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, 2021 - 2028

Report Overview

The global Gallium Nitride semiconductor devices market size was valued at USD 1.65 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 21.5% from 2021 to 2028. The growth of the market can be attributed to the rising demand for power electronics, which consume less power and are highly efficient. In addition, Gallium Nitride (GaN) based semiconductors possess dynamic electrical properties, such as high thermal conduction, large electric field, higher saturation velocity, and high-breakdown voltage that make them the appropriate choice for use in a variety of switching devices. Moreover, GaN power semiconductors help reduce switching and conduction losses, thereby improving the efficiency of electronic systems that has further propelled the growth of the market.

Manufacturers are emphasizing improving the GaN technology and 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. Furthermore, the market growth is propelled by the some of the industry players focusing on undertaking 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 threshold voltage of GaN power devices and thus improve their reliability.

Various research organizations such as The Air Force Research Laboratory, Max-Planck-Gesellschaft, and Helmholtz Association are emphasizing on the development of GaN technologies. For instance, The Air Force Research Laboratory developed short-gate gallium nitride 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 that require wider frequency bandwidth. Furthermore, research organizations are awarding contracts to various 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 valued 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 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 and high switch frequency and are more efficient as compared to silicon devices. Over the past several 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.

Gallium nitride technology is expected to witness significant demand in the healthcare sector. The hospitals are increasing depending on the robots equipped with gallium nitride components to conduct delicate surgeries. In addition, scanning equipment, such as Magnetic Resonance Imaging (MRI), sonograms, and miniaturized x-ray machines, among others use GaN-based semiconductor components, owing to their precise positioning capabilities that are helpful in performing 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.

COVID-19 Impact Analysis

The ongoing COVID-19 pandemic has forced lockdowns across several major economies. As a result, sales of electronics products are confronting limitations, and supply chains have been disrupted. Moreover, many economies are also suffering from a tremendous revenue loss as manufacturing units are shut down due to the lockdowns. The overall situation has adversely affected the demand for gallium nitride semiconductor devices in 2020.

Product Insights

The opto-semiconductors product segment dominated the market in 2020 with a revenue share of over 37% 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, photodiodes, lasers, and optoelectronics, among others. 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 growth of the segment.

The GaN radio frequency devices segment is expected to register a high CAGR over the forecast period of 2021 to 2028. 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. These devices are also used in Improvised Explosive Devices (IEDs) as they offer high performance at moderate costs that is anticipated to drive the segment growth further. 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 2020 with a revenue share of over 36%. In recent years, there has been an increasing adoption of GaN-based power transistors adoption of 4G technology-enabled devices has resulted in elevated demand for high power transistors for base stations used in the telecommunication sector. As compared to silicon-based transistors, GaN-based transistors are efficient and functional at high power density and high switch frequency, which has resulted in a higher share of the transistor segment in 2020. 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 GaN-based RF Power Transistors that bodes well for the segment growth.

The power IC segment is anticipated to grow at a significantly higher CAGR over the forecast period on account of increasing usage of GaN-based power ICs that facilitate 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 applications. For instance, in June 2017, Qorvo, Inc. launched a next-gen 5G wireless front-end module dual-channel IC-QPF4005-for the applications including 5G Wireless base stations, terminals, and point-to-point communication. Besides, Toshiba Corporation in August 2017 introduced the gate dielectric process technology to reduce variations in characteristics such as threshold voltage of power ICs and thus improve their reliability.

Wafer Size Insights

The 4-inch segment dominated the market in 2020 with a revenue share of over 39%, attributable to the fact that 4-inch wafers are and facilitate large scale production of semiconductor devices. The implementations of 4-inch wafers are rapidly increasing as these wafers 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 growth. Moreover, the suitability of 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 presumed to expand at a significantly high CAGR over the forecast period due to the benefits such as uniform voltage supply and precise current control offered by 6-inch wafers. The 6-inch wafer was 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. Besides, 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) end use segment dominated the market in 2020 with a revenue share of over 23%, which 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, among others.

The growth of defense and aerospace can be attributed to the increasing applications of GaN technology in the defense & aerospace sector 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. Additionally, the higher operating frequencies provided by GaN semiconductors makes them suitable for use in radar communication, terrestrial radios, and military jammers. Moreover, increasing usage of wideband GaN power transistors in amplifiers for software-defined radios is a major factor responsible for segment growth.

Regional Insights

North America dominated the market in 2020 with a revenue share of over 33%, as a result of increasing investments by the defense and aerospace industry in research and development are the key drivers for the regional market growth. The governments in the region are promoting the adoption of energy-efficient devices and are providing contracts to various companies operating in the region. For instance, in March 2015, the U.S. government awarded a contract worth USD 50.9 million to Raytheon Integrated Defense Systems to enhance GaN semiconductor manufacturing. In addition, the ICT sector in the region has been increasingly adopting GaN semiconductors in radio frequency devices, further fueling the segment growth.

The Asia Pacific regional market is expected to emerge as the fastest-growing region over the next seven years, due to rapid technological advancements that are leading to increased demand for efficient and high-performance RF components. Countries in the region such as China and Japan are some of the largest manufacturers of consumer electronics, including LED display devices, smartphones, and gaming consoles, among others that is a key factor boosting the growth of the regional market. The growing defense budget in countries such as China, India, and North Korea has resulted in increased demand for robust communication devices that is expected to drive the demand for GaN-based RF devices. The significant increase in the adoption of wireless electronic devices and the proliferation of telecommunication infrastructure in the Asia Pacific region has further driven the market growth.

Key Companies & Market Share Insights

The industry is characterized by the presence of dominant players holding significant market shares. The key players are 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 heavily invest in R&D activities to make advancements in GaN technology. In February 2021, Efficient Power Conversion Corporation launched EPC9157 that will integrate Renesas ISL 81806 with EPC2218 eGAN to achieve more than 90% efficiency. Renesas ISL 81806 using high performance of GaN enable high power solutions and reducing BOM cost additionally making the design simple 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 will decrease the heat production by 40% during operation of the equipment and will be majorly used in weather radars and communication components. Some of the prominent players operating in the Gallium Nitride (GaN) semiconductor devices market are:

• 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

Segments Covered in the Report

This report forecasts revenue growth at global, regional and country levels and provides an analysis of the industry trends in each of the sub-segments from 2016 to 2028. For this study, Grand View Research has segmented the global Gallium Nitride semiconductor devices market report based on products, component, wafer size, application, and region:

• Product Outlook (Revenue, USD Million, 2016 - 2028)

  • GaN Radio Frequency Devices

  • Opto-semiconductors

  • Power Semiconductors

• Component Outlook (Revenue, USD Million, 2016 - 2028)

  • Transistor

  • Diode

  • Rectifier

  • Power IC

  • Others

• Wafer Size Outlook (Revenue, USD Million, 2016 - 2028)

  • 2-inch

  • 4-inch

  • 6-inch

  • 8-inch

• End-use Outlook (Revenue, USD Million, 2016 - 2028)

  • Automotive

  • Consumer Electronics

  • Defense & Aerospace

  • Healthcare

  • Information & Communication Technology

  • Industrial & Power

  • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • India

    • China

    • Japan

  • Latin America

    • Brazil

  • Middle East & Africa