- The sapphire segment is estimated to witness the highest CAGR of 13.5 per cent during the forecast period
- The molecular beam epitaxy segment is expected to register the highest CAGR of 12.8 per cent from 2020 to 2027
The global semiconductor market is estimated to reach $212.95 billion by 2027 as per a report by Allied Market Research. It added that the value stood at $89.94 billion in 2019 and it will grow at a CAGR of 11.1 per cent from 2020 to 2027.
The report added that increase in demand for epitaxial wafer in LED technology and growing adoption of compound semiconductors compared to silicon-based technology are driving the growth of the global compound semiconductor market. It added that high cost associated with compound semiconductor components and materials is anticipated to restrain the market growth. It also said that a rise in usage in smart technologies is expected to provide new growth opportunities during the forecast period.
As per the report, “Major compound semiconductor manufacturers across the globe have halted their production activities due to disrupted supply of raw materials such as gallium and arsenide due to restrictions on mobility amid lockdown.”
III-V compound semiconductors segment contributed to the largest share in 2019.
Electronic components like LED chips, PCBs, ICs, and wafers are mostly imported from China. Due to the shutdown of manufacturing units in China amid the lockdown, the prices of compound semiconductor components have been increased by two-three per cent due to a shortage of supplies.
The report added that based on type, the III-V compound semiconductors segment contributed to the largest share in 2019. It accounted for nearly one-fourth of the total share, and is estimated to maintain its dominant position during the forecast period. The sapphire segment is estimated to witness the highest CAGR of 13.5 per cent during the forecast period.
Based on deposition technology, the chemical vapour deposition segment accounted for the largest share in 2019, holding more than one-fourth of the total share. It is expected to maintain the largest share throughout the forecast period. The molecular beam epitaxy segment is expected to register the highest CAGR of 12.8 per cent from 2020 to 2027.
Based on the region, Asia-Pacific contributed the highest share, accounting for nearly half of the total share in 2019. It will maintain its dominance throughout the forecast period. It is expected to grow at the highest CAGR of 13.2 per cent from 2020 to 2027.