Compound Semiconductor Materials Market Size, Share & Trends Report

Compound Semiconductor Materials Market Size, Share & Trends Analysis Report By Product (Group IV-IV, Group III-V, Group II-VI), By Application (Electronics & Consumer Goods, Telecommunication), And Segment Forecasts, 2020 - 2027

  • Published Date: Jul, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68038-823-7
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 74

Report Overview

The global compound semiconductor materials market size was valued at USD 34.8 million in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 3.8% from 2020 to 2027. Growing product use in various electronic applications, including electronic film coatings, electronic wafer, and integrated circuits, is expected to drive the market. Growing industrialization has led to an increase in data transactions, thereby boosting the global semiconductor market growth. Compound semiconductor materials are used in scientific applications, such as rocket coatings and jumpsuit coatings, owing to their high radiation resistance. This trend is likely to complement the market growth over the forecast period. China is expected to dominate the global market in the forthcoming years owing to the presence of a huge semiconductor hub in the country. This can be attributed to low manufacturing costs, which reduces the overall operational cost and increases profits. The growth of the electronics manufacturing sector in the country is expected to drive the product demand over the forecast period.

China compound semiconductor materials market size

The market faces an internal threat of substitution from silicon carbide materials owing to their low production cost as compared to other compound semiconductor materials, thereby resulting in a growing preference for silicon carbide materials in order to reduce the overall cost of the end product.

In July 2019, Japan’s Ministry of Economy, Trade, and Industry (METI) announced that it will restrict the exports of fluorinated polyimides, photoresists, and hydrogen fluoride, which are essential for manufacturing semiconductors and smartphone displays to dismantle the existing global semiconductor value chain. This move severely impacted South Korea’s semiconductor production.

Nanotechnology is widely used in the production of compound semiconductor materials with extremely large surface area to volume ratio, resulting in materials with more surface area depending properties, which are used for fabrication and construction of electronic devices. The technology is widely used for the manufacturing of semiconductor devices for automotive and smartphones.

Product Insights

Group III-V compound semiconductor materials led the market and accounted for more than 52.0% share of the global revenue in 2019 on account of its wide use in transistors, LEDs, lasers, and solar cells for 5G, IoT, and smart vehicles. Their higher power efficiency and unique optical properties give them an edge over silicon-based semiconductors.

The growth in the optoelectronics industry is anticipated to propel the demand for Group II-VI compound semiconductors over the forecast period. Group II-VI compound semiconductor materials exhibit large band gaps, and hence are popular in optoelectronics for short-wavelength applications.

Group IV-IV is anticipated to register the fastest CAGR of 4.4% over the forecast period on account of the growing demand for SiC semiconductors. SiC offers various additional benefits over silicon such as 10 times the breakdown electric field strength, a wider range of p- and n-type control needed for device construction, higher tolerance for voltages, the capability of operating at higher temperatures, and three times the bandgap.

The growth in the electric vehicles (EVs) market is expected to be a key driver for SiC as more EV manufacturers are using SiC Schottky barrier diodes or MOSFETs in DC-DC converters. Other end-use industries where SiC semiconductors are increasingly being used include military systems, sensor systems, solar power inverters and other power supplies, and wind turbines.

Application Insights

Telecommunication led the market and accounted for more than 41.0% share of the global revenue in 2019 owing to the high demand for semiconductors for mobiles and wireless communication. GaAs substrates are used in power amplifiers and switches for smartphones. Their use is further increasing in wireless communication on account of their high speed and efficiency over silicon semiconductors.

These materials are widely used in the aerospace and defense industry for a wide range of applications, including power suppliers for space and aircraft, solid-state relays and contractors, and VLF transmitters. Growing defense spending and increasing usage of electronic contents in the fighter planes, tanks, and armored carriers are anticipated to augment the market growth.

Global compound semiconductor materials market share

The electronics and consumer goods application segment is expected to register the fastest CAGR of 4.6% over the forecast period owing to extensive demand for semiconductors for electronic appliances. Gallium arsenide, aluminum phosphate, and silicon carbide are some of the commonly used products for these applications.

The product demand is extensively increasing in various end-use applications, including electric vehicles and healthcare. In the transportation industry, motor drives include electric vehicles, fork-lift trucks, and locomotives, whereas the non-motor drives include vehicle electronic ignition, vehicle voltage regulation, and traffic signal control.

Regional Insights

Asia Pacific dominated the market and accounted for over 51.0% share of the global revenue in 2019 on account of surge in demand from the consumer electronics manufacturing industry, coupled with high product penetration. Rapid urbanization and rising disposable income in the region are expected to further contribute to the expansion of consumer electronics, thereby complimenting the market growth.

The market in North America is expected to be driven by growth in demand from the end-use industries in the U.S., Canada, and Mexico. Foreign manufacturers are compelled to increase their target market by coming in close proximity to the region, which is leading towards capacity expansion and acquisitions.

The market in Europe is estimated to reach USD 9.7 million by 2027. The automotive sector in the region is expected to be a key end-use market for the product. Emerging technologies such as the introduction of Artificial Intelligence, electrification of vehicles, and digitalization are the key growth drivers in the region.

Growing infrastructure development in Central and South America due to rising industrial growth is anticipated to boost the growth of the electronics industry, which is projected to fuel the product demand. Increasing investments and favorable government policies are expected to have a positive impact on market growth over the forecast period.

Key Companies & Market Share Insights

The market is highly fragmented due to the presence of technology-driven companies focusing on differentiating from a product offering standpoint. Companies are also focused on acquiring core competencies related to varied service offerings by various methods, including mergers & acquisitions, strategic alliances, and vertical integration across the value chain. Capacity expansion and acquisitions are the strategies adopted by the key players to cater to the increasing demand in the regional markets. The adoption of compound semiconductor power devices in automotive, electronics, and renewable energy systems has increased prominently over the last few years and is anticipated to gain additional momentum in the upcoming years. Some of the prominent players in the compound semiconductor materials market include:

  • SK siltron Co., Ltd.

  • Sumitomo Electric Industries, Ltd.

  • JX Nippon Mining & Metals

  • FURUKAWA CO., LTD.

  • Shin-Etsu Chemical Co., Ltd.

  • SHOWA DENKO K.K.

  • Xiamen Powerway Advanced Material Co.

  • Freiberger Compound Materials GmbH

  • WIN Semiconductors Corp

  • IQE PLC

Compound Semiconductor Materials Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 35.7 million

Revenue forecast in 2027

USD 46.9 million

Growth Rate

CAGR of 3.8% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product, application, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

U.S.; Canada; Germany; U.K.; China; India; Japan; South Korea; Taiwan; Brazil

Key companies profiled

Sumitomo Electric Industries, Ltd.; JX Nippon Mining & Metals; FURUKAWA CO., LTD.; Shin-Etsu Chemical Co., Ltd.; SHOWA DENKO K.K.

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global compound semiconductor materials market report on the basis of product, application, and region:

  • Product Outlook (Revenue, USD Million, 2016 - 2027)

    • Group IV-IV

    • Group III-V

    • Group II-VI

  • Application Outlook (Revenue, USD Million, 2016 - 2027)

    • Electronics & Consumer Goods

    • Aerospace & Defense

    • Telecommunication

    • Others

  • Regional Outlook (Revenue, USD Million, 2016 - 2027)

    • North America

      • The U.S.

      • Canada

    • Europe

      • Germany

      • The U.K.

    • Asia Pacific

      • China

      • India

      • Japan

      • South Korea

      • Taiwan

    • Central & South America

      • Brazil

    • Middle East & Africa

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