Gallium Nitride Market Size, Share & Trends Analysis Report By Product (GaN Radio Frequency Devices, Opto-semiconductors, Power Semiconductors), By Component (Transistor, Diode, Rectifier, Power IC, Others), By Wafer Size (2-inch, 4-inch, 6-inch, 8-inch), By End-Use (Automotive, Consumer Electronics, Defence & Aerospace, Healthcare, Industrial & Power, Information & Communication Technology, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global gallium nitride market size was valued at USD 0.32 billion in 2021 and is projected to reach USD 2.44 billion by 2030 at a CAGR of 24.95% from 2022 to 2030.

Due to its hexagonal crystal structure, gallium nitride (GaN) is a very hard and mechanically stable wide bandgap (WBG) semiconductor. Gallium nitride material's market adoption is due to its reliability, compact size, high efficiency, fast switching speed, low on-resistance, and high thermal conductivity relative to silicon (Si) and silicon carbide semiconductors (Sic). Since 1990, the gallium nitride market has grown significantly, which can be attributed in large part to technological advancements in this industry.

Market Dynamics

Global Gallium Nitride Market Drivers

• Fast Mobile Chargers Are a Major Driver

The incorporation of GaN technology provides mobile devices with the capacity for rapid charging. BBK Electronics (OPPO Company) announced in September 2020 the full adoption of gallium nitride power ICs to enable the production of ultra-thin, 50-watt fast battery chargers. It is anticipated that the use of GaN components and integrated control solutions will reduce the charging time of mobile devices. Gallium nitride devices are utilised to manage ultra-high-frequency power solutions, thereby initiating a revolution in the power supply industry. The increasing use of gallium nitride semiconductors in radar design is anticipated to drive market expansion. In addition, GaN semiconductors are utilised in the construction of tactical radios for wideband communications on combat aircraft.

• Commercial Application Boosts the Market Growth

The rising demand for energy-efficient GaN devices and power semiconductors in wired communication is anticipated to drive market expansion. This growth is attributable to the expansion of the domain of telecommunications, as various internet service providers concentrate primarily on providing networks with higher capacity, ubiquitous connectivity, and lower latency using optical cable wires. Silicon carbide (SiC) and gallium nitride-based semiconductors are energy-efficient because they permit greater power efficiency at a reduced cost. Infineon Technologies produces silicon (Si), silicon carbide (SiC), and gallium nitride (GaN) for the development of light-emitting diodes (LEDs) and lightning arresters which provide external gap protection for power transformers.

The potential use of gallium nitride in the 5G infrastructure is also expected to contribute to the expansion of the market. In terms of traffic capacity, latency, energy efficiency, and data rates, 4G technologies will be replaced by 5G technologies. In 2021, it was anticipated that 5G technology would be commercially available. Numerous advantages would result, including a less expensive and more efficient communication network. Participating in the research and development (R&D) initiative to build 5G technology throughout the United States are telecom titans like AT&T and Nokia.

Global Gallium Nitride Market Restraints

• Low-Cost Effectiveness Restricts the Market

The Congressional Budget Office of the United States estimated that the federal budget deficit for the fiscal year (2020-2021) was USD 3.7 trillion and will exceed USD 2 trillion in the following fiscal year (2021-22) due to high spending on the COVID-19 recovery. It is calculated to reflect a long-term effect on the defence budget. The defence budget was reduced due to the federal budget deficit. Less demand for military radars, tactical radios, and software-defined radios will be a direct result of the reduction in the defence budget. It will alter the dynamics of this global industry further. In addition, the high development and maintenance costs associated with manufacturing gallium nitride components are a major factor that may impede the expansion of this market.

Global Gallium Nitride Market Opportunities

• Usage In The Defence Sector Is Expected To Fuel Growth

The growing use of technologically advanced GaN systems in the defence and aerospace industries is expected to stimulate market expansion. The expansion is a result of the increasing demand for increased bandwidth and performance reliability in radio communications, radars, and other applications. Due to its durability and tensile strength, SiC is an ideal material for the production of bullet-resistant jackets. GaN-based integrated circuits are utilised in radars for efficient navigation and real-time air traffic control. GaN can also offer higher operating frequencies for military jammers, terrestrial radios, and radar communication. Multiple global defence forces are anticipated to increase their use of wideband GaN power transistors, which will contribute to economic expansion.

Regional Analysis

Regional differences influence the demand for gallium nitride. In North America, Asia-Pacific and Japan, Europe, the United Kingdom, and China, as well as Rest-of-the-World, the gallium nitride market holds a prominent share. Among all these regions, Asia Pacific is the most dominant region for the Gallium Nitride market.

The Asia-Pacific GaN market is driven by the increasing production and export of consumer electronics and automobiles in China, Japan, and India. Low labour and production costs in the region are key factors driving the market's expansion. The United States has 67,500 public charging stations, while China has 330,000, according to a study by MIT. Shenzhen City's 16,000 bus fleet is entirely electric, and the city's 22,000 taxis are being converted to EVs. By 2030, the resort island of Hainan aims for 100 per cent adoption of electric vehicles.

