Gallium Nitride Semiconductor Devices Market Size, Share & Trends Analysis Report By Product, By Component, By Wafer Size, By End Use, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global gallium nitride semiconductor devices market size was valued at USD 2.17 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 25.4% from 2023 to 2030. The growth of the market can be attributed to the advantages offered by GaN semiconductor devices over silicon devices. Silicon materials have been used for manufacturing electronic devices such as smartphones, computers, cameras, and televisions. However, the slowdown in potential innovative properties of silicon created an opportunity for GaN semiconductor devices, which are 100 times faster than silicon. The advantages offered by GaN over silicon devices include higher energy efficiency, lower costs, and faster device speed, among others.

The growing number of electric vehicles worldwide is anticipated to drive the market. This is because GaN enables automakers to reduce vehicle charging time, improve cost efficiency, increase power density, and enhance driving range. Various companies are thereby making efforts to provide GaN systems for Electric Vehicles (EV). For instance, in November 2021, GaN Systems, a GaN power semiconductors provider, announced its partnership with Universal Scientific Industrial Co., Ltd (USI), a subsidiary of ASE Technologies. The partnership was aimed toward developing GaN power modules for the EV market.

Various GaN semiconductor device manufacturers receive funding from venture capital companies, which helps them to enhance their offerings and market position. For instance, in November 2021, GaN Systems, a power chip maker, announced that it raised USD 150 million in a funding round. The company used this funding to accelerate the adoption and innovation of GaN technology across its consumer, automotive, industrial, and enterprise markets. Additionally, in February 2021, Cambridge GaN Devices, a fabless semiconductor company, raised USD 9.5 million in a Series A round. The company used the funding to expand its GaN product portfolio.

The demand for GaN in 5G multi-chip modules is growing for energy-efficient mobile networks. Therefore, various semiconductor companies are making efforts to integrate GaN in 5G multi-chip modules. For instance, in June 2021, NXP Semiconductors announced the integration of GaN technology into its multi-chip module. The use of GaN in multi-chip modules increased the efficiency to higher than the company’s previous module.

The growing shipments of robots worldwide are also expected to drive the market. GaN is used for servo drives for motion control and robotics. According to the statistics provided by the International Federation of Robotics, there will be an increase in yearly robotic unit sales from 465 thousand units in 2020 to 584 thousand units in 2022. The increasing need for automation in the manufacturing process and advancements in technology are some of the factors expected to drive the sales of robot units over the forecast period.

COVID-19 Impact Analysis

The COVID-19 pandemic has led to lockdowns across several major economies. As a result, the sales of electronic products have been reduced and supply chains have been disrupted. Moreover, many economies are suffering from a significant revenue loss as manufacturing units are shut down due to lockdowns. The overall situation adversely affected the demand for Gallium Nitride (GaN) semiconductor devices in 2020 & 2021.

Product Insights

The opto-semiconductors segment dominated the market in 2022 and accounted for more than 35.0% share of the global revenue. This can be largely attributed to the application of opto-semiconductors in devices such as LEDs, solar cells, photodiodes, lasers, and optoelectronics. The automotive sector is increasingly utilizing opto-semiconductors in automotive lights, indoor and outdoor lighting, and pulse-powered laser. This is subsequently propelling the adoption of opto-semiconductors in the automotive and consumer electronics industries. Furthermore, opto-semiconductors are being widely used in applications such as Light Detection and Ranging (LiDAR) and pulsed laser, which bodes well for the growth of the segment.

The GaN radio frequency devices segment is anticipated to expand at the highest CAGR over the forecast period. The segment growth can be attributed to the increasing use of Gallium Nitride radio frequency devices for a wide variety of applications across industries such as consumer electronics and defense, which are the early adopters in the market. These devices are also used in Improvised Explosive Devices (IEDs) as they offer high performance at moderate costs, which is anticipated to further drive the segment. Moreover, high-frequency GaN devices are used in vehicular communication systems and vehicle-to-grid communication systems of electric vehicles.

