Epitaxial Wafer Market Outlook For Compound Semiconductor – 2027
The global epitaxial wafer market size for compound semiconductor was valued at $2.65 billion in 2019, and is projected to reach $7.27 billion by 2027, growing at a CAGR of 13.2% from 2020 to 2027. A compound semiconductor epitaxial wafer is made up of epitaxial growth (epitaxy) to be used in photonics, microelectronics, spintronics, and photovoltaic among others. Compound semiconductor epitaxial wafer provides faster switching at high power with increased energy efficiency and promotes improved performances.
Epitaxial wafer is manufactured by adding multi-micrometer thick single silicon carbide crystal layers on top of a polished wafer. Precise control of thickness, carrier concentration, and defect density is required to enable its seamless production. The epitaxial layers define the wireless, photonic, and electronic performance of compound semiconductor epitaxial wafers, which are then processed to produce the chips and ICs, which can be found in various technology devices and gadgets globally.
A compound semiconductor is a semiconductor composed of elements from two or more different groups of the periodic table, and is synthesized using deposition technologies. Devices made of semiconductors are essential components of most electronic circuits, as they possess unique properties such as wide band gap, high operational temperatures, high current & voltage holding capacity, and ability to generate microwave signals.
Compound semiconductors offer important performance benefits that are totally crucial for a growing range of technology applications. Compound semiconductors made using GaAs and InP materials can operate at higher speeds than silicon. In addition, compound semiconductors can generate and receive a broad range of the electromagnetic spectrum from high frequency ultraviolet through the visible spectrum to long wavelength infrared light. Compound semiconductor materials can emit and sense light in the form of general lighting (LEDs) and communications (lasers and receivers for fiber-optics), which is another important feature of these products.
The value chain of the compound semiconductor market includes various stockholders that implement unique activities to add value to the compound semiconductor technology. These activities can be further bifurcated into primary and secondary activities. The tasks of raw material suppliers, manufacturers, alignment & testing department, and end users are considered under primary activities.
Secondary activities include supporting functions such as workings of R&D department and procurement department. The activities described in the value chain clarify the contributions made by each stakeholder at different levels. The manufacturing process involves the process of developing the epitaxial wafers. This process utilizes the various semiconductor materials and converts them into advanced epitaxial wafers of compound semiconductors for wireless, optoelectronic, electronic, and solar devices.
Factors such as advantage of compound semiconductor wafers over silicon-based wafers, increase in demand for compound semiconductor epitaxial wafer in consumer electronics, and emerging trends toward wafers in automotive industry are major factors that drive the epitaxial wafer market growth for compound semiconductor to a certain extent. However, increase in cost of wafer manufacturing is expected to pose a major threat to the epitaxial wafer industry for compound semiconductor globally. However, emerging usage of compound semiconductors in smart technologies and increasing popularity of IoT in wafers is expected to provide lucrative opportunities to the market growth globally.
Compound Semiconductor Power Electronics segment is projected to be the most lucrative segment
The global epitaxial wafer market for compound semiconductor is segmented on the basis of application, end use, and region. On the basis of application, the epitaxial wafer market for compound semiconductor is analyzed across CS power electronics, CS RF/Microwave, CS Photonics, CS Sensing, and CS Quantum. The CS power electronics segment dominated the epitaxial wafer market for compound semiconductor in terms of revenue in 2019 and is expected to follow the same trend during the forecast period.
By End User
Industrial and Energy & Power segment will secure the leading position throughout the forecast period
By end user, the market is studies across digital economy, industrial and energy & power, defense/security, transport, consumer electronics, healthcare, and space. The industrial and energy & power segment accounted for the highest market share in 2019, whereas the digital economy segment is expected to grow at the highest CAGR from 2020 to 2027. By region, the epitaxial wafer market trends for compound semiconductor are analyzed across the U.S., the UK, China, and rest of the world.
