Compound Semiconductor Market (Deposition Technology - Chemical Vapor Deposition (CVD), Molecular Beam Epitaxy, Hydride Vapor Phase Epitaxy (HVPE), Ammonothermal, Liquid Phase Epitaxy, Atomic Layer Deposition (ALD), and Others; Type - GaN, Gallium Arsenide (GaAS), Silicon Carbide (SiC), Indium Phosphide (INP), Silicon Germanium (SIGe), Gallium Phosphide (GAP), and Others; Product - LED, Optoelectronics, RF Devices, and Power Electronics; Application - General Lighting, Telecommunication, Military, Defense and Aerospace, Automotive, Power Supply, Datacom, Consumer Display, Commercial, Consumer Devices, and Others): Global Industry Analysis, Trends, Size, Share and Forecasts to 2032

A recent report published by Infinium Global Research on compound semiconductor market provides in-depth analysis of segments and sub-segments in the global as well as regional compound semiconductor market. The study also highlights the impact of drivers, restraints, and macro indicators on the global and regional compound semiconductor market over the short term as well as long term. The report is a comprehensive presentation of trends, forecast and dollar values of global compound semiconductor market.

Market Insight:

The global compound semiconductor market was valued at USD 39.23 billion in 2023 and is expected to reach USD 78.22 billion in 2032, with a CAGR of 7.48% during the forecast period 2024-2032.

The compound semiconductor market is experiencing significant growth due to the increasing use of Gallium Nitride and Silicon Carbide in electric vehicles, 5G infrastructure, and renewable energy systems. Demand for these semiconductors is also surging in optoelectronic applications such as LEDs, laser diodes, and photodetectors, particularly in data centres and AR/VR technologies. The expansion of 5G and satellite communication networks is also driving the use of compound semiconductors in RF devices and power amplifiers. Strategic investments and partnerships are also reshaping the competitive landscape. The compound semiconductor market faces challenges such as high material and fabrication costs, limited supply chain maturity, and complex manufacturing processes, hindering large-scale adoption in cost-sensitive applications. Technical barriers include thermal management and reliability issues in high-power and high-frequency applications. To address these, companies are investing in R&D, developing cost-effective substrates such as GaN-on-silicon, pursuing strategic partnerships and vertical integration, and leveraging advanced packaging techniques and automation to enhance performance and reduce system costs.

The global deployment of 5G networks is increasing demand for compound semiconductors such as gallium nitride (GaN) and gallium arsenide (GaAs) due to their superior electrical properties. These materials are crucial for manufacturing high-frequency, high-power RF devices and amplifiers, enabling seamless 5G transmission across mmWave and sub-6 GHz bands. The exponential increase in data traffic, video streaming, IoT device usage, and cloud computing services further necessitates high-performance semiconductors for low-latency, high-bandwidth communication. Countries such as China, South Korea, and the U.S. are investing in 5G rollout, enhancing technological capabilities in GaN and GaAs processes. Additionally, the compound semiconductor market is being driven by the shift towards electric vehicles (EVs) and the adoption of silicon carbide (SiC) and gallium nitride (GaN) technologies. These semiconductors offer higher breakdown voltage, faster switching speeds, and superior thermal conductivity, making them ideal for EV components such as traction inverters and onboard chargers. This leads to lighter, more compact, and energy-efficient systems, resulting in extended vehicle range, reduced cooling requirements, and cost savings for manufacturers. The adoption of these semiconductors is also being driven by regulatory policies promoting zero-emission vehicles and stringent fuel efficiency standards.

Furthermore, the compound semiconductor market faces challenges due to its complex and capital-intensive fabrication process. These advanced materials require specialized manufacturing environments, high-vacuum deposition systems, and sophisticated epitaxial growth techniques. These processes increase setup costs, introduce technical challenges, and limit mass production capabilities. Consistent material quality and uniformity across large-diameter wafers also limit mass production. The lack of standardization and limited skilled labor also hinder technology transfer and commercialization. Despite investments in automation and process optimization, the complexity of the fabrication ecosystem continues to constrain market expansion. Moreover, the compound semiconductor market is poised for significant growth as research and development efforts focus on 6G technologies, particularly terahertz communications and ultra-low-latency data transfer. Compound semiconductors such as GaN, InP, and GaAs are positioned to meet the demands of 6G due to their wide bandgap properties, high electron mobility, and efficiency at high frequencies. Governments and telecom giants are funding long-term 6G R&D initiatives, driving investments in foundry expansions, wafer-scale integration, and monolithic microwave integrated circuits. The market could redefine its global relevance and commercial trajectory.

Asia-Pacific region is expected to dominate the compound semiconductor market during the forecast period, driven by its strong manufacturing base, rapid industrialization, and high demand from key sectors such as 5G, electric vehicles, consumer electronics, and renewable energy. Countries such as China, Taiwan, and South Korea lead in wafer production and foundry capabilities, accounting for more than half of the global output. Favourable government policies, low-cost manufacturing advantages, and significant investments in advanced semiconductor technologies further strengthen the region’s leadership. Europe is emerging as one of the fastest-growing regions driven by surging adoption of electric vehicles, renewable energy systems, and industrial automation technologies. Governments across the region are investing heavily in clean energy transition and advanced mobility solutions, creating strong demand for compound semiconductors such as SiC and GaN in power electronics and charging infrastructure. Additionally, increasing focus on 5G deployment, aerospace innovation, and localized semiconductor supply chains is accelerating market expansion.

Report Scope of the Compound Semiconductor Market:

Segment wise revenue contribution in the global compound semiconductor market

The report on global compound semiconductor market provides a detailed analysis of segments in the market based on Deposition Technology, Type, Product, and Application.

Segmentation Based on Deposition Technology

·       Chemical Vapor Deposition (CVD)

·       Molecular Beam Epitaxy

·       Hydride Vapor Phase Epitaxy (HVPE)

·       Ammonothermal

·       Liquid Phase Epitaxy

·       Atomic Layer Deposition (ALD)

·       Others

Segmentation Based on Type

·       GaN

·       Gallium Arsenide (GaAS)

·       Silicon Carbide (SiC)

·       Indium Phosphide (INP)

·       Silicon Germanium (SIGe)

·       Gallium Phosphide (GAP)

·       Others

Segmentation Based on Product

·       LED

·       Optoelectronics

·       RF Devices

·       Power Electronics

Segmentation Based on Application

·       General Lighting

·       Telecommunication

·       Military, Defense and Aerospace

·       Automotive

·       Power Supply

·       Datacom

·       Consumer Display

·       Commercial

·       Consumer Devices

·       Others

Company Profiled:

·       Nichia Corporation

·       Samsung Electronics Co., Ltd.

·       ams OSRAM AG

·       Qorvo, Inc.

·       Skyworks Solutions, Inc.

·       Wolfspeed, Inc.

·       Canon Inc.

·       Infineon Technologies AG

·       Mitsubishi Electric Corporation

·       Others

Report Highlights:

The report provides deep insights into demand forecasts, market trends, and micro and macro indicators. In addition, this report provides insights into the factors that are driving and restraining the growth in this market. Moreover, The IGR-Growth Matrix analysis given in the report brings an insight into the investment areas that existing or new market players can consider. The report provides insights into the market using analytical tools such as Porter's five forces analysis and DRO analysis of the compound semiconductor market. Moreover, the study highlights current market trends and provides forecasts from 2024-2032. We also have highlighted future trends in the market that will affect the demand during the forecast period. Moreover, the competitive analysis given in each regional market brings an insight into the market share of the leading players.