Compound Semiconductor Market Size, Share, Growth Analysis, By Product(Power Semiconductor, Transistors, Integrated Circuits, Diodes & Rectifiers), By Type(III-V Compound Semiconductor, II-VI Compound Semiconductor, Sapphire, IV-IV Compound Semiconductor), By Region - Industry Forecast 2024-2031

Compound Semiconductor Market size was valued at USD 122.90 billion in 2022 and is poised to grow from USD 136.30 billion in 2023 to USD 311.84 billion by 2031, growing at a CAGR of 10.9% during the forecast period (2024-2031).

Due to the presence of technology-driven businesses concentrating on differentiating from a product offering aspect, the market is highly fragmented. Companies are also concentrating on gaining core capabilities connected to diverse service offerings through a variety of strategies, such as mergers and acquisitions, strategic alliances, and vertical integration throughout the value chain. The leading players' efforts to meet the rising demand in the regional markets include capacity expansion and acquisitions. 'Cree Inc. (United States)', 'Qorvo, Inc. (United States)', 'Skyworks Solutions Inc. (United States)', 'Broadcom Inc. (United States)', 'Mitsubishi Electric Corporation (Japan)', 'NXP Semiconductors N.V. (Netherlands)', 'Infineon Technologies AG (Germany)', 'STMicroelectronics N.V. (Switzerland)', 'Texas Instruments Inc. (United States)', 'Analog Devices, Inc. (United States)', 'Rohm Co., Ltd. (Japan)', 'Microchip Technology Inc. (United States)', 'Taiwan Semiconductor Manufacturing Company Limited (Taiwan)', 'Samsung Electronics Co., Ltd. (South Korea)', 'ON Semiconductor Corporation (United States)', 'Renesas Electronics Corporation (Japan)', 'MACOM Technology Solutions Holdings Inc. (United States)', 'Advanced Micro Devices, Inc. (United States)', 'Toshiba Corporation (Japan)', 'IQE PLC (United Kingdom)', 'RF Micro Devices, Inc. (United States)', 'NTT Electronics Corporation (Japan)'

The demand for compound semiconductors in power electronics is increasing due to their ability to operate at high temperatures, high voltage, and high frequency. This is driving the growth of the compound semiconductor market in the power electronics sector.

Compound semiconductors, such as gallium nitride (GaN) and indium gallium nitride (InGaN), are widely used in the production of LED lighting due to their energy efficiency, long lifespan, and low maintenance cost. The demand for LED lighting is expected to continue growing, driving the growth of the compound semiconductor market in this sector.

The largest market contributor, Asia Pacific, is anticipated to expand at a CAGR of 12.4% throughout the course of the projection period. Asia-Pacific has the world's fastest rate of growth. It is the most lucrative market for compound semiconductor technologies since there are high-end upgraded technologies available, smart electronics are in greater demand, and manufacturing sectors are growing. The development of the packaging technology sector is also aided by a number of beneficial non-profit organizations. The many measures these organizations take to build power infrastructure utilizing cutting-edge technology are leading to an expansion of the region's market for compound semiconductors. Asia-Pacific is currently the region with the largest share of the compound semiconductor market, and it is expected to develop at the fastest rate with the highest CAGR.