News: Markets
28 December 2021
InP market to grow at 11.9% CAGR to $13.4bn by 2030
The global indium phosphide (InP) compound semiconductor industry was $4.5bn in 2020, and will rise at a compound annual growth rate (CAGR) of 11.9% from 2021 to $13.4bn in 2030, forecasts the report ‘Indium Phosphide Compound Semiconductor Market, 2021–2030’ from Allied Market Research.
Drivers, restraints and opportunities
Growth is being driven by an increase in the need for high-speed Internet connectivity in telecom and datacom applications, the benefits of indium phosphide, and the emerging trend towards the use of compound semiconductors in the automotive industry. However, high cost and disadvantages associated with compound semiconductor materials and components hinder market growth, notes the report. In contrast, the advent of compound semiconductors in smart technologies is expected to open up new opportunities for market players in the future, it adds.
Impact of COVID-19
The COVID-19 pandemic led to falling business confidence, uncertainty in stocks, and an immense slowing in supply chain operations. Moreover, it affected production processes in the semiconductor and electronics industries, notes the report.
Also, the restrictions on international trade placed constraints on the outlook for demand and supply. In addition, the prolonged lockdown negatively affected the market.
Power semiconductor segment held largest market share
By product, the power semiconductor segment comprised the largest share of the market in 2020 (over a quarter), due to a rise in demand for efficient energy management in high-voltage power electronics such as solar inverters and hybrid vehicles. However, the transistors segment of the InP market is expected to register the highest CAGR of 14.4% during the forecast period, due to their advantages over traditional transistors that make them suitable for commercial applications.
Sensing segment to grow fastest
By application, the sensing segment will exhibit the highest CAGR of 15% from 2021 to 2030, the report forecasts. However, the power electronics segment held the largest share in 2020, comprising nearly a third of the global indium phosphide compound semiconductor market, as indium phosphide compound semiconductor enhance electron velocity.
Asia-Pacific held the largest share
By region, the Asia-Pacific comprised the largest share in 2020, accounting for nearly half of the market (followed by North America and Europe). Moreover, the Asia-Pacific region is expected to exhibit the highest CAGR of 13.7% during the forecast period. On the other hand, the global indium phosphide compound semiconductor market in North America is expected to register a CAGR of 8.7%, concludes the report.
