The propitious boom in the IT and telecommunications industry coupled with the rising demand for portable electronic devices is creating a demand influx in the compound semiconductor materials and devices market. The increasing adoption of compound semiconductor materials including GaAs, GaN, InP, and SiGe in the telecommunication and electronics sector is primarily attributed to the beneficial features of the compound semiconductors such as high-speed signal processing, low operating voltage, superior light receiving and emitting function, magnetic sensitivity, and high heat resistance. The compound semiconductor materials are increasingly used in power amplifiers for smartphones and other wireless devices, light sources for DVDs and Blu-rays, LEDs, solar batteries, and solar cells and gyro stabilizers in satellites, to name a few. Thus, the rising demand for optoelectronic devices, mobile and wireless communication products, and photovoltaic devices is expected to produce growth avenues for the Compound Semiconductor Materials Market. The flourishing growth in the global telecommunications market can be easily fathomed from the statistics provided by the India Brand Equity Foundation (IBEF), according to which India as the second-largest telecommunications market had 1.2 billion telecom subscribers as of December 2018, and 560 million internet subscribers, as of September 2018. The revenues from the telecom equipment sector are expected to grow to $26.38 billion by 2020. Moreover, global electronics and IT industry size is estimated to increase by 8% year on year in 2018, to $2,934.5 billion, and is expected to increase 4% year on year in 2019, to $3,045.8 billion as per the annual industrial survey conducted by JEITA (Japan Electronics And Information Technology Industries Association). The perpetual growth in the telecommunications and electronics industry is augmenting the growth of the compound semiconductor materials and devices market. The compound semiconductor materials and devices market has been evaluated to reach a remarkable size of $35 billion in 2018. Foreseeing the adoption of compound semiconductors owing to the high-speed signal processing capability, the compound semiconductor materials market is projected to grow at a healthy CAGR of 6.9% during the forecast period from 2019 to 2025.
LED Market to Create Lucrative Opportunities for the Growth of the Compound Semiconductor Materials and Devices Market—
Increasing demand for power-efficient light sources across commercial, residential, and industrial sectors coupled with the decreasing the prices of LED lights is fuelling the growth of the LED market. The increasing demand for LEDs is attributed to the various advantages of it over conventional incandescent lights, including long lifetime, environment-friendly, robustness, and good temporal stability. The growth in the semiconductor industry can be further fathomed from the increasing trade of LEDs across the globe. According to the International Trade Centre (ITC), the trade value of diodes, transistors, LEDs, and parts thereof was evaluated at $119 million in 2018. Owing to the high heat resistance and low power consumption of compound semiconductor materials, they are used in light emission applications such as light emitting diodes (LEDs). Thus, the burgeoning demand in the LED market is expected to propel the growth of the compound semiconductor market.
APAC region to Garner the Impetus for the Growth of the Compound Semiconductor Materials and Devices Market—
Geographically, Asia-Pacific had the maximum share in the compound semiconductor materials and devices market that translated to 36.5% of the total market share in 2018. This is mainly attributed to the presence of prominent market players, such as Nichia (Japan), Samsung Electronics (South Korea), Mitsubishi Electric (Japan), and others in this region. Additionally, high adoption of compound semiconductors in lighting applications such as LEDs coupled with increasing consumption of LEDs by leading countries such as India, China, and Japan has rendered APAC with the maximum share. For instance, the massive demand for LEDs in China can be easily understood from statistics provided by International Trade Centre (ITC), according to which the trade value of diodes, transistors, LEDs and parts thereof was evaluated at $28 million in 2018. Moreover, telecommunications is among the most important applications of the compound semiconductor materials and devices market in APAC. China's telecom sector revenue increased by 3% year on year to more than $190 billion in 2018, according to a report of the Ministry of Industry and Information Technology. Thus the booming telecommunications industry of this region is augmenting the growth of compound semiconductors market. Furthermore, countries such as China, Japan, and South Korea are investing heavily for the wide adoption of 5G technology, which would further provide opportunities for compound semiconductors.
Key Application Segment of the Compound Semiconductor Materials and Devices Market: Consumer Electronics—
On the basis of end-user, the compound semiconductor market is segmented into ICT, automotive, aerospace and defense, energy, consumer electronics, medical, and other sectors. Among these consumer electronics is observed to generate maximum revenues for the market. The high electron mobility and less power consumption of compound semiconductors as compared to elemental semiconductors is the prime impetus for the increasing adoption of compound semiconductors by the electronics industry. These materials are used in the fabrication of various electronic devices such as high mobility transistors, field effect transistors, power amplifiers, electronic wafers, electronic film’s coatings, integrated circuits, optoelectronic transducers, and many more. The thriving consumer electronics in developing countries such as India, Chain, and Japan is proliferating the demand for compound semiconductor materials. For instance, the Indian electronics market size is evaluated to be at $100 billion in 2016-17 and is projected to reach $ 228 billion by 2020, according to the National Investment Promotion and Facilitation Agency of India. Thus the key application segment is anticipated to grow at a CAGR of 8% through to 2025.
Compound Semiconductor Materials and Devices Market: Major Players
Major players of the compound semiconductor materials and devices market include Samsung Electronics, Osram, GAN Systems, Infineon, on Semiconductor, NXP, Mitsubishi Electric, Nichia, Skyworks, Qorvo, and Cree. These companies are extensively striving to gain grounds in the global market. The prominent companies are increasingly adopting strategic plans such as new product development, acquisitions, collaborations, and partnerships to stay ahead of the curve and build their brand name.
· In December 2018, Qorvo, a leading provider of innovative RF solutions for mobile infrastructure and defense applications launched 28 GHz gallium nitride (GaN) front-end module (FEM) to expand its offering for 5G applications for enabling operators to meet the speed, latency, reliability and capacity requirements of 5G. This GaN FEM decreases the total cost for the base station equipment producers.
· In 2017, ON Semiconductor, has completed its acquisition of Fairchild Semiconductor, a specialized manufacturer of analog and automotive products. The acquisition is a strategic step to becoming the prominent supplier of power management and analog semiconductor devices for various applications and end-users.
· In 2015, Cardiff University has announced an investment of around $95 million in the Institute for Compound Semiconductors as part of its new $375 million Innovation Campus. The announcement for the Institute was accompanied by the creation of a partnership between Cardiff University and IQE plc to form the Compound Semiconductor Centre (CSC) for the fabrication of compound semiconductor materials. After the CSC, the U.K. Government has announced its investment of $62m in the first Catapult Centre in Wales is solely preferred for the development of compound semiconductor applications. These type of investments are made in various countries to cater to the demand for compound semiconductor materials and devices.
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