China would exhibit the highest CAGR of 16.0% during 2020-2027
The ongoing COVID-19 pandemic has abruptly re-shaped the global economy. Sudden decline in infrastructure development and installation projects is expected to hamper the epitaxial wafer market for compound semiconductor for automotive, industrial and energy & power industry verticals. The global economy has experienced surge in demand for cloud/datacenter services and cloud infrastructure to support distributed workforce. Growing adoption of 5G networking by corporate individuals due to growing online presence has been placed as a national priority and is opportunistic for the market.
However, slowdown in productions by OEMs, and reduction in demand for mobile phones and other consumer electronics has slightly pulled down the market for compound semiconductors. Shortages of critical components and materials have significantly impacted the global supply chains. In addition, reductions in various capital budgets and delay in various planned projects in various end-use industries have hampered the global economy.
Top Impacting Factors
The most prominent factors that drive the epitaxial wafer market growth for compound semiconductor are advantage of compound semiconductor wafers over silicon-based wafers, increasing demand for compound semiconductor epitaxial wafer in consumer electronics, and emerging trends toward wafers in automotive industry. However, increase in cost of wafer manufacturing acts as the major barrier for early adoption; thereby, hampering the growth of the market.
On the contrary, emerging usage of compound semiconductors in smart technologies and increasing popularity of IoT in wafers are the factors anticipated to provide lucrative opportunities for the growth of the epitaxial wafer market for compound semiconductor. Each of these factors is anticipated to have a definite impact on the epitaxial wafer market for compound semiconductor during the forecast period.
Competitive analysis and profiles of the major epitaxial wafer market for compound semiconductor players, such as II-VI Incorporated, Cree Inc., Epistar Corporation, GLC Semiconductor Group, Intelligent Epitaxy Technology Inc., IQE PLC, Masimo Semiconductor, Nichia Corporation, SK Siltron Co., Ltd., and Sumitomo Electric Industries Ltd. are provided in this report. These key players have adopted various strategies, such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations, to enhance their market penetration and strengthen their position in the industry.
Key Benefits For Stakeholders
- This study comprises analytical depiction of the global epitaxial wafer market size for compound semiconductor along with the current trends and future estimations to depict the imminent investment pockets.
- The overall epitaxial wafer market analysis for compound semiconductor is determined to understand the profitable trends to gain a stronger foothold.
- The report presents information related to key drivers, restraints, and opportunities with a detailed impact analysis.
- The current epitaxial wafer market forecast for compound semiconductor is quantitatively analyzed from 2019 to 2027 to benchmark the financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and the epitaxial wafer market share for compound semiconductor of key vendors.
Epitaxial Wafer Market Report Highlights
By End User
Key Market Players
GLOBAL COMMUNICATION SEMICONDUCTORS, LLC, CREE, INC., Masimo Semiconductor, Inc., SK SILTRONIC, Sumitomo Electric Industries, Ltd., International Quantum Epitaxy Plc., NICHIA CORPORATION, EPISTAR Corporation, II-VI Incorporated, Intelligent Epitaxy Technology, Inc. (IntelliEPI)
The epitaxial wafer market for compound semiconductor holds a substantial scope for growth in the global market. Currently, it is in its growing stage, however, its contribution to the global market is expected to witness significant growth within the next six years. High cost associated with wafer manufacturing is a major limitation for the market growth.
However, recent innovations, which embed high efficiency and innovative features in smart devices, have enabled the technology to reach a wider audience base. Numerous players are entering the compound semiconductor epitaxial wafer market with innovative products. Emerging development in IoT and growth of autonomous products are expected to drive the market growth in the future.
The epitaxial wafer market for compound semiconductor holds high potential in the Industrial, transport, consumer electronics, and healthcare sector. The current business scenario experiences rapid development in smart transport and connectivity leading to the readiness to adopt smart sensors, particularly in the developed and the developing countries such as the U.S., China, the UK, and others.
Companies in this industry adopt various innovative techniques to provide customers with advanced and innovative features. Moreover, increase in defense budget globally is the major factor that fuels the growth of the market. Furthermore, incorporation of compound semiconductor devices in electronic warfare and advanced RADARs boost the growth of the market.