Gallium Nitride (GaN) Semiconductor Devices Market Analysis By Product (GaN Radio Frequency Devices, Opto-semiconductors, Power Semiconductors), By Wafer Size, By Application, By Region, And Segment Forecasts, 2018 - 2025

Industry Insights

The global Gallium Nitride (GaN) semiconductor devices market size was valued at USD 974.9 million in 2016. The market is expected to experience significant growth over the next eight years, owing to the accelerating demand for power electronics that consume less power and are energy efficient. GaN-based semiconductors possess dynamic electrical and chemical properties, such as high-voltage breakdown and saturation velocity that make them the appropriate choice for use in a variety of switching devices.

Manufacturers are emphasizing on improving the GaN technology and most of the technological advancements were made during 2010 to 2016. In 2010, the first Gallium Nitride power device was released by International Rectifier. In 2012, the first 6 inch GaN-on-Si Epiwafers were introduced in the market. The prominent industry players are engaged in undertaking collaborations and strategic partnerships for developing and improving the GaN technology.

Most industry experts anticipate Gallium Nitride to substitute silicon, owing to its high efficiency and low power consumption capabilities. It is also expected to be the apt 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 & high switch frequency and are more efficient as compared to silicon devices.

The GaN technology is expected to witness significant demand in the healthcare sector. The hospitals are observed taking help of robots equipped with Gallium Nitride components to conduct delicate surgeries. Furthermore, scanning equipment, such as sonograms, MRI, and miniaturized x-ray machines, make use of GaN-based semiconductor components, owing to their precise positioning capabilities that are helpful in performing surgeries.

Product Insights

In 2016, the opto-semiconductors product segment acquired a significant market share and is expected to witness considerable growth over the next eight years. This can be largely attributed to the application of opto-semiconductors in devices such as LEDs, solar cells, photo-diodes, lasers, and optoelectronics, among others.

The automotive sector is increasingly utilizing GaN technology in automotive lights, indoor & outdoor lighting, and pulse-powered laser. This is subsequently, propelling the adoption of opto-semiconductors in the automotive and consumer electronics industries.

However, the GaN radio frequency devices segment is expected to emerge as the fastest growing segment at a CAGR of 20.4% from 2017 to 2025. The growth can be attributed to the increasing use of Gallium 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.

Wafer Size Insights

The 4-inch segment dominated in 2016 and was valued at USD 381.9 million. This can be attributed to the fact that 4 inch wafers are bigger in size and facilitate large scale production of semiconductor devices.

However, the 6-inch segment is presumed to grow at the highest CAGR of 21.8% over the next eight years. This is primarily due to the benefits such as uniform voltage supply and precise current control offered by 6 inch wafers. In addition, these wafers help in achieving cost efficiencies and are responsible for significantly improving production capacity.

Application Insights

The information & communication technology application segment dominated the market in 2016 and was valued at USD 229.2 million. The growth of the segment can be largely attributed to the increasing adoption of the Internet of Things (IoT) technology.

The IoT technology requires a setup comprising a large number of interconnected devices. These 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 proper functioning of IoT enabled products.

The defense & aerospace segment is expected to grow at the highest CAGR of 20.9% from 2017 to 2025. The growth can be attributed to the increasing applications of GaN technology in the defense & aerospace sector in order to increase the bandwidth and performance reliability in communications, electronic warfare, and radars, among others. The ICs used in radar boards incorporate GaN that enables efficient navigation, facilitate collision avoidance, and enable real-time air traffic control.

Regional Insights

The North American regional market acquired a significant market share and was valued at USD 322.5 million. The increasing investments by the defense & aerospace industry in research & development are the key drivers for the market growth in the region.

The Federal government in the U.S. is promoting the adoption of energy-efficient devices and are undertaking substantial measures towards the direction. For instance, the U.S. government awarded a contract worth USD 14.9 million to Raytheon Integrated Defense Systems in order to enhance GaN semiconductor manufacturing. The low power consumption feature of Gallium Nitride semiconductor devices is further promoting their adoption

The Asia Pacific regional market is expected to emerge as the fastest growing region over the next eight years, due to rapid technological advancements that are leading to increased demand for efficient and high-performance RF components. The increase in demand is further expected to provide growth opportunities for GaN-based power electronics and optoelectronics.

Competitive Insights

The industry is characterized by the presence of dominant players holding significant market shares. These players include NXP Semiconductor N.V., GaN Systems, Inc., Efficient Power Conversion Corporation, Inc., Toshiba Corporation, Qorvo, Inc., Cree, Inc., Fujitsu Ltd., and Texas Instruments, Inc., among others.

The key players are opting for strategic partnerships, collaborations, and mergers & acquisitions to acquire the necessary capabilities for manufacturing GaN-based semiconductors. Furthermore, these strategic initiatives are aimed to make advancements in GaN technology.

In November 2013, Transphorm, Inc. and Fujitsu Ltd. entered into an agreement to integrate their Gallium Nitride power devices businesses. In 2014, Infineon Technologies AG acquired International Rectifier to extend its expertise in production of GaN-based power semiconductors.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global and regional levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global Gallium Nitride (GaN) semiconductor devices market based on products, wafer sizes, applications, and regions:

• Product Scope (Revenue, USD Million; 2014 - 2025)

  • GaN Radio Frequency Devices

  • Opto-semiconductors

  • Power Semiconductors

• Wafer Size Scope (Revenue, USD Million; 2014 - 2025)

  • 2 inch

  • 4 inch

  • 6 inch

  • 8 inch

• Application Outlook (Revenue, USD Million; 2014 - 2025)

  • Automotive

  • Consumer Electronics

  • Defense & Aerospace

  • Healthcare

  • Information & Communication Technology

  • Industrial & Power

  • Others

• Regional Outlook (Revenue, USD Million; 2014 - 2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

  • Asia Pacific

    • China

    • Japan

    • India

  • Latin America

    • Brazil

  • Middle East & Africa