 2023, Intel invested $20 billion to establish two new semiconductor chip factories in Ohio.
  • China leads in gallium production, contributing 80% globally. In 2022, the nation exported 94 metric tons of gallium according to Chinese Customs data.

Compound Semiconductor Market

Key Players:

  • Broadcom Inc.
  • Texas Instruments Incorporated
  • Toshiba Corporation
  • Infineon Technologies Ag
  • Nxp Semiconductors N.V.
  • Stmicroelectronics N.V.
  • Intel Corporation
  • Qualcomm Incorporated
  • Cree, Inc.
  • Samsung Electronics Co., Ltd.
  • Mitsubishi Electric Corporation
  • Macom Technology Solutions Holdings, Inc.
  • Ii-Vi Incorporated
  • Applied Materials, Inc.
  • Skyworks Solutions, Inc.
  • Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)

Regional Analysis

Compound Semiconductor Market is segmented based on regional analysis into five key regions: North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. The Asia Pacific region is anticipated to dominate the compound semiconductor market as the region has strong manufacturing capabilities and a well-established semiconductor ecosystem across countries like China, South Korea, Japan, and Taiwan. These nations have made substantial investments in R&D, infrastructure, and talent development, which solidifies their positions as leaders in semiconductor production. Furthermore, the strong presence of consumer electronics, telecommunications, and automotive sectors drives the demand for compound semiconductor-based products across the Asia Pacific region.

On the other hand, North America closely follows behind due to its strong culture of technological innovation and large investments in semiconductor R&D. Additionally, North America has a thriving startup ecosystem, which promotes the development of advanced technologies in areas such as artificial intelligence, autonomous vehicles, and IoT. Therefore, while Asia Pacific leads in manufacturing, North America's strength lies in innovation that propels the growth of the compound semiconductor market.

Source: Fatpos Global

Impact of COVID-19 on the Compound Semiconductor Market

COVID-19 pandemic had a dual impact on the compound semiconductor market. Initially, it caused significant disruptions across the supply chains, manufacturing operations, and logistics due to lockdown measures and restrictions imposed to curb the virus. These disruptions led to production delays and created various logistical hurdles, which affected the availability of compound semiconductor products. However, as the pandemic eased, the market experienced a rise in demand for certain semiconductor-based products. The adoption of semiconductor-enabled technologies due to the shift towards remote work and digitalization, further boosted the demand for compound semiconductors. Therefore, the pandemic underscored the importance of semiconductor manufacturing capabilities and attracted high investments in domestic semiconductor production across various regions.

Compound Semiconductor Market is further segmented by region into:

  • North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
  • Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
  • Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
  • Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
  • Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA

Compound Semiconductor Market Scope and Segments:



Study Period


Base Year


Forecast Period


Historical Period


Growth Rate

CAGR of 11.2% from 2024-2034


Value (USD Billion)


Main Segments List

By Type

  • Gallium Arsenide (GaAs)
  • Gallium Nitride (GaN)
  • Gallium Phosphide (GaP)
  • Silicon Carbide (SiC)

By Product

  • LED
  • RF
  • Optoelectronics
  • Power Electronics

By Application

  • Telecommunications
  • Information & Communication Technology
  • Defense & Aerospace
  • Consumer Electronics
  • Healthcare
  • Automotive

By Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • U.K.
    • France
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • Australia
    • Southeast Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of the Middle East & Africa

Frequently Asked Questions (FAQ):

Compound Semiconductor Market size was valued at USD 75.7 billion in 2023 and is projected to reach the value of USD 244.4 billion in 2034, exhibiting a CAGR of 11.2% during the forecast period.

The Compound Semiconductor Market refers to the global industry involved in the research, development, production, and sale of compound semiconductors.

The Gallium Nitride (GaN) segment and the Power Electronics segment accounted for the largest Compound Semiconductor Market share.

Key players in the Compound Semiconductor Market include Broadcom Inc., Qualcomm Incorporated, Texas Instruments Incorporated, Intel Corporation, Toshiba Corporation, Infineon Technologies Ag, Nxp Semiconductors N.V., Stmicroelectronics N.V., Cree, Inc., Samsung Electronics Co., Ltd., Mitsubishi Electric Corporation, Macom Technology Solutions Holdings, Inc., Ii-Vi Incorporated, Applied Materials, Inc., Skyworks Solutions, Inc., and Other Prominent Players.

The technological advancements and increasing demand for high-speed communication networks are the factors driving the hydraulic cylinder market.

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