Component Insights

The transistor segment dominated the market in 2022 and accounted for more than 36.0% share of the global revenue. In recent years, there has been increasing adoption of GaN-based power transistors and 4G technology-enabled devices, resulting in the increased demand for high-power transistors for base stations used in the telecommunication sector. Compared to silicon-based transistors, GaN-based transistors are efficient and functional at high power density and high switch frequency, resulting in a greater share of the transistor segment in 2021. Furthermore, the increasing adoption of GaN transistors such as Field Effect Transistor (FET) and Insulated Gate Bipolar Transistors (IGBT) in propulsion systems for electric and hybrid vehicles has fueled the segment growth. Moreover, companies such as NXP Semiconductors; Qorvo, Inc.; and Cree, Inc. are focusing on the development of GaN-based RF power transistors, which bodes well for the segment growth. For instance, in June 2022, GaN Systems, a gallium nitride semiconductor solution provider, launched GS-065-018-2-L, GaN-based transistors. GS-065-018-2-L offers high-performance, increased robustness, and an 850V VDS (transient) rating.

The power IC segment is anticipated to witness steady growth over the forecast period. The segment growth can be attributed to the increasing usage of GaN-based power ICs that offer features such as efficient navigation, collision avoidance, and real-time air traffic control. Furthermore, the segment growth is propelled by companies such as Fujitsu Ltd.; Qorvo, Inc.; and Toshiba Corporation, focusing on the development of power ICs for telecom and automotive applications. For instance, in June 2017, Qorvo, Inc. launched a next-gen 5G wireless front-end module dual-channel IC - QPF4005 - for applications such as 5G wireless base stations, terminals, and point-to-point communication. Additionally, in December 2019, Toshiba Electronic Devices & Storage Corporation announced the launch of TB9045FNG, a power IC, for automotive applications.

Wafer Size Insights

The 4-inch segment dominated the market in 2022 and accounted for more than 38.0% share of the global revenue. This is because 4-inch wafers facilitate the large-scale production of semiconductor devices. The implementation of 4-inch wafers is increasing rapidly as these wafers help overcome the limitations of 2-inch wafers and are widely used in semiconductor product-based industries. Furthermore, the increasing demand for gallium nitride devices with 4-inch wafers in high-power amplifiers, optoelectronics devices, telecom frontends, and high-temperature devices is driving the segment. Moreover, the suitability of a 4-inch substrate for space communication applications owing to its radiation-hardened properties is anticipated to be a key factor influencing the segment growth.

The 6-inch segment is anticipated to expand at the highest CAGR over the forecast period. Benefits such as uniform voltage supply and precise current control offered by 6-inch wafers are driving the segment. A 6-inch wafer is engineered to provide better uniformity in voltage and precise control over the current. It has wide applications in defense equipment and consumer electronics owing to benefits such as high breakdown voltage and low current leakage. Furthermore, the increasing adoption of 6-inch wafers in commercial applications such as Monolithic Microwave Integrated-Circuit (MMIC) power amplifiers for wireless cellular base stations and automotive collision-avoidance systems bodes well for the segment growth.

End-use Insights

The Information & Communication Technology (ICT) segment dominated the market in 2022 and accounted for more than 23.0% share of the global revenue. The segment growth can be attributed to the increasing adoption of Internet-of-Things (IoT) technology globally. IoT devices demand efficient and cost-effective components that facilitate a constant exchange of information. GaN-based semiconductors are expected to suffice low power consumption and high-efficiency requirements for the proper functioning of IoT-enabled products. Additionally, these semiconductors are widely used in Distributed Antenna System (DAS), small cell, and remote radio head network densification. They are also used in data centers, servers, base stations, transmission lines, satellite communication, and base transceiver stations, among others.

