Indium Phosphide Wafer Market Size

Indium Phosphide Wafer Market Analysis

The Indium Phosphide Wafer Market size is estimated at USD 177.03 million in 2024, and is expected to reach USD 311.15 million by 2029, growing at a CAGR of 11.94% during the forecast period (2024-2029).

Indium phosphide (InP) has properties that produce highly efficient lasers, modulators, and sensitive photodetectors. It can also generate laser signals and convert and identify those signals back to the electronic form. These are used for company networks and data centers, long-haul optical fiber connections over far distances, wireless connections for 3G, 5G, and LTE base stations, and satellite communication. The growth in such requirements is driving the market.

• Indium phosphide wafers are increasingly adopted in the manufacture of LiDAR for automotive, 3D sensing, consumer wearables, and the growth in datacom in the telecommunication sector. This is expected to drive the market during the forecast period. In addition, some of the major applications of InPinclude 5G communications, data center connectivity that uses lights and lasers, fiber optic lasers and detectors, silicon photonics, RF amplifiers, and switches used in military and 5G communications, and infrared thermal imaging in health.
• Electronic components known as optoelectronic devices detect and regulate light. They convert electrical information into infrared or visible energy and vice versa. It is utilized in photovoltaic power supply, optical fiber communication systems, monitor and control circuits, and electric eyes. Optoelectronic components are used in quantum cascade lasers and injection laser diodes for stimulated emission. LEDs and image sensors are utilized in digital imaging systems, packaging, and safety applications.
• According to the Ericsson Mobility Report published in November 2020, the global mobile data traffic was estimated to reach around 51 EB (exabytes) per month by the end of 2020. This was projected to grow by a factor of almost 4.5 to reach 226 EB per month in 2026. This figure represents the mobile data that will be consumed by greater than 6 billion people using smartphones, laptops, and a multitude of new devices at a time.
• The semiconductor silicon wafer serves as the foundation of the electronics industry and is the main component of many microelectronic devices. With the current advances in the technology landscape, electronic mobility, and digitalization, these items are finding use in a wide range of devices. The requirement for additional capability from a single device has also grown dramatically as a result of the need for small-sized gadgets, which boosts the price of the silicon wafer.
• The COVID-19 pandemic has halted the manufacturing of several items in the semiconductor production equipment industry owing to the continued lockdown in most regions across the world. Lockdown measures reduced the demand for consumer electronic gadgets, which had a global impact on the semiconductor sector. The continued decline in worldwide demand and export shipments for automobiles caused a negative impact on the semiconductor market, which is currently slowing down the demand for semiconductor manufacturing equipment.