Ottawa, Feb. 06, 2026 (GLOBE NEWSWIRE) -- The global compound semiconductor materials market size was estimated at USD 38.40 billion in 2025 and is expected to increase from USD 40.76 billion in 2026 to USD 69.56 billion by 2035, growing at a CAGR of 6.12%. The Asia Pacific dominated compound semiconductor materials market with the largest revenue share of 46.19% in 2025. The global demand for advanced electronics has fuelled the industry's growth in recent years. A study published by Towards Chemical and Materials, a sister firm of Precedence Research.
Powering the Future with Compound
The semiconductor materials, which are primarily made by combining two or more elements from different groups of the periodic table called compound semiconductor materials. Also, by offering the unique advantages like higher power efficiency, faster electron movement, and better heat resistance, the compound semiconductor materials have offered substantial growth prospects for manufacturing firms in recent years.
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Compound Semiconductor Materials Market Report Highlights
- The Asia Pacific dominated the global compound semiconductor materials market with the largest revenue share of 46.19% in 2025.
- North America is experiencing the fastest growth in the market due to the growing demand from end-user industries like aerospace, defense, and telecommunications.
- By product, the Group III-V segment dominated the compound semiconductor materials market in 2025.
- By product, the Group IV-IV segment is expected to grow at the fastest rate in the market during the forecast period due to the growing demand for silicon carbide in various industries.
- By application, the telecommunication segment dominated the compound semiconductor materials market with the largest share in 2025 due to the growing adoption of 5G networks.
- By application, the electronics & consumer goods segment is expected to grow at the fastest rate in the market during the forecast period due to the growing demand for various consumer electronics devices like laptops, computers, smartphones, and tablets.
Compound Semiconductor Materials Market Report Scope
| Report Attribute | Details |
| Market Size in 2026 | USD 40.76 Billion |
| Expected Size By 2035 | USD 69.56 Billion |
| Growth Rate from 2026 to 2035 | CAGR 6.12% |
| Base Year of Estimation | 2025 |
| Forecast Period | 2026-2035 |
| Dominant Region | Asia Pacific |
| Segment Covered | By Product, By Application, By Region |
| Key Companies Profiled | Sumitomo Electric Industries, Ltd, FURUKAWA CO., LTD., SK siltron Co., Ltd., JX Nippon Mining & Metals, SHOWA DENKO K.K., Freiberger Compound Materials GmbH, Shin-Etsu Chemical Co., Ltd., Xiamen Powerway Advanced Materials Co., IQE PLC, WIN Semiconductors Corp |
Private Industry Investments for Compound Semiconductor Materials:
- SiCSem Private Limited (India): Establishing India’s first commercial Silicon Carbide (SiC) fabrication plant with an investment of ₹2,066 crore to produce wafers for electric vehicles.
- Infineon Technologies (Germany/Global): Investing heavily in high-volume 300-mm Gallium Nitride (GaN) production following its strategic acquisition of GaN Systems to lead the power electronics market.
- Wolfspeed (USA): Launching the world's largest 200-mm SiC wafer fabrication facility to meet the surging demand for high-voltage automotive and energy infrastructure.
- RIR Power Electronics (India): Initiating a ₹618 crore investment to build a dedicated SiC manufacturing unit focused on high-voltage power devices for industrial applications.
- Mitsubishi Electric (Japan): Expanding its production capacity with a new 200-mm SiC facility to enhance the efficiency of power modules used in the railway and industrial sectors.
- GlobalFoundries (USA): Scaling up manufacturing of GaN-on-Silicon technology at its Vermont facility to target the high-speed requirements of 5G and data center infrastructure.
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What are the Major Trends in the Compound Semiconductor Materials Market?
- Expansion of the Power Electronics and Electric Vehicles: The sudden expansion of the power electronics and electric vehicles has generated value-added opportunities for industry participants in recent years. Also, this material has been seen in improving the power efficiency while reducing energy loss.
- Emergence of the High Frequency Communication: The emergence of the high frequency communication and 5G is expected to enable high-return ventures for the manufacturers as materials that support high-frequency signals with lower loss.
- Renewable Energy Systems: The establishment or trend towards renewable energy systems is likely to support the long-term expansion of manufacturing operations during the forecast period.
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Market Dynamics
Driver
Smaller Devices, Greater Performance
The increasing demand for higher efficiency with smaller devices has translated into favourable financial prospects in recent years. Also, modern electronics must deliver more power in less space. Compound semiconductors offer better performance than silicon. They reduce heat generation and energy loss. Industries want compact and lightweight systems. Electric vehicles, aerospace, and telecom sectors depend on efficiency
Restraint
Complex Manufacturing Slows Industry Growth
The high cost of the compound semiconductor materials is anticipated to hinder the industry's growth in the coming years. Manufacturing these materials is complex. Production requires specialized equipment and strict quality control. Raw materials are expensive. Also, the small manufacturers struggle to adopt the technology. Scaling production is difficult.
Market Opportunity
What is the Most Significant Opportunity for the Compound Semiconductor Materials Market?
The replacement of silicon in critical applications is expected to create lucrative opportunities for manufacturing in the coming years. Silicon cannot meet future performance needs alone. Compound semiconductors offer higher speed and efficiency. Industries need better power management. Electric mobility, renewable energy, and data centers demand advanced materials. As silicon reaches physical limits, alternatives become necessary.
Wide Bandgap Materials Unlock Growth
The move toward wide-bandgap semiconductors is likely to enhance market participation for producers during the forecast period. Materials like gallium nitride and silicon carbide handle higher power and temperature. They enable faster switching and lower energy loss. Manufacturing technology is improving gradually. Integration with existing systems is increasing, and packaging and cooling methods are also evolving.
