The global compound semiconductor market size reached USD 122.8 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 177.0 Billion by 2033, exhibiting a growth rate (CAGR) of 4.1% during 2025-2033. The need for high-speed electronics, 5G communication, and power-efficient devices, automotive advancements, LED lighting adoption, and emerging applications, including IoT and renewable energy technologies, are propelling the market growth.
Report Attribute
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Key Statistics
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Base Year
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2024
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Forecast Years
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2025-2033
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Historical Years
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2019-2024
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Market Size in 2024
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USD 122.8 Billion |
Market Forecast in 2033
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USD 177.0 Billion |
Market Growth Rate 2025-2033 | 4.1% |
High-frequency communication and 5G networks
The National Library of Medicine reports of 2021 shows that the 5G network is projected to reach 40 percent population coverage and 1.9 billion subscriptions by the end of 2024. The rise of high-speed, high-capacity communication systems is a crucial step in the establishment of compound semiconductors. Due to the establishment of 5G infrastructure around the world, these semiconductors operate at high frequencies, and offer a substantial imperial value addition possibility for the supplier. Additionally, the growth of the market is supported by compound semiconductors like gallium nitride (GaN) and gallium arsenide (GaAs), which are displacing elemental semiconductors such as silicon that are unstable at significant frequencies due to their elemental characteristics.
Furthermore, the rising employment of GaN in 5G base stations, radar systems, and satellite communication equipment due to its high electron mobility and robust power handling capabilities is strengthening the compound semiconductor market growth.
Power electronics and energy efficiency
As per the International Energy Agency, the global investment in energy efficiency reached USD 560 billion in 2022, an increase of 16% on 2021. The increasing focus on energy efficiency and the shift towards renewable energy sources is one of the key factors driving the demand for compound semiconductors. For high-temperature and high-voltage applications, materials such as silicon-based semiconductors have certain limitations. However, silicon carbide with higher thermal conductivity and enhanced breakdown voltage helps in facilitating more efficient energy conversion and minimizing power losses, which is projected to propel the market. Furthermore, SiC is being increasingly deployed in electric and fuel-cell vehicles, solar inverters, and industrial motor drives to lower energy use consumption and enhance sustainability, thereby bolstering growth of the compound semiconductor market.
Growing demand for LiDAR
The IMARC Group’s report shows that the global LiDAR market size reached US$ 2.6 Billion in 2023. LiDAR technology, which uses laser light sources to measure distances with high precision, is gaining significance in several high-resolution applications, such as autonomous vehicles, industrial automation, and environmental monitoring. Compound semiconductors, which include materials like gallium nitride (GaN) and indium phosphide (InP), are crucial components in the development of efficient and high-performance laser diodes used in LiDAR systems. Additionally, as LiDAR systems are advancing to be useful in various industries, there is an increase in the demand for advanced semiconductor materials that have a greater power output, can operate at higher temperatures and are more reliable. Compound semiconductors exhibit all these characteristics, resulting in rising adoption of this technology in the upcoming generation of LiDAR systems.
IMARC Group provides an analysis of the key trends in each segment of the global compound semiconductor market report, along with forecasts at the global, regional and country levels from 2025-2033. Our report has categorized the market based on type, product, deposition technology and application.
Breakup by Type:
III-V compound semiconductor dominates the market
The report has provided a detailed breakup and analysis of the market based on the type. This includes III-V compound semiconductor (gallium nitride, gallium phosphide, gallium arsenide, indium phosphide, and indium antimonide), II-VI compound semiconductor (cadmium selenide, cadmium telluride, and zinc selenide), sapphire, IV-IV compound semiconductor, and others. According to the report, III-V compound semiconductor represents the largest segment.
III-V compound semiconductors, such as gallium nitride, gallium phosphide, gallium arsenide, indium phosphide, and indium antimonide, are in high demand. They are required because of the unique material characteristics that allow breakthroughs in niche markets. GaN's exceptional power handling capabilities are driving innovations in high-power electronics, RF amplifiers, and 5G infrastructure. GaAs' high electron mobility supports high-speed devices for wireless communication and aerospace applications, thereby impelling the market growth. Similarly, InP is a fundamental material for high-speed optical communication systems since InSb is used in infrared detectors for thermal imaging. The exclusive performance of these specialized applications relies on III-V compound semiconductors.
