Global Compound Semiconductor Materials Market Grows Steadily at a CAGR of 6.0%

Compound semiconductors are formed when two or more elements from separate or the same group on the periodic table are brought together and combined. Due to the increased demand for applications on electronic and mobile devices, it has experienced phenomenal growth over the past few years. Various deposition techniques, including chemical vapor deposition, atomic layer deposition, and others, are utilized in the compound semiconductor manufacturing process. Compound semiconductors will be in high demand in the future due to their enhanced resistance to high temperatures, increased frequency, wider band gap, and quicker operation. It is anticipated that compound semiconductors will continue to be in high demand. These distinguishing characteristics of compound semiconductors will be among the factors propelling demand in the future. A large number of providers are concentrating on the development of new technologies for compound semiconductor products as well as the production of competitively priced application-specific goods. Market Dynamics Growing Demand from Semiconductor Industry Drives the Global Market The global semiconductor industry is expanding due to the demand for electronic devices. Semiconductors are the driving force behind technological innovation and advancement, with semiconductor packages and surface mount technology procedures comprising the majority of mainstream electronics. Deposition of thin films, prototyping, selective etching, and modification are some of the phases of manufacturing microelectronic devices. On a single wafer, generating hundreds of circuits containing hundreds of millions of functional components by varying parameters and patterns is possible. Physical vapor deposition processes, such as sputtering and evaporation, provide durable, wear-resistant coatings on semiconductors before their installation in end-user devices. The global expansion of the semiconductor industry is anticipated to be driven by several significant trends. One such trend is the increasing use of artificial intelligence (AI) across various industries, which presents growth opportunities for semiconductor manufacturers and suppliers. Potential GaN application in 5G infrastructure Creates Tremendous Opportunities 5G wireless networks must utilize base stations that combine technologies that offer efficiency, performance, and cost-effectiveness. GAN solutions are an absolute necessity for providing these characteristics to the customer. GAN-on-SIC provides 5G base stations with significant increases in both efficiency and performance when compared to Laterally Diffused Metal-Oxide Semiconductors (LDMOS). In addition, GAN-on-SIC has enhanced thermal conductivity, exceptional durability and dependability, higher efficiency at higher frequencies, and comparable performance in a miniature MIMO array. GAN is expected to enhance power amplifiers for all network transmission cells (micro, macro, pico, and femtohm/home routers). Consequently, GAN could significantly impact the subsequent generation of 5G deployment. Regional Analysis Asia-Pacific is the most significant global Compound Semiconductor Materials market shareholder and is estimated to exhibit a CAGR of 4.6% over the forecast period. The consumer electronics market in Asia-Pacific countries, including China, India, Japan, Indonesia, and Malaysia, is experiencing high penetration due to technologically advanced products. Rapid urbanization and rising disposable income are expected to expand consumer electronics users further, promoting the scope of compound semiconductor materials. Additionally, technological developments, such as the miniaturization of smartphones, TVs, laptops, and air conditioners, are driving the industry. Government initiatives in India, the largest producer of household appliances, are also boosting the market. The demand for compound semiconductor materials for major appliances, such as refrigerators, washing machines, and air conditioners, is expected to grow. The manufacturing sector in the region is influenced by low labor costs, land availability, and high domestic demand, attracting foreign manufacturers to invest in the manufacturing sector. North America is anticipated to exhibit a CAGR of 3.3% over the forecast period. Expanding the end-use industries in the United States, Canada, and Mexico drives the demand for compound semiconductor materials in the region. Moving closer to the area, foreign manufacturers must expand their target markets, encouraging capacity growth and acquisitions. For instance, the Canadian company Solantro Semiconductor was purchased by Huada Semiconductor, a Chinese market leader in industrial semiconductor solutions. Advanced integrated circuits are being developed by Solantro Semiconductor using silicon and other compound semiconductor materials. The goal of the acquisition was to increase investment in the company, benefit from the availability of technology in the area, and broaden its presence in North America. Furthermore, the area is also experiencing capacity increases; in Champaign, Illinois, II-VI EpiWorks opened an addition to its center of manufacturing excellence. The plant produces epitaxial wafer products for compound semiconductor fabrication. The goal of this expansion is a four-fold increase in production. Key Highlights The global compound semiconductor materials market was valued at USD 32 billion in 2022. It is estimated to reach USD 06 billion by 2031, growing at a CAGR of 6.0% during the forecast period (2023–2031). Based on the product, the global compound semiconductor materials market is bifurcated into Group IV-IV, Group III-V, and Group II-VI. The Group III-V segment dominates the global market and is predicted to exhibit a CAGR of 4.0% over the forecast period. Based on application, the global compound semiconductor materials market is bifurcated into electronics, consumer goods, aerospace and defense, telecommunication, and others. The telecommunication segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 4.6% over the forecast period. Asia-Pacific is the most significant global Compound Semiconductor Materials market shareholder and is estimated to exhibit a CAGR of 4.6% over the forecast period. Competitive Players The key players in the global compound semiconductor materials market are Sumitomo Electric Industries, Ltd.; JX Nippon Mining and Metals; FURUKAWA CO., LTD.; Shin-Etsu Chemical Co., Ltd.; and SHOWA DENKO K.K. Market News In May 2022, JX Nippon Mining and Metals USA Inc. received financial support from the Japan Bank for International Cooperation to construct a new facility in Arizona, USA. In April 2022, Shin-Etsu Chemical Co. Ltd. announced the development of a novel thermal interface silicone rubber sheet, called the “TC-BGI Series,” for use in electric car components, in line with the advancements in high voltage gadget technology. Global Compound Semiconductor Materials Market: Segmentation By Product Group IV-IV Group III-V Group II-VI By Applications Electronics and Consumer Goods Aerospace and Defence Telecommunication Others By Regions North America Europe Asia-Pacific Central and South America The Middle East and Africa