Compound Semiconductor Market

Compound Semiconductor Market Forecasts to 2028 - Global Analysis By Type (Gallium Phosphide (GaP), Gallium Nitride (GaN), Indium Phosphide (InP), Silicon Germanium (SiGe), Silicon Carbide (SiC), Gallium Arsenide (GaAs)), Product (Power Electronics, Optoelectronics, Light Emitting Deode (LED), RF Devices), Application(Datacom, General Lighting, Consumer Devices, Telecommunication, Power Supply, Other Applications), and Geography

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Published: 2023 ID: SMRC22342

This report covers the impact of COVID-19 on this global market

Years Covered


Estimated Year Value (2022)

US $112.2 BN

Projected Year Value (2028)

US $167.4 BN

CAGR (2022 - 2028)


Regions Covered

North America, Europe, Asia Pacific, South America, and Middle East & Africa

Countries Covered

US, Canada, Mexico, Germany, UK, Italy, France, Spain, Japan, China, India, Australia, New Zealand, South Korea, Rest of Asia Pacific, South America, Argentina, Brazil, Chile, Middle East & Africa, Saudi Arabia, UAE, Qatar, and South Africa

Largest Market

Asia Pacific

Highest Growing Market

Asia Pacific


According to Stratistics MRC, the Global Compound Semiconductor Market is accounted for $112.2 billion in 2022 and is expected to reach $167.4 billion by 2028 growing at a CAGR of 6.9% during the forecast period. A compound semiconductor is a semiconductors made up of at least two different species of chemical elements. These are produced utilising a variety of deposition methods, including chemical vapour deposition, atomic layer deposition, and others.

According to the US Department of Energy (DOE), LED lights use about 75-80% less energy than traditional incandescent light bulbs and about 65% less energy than halogen bulbs.


Market Dynamics:


Rising integration of the Internet of things (IoT) in various applications

The business for compound semiconductor is expanding as a result of the increasing adoption of the Internet of Things (IoT) in numerous applications. The emergence of smart homes and smart buildings is accelerating the combination of compound semiconductors to improve the functionality and operational effectiveness of many components, hence fueling industry growth. They also make sensors more effective at gathering operational data and enabling automation, which is why they are being used in smarter buildings and houses. By offering embedded security solutions, they also shield infrastructure from cyber attacks, fostering the development of the compound semiconductor sector.


High raw material and fabrication costs

Compound semiconductors have high raw material as well as fabrication costs, which can restrain market expansion. Due to the rising demand for chips in automobiles, laptops, and other electronic gadgets, semiconductor manufacture is expensive. The lack of factories to manufacture the chips is the primary cause of the scarcity.


Technological advancement

The utilization of compound semiconductors like gallium nitride (GaN) as silicon carbide is growing as a result of the introduction of 5G technology and the rapid expansion of the internet (SiC). Additionally, the sector is expanding due to the usage of compound semiconductors as a replacement for silicon-based materials as a result of the worldwide semiconductor shortage. Compound semiconductors are utilised more frequently in a variety of electronic components because they offer high temperature, high pressure resistance, and high efficiency. This is stimulating the growth of the business by boosting the applications for compound semiconductor.


Complexities of compound semiconductor

The expansion of the market would be hampered by the complexity of compound semiconductor manufacturing. Compound semiconductors are produced using intricate processes that call for sophisticated machinery and highly qualified staff. The exponential development of a narrow semiconductor layer, washing and lithography, ion implantation, and the deposition of metallic conductors are a few of the phases in the manufacturing process. These procedures need to be carefully managed because one step of the process can affect the ones that follow. Making compound semiconductor components in within limitations of the typical production process also calls for a high level of knowledge. These difficulties are limiting the market's expansion.

Covid-19 Impact

Global markets are seeing extraordinary shifts as a result of the COVID 19 outbreak. During this time, there are more losses and difficulties. Operations in the sector are being hampered by supply chain problems. Few strong significant firms dominate the market for compound semiconductors. However, one of the key reasons driving the market expansion during the COVID-19 pandemic is the increase in the demand for compound semiconductors also including power semiconductors, transistors, and integrated circuits (ICs) solutions across key sectors. Instead, the COVID-19 epidemic caused a number of challenges for the market, including a shortage of competent workers and delays or cancellations of development due to complete or partial lockdowns around the world.

The Silicon Carbide (SiC) segment is expected to be the largest during the forecast period

The Silicon Carbide (SiC) segment is estimated to have a lucrative growth, due to its widespread application in power discrete components and devices including MOSFETs, junction field effect transistors (JFETs), and Schottky barrier diodes. SiC can function at greater temperatures and voltages and has a larger bandgap than other compound semiconductors (up to 1,200 V). SiC is so anticipated to be utilised in high-power applications. Electric vehicles, wireless charging, and power supplies all employ SiC.

