GaN Semiconductor Devices Market Size, Share & Trends Analysis Report By Product (Opto-semiconductors, Power Semiconductors), By Component, By Wafer Size, By End-use, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global GaN semiconductor devices market size was valued at USD 1.44 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 19.8% from 2020 to 2027. The growth can be attributed to the rising demand for power electronics owing to their low power consumption and high efficiency. Gallium Nitride (GaN)-based semiconductors possess dynamic electrical properties such as high thermal conduction, large electric field, higher saturation velocity, and high breakdown voltage, which make them an ideal choice for use in a variety of switching devices. These semiconductors also help to minimize switching and conduction losses, thereby improving the efficiency of electronic systems. Manufacturers are focused on making improvements to the GaN technology. Most of the technological advancements were made from 2010 to 2016. The first gallium nitride power device was released by International Rectifier in 2010. 

Additionally, the first 6-inch GaN-on-Si Epiwafers were introduced in the market in 2012. Some industry players are also focusing on collaborations and strategic partnerships for enhancing GaN technology. For instance, Toshiba Corporation has developed a gate dielectric process technology to reduce variations in characteristics such as the threshold voltage of GaN power devices and improve their reliability. Various research organizations such as The Air Force Research Laboratory, Max-Planck-Gesellschaft, and Helmholtz Association are emphasizing the development of GaN technology. For instance, The Air Force Research Laboratory developed short-gate gallium nitride (GaN) semiconductor technology in March 2016. This technology is suitable for the development of semiconductors used in applications such as radar, satellite communication, and software-defined radio, which require wider frequency bandwidth. Furthermore, research organizations are awarding contracts to many companies for encouraging developments in the production process of GaN-based semiconductors. For instance, in April 2017, The Air Force Research Laboratory awarded a contract worth USD 14.9 million to Raytheon Company to enhance its process of producing GaN-based semiconductors.

Industry experts anticipate that gallium nitride will substitute silicon, owing to its low power consumption capabilities and high efficiency, making it a suitable material for manufacturing power electronic devices. Moreover, gallium nitride-based transistors provide high thermal conduction, large electric field, and higher breakdown voltage with a wide ban. The transistors are functional at high power density and switch frequency and are more efficient as compared to silicon devices. Over the past few years, developments in the field of GaN-based devices have enabled GaN FETs to be used as high-power devices for power electronics systems such as cellular base stations.

The gallium nitride technology is expected to witness significant demand in the healthcare sector. Hospitals are using robots equipped with gallium nitride components to conduct delicate surgeries. Scanning equipment such as Magnetic Resonance Imaging (MRI), sonograms, and miniaturized x-ray machines use GaN-based semiconductor components owing to their precise positioning capabilities, which help perform surgeries. Moreover, gallium nitride is expected to replace silicon in medical equipment such as artificial heart pumps, nerve-muscle simulators, and devices that require charging.

The ongoing COVID-19 pandemic has resulted in lockdown across several major economies. This has hampered the sales of electronic products as well as disrupted the supply chains. Additionally, many economies are suffering a tremendous revenue loss as manufacturing units have shut down. The overall situation has adversely affected the demand for Gallium Nitride (GaN) semiconductor devices in 2020.

Product Insights

The Opto-semiconductors segment dominated the market in 2019 with a revenue share of over 35%. The segment is expected to witness considerable growth over the forecast period. 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 also being widely used in applications such as Light Detection and Ranging (LiDAR) and pulsed laser, which bodes well for the segment growth.

The GaN radio frequency devices segment is expected to register a high CAGR over the forecast period. The growth of the segment can be attributed to the increasing use of Gallium nitride radio frequency devices in a wide variety of applications across sectors 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. Moreover, high-frequency GaN devices are widely used in vehicular communication systems and vehicle-to-grid communication systems of electric vehicles. The wide range of applications of GaN radio frequency devices is anticipated to drive the growth of the segment.

Component Insights

The transistor segment dominated the market in 2019 with a revenue share of over 25%. In recent years, the growing adoption of 4G technology-enabled devices has resulted in the increasing demand for high power GaN-based transistors for base stations used in the telecommunication sector. Compared to silicon-based transistors, GaN-based transistors are more efficient and function at higher power density and switch frequency. Besides, 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 gallium nitride-based RF Power Transistors, which is expected to increase the adoption of GaN-based power transistors over the forecast period.

