The Total Addressable Market (TAM) for Gallium Nitride (GaN) Semiconductor Devices was valued at USD 1.75 billion in 2021. It is projected to reach USD 11.03 billion by 2030, growing at a CAGR of 22.70% during the forecast period (2022-2030). Compared to silicon devices, GaN semiconductor devices operate with a high power density, high switch frequency, and improved power efficiency. A very hard, mechanically stable wide bandgap semiconductor is gallium nitride (GaN). Power devices based on GaN significantly outperform silicon-based devices in terms of breakdown strength, switching speed, thermal conductivity, and on-resistance. GaN has expanded compared to its contemporaries, gallium arsenide and silicon, due to several advantages, including the lack of cooling requirements and its affordability. GaN technology is also predicted to be in higher demand for applications, including LiDAR, wireless charging, data centers, and other semiconductor-based applications throughout the forecast period.
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Advancements in Genetic Engineering Technology
GaN semiconductor technology has advanced significantly over the past five years. GaN semiconductors have significantly improved the performance of diodes, and their manufacturing prices have decreased significantly. Market participants, such as Toshiba Corporation, GaN Systems, and Efficient Power Conversion Corporation, are concentrating on creating cutting-edge GaN technology. This trend is anticipated to fuel market expansion over the forecast period. As an illustration, Toshiba Corporation created a gate dielectric process technology to lower changes in GaN power device characteristics, such as the threshold voltage, and increase their dependability.
The development of GaN technology is a focus for many research institutions, including The Air Force Research Laboratory, Max-Planck-Gesellschaft, and Helmholtz Association. For instance, The Air Force Research Laboratory created the short-gate gallium nitride (GaN) semiconductor technology in March 2016. Developing semiconductors for uses like radar, satellite communication, and software-defined radio that call for a broader frequency spectrum is appropriate for this technology. Research institutions are providing contracts to various businesses to promote advancements in manufacturing GaN-based semiconductors. For instance, Raytheon Company received a USD 14.9 million contract from The Air Force Research Laboratory in April 2017 to improve its method for making GaN-based semiconductors.
High Cost of Bulk Gallium Nitride (GAN)
GaN is currently very expensive, costing nearly USD 1,900 or more for a two-inch substrate. Compared to the silicon substrate, which has a six-inch substrate price range of between USD 25 and USD 50, the cost of GaN is much greater. The high cost of manufacturing GaN is the leading cause of the high price of bulk GaN. The ammonothermal and Hydride Vapor Phase Epitaxy (HVPE) methods, which are utilized to make GaN, are far more expensive to produce than silicon substrates. The greater cost of the GaN-on-SiC technology is a significant obstacle preventing the adoption of gallium nitride on silicon carbide (GaN-on-SiC) in applications like wireless telecom base stations or cable TV. Furthermore, the GaN-on-SiC technology is not cost-effective when compared to alternative technologies like Si-LDMOS for applications that operate in the frequency range below 3.5GHz.
Additionally, it is anticipated that the greater cost of GaN-on-SiC compared to Sic-on-Sic will hurt market growth. Products with GaN on SiC cost around 50% more than those with SiC on SiC. Additionally, GaN-on-SiC has a significantly higher defectivity than SiC-on-SiC, which could have a detrimental effect on market expansion. The introduction of novel materials like Aluminum Nitride (AIN), which are thought to be more efficient substitutes for producing bulk GaN, could restrain the market's expansion.
Rising Usage of GaN in 5G Infrastructure
Currently, GaN is widely employed in 5G networks in the United States and Japan for remote radio head network densification applications, tiny cells, and distributed antenna systems (DAS). GaN is projected to be used in other nations' 5G network applications, namely tiny cells, which call for higher frequencies and low installation costs. The main aim of telecom service providers is to provide networks with more capacity, less latency, and an all-pervasive connection. The efficiency of 5G infrastructure in terms of energy efficiency, data speeds, latency, and traffic capacity is another area of interest for telecom carriers.
