Global Compound Semiconductor Market Size to worth USD 121.6 Billion by 2033: Market Insight Report

Global Compound Semiconductor Market Size to worth USD 121.6 Billion by 2033

According to a research report published by Spherical Insights & Consulting, the Global Compound Semiconductor Market Size is Expected to Grow from USD 43.8 Billion in 2023 to USD 121.6 Billion by 2033, at a CAGR of 10.75% during the forecast period 2023-2033.  

Browse key industry insights spread across 210 pages with 110 Market data tables and figures & charts from the report on the Global Compound Semiconductor Market Size, Share, and COVID-19 Impact Analysis, By Product (Power Semiconductors, Transistors, Integrated Circuits, and Diodes & Rectifiers), By Type (Gallium Nitride (GaN), Gallium Arsenide (GaAs), Silicon Carbide (SiC), Indium Phosphide (InP), Silicon Germanium (SIGE), Gallium Phosphide (GaP), and Others), By Application (IT & Telecom, Aerospace & Defense, Automotive, Consumer Electronics, Healthcare, and Industrial, Energy & Power), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2023 – 2033.           

A compound semiconductor is a semiconductor made from two or more elements, providing capabilities in optoelectronics. The need for compound semiconductors (CSs) in a variety of optoelectronic and photonic devices is growing.   Optoelectronic devices including lasers, light-emitting diodes (LEDs), and photodiodes with micromechanical structures can be integrated monolithically owing to compound semiconductor materials. This makes it possible to generate, transmit, modulate, and detect light all on one chip. Compound semiconductors are positioned to play a crucial role in connected products and smart cities due to the growing use of IoT and industrial automation. The advancement in 5G technology, electric vehicles (EVs), and renewable energy systems are escalating the market growth opportunity for compound semiconductors. Compound semiconductors for power management, sensors, and communication have become increasingly popular as a result of the automotive industry's transition to electric vehicles and autonomous driving. Additionally, the need for compound semiconductors in power conversion systems is expected to rise as renewable energy technologies like solar and wind power become more prevalent. On the contrary, the increased production costs and material availability & supply chain risks are hampering the market growth.

The integrated circuits segment dominated the market with the largest revenue share in 2023.

Based on the product, the global compound semiconductor market is divided into power semiconductors, transistors, integrated circuits, and diodes & rectifiers. Among these, the integrated circuits segment dominated the market with the largest revenue share in 2023. Modern electronics depend on integrated circuits (ICs) to enable sophisticated functions in compact designs. The widespread application in automobile systems, telecommunications, and consumer electronics is driving the market.

The gallium nitride (GaN) segment is expected to dominate the market during the forecast period.

Based on the type, the global compound semiconductor market is divided into gallium nitride (GaN), gallium arsenide (GaAs), silicon carbide (SiC), indium phosphide (INP), silicon germanium (SIGE), gallium phosphide (GAP), and others. Among these, the gallium nitride (GaN) segment is expected to dominate the market during the forecast period. The superior performance characteristics of GaN semiconductors in power electronics, RF/microwave applications, and LED lighting are driving the market in the GaN segment.

The IT & telecom segment is expected to hold the largest share during the forecast period.

Based on the application, the global compound semiconductor market is divided into IT & telecom, aerospace & defense, automotive, consumer electronics, healthcare, and industrial, energy & power. Among these, the IT & telecom segment is expected to hold the largest share during the forecast period. The telecom and IT sectors make extensive use of compound semiconductors due to their characteristics, which are leveraged to meet the ever-increasing need for high-speed data transfer and communication.

North America is projected to hold the largest share of the global compound semiconductor market over the forecast period.

North America is projected to hold the largest share of the global compound semiconductor market over the forecast period. The increasing investments in high-performance applications such as 5G infrastructure, electric vehicles (EVs), renewable energy, and defense technologies are the factors driving the regional market growth. The United States is well-positioned for robust growth in the compound semiconductor industry due to an increasing focus on self-sufficiency and leadership in next-generation technologies.

Asia-Pacific is predicted to grow at the fastest CAGR in the compound semiconductor market over the forecast period. The high-end updates technologies, demand for smart devices, and expanding industrial sector are responsible for driving the market growth. The region's compound semiconductor market is growing as a result of the numerous steps these businesses take to develop electrical infrastructure using the newest technological developments.

Competitive Analysis

Major key players in the compound semiconductor market include Texas Instruments Inc., Qorvo, Inc., Skyworks Solutions Inc., Broadcom Inc., Taiwan Semiconductor Manufacturing Company Limited, NXP Semiconductors N.V., Infineon Technologies AG, Renesas Electronics Corporation, Wolfspeed, Inc., ams-OSRAM AG, and Others.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Development

• In March 2024, Wolfspeed, Inc., the global leader in silicon carbide technology, hosted Senator Thom Tillis (R-NC) and other local officials, community partners, and workers at a ceremony to celebrate the topping out of construction at the $5 billion John Palmour Manufacturing Center for Silicon Carbide.

• In January 2024, Wolfspeed WOLF and Infineon Technologies AG recently announced an extension and expansion of their long-term 150-millimeter (mm) silicon carbide wafer supply agreement, originally established in February 2018. The strategic move would help address the escalating demand for silicon carbide (SiC) semiconductor products.

• In January 2023, Auto supplier ZF Friedrichshafen AG and Wolfspeed Inc. plan to build a $3 billion wafer factory in Germany’s Saarland to make chips for electric vehicles and other applications, a boon for a region dependent on combustion-engine components, according to people familiar with the matter.

• In May 2022, Qorvo, a leading provider of innovative RF solutions that connect the world, announced a next-generation series of 1200V Silicon Carbide (SiC) Field Effect Transistors (FETs) with industry-leading figures of merit in on-resistance.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2023 to 2033. Spherical Insights has segmented the global compound semiconductor market based on the below-mentioned segments:

Global Compound Semiconductor Market, By Product

• Power Semiconductor
• Transistors
• Integrated Circuits
• Diodes & Rectifiers

Global Compound Semiconductor Market, By Type

• Gallium Nitride (GaN)
• Gallium Arsenide (GaaS)
• Silicon Carbide (SiC)
• Indium Phosphide (InP)
• Silicon Germanium
• Gallium Phosphide (GaP)
• Others

Global Compound Semiconductor Market, By Application  

• IT & Telecom
• Aerospace & Defense
• Automotive
• Consumer Electronics
• Healthcare
• Industrial
• Energy & Power

Global Compound Semiconductor Market, Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa