Compound Semiconductor Market Report 2026

The compound semiconductor market size has grown strongly in recent years. It will grow from $84.29 billion in 2025 to $91.11 billion in 2026 at a compound annual growth rate (CAGR) of 8.1%. The growth in the historic period can be attributed to increasing use in optoelectronic devices, growth in rf electronics demand, early adoption in photovoltaics, rising demand for leds, expansion of fiber optic communication technologies.

The compound semiconductor market size is expected to see strong growth in the next few years. It will grow to $124.06 billion in 2030 at a compound annual growth rate (CAGR) of 8%. The growth in the forecast period can be attributed to rising need for high-frequency semiconductors, growth in ev power electronics, increasing use in advanced data centers, expansion in 5g and 6g infrastructure, development of next-generation photonics devices. Major trends in the forecast period include advancement of AI-enabled compound semiconductor fabrication, adoption of intelligent manufacturing for wafer processing, expansion of digitalized semiconductor production, integration of IoT-based monitoring in epitaxy systems, growth of power electronics for ev platforms.

The growth of electric vehicles (EVs) is anticipated to drive the expansion of the compound semiconductor market in the coming years. Electric vehicles are powered by one or more electric motors, drawing electricity from sources such as batteries, fuel cells, or solar panels, rather than relying on internal combustion engines that utilize fossil fuels. Compound semiconductors play a crucial role in electric vehicles by enhancing power efficiency and enabling high-performance electronics for better energy conversion and control. For instance, in May 2025, according to the International Energy Agency (IEA), a France-based intergovernmental organization, global electric vehicle sales reached 17 million units in 2024, representing a growth of over 25% from the previous year, with 3.5 million more EVs sold compared to 2023. Thus, the rise of electric vehicles is propelling the growth of the compound semiconductor market.

Major players in the compound semiconductors market are spearheading advancements in power systems by leveraging technologies such as gallium nitride (GaN). Gallium Nitride technology, utilizing the compound gallium nitride for electronic device fabrication, is at the forefront of addressing the escalating demand for high-performance and integrated power systems. For instance, Navitas Semiconductor, a leading US-based next-gen power-semiconductor company, introduced its GaNSense Control ICs in March 2023. These ICs seamlessly integrate high-speed, high-voltage GaN with low-voltage silicon system-controller chips. The GaNSense Control ICs set new benchmarks with up to 20 times faster operation, three times greater power handling capacity, and three times faster charging, all in a compact and lightweight form factor. Designed for diverse applications, these control integrated circuits offer efficient power solutions for electric vehicles, data centers, consumer appliances, and charging devices.

In March 2023, Infineon Technologies, a Germany-based semiconductor solutions provider, acquired GaN Systems for $830 million. This strategic move strengthens Infineon's capabilities in power conversion technologies and reinforces its position in the rapidly expanding markets for electric vehicles (EVs), renewable energy, and industrial applications. GaN Systems, based in Canada, specializes in Gallium Nitride (GaN) solutions, which are essential for the development of energy-efficient power systems.

Major companies operating in the compound semiconductor market are Wolfspeed, Inc., IQE plc, II‑VI Incorporated, AXT Inc., Showa Denko K.K., Freiberger Compound Materials GmbH, Ganwafer, Sanan Integrated Circuit Co., Ltd. (Sanan / Sanan Optoelectronics), Soitec, MACOM Technology Solutions, Sumitomo Electric Industries, Ltd., Cree, Inc., Qorvo, Inc., Skyworks Solutions, Inc., Advanced Wireless Semiconductor Company, ams‑OSRAM AG, Aixtron SE, Applied Materials, Inc., Veeco Instruments Inc., Powerway Advanced Material Co., Ltd.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have increased the cost of raw materials, epitaxial wafers, and processing equipment in the compound semiconductor market, particularly affecting GaAs, SiC, and InP segments sourced from Asia-Pacific and Europe. Higher import duties have disrupted manufacturing schedules, limited substrate availability, and raised production expenses for consumer electronics, automotive, and telecom applications. However, tariffs are also encouraging domestic wafer fabrication, localized material sourcing, and innovation in alternative deposition technologies, strengthening regional supply-chain stability.

The compound semiconductors market research report is one of a series of new reports that provides compound semiconductors market statistics, including compound semiconductors industry global market size, regional shares, competitors with a compound semiconductors market share, detailed compound semiconductors market segments, market trends, and opportunities, and any further data you may need to thrive in the compound semiconductors industry. This compound semiconductors market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Compound semiconductors, composed of multiple elements situated around group 4 of the periodic table, play a crucial role in optoelectronic component creation. They are integral in photovoltaic systems, high-density data storage, solid-state lighting, and optical communication systems.

Diverse compound semiconductor types encompass gallium nitride (GaN), gallium arsenide (GaAs), silicon carbide (SiC), indium phosphide (InP), silicon germanium (SiGe), gallium phosphide (GaP), and others. Gallium nitride (GaN), known for its specialized properties, facilitates efficient optoelectronic devices and finds applications in high-power and high-temperature scenarios. These semiconductors are manufactured using deposition technologies such as chemical vapor deposition (CVD), molecular beam epitaxy, hydride vapor phase epitaxy (HVPE), ammono thermal, liquid phase epitaxy, atomic layer deposition (ALD), among others. Their applications span various sectors, including general lighting, telecommunications, military, defense, aerospace, automotive, power supply, data communications, consumer display, and commercial consumer devices.Asia-Pacific was the largest region in the compound semiconductor market in 2025. North America is expected to be the fastest-growing region in the compound semiconductor market during the forecast period. The regions covered in the compound semiconductor market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the compound semiconductor market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The compound semiconductors market consists of sales of zinc oxide (ZnO), zinc selenide (ZnSe), and cadmium sulfide (CdS). Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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