By 2021, commercial 5G network launches are anticipated in nations like Germany, India, and Russia. It is expected that this will present manufacturers of GaN devices with sizable prospects. The expanded usage of GaN in 5G infrastructure, including base stations, transmitters, and data centers, is actively pursued by telecom behemoths like Nokia and AT&T. GaN devices are appropriate for use in 5G network infrastructure due to their better drain efficiency. In addition, GaN devices have a drain efficiency of about 60%, compared to less than 50% for LDMOS devices.
The global gallium nitride (GaN) semiconductor devices market is segmented by product, component, wafer size, and end-user.
Based on product, the global GaN semiconductor devices market is bifurcated into GaN radio frequency devices, Opto-semiconductors, and power semiconductors.
The power semiconductors segment is the highest contributor to the market and is expected to grow at a CAGR of 21.60% during the forecast period. GaN-based power semiconductors are excellent for uses like microwave devices since they can function at high temperatures. Significant advancements have been made in these semiconductors over the past few years, including power function protection, which was made possible by combining low-voltage data and signal processing circuits. This has proven helpful in a variety of consumer devices and IT peripherals. The efficiency and capabilities of integrated circuits (ICs) have improved due to the reduced system cost and smaller chip sizes. GaN power semiconductors are also employed in satellite communication, micro-inverters, ballasts, SMPS, electric car chargers, and electric vehicle batteries.
Light Emitting Transistors (LEDs), solar cells, phototransistors, lasers, and optoelectronics are only a few applications for Opto-semiconductors. The expanding use of GaN semiconductors in automotive and consumer electronics industries has enabled the greater deployment of Opto-semiconductors. They are mainly utilized in pulse-powered lasers, indoor and outdoor illumination, and automobile lights. They are also commonly employed in applications like pulsed laser and light detection and ranging (LiDAR), encouraging the sector's expansion. The transition from coaxial cables to optical fibers, which telecom operators are concentrating on, is anticipated to significantly accelerate the segment's growth. Furthermore, digital signs and display devices frequently use LEDs made with GaN technology.
Based on components, the global GaN semiconductor devices market is bifurcated into the transistor, diode, rectifier, power IC, and others.
The power IC segment owns the highest market share and is expected to grow at a CAGR of 22.45% during the forecast period. Due to the growing adoption of GaN-based power ICs, which provide features including effective navigation, collision avoidance, and real-time air traffic control, the power IC market is predicted to register a substantial CAGR over the forecast period. Fujitsu Ltd., Qorvo, Inc., and Toshiba Corporation are also concentrating on creating power ICs for telecom applications, fueling the segment's growth. For instance, in June 2017, Qorvo, Inc. released the dual-channel next-generation 5G wireless front-end module IC-QPF4005 for use in point-to-point and 5G wireless base station and terminal applications. In addition, to improve the dependability of power ICs, Toshiba Corporation launched the gate dielectric process technology in August 2017. It reduces changes in characteristics like threshold voltage.
The use of the GaN Diode in interface circuits, driver circuits, switching loads, IC circuit management, and inverter circuits in various digital electronic applications are essential driving forces. Its compact design and light weight make switching between miniature electrical components dependable and inexpensive. Additionally, the low power dissipation and resistance to mechanical shocks and vibrations of the GaN Diode result in enhanced reliability and increased energy efficiency.
Based on wafer size, the global GaN semiconductor devices market is bifurcated into 2-inch, 4-inch, 6-inch, and 8-inch.
The 6-inch segment is the highest contributor to the market and is expected to grow at a CAGR of 24.80% during the forecast period. The 6-inch wafer offered superior voltage uniformity and fine current control. Due to features like a high breakdown voltage and little current leakage, it finds extensive use in consumer electronics and defense equipment. The increase in defense machinery manufacturing has facilitated the market penetration of 6-inch wafers in the gallium nitride industry. High-power LEDs and photodetectors utilize the semiconductors on these wafers. The increasing use of these semiconductors in products utilized in sectors and industries like healthcare, aerospace and military, and automotive is encouraging for the segment's growth.
