News: Markets
28 January 2025
Compound semiconductor market growing at 10.9% CAGR from $44.5bn in 2023 to $111.6bn in 2032
According to a study by Global Market Insights Inc, the compound semiconductor market was $44.5bn in 2023 and is estimated to rising at a compound annual growth rate (CAGR) of 10.9% to $111.6bn by the end of 2032. This is driven by the distinct advantages of compound semiconductors, which provide superior performance in high-frequency, high-power and energy-efficient applications. These materials excel in telecoms, electric vehicles, renewable energy, and aerospace, where their ability to handle extreme conditions, higher power and heat resistance surpasses traditional silicon semiconductors.
A key driver of the compound semiconductor market is the growing demand for advanced technologies that require high-performance materials. Compound semiconductors outperform silicon in terms of power efficiency and heat resistance, making them well suited to next-generation applications. In telecoms, they are critical for 5G infrastructure and satellite communications, where high frequencies and minimal energy loss are essential. Additionally, their ruggedness makes them ideal for use in harsh environments, such as defense and aerospace, where reliability is paramount.
The gallium nitride (GaN) segment is expected to grow significantly, to $25bn by 2032, since GaN’s wide bandgap enables it to handle high voltages, high frequencies and high temperatures, making it a key material for power electronics, radio frequency (RF) devices, and high-efficiency systems, particularly in applications such as 5G.
In terms of compound semiconductor deposition technologies includes chemical vapor deposition (CVD), molecular beam epitaxy (MBE) and hydride vapor phase epitaxy (HVPE), MBE is gaining traction due to its ability to precisely control thin-film deposition at the atomic level, ensuring the production of high-quality, defect-free layers. This is particularly valuable in fields such as quantum computing, optoelectronics and high-frequency devices, where material purity is crucial.
The USA comprised a 30.6% share of the compound semiconductor market in 2023. The region is seeing rapid growth, driven by investments in high-performance applications such as 5G networks, electric vehicles and renewable energy technologies. The USA is also a leader in semiconductor R&D, bolstered by initiatives aimed at enhancing domestic manufacturing and reducing the dependence on imports.
www.gminsights.com/industry-analysis/compound-semiconductor-market