The power IC segment is anticipated to record a significant CAGR over the forecast period on account of the increasing use of GaN-based power ICs, which offer features such as efficient navigation, collision avoidance, and real-time air traffic control. Furthermore, the segment growth is propelled by the focus of companies such as Fujitsu Ltd.; Qorvo, Inc.; and Toshiba Corporation on the development of power ICs for telecom 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. In August 2017, Toshiba Corporation introduced the gate dielectric process technology to reduce variations in characteristics such as threshold voltage of power ICs, thus improving their reliability.

Wafer Size Insights

The 4-inch segment dominated the market in 2019 with a market share of over 35%. The growth can be attributable to the fact that 4-inch wafers are moderate in size and facilitate the large-scale production of semiconductor devices. The implementation of 4-inch wafers is rapidly increasing as they overcome the limitations of 2-inch wafers and find a wide range of applications 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 growth. 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 market growth.

The 6-inch segment is estimated to expand at a significant CAGR over the forecast period owing to benefits such as uniform voltage supply and precise current control offered by 6-inch wafers. It has wide applications in defense equipment and consumer electronics owing to benefits such as high breakdown voltage and low current leakage. The increasing adoption 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 and Communication Technology (ICT) segment dominated the market in 2019 with a market share of over 20%. The segment growth can be primarily attributed to the increasing adoption of the Internet-of-Things (IoT) technology. 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.

The growing use of GaN devices in the defense and aerospace sector can be attributed to the rising need for increased bandwidth and performance reliability in communications, electronic warfare, and radars, among others. The ICs used in radar boards incorporate GaN to enable efficient navigation, facilitate collision avoidance, and enable real-time air traffic control. Additionally, the higher operating frequencies provided by GaN semiconductors makes them suitable for use in radar communication, terrestrial radios, and military jammers. The increasing use of wideband GaN power transistors in amplifiers for software-defined radios is a major factor responsible for the segment growth.

Regional Insights

North America dominated the market in 2019 with a market share of over 33%. The growth can be attributed to the increasing investments by the defense and aerospace sector in research and development. The North American government is promoting the adoption of energy-efficient devices and providing contracts to various companies operating in the region. For instance, in March 2015, the U.S. government awarded Raytheon Integrated Defense Systems a contract worth USD 50.9 million to enhance GaN semiconductor manufacturing. The ICT sector in the region has been increasingly adopting GaN semiconductors in radio frequency devices, which bodes well for market growth.

Asia Pacific is expected to emerge as the fastest-growing market over the forecast period, owing to rapid technological advancements that are leading to the increased demand for efficient and high-performance RF components. Countries such as China and Japan are some of the largest manufacturers of consumer electronics, such as LED display devices, smartphones, and gaming consoles. This acts as a key factor in boosting the growth of the regional market. The increasing defense budgets in countries such as China, India, and North Korea have resulted in the rising demand for robust communication devices. Additionally, a significant increase in the adoption of wireless electronic devices and the proliferation of telecommunication infrastructure in the Asia Pacific region are further driving the growth.

Key Companies & Market Share Insights

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

Companies in the market are heavily investing in R&D activities to make advancements in GaN technology. In November 2013, Transphorm, Inc. and Fujitsu Ltd. entered into an agreement to integrate their gallium nitride power device businesses. In 2014, Infineon Technologies AG acquired International Rectifier to extend its expertise in the production of GaN-based power semiconductors. Some of the prominent players in the gallium nitride (GaN) semiconductor devices market include:

• Cree, Inc.

• Efficient Power Conversion Corporation

• Fujitsu Ltd.

• GaN Systems

• Infineon Technologies AG

• NexGen Power Systems

• NXP Semiconductor

• Qorvo, Inc.

• Texas Instruments Incorporated

• Toshiba Corporation

GaN Semiconductor Devices Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For this study, Grand View Research has segmented the global GaN semiconductor devices market report based on products, component, wafer size, end-use, and region:

• Product Outlook (Volume, Thousand Units; Revenue, USD Million, 2016 - 2027)

  • GaN Radio Frequency Devices

  • Opto-semiconductors

  • Power Semiconductors

• Component Outlook (Revenue, USD Million, 2016 - 2027)

  • Transistor

  • Diode

  • Rectifier

  • Power IC

  • Others

• Wafer Size Outlook (Revenue, USD Million, 2016 - 2027)

  • 2-inch

  • 4-inch

  • 6-inch

  • 8-inch

• End-use Outlook (Revenue, USD Million, 2016 - 2027)

  • Automotive

  • Consumer Electronics

  • Defense & Aerospace

  • Healthcare

  • Information & Communication Technology

  • Industrial & Power

  • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • India

    • China

    • Japan

  • Latin America

    • Brazil

  • Middle East & Africa