Breakup by Product:
Power semiconductor holds the largest share in the market
A detailed breakup and analysis of the market based on the product has also been provided in the report. This includes power semiconductor, transistor, integrated circuits, diodes and rectifiers, and others. According to the report, power semiconductor accounts for the largest market share.
As per IMARC Group’s report the global power semiconductor market reached US$ 43.1 Billion in 2023. The surging demand for power compound semiconductors, such as silicon carbide (SiC) and gallium nitride (GaN), due to their transformative impact on energy efficiency and power electronics is one of the main drivers of the market. Additionally, SiC's high thermal conductivity and breakdown voltage enhance energy conversion in EVs, renewable energy systems, and industrial equipment. GaN's high electron mobility enables compact and efficient power supplies, contributing to smaller form factors in consumer electronics and EV charging systems. As industries seek enhanced performance, reduced energy losses, and greater power density, power compound semiconductors are emerging as crucial enablers, propelling their adoption across a spectrum of applications, aiding in market expansion.
Breakup by Deposition Technology:
Chemical vapor deposition dominates the market
The report has provided a detailed breakup and analysis of the market based on the deposition technology. This includes chemical vapor deposition, molecular beam epitaxy, hydride vapor phase epitaxy, ammonothermal, atomic layer deposition, and others. According to the report, chemical vapor deposition represents the largest segment.
According to IMARC Group’s report the global chemical vapor deposition (CVD) market is expected to reach US$ 58.3 Billion by 2032. CVD offers exceptional uniformity and precision in depositing thin film materials, essential for high-quality compound semiconductors, which, in turn, is driving the market growth. Moreover, it supports a wide range of materials and is compatible with various substrates, making it a highly versatile method. Besides this, CVD's scalability and efficiency in mass production make it an attractive option for manufacturers, fulfilling the demand for compound semiconductors in various applications such as electronics, optoelectronics, and photovoltaics.
Breakup by Application:
IT and telecom holds the largest share in the market
A detailed breakup and analysis of the market based on the application has also been provided in the report. This includes IT and telecom, aerospace and defense, automotive, consumer electronics, healthcare, and industrial and energy and power. According to the report, IT and telecom accounts for the largest market share.
The utilization of compound semiconductors in the IT and telecom sector is propelled by their capacity to meet the escalating demand for high-speed data transmission, networking, and wireless communication. These materials, such as gallium nitride (GaN) and indium phosphide (InP), enable the creation of high-frequency, high-efficiency devices critical for 5G infrastructure, satellite communication, and broadband expansion, fueling their adoption across various applications in the IT and telecom industry. GaN's superior power handling characteristics enhance the performance of RF amplifiers and base stations, while InP's exceptional optical properties drive advancements in optical communication systems. As the sector continues to seek faster and more reliable connectivity, compound semiconductors play an integral role in enabling the next era of information exchange and digital transformation.
Breakup by Region:
Asia Pacific exhibits a clear dominance, accounting for the largest. compound semiconductor market share
The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific accounts for the largest market share.
The Asia Pacific compound semiconductor market is experiencing significant propulsion due to the region's robust manufacturing capabilities, rapid technological advancements, and burgeoning demand for cutting-edge electronic products. Countries such as South Korea, Taiwan, China, and Japan are emerging as semiconductor powerhouses, fostering a competitive landscape for compound semiconductor production. Besides this, the rising expansion of 5G network in countries like China is driving the demand for compound semiconductor. The State Council of the People’s Republic of China’s report of 2023 shows that nearly 3.22 million 5G base stations were built by the October end in 2023 in China, accounting for 28.1 percent of all its mobile base stations.
