Compound Semiconductor Market Report 2025

The compound semiconductor market size has grown strongly in recent years. It will grow from $79.33 billion in 2024 to $85.94 billion in 2025 at a compound annual growth rate (CAGR) of 8.3%. The growth in the historic period can be attributed to renewable energy sector, military and defense applications, industrial automation needs, growth in medical device industry, automotive electronics advancements.

The compound semiconductor market size is expected to see strong growth in the next few years. It will grow to $120.29 billion in 2029 at a compound annual growth rate (CAGR) of 8.8%. The growth in the forecast period can be attributed to space and satellite technology advancements, medical device innovations, automotive technological shift, ai and machine learning integration, IoT and wearable technology growth. Major trends in the forecast period include 5g technology and connectivity demand, electric vehicle (EV) revolution, data centers and cloud computing, renewable energy expansion, advancements in optoelectronics.

The compound semiconductors market is poised for substantial growth, driven by the robust expansion of the electronics industry. The demand for electrical components and consumer electronics has surged, necessitating the use of compound semiconductors in the production of chips and microchips for electronic devices. In the UK, for instance, mobile connections have reached 71.8 million, surpassing the population by 4.2 million and experiencing a 3.8% increase from 2021. The projections indicate that around 95% of the expected 68.3 million UK population by 2025 will own smartphones, highlighting the growing significance of compound semiconductors in the thriving electronics market.

The growth of electric vehicles (EVs) is anticipated to drive the expansion of the compound semiconductor market in the coming years. Electric vehicles are powered by one or more electric motors, drawing electricity from sources such as batteries, fuel cells, or solar panels, rather than relying on internal combustion engines that utilize fossil fuels. Compound semiconductors play a crucial role in electric vehicles by enhancing power efficiency and enabling high-performance electronics for better energy conversion and control. For example, a 2023 report from the International Energy Agency, an autonomous intergovernmental organization based in France, noted that the global electric car market saw significant growth, with sales exceeding 10 million units in 2022. The proportion of electric cars in total vehicle sales increased from 9% in 2021 to 14% in 2022. Thus, the rise of electric vehicles is propelling the growth of the compound semiconductor market.

The compound semiconductor market is witnessing a significant trend of product innovations, with major companies focusing on developing advanced solutions to bolster their market positions. For instance, Qorvo, a leading provider of RF solutions, launched a groundbreaking 100-watt L-band GaN-on-SiC power amplifier module in August 2022. This innovative product, the QPA2511, stands out with features such as integrated two-stage amplification, delivering a remarkable 60% power-added efficiency in a circuit size 70% smaller than comparable systems. The emphasis on product innovation reflects the commitment of industry players to address evolving market needs and maintain a competitive edge.

Major players in the compound semiconductors market are spearheading advancements in power systems by leveraging technologies such as gallium nitride (GaN). Gallium Nitride technology, utilizing the compound gallium nitride for electronic device fabrication, is at the forefront of addressing the escalating demand for high-performance and integrated power systems. For instance, Navitas Semiconductor, a leading US-based next-gen power-semiconductor company, introduced its GaNSense Control ICs in March 2023. These ICs seamlessly integrate high-speed, high-voltage GaN with low-voltage silicon system-controller chips. The GaNSense Control ICs set new benchmarks with up to 20 times faster operation, three times greater power handling capacity, and three times faster charging, all in a compact and lightweight form factor. Designed for diverse applications, these control integrated circuits offer efficient power solutions for electric vehicles, data centers, consumer appliances, and charging devices.

In March 2023, Infineon Technologies, a Germany-based semiconductor solutions provider, acquired GaN Systems for $830 million. This strategic move strengthens Infineon's capabilities in power conversion technologies and reinforces its position in the rapidly expanding markets for electric vehicles (EVs), renewable energy, and industrial applications. GaN Systems, based in Canada, specializes in Gallium Nitride (GaN) solutions, which are essential for the development of energy-efficient power systems.

Major companies operating in the compound semiconductor market include Nichia Corporation, Samsung Electronics Co Ltd, Qorvo Inc, Wolfspeed Inc, WIN Semiconductors Corp, Infineon Technologies AG, NXP Semiconductors NV, Sumitomo Electric Industries Ltd, Renesas Electronics Corporation, Cree Inc, Mitsubishi Electric Corporation, Skyworks Solutions Inc, Texas Instruments Incorporated, Taiwan Semiconductor Manufacturing Company Ltd, Advanced Wireless Semiconductor Company, Analog Devices Inc, Broadcom Inc, GaN Systems Inc, Microchip Technology Inc., Semiconductor Components Industries LLC, ams-OSRAM AG, STMicroelectronics NV, Aixtron SE, Applied Materials Inc, ASML Holding NV, CVD Equipment Corporation, IQE PLC, KLA Corporation, Lumentum Holdings Inc.

Asia-Pacific was the largest region in the compound semiconductor market in 2024. North America is expected to be the fastest-growing region in the compound semiconductor market during the forecast period. The regions covered in the compound semiconductor market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the compound semiconductor market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Compound semiconductors, composed of multiple elements situated around group 4 of the periodic table, play a crucial role in optoelectronic component creation. They are integral in photovoltaic systems, high-density data storage, solid-state lighting, and optical communication systems.

Diverse compound semiconductor types encompass gallium nitride (GaN), gallium arsenide (GaAs), silicon carbide (SiC), indium phosphide (InP), silicon germanium (SiGe), gallium phosphide (GaP), and others. Gallium nitride (GaN), known for its specialized properties, facilitates efficient optoelectronic devices and finds applications in high-power and high-temperature scenarios. These semiconductors are manufactured using deposition technologies such as chemical vapor deposition (CVD), molecular beam epitaxy, hydride vapor phase epitaxy (HVPE), ammono thermal, liquid phase epitaxy, atomic layer deposition (ALD), among others. Their applications span various sectors, including general lighting, telecommunications, military, defense, aerospace, automotive, power supply, data communications, consumer display, and commercial consumer devices.

The compound semiconductors market research report is one of a series of new reports that provides compound semiconductors market statistics, including compound semiconductors industry global market size, regional shares, competitors with a compound semiconductors market share, detailed compound semiconductors market segments, market trends, and opportunities, and any further data you may need to thrive in the compound semiconductors industry. This compound semiconductors market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The compound semiconductors market consists of sales of zinc oxide (ZnO), zinc selenide (ZnSe), and cadmium sulfide (CdS). Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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