In order to dynamically supply high-watt GaN for GaN-on-silicon transistors and other electronic peripherals, the 8-inch wafer was recently introduced. Semiconductors with 8-inch wafers help minimize parasitic capacitance by up to 90% compared to those with 4- and 6-inch wafers, making them primarily used in power electronics and compound semiconductor devices for increased productivity and superior process control. Automotive applications such as music systems, radios, vehicle-to-vehicle communication systems, in-vehicle chargers for smartphones, and interior lighting systems of cars all use devices made on 8-inch wafers.
Based on end-user, the global GaN semiconductor devices market is bifurcated into automotive, consumer electronics, defense and aerospace, healthcare, information and communication technology, industrial and power, and others.
The information and communication segment owns the highest market share and is expected to grow at a CAGR of 21.55% during the forecast period. As the Internet of Things (IoT) technology gains traction, gallium nitride is used more frequently in information and communication technology. The demand for intelligent computing is anticipated to grow even more with the next generation of networked devices, providing a steady market for GaN-based semiconductors. Silicon is used in ICT devices for radio frequency applications. GaN is replacing these silicon-based devices because it provides superior stability and less power drainage. GaN semiconductors are widely used in small cells, distant radio head networks, distributed antenna systems (DAS), and other applications.
Gallium nitride is utilized in various defense and aerospace applications to boost bandwidth and performance dependability for communication, electronic warfare, and radars. GaN semiconductors found in the ICs used in radar boards make effective navigation, collision avoidance, and real-time air traffic control possible. Additionally, military radio signal boosters and electronic artillery parts use gallium nitride. GAN FETs are also used more frequently in power electronics, including DC-DC converters.
GaN is utilized in many different types of electronics, including computer motherboards, electronic device chargers, and switched-mode power supplies (SMPS). GaN is also used in LEDs, which are used in both indoor and outdoor lighting. LEDs used in remote controls for consumer goods such as air conditioners, televisions, entertainment systems, and refrigerators are among the primary consumer electronics used for GaN devices. These programs assist in expanding the consumer electronics industry, which in 2021 dominated the end-user market.
The global gallium nitride (GaN) semiconductor devices market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
North America Dominates the Global Market
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North America is the most significant shareholder in the global gallium nitride (GaN) semiconductor devices market and is anticipated to grow at a CAGR of 22.35% over the projection period. Government efforts to promote the creation of GaN-based power semiconductor devices are expected to boost demand for MBE systems in North America. The GaN Initiative for Grid Applications (GIGA) Project was started in 2009 by the Office of Electricity Delivery and Energy Reliability at the U.S. Department of Energy (DOE). The project's main goal was to create power electronic devices based on gallium nitride-on-silicon (GaNonSi) technology, such as solid-state transformers, fault current limiters, inverters, and power flow controllers. These solutions improved an electric grid's capacity to absorb, manage, and reroute power.
Asia-Pacific is expected to grow at a CAGR of 24.20%, generating USD 3,375.48 million during the forecast period. The Asia-Pacific regional industry is estimated to expand at the fastest rate of any regional market during the projected period due to accelerating technological advancement and the resulting demand for efficient and high-performance RF components. Some of the biggest producers of consumer electronics in the area, including LED display devices, cellphones, and gaming consoles, are nations like China and Japan. This is a significant driver of the regional market's expansion. The demand for reliable communication devices has expanded due to the expanding defense budgets in nations like China, India, and South Korea. This demand is anticipated to fuel the market for GaN-based RF devices. The massive rise in the adoption of wireless electronic devices and the widespread telecommunication infrastructure in the Asia-Pacific region further drive the market.
Europe is expected to grow significantly over the forecast period. Imosys was chosen to serve as Efficient Power Conversion Corporation's European representative in July 2016, and they are responsible for providing technical support and sales and marketing operations. Imosys's vast reach, technical experience, and the company's capacity to provide local assistance were all factors that contributed to the company's goal of expanding the availability of cutting-edge electronics across Europe for use by engineers and designers.
The global gallium nitride (GaN) semiconductor devices market’s major players are Cree, Inc., Efficient Power Conversion Corporation, Fujitsu Ltd., GaN Systems, Infineon Technologies AG, NexgenPowerSystems, NXP Semiconductor, Qorvo, Inc., Texas Instruments Incorporated, and Toshiba Corporation.