The growth of the defense and aerospace segment can be attributed to the increasing applications of GaN technology in the defense and aerospace sector to increase the bandwidth and performance reliability in communications, electronic warfare, and radars. The ICs used in radar boards incorporate GaN, which enables efficient navigation, facilitates collision avoidance and enables real-time air traffic control. Additionally, the higher operating frequencies provided by GaN semiconductors make them suitable for use in radar communication, terrestrial radios, and military jammers. Moreover, the increasing usage of wideband GaN power transistors in amplifiers for software-defined radios is a major factor responsible for the segment growth.

Regional Insights

The North American regional market dominated the market in 2022 and accounted for over 33.0% share of the global revenue. The increasing investments from the defense and aerospace industry in research & development are fueling the market growth in the region. Furthermore, funding provided by government bodies to semiconductor companies is expected to drive the market in the region. For instance, U.S. Lawmakers introduced a bill in June 2020 to provide more than USD 22.8 billion in support for semiconductor manufacturers. The bill was aimed toward spurring the construction of chip factories in the U.S.

The Asia Pacific regional market is anticipated to emerge as the fastest-growing segment through the projection period owing to rapid technological advancements that are leading to increased demand for high-performance and efficient radio frequency components. Countries such as China and Japan in the region are some of the largest manufacturers of consumer electronics, including LED display devices, smartphones, and gaming consoles. This is a key factor boosting the growth of the regional market. The demand for reliable communication devices has expanded as a result of the expanding defense budgets in countries such as China, South Korea, and India and this demand is expected to boost the market for Gallium Nitride based RF devices. The development of telecommunications infrastructure and the notable rise in the usage of wireless electronic devices in the Asia Pacific region are further propelling the market's expansion.

Key Companies & Market Share Insights

The industry is characterized by the presence of dominant players holding a significant market share. The key players are opting for strategic partnerships, collaborations, and mergers & acquisitions to acquire a greater market share and the necessary capabilities for manufacturing GaN-based semiconductors. For instance, in March 2019, Cree, Inc. completed the acquisition of Advanced Technology Materials Corp., a manufacturer of GaN semiconductor devices. With this acquisition, the company extended its geographical presence in China.

Companies operating in the market are significantly investing in R&D activities to make advancements in GaN technology. In February 2021, Efficient Power Conversion Corporation launched EPC9157, which integrated Renesas ISL 81806 with EPC2218 eGAN to achieve more than 90% efficiency. Renesas ISL 81806 used the high performance of GaN to enable high-power solutions and reduce BOM cost, additionally making the design simple and similar to using silicon-built FETs. In December 2019, FUJITSU Limited developed a new design for producing a diamond film on the surface of GaN HEMTs. This technology helped decrease the heat production by 40% during the operation of the equipment and was majorly used in weather radars and communication components. Some prominent players in the global Gallium Nitride (GaN) semiconductor devices market include:

• Cree, Inc.

• Efficient Power Conversion Corporation

• Fujitsu Ltd.

• GaN Systems

• Infineon Technologies AG

• NexgenPowerSystems

• NXP Semiconductor

• Qorvo, Inc.

• Texas Instruments Incorporated

• Toshiba Corporation

Gallium Nitride Semiconductor Devices Market Report Scope

Global Gallium Nitride Semiconductor Devices Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global gallium nitride semiconductor devices market report based on product, component, wafer size, end-use, and region:

• Product Outlook (Revenue, USD Million, 2017 - 2030)

  • GaN Radio Frequency Devices

  • Opto-semiconductors

  • Power Semiconductors

• Component Outlook (Revenue, USD Million, 2017 - 2030)

  • Transistor

  • Diode

  • Rectifier

  • Power IC

  • Others

• Wafer Size Outlook (Revenue, USD Million, 2017 - 2030)

  • 2-inch

  • 4-inch

  • 6-inch

  • 8-inch

• End-use Outlook (Revenue, USD Million, 2017 - 2030)

  • Automotive

  • Consumer Electronics

  • Defense & Aerospace

  • Healthcare

  • Industrial & Power

  • Information & Communication Technology

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • India

    • China

    • Japan

  • Latin America

    • Brazil

  • Middle East & Africa