Compound Semiconductor Materials Market Segmentation Insights
Product Insights
Why did the Group III-V Segment Hold the Biggest Share in the Compound Semiconductor Materials Market?
The group III-V segment dominates the market, owing to the industry's need for better power efficiency. These materials handle high voltage and high temperature very well. Electric vehicles, charging stations, and renewable energy systems use them more. They reduce energy loss and increase system life. As power electronics grow, demand increases. Manufacturing technology for these materials is improving fast. Costs are slowly reducing
The group IV-IV segment is experiencing the fastest growth in the market during the projected period, because they perform very well at high speed and high frequency. Materials like gallium arsenide and gallium nitride are widely used in communication and power devices. These materials allow faster signal movement than silicon. Telecom towers, satellites, and LEDs rely on them.
Application Insights
How Did the Telecommunication Segment Dominate the Compound Semiconductor Materials Market?
The telecommunication segment dominates due to the need for fast and stable signal transmission. Compound semiconductors work better at high frequencies than silicon. 4G and 5G infrastructure depends on these materials. Base stations, antennas, and amplifiers use them widely. Telecom expansion happened earlier than other applications.
The electronics and consumer goods segment is anticipated to grow fastest during the projected period, owing to smart devices. Also, smartphones, laptops, wearables, and smart home devices need efficient and compact components. Compound semiconductors support fast charging, better battery use, and smaller designs. Consumers demand better performance and longer device life.
Regional Insights
How did Asia Pacific hold the Largest Share of the Compound Semiconductor Materials Market?
The global did Asia Pacific compound semiconductor materials market size is projected to reach USD 18.83 billion by 2026. It is projected to reach USD 32.13 billion by 2035, growing at a CAGR of 6.14%. The Asia Pacific region leads the global market because it manufactures most of the world's electronics. Countries like China, Japan, South Korea, and Taiwan have strong semiconductor ecosystems. These countries produce smartphones, EV components, LEDs, and power devices in very large volumes.
Why is the Compound Semiconductor Materials Market Growing Rapidly in North America?
The North America region is the fastest-growing region, as it focuses on advanced and high-value applications. Electric vehicles, aerospace, defense, data centers, and renewable energy need high-performance semiconductors. Compound materials like gallium nitride and silicon carbide fit these needs.
Recent Developments
In August 2025, the Indian government released a green signal to major semiconductor manufacturing projects in Odisha. Also, the government is likely to invest ₹4,600 crore in four states as per the published report.
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Top Companies in the Compound Semiconductor Materials Market & Their Offerings:
- Sumitomo Electric Industries, Ltd.: Supplies high-performance Gallium Arsenide (GaAs), Indium Phosphide (InP), and Gallium Nitride (GaN) substrates for 5G and laser applications.
- FURUKAWA CO., LTD.: Produces high-purity metallic arsenic and aluminum nitride (AlN) ceramics used as critical raw materials for compound semiconductor manufacturing.
- SK siltron Co., Ltd.: Manufactures high-quality Silicon Carbide (SiC) and GaN-on-Si wafers specifically designed for electric vehicle power electronics.
- JX Nippon Mining & Metals: Provides specialized Indium Phosphide (InP) and Cadmium Zinc Telluride (CdZnTe) substrates for high-speed optical communications.
- SHOWA DENKO K.K. (Resonac): Produces industry-leading Silicon Carbide (SiC) epitaxial wafers and a variety of compound materials for LED production.
- Freiberger Compound Materials GmbH: Specializes in large-diameter Gallium Arsenide (GaAs) and Indium Phosphide (InP) wafers for wireless RF and optoelectronic devices.
- Shin-Etsu Chemical Co., Ltd.: Offers Gallium Phosphorus (GaP) wafers and innovative GaN-on-QST substrates for power and micro-LED applications.
- Xiamen Powerway Advanced Materials Co.: Supplies a broad range of III-V and II-VI compound wafers, including GaAs, GaN, and SiC substrates and epi-wafers.
- IQE PLC: Operates as a leading global foundry for advanced epitaxial wafers across GaAs, GaN, and InP material systems.
- WIN Semiconductors Corp.: Functions as a major foundry providing GaAs and GaN-on-SiC fabrication services for radio frequency and microwave chips.
Compound Semiconductor Materials Market Report Segmentation
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2035. For this study, Towards Chemical and Materials has segmented the global Compound Semiconductor Materials Market
By product
- Group III-V
- Group IV-IV
- Group II-VI
By application
- Telecommunications
- Electronics & Consumer Goods
- Aerospace & Defense
- Others
By Region
North America:
- U.S.
- Canada
- Mexico
- Rest of North America
South America:
- Brazil
- Argentina
- Rest of South America
Europe:
- Western Europe
- Germany
- Italy
- France
- Netherlands
- Spain
- Portugal
- Belgium
- Ireland
- UK
- Iceland
- Switzerland
- Poland
- Rest of Western Europe
Eastern Europe
- Austria
- Russia & Belarus
- Türkiye
- Albania
- Rest of Eastern Europe
Asia Pacific:
- China
- Taiwan
- India
- Japan
- Australia and New Zealand,
- ASEAN Countries (Singapore, Malaysia)
- South Korea
- Rest of APAC
MEA:
- GCC Countries
- Saudi Arabia
- United Arab Emirates (UAE)
- Qatar
- Kuwait
- Oman
- Bahrain
- South Africa
- Egypt
- Rest of MEA
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