The competitive landscape of the global compound semiconductor market is marked by a dynamic interplay of established players and emerging contenders, fueled by technological advancements and market demands. Key industry leaders hold substantial market shares, leveraging their expertise in research and development (R&D) and manufacturing to offer a diverse range of compound semiconductor solutions. Moreover, collaborations and strategic acquisitions amplify their capabilities, expanding their product portfolios. At the same time, emerging companies are making strides in providing advanced deposition and manufacturing equipment critical for compound semiconductor production. The market's growth is also driven by the convergence of industries such as telecommunications, automotive, and energy, prompting traditional semiconductor giants to enter the domain, intensifying competition. For instance, in 2022, Wolfspeed announced that Lucid Motors deployed its Silicon Carbide power device solutions in its high-performance and pure-electric car, the Lucid Air. They also entered a multi-year agreement to produce and supply SiC devices.
The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major compound semiconductor companies have also been provided. Some of the key players in the market include:
(Kindly note that this only represents a partial list of companies, and the complete list has been provided in the report.)
Report Features | Details |
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Base Year of the Analysis | 2024 |
Historical Period | 2019-2024 |
Forecast Period | 2025-2033 |
Units | Billion USD |
Scope of the Report | Exploration of Historical and Forecast Trends, Industry Catalysts and Challenges, Segment-Wise Historical and Predictive Market Assessment:
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Types Covered |
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Products Covered | Power Semiconductor, Transistor, Integrated Circuits, Diodes and Rectifiers, Others |
Deposition Technologies Covered | Chemical Vapor Deposition, Molecular Beam Epitaxy, Hydride Vapor Phase Epitaxy, Ammonothermal, Atomic Layer Deposition, Others |
Applications Covered | IT And Telecom, Aerospace and Defense, Automotive, Consumer Electronics, Healthcare, Industrial and Energy, and Power |
Regions Covered | Asia Pacific, Europe, North America, Latin America, Middle East and Africa |
Countries Covered | United States, Canada, Germany, France, United Kingdom, Italy, Spain, Russia, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico |
Companies Covered | Infineon Technologies AG, Microchip Technology Inc., Mitsubishi Electric Corporation, NXP Semiconductors N.V., onsemi, Qorvo Inc., Renesas Electronics Corporation, STMicroelectronics, Texas Instruments Incorporated, WIN Semiconductors Corp., Wolfspeed Inc., etc. |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
The global compound semiconductor market was valued at USD 122.8 Billion in 2024.
We expect the global compound semiconductor market to exhibit a CAGR of 4.1% during 2025-2033.
The rising utilization of compound semiconductors in various industries, such as telecommunications, defense, aerospace, etc., owing to their advantageous properties, including high electron mobility and bandgap, enhanced frequency, better current and voltage holding capacity, etc., is primarily driving the global compound semiconductor market.
The sudden outbreak of the COVID-19 pandemic had led to the implementation of stringent lockdown regulations across several nations, resulting in the temporary closure of numerous manufacturing units for compound semiconductors.
Based on the type, the global compound semiconductor market has been divided into III-V compound semiconductor, II-VI compound semiconductor, sapphire, IV-IV compound semiconductor, and others. Among these, III-V compound semiconductor currently exhibits a clear dominance in the market.
Based on the product, the global compound semiconductor market can be categorized into power semiconductor, transistor, integrated circuits, diodes and rectifiers, and others. Currently, power semiconductor accounts for the majority of the global market share.
Based on the deposition technology, the global compound semiconductor market has been segregated into chemical vapor deposition, molecular beam epitaxy, hydride vapor phase epitaxy, ammonothermal, atomic layer deposition, and others, where chemical vapor deposition currently holds the largest market share.
Based on the application, the global compound semiconductor market can be bifurcated into IT and telecom, aerospace and defense, automotive, consumer electronics, healthcare, and industrial and energy and power. Currently, the IT and telecom industry exhibits a clear dominance in the market.
On a regional level, the market has been classified into North America, Asia-Pacific, Europe, Latin America, and Middle East and Africa, where Asia-Pacific currently dominates the global market.
Some of the major players in the global compound semiconductor market include Infineon Technologies AG, Microchip Technology Inc., Mitsubishi Electric Corporation, NXP Semiconductors N.V., onsemi, Qorvo Inc., Renesas Electronics Corporation, STMicroelectronics, Texas Instruments Incorporated, WIN Semiconductors Corp., and Wolfspeed Inc.