February 2024
02 Mar 2023
The global GaN semiconductor devices market size is expected to attain around USD 19.3 billion by 2030 and expanding at a compound annual growth rate (CAGR) of 29.3% throughout the projection period 2022 to 2030.
The growth of the market may be attributed to the advantages that GaN semiconductor devices offer over silicon devices. Silicon materials have been used in the production of a variety of electronic goods, including computers, cameras, TVs, and telephones. Now that silicon's potential for innovation has decreased, GaN semiconductor devices, which are 100 times faster than silicon, have a chance. Compared to silicon-based counterparts, gaN devices are more energy-efficient, cheaper, and have faster device speeds.
The industry is anticipated to be driven by the expanding global market for electric vehicles. GaN's capacity to assist manufacturers in reducing charging times, raising cost effectiveness, boosting power density, and extending the range of their cars is the reason for this. Consequently, a number of companies are striving to develop GaN systems for electric cars (EV). For instance, the cooperation between GaN Systems, a provider of GaN power semiconductors, and Universal Scientific Industrial Co., Ltd. (USI), a branch of ASE Technologies, was announced in November 2021. The goal of the partnership was to produce GaN power modules for the electric car industry.
Many manufacturers of GaN semiconductor devices receive investment from venture capital firms, which helps to increase their product ranges and competitiveness. GaN Systems, a maker of power chips, said in November 2021 that it had raised USD 150 million in a capital round. The company has been able to promote GaN technology adoption and innovation throughout its consumer, automotive, industrial, and corporate markets with the aid of this funding. Cambridge GaN Devices, a maker of fantastic semiconductors, also received USD 9.5 million in a Series A investment in February 2021. Using the investment, the company expanded its GaN product offering.
GaN is increasingly in demand in 5G multi-chip modules since these networks need to be more energy-efficient. As a result, a number of semiconductor firms are working to include GaN into 5G multi-chip modules. For instance, NXP Semiconductors stated in June 2021 that GaN technology has been included into their multi-chip module. GaN was used in multi-chip modules to boost efficiency beyond the prior product from the firm.
The market is also anticipated to be driven by the rising shipments of robots over the world. GaN is utilised for servo drives in robotics and motion control. The International federation of robotics has given figures showing that annual robotic unit sales would rise from 465 thousand units in 2020 to 584 thousand units in 2022.
Technology improvements and the growing requirement for automation in the production process are two reasons that are anticipated to fuel robot unit sales throughout the projected period. Technology improvements and the growing requirement for automation in the production process are two reasons that are anticipated to fuel robot unit sales throughout the projected period.
GaN Semiconductor Devices Market Report Scope
| Report Coverage | Details |
| Market Size in 2023 | USD 3.19 Billion |
| Projected Forecast Value in 2030 | USD 19.3 Billion |
| Growth Rate | 29.3% from 2022 to 2030 |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Base Year | 2022 |
| Forecast Period | 2022 To 2030 |
| Segments Covered | By Product, By Component, By Wafer Size and By End Use |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America and Middle East & Africa |
Report Highlights
Regional Snapshots
In 2021, the North American regional market dominated its sector and produced more than 30% of global sales. The defence and aerospace industries' rising R&D expenditures are driving the market expansion in the sector. Furthermore, it is believed that government assistance offered to semiconductor companies would push the regional sector. Think about the USA. In June 2020, MPs proposed a plan to support semiconductor manufacturers with annual sales of more than USD 22.8 billion. The goal of the policy was to support American chip manufacturing establishment.
The Asia Pacific regional market is estimated to grow at the fastest rate of any regional market during the projected period due to the accelerating pace of technological advancement and the ensuing growth in demand for efficient and high-performance RF components. Countries like China and Japan are among the top makers of consumer electronics in the region, including LED display devices, smartphones, and game consoles.
This is a key factor in the growth of the local market. Due to rising defense spending in countries like China, India, and South Korea, there is an increased need for dependable communication equipment. This demand is expected to drive the market for GaN-based RF devices. The market is further being driven by the huge rise in the usage of wireless electronic devices and the widespread communications infrastructure in the Asia Pacific region.
Market Dynamics
Drivers
Power management and semiconductor technologies have improved fast during the past 10 years. In the coming years, the market for gallium nitride (GaN) semiconductor devices is anticipated to expand dramatically, necessitating a fundamental rethink of power management systems. It is projected that gallium nitride semiconductors will be crucial for current sensing applications, power switching, and RF power. Businesses operating in the current GaN semiconductor device market are also primarily focused on commercialising GaN semiconductor devices and increasing the uptake of cutting-edge technologies.
Technologies, integrated circuits, and devices based on silicon and gallium arsenide have enabled a variety of advancements in the power electronics sector, including the 3G and 4G-LTE wireless frameworks and power switching methods in inverter and converter systems. In contrast, as more dated and inefficient semiconductor technologies approach their theoretical threshold, developing technologies based on GaN semiconductors are slowly growing in prominence during the anticipated timeframe. Over the next years, as silicon technologies continue to advance to their technical zenith, it is projected that the use of new GaN semiconductor devices will rise dramatically.
Restraints
The key obstacles preventing the market's growth are high pricing and heightened competition from silicon carbide (SiC) devices in high voltage semiconductor applications. Additionally, the worldwide market for gallium nitride semiconductor units is seeing significant growth due to the increasing interest in the development of 5G infrastructure, the need for electric and hybrid vehicles, and other factors.
Opportunities
The greatest option for boosting electronic performance is now GaN semiconductors. GaN semiconductor devices are anticipated to see a rise in demand in the future years as a result of their amazing capacity to carry electrons more efficiently than silicon. Since the need for silicon-based semiconductor devices is dwindling, it is expected that GaN semiconductor devices will become more prevalent in the future years.
GaN semiconductor devices are expected to be more in demand during the course of the assessment period, and their manufacturing costs are considerably lower than those of MOSFET devices as a whole.
Challenges
One of the main barriers to the global market for GaN semiconductor devices is the expense of creating pure gallium nitride, which has been a popular semiconductor material used in high-voltage power electronics for a decade.
Costs associated with the creation of GaN devices include those for the substrate, fabrication, packaging, support electronics, and research. Therefore, the high cost of GaN-based devices is one of the key barriers to their commercialization.
Even though producing huge amounts of GaN can aid in solving these issues, no generally accepted method is currently in use since it requires high working pressures and temperatures, poor material quality, and limiting scalability.
Recent Developments
Major Key Players:
Market Segmentation:
By Product
By Component
By Wafer Size
By End Use
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