The Power Supply segment is expected to have the highest CAGR during the forecast period

The Power Supply segment is anticipated to witness the fastest CAGR growth during the forecast period. In the field of power supplies, compound semiconductors are revolutionising the industry. Compound semiconductors have proliferated across many sectors and industries as a result of the advantages they provide to end-user organisations. GaN and SiC devices can be used in the double-conversion manner while maintaining strong efficiency. These components can be used in UPSs to reduce size, enhance power quality, and save money. These have various benefits over silicon and hybrid competition. Although hybrid components based on compound semiconductors can minimise power loss by up to 46% and full GaN-based UPS devices can minimise power loss by up to 100%, conventional silicon insulated-gate bipolar transistors (IGBTs) offer no advantage over power loss.

Region with largest share:

Asia Pacific is projected to hold the largest market share during the forecast period. Rapid urbanisation, the presence of more automakers, and the rising demand for semiconductors from the aerospace, electronics, and other end-user industries are some of the reasons contributing to the regional market's expansion. Asian nations are making significant investments in the defence industry to update their machinery with cutting-edge technologies. As industrial automation has increased, so has the use of computers and other devices for the effective and efficient control of processes. Compound semiconductor devices are crucial because they can withstand high temperatures and voltages.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period, owing to the area boasts a wide range of providers of raw materials in addition to low labour prices. In order to meet stringent high-performance, high-power, and long-life cycle requirements, gallium nitride technology is swiftly being deployed in radar, electronic warfare, and communication systems in the defence industry, thus replacing lateral MOSFET components. The Asia Pacific region is most likely to dominate the compound semiconductor market because the bulk of industry vendors are situated in South Korea, China, and Taiwan. Compound semiconductor devices, which can withstand high voltages and temperatures, are essential for ensuring effective power consumption in smaller applications.


Key players in the market

Some of the key players profiled in the Compound Semiconductor Market include Toshiba Corporation, Broadcom Inc., NXP Semiconductors N.V., Texas Instruments Inc., International Quantum Epitaxy Plc., Taiwan Semiconductor Manufacturing Company Ltd., International Quantum Epitaxy PLC, Qorvo Inc., Mitsubishi Electric Corporation, Samsung Electronics Co. Ltd., Skyworks Solutions, Inc., OSRAM, Qualcomm Inc. and Sony Group Corp.

Key Developments:

In May 2021, OSRAM, and ams subsidiary, introduced the OSRAM 24V TEC Flex family, which provides homogeneous illumination for a variety of indoor and outdoor applications. TEC Flex Tunable White (TW) can be utilized to maintain a high color yield while continually adjusting the color temperature from 2700 K to 6500 K.

Types Covered:
• Gallium Phosphide (GaP)
• Gallium Nitride (GaN)
• Indium Phosphide (InP)
• Silicon Germanium (SiGe)
• Silicon Carbide (SiC)
• Gallium Arsenide (GaAs)
• Other Types

Products Covered:
• Power Electronics
• Optoelectronics
• Light Emitting Deode (LED)
• RF Devices
• Other Products

Applications Covered:
• Datacom
• General Lighting
• Consumer Devices
• Telecommunication
• Power Supply
• Military, Defense, and Aerospace
• Consumer Display
• Automotive
• Commercial
• Other Applications

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances

Table of Contents

1 Executive Summary

2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions

3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Product Analysis
3.7 Application Analysis
3.8 Emerging Markets
3.9 Impact of Covid-19

4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry

5 Global Compound Semiconductor Market, By Type
5.1 Introduction
5.2 Gallium Phosphide (GaP)
5.3 Gallium Nitride (GaN)
5.4 Indium Phosphide (InP)
5.5 Silicon Germanium (SiGe)
5.6 Silicon Carbide (SiC)
5.7 Gallium Arsenide (GaAs)
5.8 Other Types

6 Global Compound Semiconductor Market, By Product
6.1 Introduction
6.2 Power Electronics
6.3 Optoelectronics
6.4 Light Emitting Deode (LED)
6.5 RF Devices
6.5.1 RF Switching
6.5.2 RF Power
6.5.3 Other RF Devices
6.6 Other Products

7 Global Compound Semiconductor Market, By Application
7.1 Introduction
7.2 Datacom
7.3 General Lighting
7.4 Consumer Devices
7.5 Telecommunication
7.6 Power Supply
7.7 Military, Defense, and Aerospace
7.8 Consumer Display
7.9 Automotive
7.10 Commercial
7.11 Other Applications

