The global compound semiconductor market will rise at a compound annual growth rate (CAGR) of 8.47% during 2017-2021, forecasts market research firm Technavio.
The report ‘Global Compound Semiconductor Market 2017-2021’ identifies a primary growth factor as the global adoption of smartphones, which is expected to rise rapidly due to the availability of low-cost smartphones and the increased penetration of the Internet. This rising number of mobile devices subsequently drives growth in the market for gallium arsenide components such as GaAs amplifiers and switches. Additionally, smartphone makers are also aiming to develop smartphones powered by solar cells using GaAs (as it is the most efficient semiconductor in capturing a high amount of light and hence providing longer battery life).
The report also forecasts that one of the latest trends that will gain traction in the compound semiconductor market in the coming years is increasing industry automation, which is gaining momentum as computers and machines are being adopted for the effective and efficient control of systems. Compound semiconductor devices play a key role in ensuring efficient power consumption within the reduced size of appliances, since they can withstand elevated temperatures and voltages, notes the report.
Competitive landscape and key vendors
Competition in the compound semiconductor market is intense due to the presence of several key vendors, which the report cites as Broadcom, Skyworks Solutions, Cree, and Qorvo. Other prominent vendors are Analog Devices, Osram Opto Semiconductors, GaN Systems, Infineon Technologies, NXP Semiconductors, Advanced Wireless Semiconductor, STMicroelectronics, Microsemi, Texas Instruments, WIN Semiconductors, and AXT.
Vendors will try to gain dominant market shares through technical advances in compound semiconductor products and by designing application-specific products at competitive prices, comments the report. Additionally, vendors are also making huge investments to explore materials that can address the demand for high-power-density products and overcome the challenges in manufacturing.
Consumer electronics sector driven by growth in smartphone shipments
During 2016, the consumer electronics segment accounted for the biggest share of the compound semiconductor market, driven by the significant increase in global smartphone shipments and hence demand for GaAs-based power amplifiers and switches.
Asia-Pacific to be biggest market region by 20121
By geographical region, the Asia-Pacific (APAC) will be the major revenue contributor to the market by 2021, due to the increased demand for power applications and the economic growth in developing countries such as South Korea, China, India, Taiwan, and Malaysia. The increasing demand for wireless infrastructure will also boost market growth in this region, concludes the report.