Segmental Analysis

The gallium nitride market share can be segmented on the basis of product, component, wafer size, region, end-users and competitors. The market is segmented by device type into Opto-semiconductor devices, power semiconductor devices, and RF semiconductor device segments. In 2019, the Opto-semiconductor device segment held the lion's share of the market for gallium nitride devices. This expansion can be attributed to the growing demand for Opto-semiconductor devices in solar cells, photodiode, laser, LED, and optoelectronics applications. In addition, Opto-semiconductors are primarily used in aerospace applications such as pulsed laser and Light Detection and Ranging (LIDAR), which will drive segment growth.

Satellites, space shuttles, and aircraft rely heavily on the power semiconductor as a source of electrical power. The increasing use of RF semiconductors in advanced mobile communication applications is anticipated to drive a higher CAGR for this market segment over the forecast period. It has numerous advantageous properties, including high current amplification and low power consumption.

Based on wafer size, the market is segmented into 2-inch wafers, 4-inch wafers, and 6-inch and larger wafer categories. Combining esoteric compounds such as indium phosphide and graphene, the 2-inch size is comprised of these substances. It is primarily employed for military applications. During the period of analysis, the 4-inch wafer segment held the largest market share. This expansion can be attributed to the rising demand for optoelectronics devices, telecom frontends, high-power amplifiers, and high-temperature devices. Additionally, the adaptability of a 4-inch substrate for space communication applications is expected to accelerate expansion.

During the forecast period, the segment of wafers with a diameter of 6 inches or more significant is expected to record a higher CAGR. This growth is driven by the increasing use of this wafer in defence equipment due to its high breakdown voltage and low leakage current. The expanding use of this wafer in commercial applications, such as automotive collision-avoidance systems and wireless cellular base stations, would also contribute to expansion.

Based on component type, the market is segmented into the transistor, diode, rectifier, power IC, and other product types. The increasing adoption of transistors in 4G-enabled devices will result in the segment's dominance in the market over the next few years. In addition, the increasing use of insulated gate bipolar transistors and field-effect transistors as GaN transistors in the propulsion systems of electric vehicles would also spur expansion.

Diodes are utilised to separate signals from power sources. They are electrical check valves that allow electricity to flow in only one direction, from positive to negative. Diodes are distinguished by their ability to rectify, emit light, and dissipate inductive load.

The market for gallium nitride devices is segmented by application into light detection and ranging, wireless and electric vehicle charging, radar and satellite radio frequency, and others. In the coming years, the light detection and ranging market segment are anticipated to generate the largest market share. The dominance is a result of its increasing use in calculating distances by combat aircraft. This is accomplished by illuminating the target with laser light and measuring its reflection with a sensor. It is anticipated that the high demand for UAV LIDAR in corridor mapping applications will spur expansion.

The wireless and EV charging segment is expected to grow at a rapid rate. This expansion is attributable to the rising global demand for electric vehicles. In battlefield operations, soldiers can carry 15 kilogrammes or more of batteries to power their radios and other mission-critical electronic devices. The wireless and EV charging will likely eliminate the additional weight of batteries, thereby increasing the soldier's battlefield effectiveness.

The market is segmented by end-users into aerospace, defence, healthcare, renewable energy, information and communication technology, and others. It is anticipated that the information and communication technology segment will garner the largest market share. Due to the increasing adoption of Internet of Things (IoT) technology for commercial applications, this would occur. With the advent of 5G, applications such as real-time analytics, artificial intelligence (AI), and connectivity can shift activities from local devices to the cloud.

Impact of covid-19

Covid-19 had some profound adverse impacts on the global advanced ceramics market.

COVID-19 spread across the world from China, making the whole world stand still and to a complete lockdown situation. Covid-19 is an infectious disease that was caused by a newly discovered coronavirus. During the time, the fatality rate among the population above 40 was also high globally. The disease causes severe illness for people suffering from medical conditions like diabetes, cardiovascular disease, chronic respiratory disease, etc.

Considering the situation during that time, it was declared a pandemic which led to numerous countries, including the major economies like China, the United States, India, and others, implementing lockdowns which adversely affected the global economy.

In the first two quarters of 2020, the economic and industrial operations temporarily halted. Almost every manufacturing unit where advanced ceramics is used, such as electrical and electronics, transportation, industrial, chemical, and other End-user Industries (except medical), reduced their manufacturing capacities due to the lack of workers. The lockdown implemented put a halt to global supply chains. This resulted in repercussions in terms of both production and demand for advanced ceramics.

Market Recovery Timeline and Challenges

With time the lockdowns were uplifted, and relaxation was made to the public. Gradually, the economy picked up the pace and started its operations, bringing the demand in the global advanced ceramics market and increasing among various industries. As the situation improved during the initial months of 2021, the economies also strengthened their fiscal policies and initiated their development process; the end-user industries began their activities, bringing the overall ceramics market back on track.

Recent Developments

• in 2019, Panasonic utilised its patented X-GaN technology to manufacture GaN-based transistors for a variety of applications, including power converters with up to 99 per cent efficiency and replacement transistors for motor configurations.
• RAVPower launched a new line of 45W GaN PD wall chargers for faster charging in the consumer electronics market in 2018.
• At IMS 2018, NXP Semiconductors NV introduced new RF GaN wideband power transistors and expanded its Airfast third-generation Si-LDMOS portfolio for 5G macro and outdoor small cell solutions.