8 Global Compound Semiconductor Market, By Geography
8.1 Introduction
8.2 North America
8.2.1 US
8.2.2 Canada
8.2.3 Mexico
8.3 Europe
8.3.1 Germany
8.3.2 UK
8.3.3 Italy
8.3.4 France
8.3.5 Spain
8.3.6 Rest of Europe
8.4 Asia Pacific
8.4.1 Japan
8.4.2 China
8.4.3 India
8.4.4 Australia
8.4.5 New Zealand
8.4.6 South Korea
8.4.7 Rest of Asia Pacific
8.5 South America
8.5.1 Argentina
8.5.2 Brazil
8.5.3 Chile
8.5.4 Rest of South America
8.6 Middle East & Africa
8.6.1 Saudi Arabia
8.6.2 UAE
8.6.3 Qatar
8.6.4 South Africa
8.6.5 Rest of Middle East & Africa

9 Key Developments
9.1 Agreements, Partnerships, Collaborations and Joint Ventures
9.2 Acquisitions & Mergers
9.3 New Product Launch
9.4 Expansions
9.5 Other Key Strategies

10 Company Profiling
10.1 Toshiba Corporation
10.2 Broadcom Inc.
10.3 NXP Semiconductors N.V.
10.4 Texas Instruments Inc.
10.5 International Quantum Epitaxy Plc.
10.6 Taiwan Semiconductor Manufacturing Company Ltd.
10.7 Qorvo Inc.
10.8 Mitsubishi Electric Corporation
10.9 Samsung Electronics Co. Ltd.
10.10 Skyworks Solutions, Inc.
10.11 OSRAM
10.12 Qualcomm Inc.
10.13 Sony Group Corp.

List of Tables
1 Global Compound Semiconductor Market Outlook, By Region (2020-2028) ($MN)
2 Global Compound Semiconductor Market Outlook, By Type (2020-2028) ($MN)
3 Global Compound Semiconductor Market Outlook, By Gallium Phosphide (GaP) (2020-2028) ($MN)
4 Global Compound Semiconductor Market Outlook, By Gallium Nitride (GaN) (2020-2028) ($MN)
5 Global Compound Semiconductor Market Outlook, By Indium Phosphide (InP) (2020-2028) ($MN)
6 Global Compound Semiconductor Market Outlook, By Silicon Germanium (SiGe) (2020-2028) ($MN)
7 Global Compound Semiconductor Market Outlook, By Silicon Carbide (SiC) (2020-2028) ($MN)
8 Global Compound Semiconductor Market Outlook, By Gallium Arsenide (GaAs) (2020-2028) ($MN)
9 Global Compound Semiconductor Market Outlook, By Other Types (2020-2028) ($MN)
10 Global Compound Semiconductor Market Outlook, By Product (2020-2028) ($MN)
11 Global Compound Semiconductor Market Outlook, By Power Electronics (2020-2028) ($MN)
12 Global Compound Semiconductor Market Outlook, By Optoelectronics (2020-2028) ($MN)
13 Global Compound Semiconductor Market Outlook, By Light Emitting Deode (LED) (2020-2028) ($MN)
14 Global Compound Semiconductor Market Outlook, By RF Devices (2020-2028) ($MN)
15 Global Compound Semiconductor Market Outlook, By RF Switching (2020-2028) ($MN)
16 Global Compound Semiconductor Market Outlook, By RF Power (2020-2028) ($MN)
17 Global Compound Semiconductor Market Outlook, By Other RF Devices (2020-2028) ($MN)
18 Global Compound Semiconductor Market Outlook, By Other Products (2020-2028) ($MN)
19 Global Compound Semiconductor Market Outlook, By Application (2020-2028) ($MN)
20 Global Compound Semiconductor Market Outlook, By Datacom (2020-2028) ($MN)
21 Global Compound Semiconductor Market Outlook, By General Lighting (2020-2028) ($MN)
22 Global Compound Semiconductor Market Outlook, By Consumer Devices (2020-2028) ($MN)
23 Global Compound Semiconductor Market Outlook, By Telecommunication (2020-2028) ($MN)
24 Global Compound Semiconductor Market Outlook, By Power Supply (2020-2028) ($MN)
25 Global Compound Semiconductor Market Outlook, By Military, Defense, and Aerospace (2020-2028) ($MN)
26 Global Compound Semiconductor Market Outlook, By Consumer Display (2020-2028) ($MN)
27 Global Compound Semiconductor Market Outlook, By Automotive (2020-2028) ($MN)
28 Global Compound Semiconductor Market Outlook, By Commercial (2020-2028) ($MN)
29 Global Compound Semiconductor Market Outlook, By Other Applications (2020-2028) ($MN)

Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.

List of Figures


Research Methodology

We at Stratistics opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.

Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.

Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.

Data Mining

The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.

Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.

Data Analysis

From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:

  • Product Lifecycle Analysis
  • Competitor analysis
  • Risk analysis
  • Porters Analysis
  • PESTEL Analysis
  • SWOT Analysis

The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.

Data Validation

The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.

We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.

The data validation involves the primary research from the industry experts belonging to:

  • Leading Companies
  • Suppliers & Distributors
  • Manufacturers
  • Consumers
  • Industry/Strategic Consultants

Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.

For more details about research methodology, kindly write to us at

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