- It added that the valuation stood at $32.5 in 2019 and will grow at a CAGR of 6.2 per cent from 2020 to 2027
- By application, IT and Telecom accounted for the major market value share of nearly 45 per cent in 2019 and expected to witness substantial growth over the analysis period
The global compound semiconductor market value will hit $ 44.52 billion by 2027 as per a report by Precedence Research. It added that the valuation stood at $32.5 in 2019 and will grow at a CAGR of 6.2 per cent from 2020 to 2027.
Compound semiconductors are referred as semiconductors that are made from two or more elements from different groups in the periodic table, and are synthesized using various deposition technologies. Devices made from semiconductors are an essential component of various electronic circuits, as they possess unique features like high current and voltage holding capacity, high operational temperatures, wide band gap, and ability to generate microwave signals.
Electronic wafer, film coatings, and integrated circuits
Compound semiconductors offer significant performance advantages over silicon semiconductors that are highly essential for a growing range of technology applications. Compound semiconductors such as InP and GaAs can operate at speeds that have higher magnitudes compared to silicon. They can also receive and generate broad range of electromagnetic spectrum ranging from high frequency ultraviolet visible light to long wavelength infrared light. Other properties offered by the compound semiconductor material include communications (lasers and receivers for fiber-optics) and ability to sense and emit light in the form of general lighting (LEDs).
The report added, “Increasing demand for high speed and efficiency products has prominently driven the market growth for compound semiconductors in the recent past. Integration of high-end technologies such as artificial intelligence, machine learning, and Internet of Things (IoT) in the communication sector to enhance its performance is the other prime factor that boosts the market growth.”
High fabrication and material cost
It added that the increasing usage of compound semiconductor in various electronic applications that include electronic wafer, film coatings, and integrated circuits expected to drive the market prominently over the next few years. Automotive innovations such as electric vehicle and autonomous cars have fulfilled the maximum required integration of semiconductor electronics in the automotive sector.
It further states that the high fabrication and material cost may hamper the market growth in the near future. The prices of compound semiconductor products are much higher as compared to silicon semiconductors due to complex manufacturing processes and usage of high-priced state-of-the-art equipment during fabrication.
In 2019, the Asia Pacific captured maximum revenue share of nearly 50 per cent in the global compound semiconductor market in 2019. It is set to witness the highest growth over the forecast period. This is mainly due to the escalating demand of consumer electronic products along with significant penetration of wireless communication technologies in the region.
The report added, “North America and Europe are the other significant revenue contributors in the global compound semiconductor market. Their growth is mainly attributed to the escalating development of automotive and telecommunication sectors. Advent of electrification of vehicles, artificial Intelligence, and digitisation has significantly propelled the market growth in above mentioned regions.”
IT and Telecom accounted for the major market value share
By application, IT and Telecom accounted for the major market value share of nearly 45 per cent in 2019 and expected to witness substantial growth over the analysis period. This is due to rising demand for semiconductor elements in wireless and mobile communications. However, consumer electronics projected to register the most lucrative growth rate during the forecast period.
It stated, “In 2019, the Asia Pacific accounted for the major market value share of around 45% in the global compound semiconductor market and projected to register the fastest growth over the analysis period. Escalating growth of consumer electronics and automotive industry in the region are the prime factor that propels the market growth. In addition, the region is highly lucrative for the implementation of advanced and up-coming technologies such as artificial intelligence, machine learning, big data, and analytics.”