The global gallium nitride semiconductor devices market was valued at USD 1.68 billion in 2020 and is expected to grow at a CAGR of 21.6% during the forecast period. One of the key attributes driving the market demand for gallium nitride semiconductor devices is the superior bandgap of gallium nitride over silicon, making it a preferred choice for high-power applications.
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Gallium nitride possesses a bandgap of 3.2 electron volts (eV). On the contrary, silicon has a bandgap of just 1.1 electron volts. Excellent thermal conductivity, optimum switching frequency, high-breakdown voltage, and dynamic electrical properties fuel the gallium nitride semiconductor devices market demand exponentially. Advancement in power electronics has led to robust demand for highly efficient electronic devices, pushing gallium nitride devices. Furthermore, there is a growing focus on reducing energy loss from electronics and consumption of less power with better performance creating significant market potential.
The sudden outbreak of the COVID-19 pandemic has impacted the operations and supply chain of gallium nitride semiconductor device manufacturers and suppliers in the value chain. Export barriers, disruption in materials supply, significantly reduced market demand of devices, the shutdown of manufacturing operations, strict lockdown measures, crunch in consumer budgets resulting in a shortfall in need, and fall of the economy across the world have led to a severe short-term plunge in demand for gallium nitride semiconductor devices due to the pandemic.
Some of the key factors propelling the global market for gallium nitride semiconductor device are the growing high-speed revolution in power electronics, a surge in wide bandgap technology to the broadest possible range, shift from conventional silicon-based technology to advanced gallium nitride-based technology, and shrinking printed circuit boards (PCB) wafer size or miniaturization in electronics. It also functions efficiently in high-temperature conditions and is preferably used in complicated circuits.
Gallium nitride has already been successfully used to produce LEDs, photonics, and RD components. It is now gaining recognition in mainstream applications with increasing power switching and conversion devices. Key factors giving an impetus to its adoption are improved device performance, enhanced efficiency, and delivery of reliable operations in extreme environments.
The market is segmented on the basis of product, component, wafer size, end-use, and region.
By Wafer Size
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The opto-semiconductors market segment is expected to account for the highest revenue share in 2021 of the gallium nitride semiconductor device industry. The segment is driven by increasing demand from consumer electronics such as LEDs, laptops & hand-held electronic devices, and industrial applications, which demand enhanced efficiency. There is also an emergence of optoelectronics in prominent industries such as automotive and healthcare. Growing demand for head-up displays and LED display panels is giving an impetus to the growth of the segment’s market.
The power semiconductors market segment is likely to register the highest CAGR over the forecast period driven by growing market demand for high-frequency switching devices across industry verticals such as consumer electronics, automotive, and aerospace industries. Large silicon wafer manufacturers and electronic industry stakeholders are yet to realize the potential of gallium nitride power electronic devices field.
An increase in demand for high power transistors for base stations in the telecommunications sector has led to a surge in the adoption of GaN-based power transistors in the booming 4G technology-enabled. A gradual shift from silicon-based transistors to advanced gallium nitride-based transistors on account of high efficiency and meeting high power and frequency needs has led to a high share of the transistor segment in the market.
The power IC market segment is anticipated to grow at the highest CAGR on account of the increasing demand for compact electronics, advancements in wireless communications, and surge in usage of next-generation mobile networks. Besides, increasing power densities to achieve more power in compact or reduced spaces elevates the demand for integrated power electronics at an impressive rate in the market for gallium nitride semiconductor devices.
North America dominated the market for gallium nitride semiconductor devices with its substantial investments in gallium nitride semiconductor technologies and the adoption of advanced electronics across industry verticals. Leading U.S.-based semiconductor manufacturers such as Texas Instruments and On Semiconductor have gallium nitride research programs that showcase their heavy technology investment. Besides, the government is actively promoting the adoption of energy-efficient devices and encouraging the reduction of energy losses in the market.
The Asia Pacific gallium nitride semiconductor devices market is expected to witness the fastest growth over the forecast period due to the increasing consumer electronics with the rapid increase in urbanization, increase in integrated electronics in the automotive industry, and rapid technological advancements in the region. The region is the silicon wafer manufacturing hub, with key countries being China, Japan, South Korea, and Taiwan.
Emerging economies such as China, India, and Southeast Asian countries have been experiencing a surge in the usage of LEDs in consumer and enterprise electronics. This substantiates the need for high-frequency devices and the wafer industry, giving an impetus to the market. Additionally, digital technologies are now catching up the pace across developing countries, ensuring a bright market outlook for gallium nitride electronic devices over the forecast period.
Some of the key strategic moves adopted by major players in the gallium nitride semiconductor devices industry to gain a competitive edge include mergers & acquisitions, new product launches, the opening of manufacturing bases, and expanding distribution network. Further formation of long-term contracts and innovation in products and technologies is the mainstream activity in the current scenario.
Some of the key players competing in the global market for gallium nitride semiconductor devices are Cree, Inc., Efficient Power Conversion Corporation, Fujitsu Ltd., GaN Systems Inc., MACOM Technology Solutions, Qorvo Inc., Cree Inc., Infineon Technologies AG, NexgenPower Systems, NXP Semiconductor, Texas Instruments Incorporated; Toshiba Corporation, Analog Devices Inc., Sumitomo Electric Industries, and ST Micro Electronics.
Market size value in 2020
USD 1.68 billion
Revenue forecast in 2029
USD 7.78 billion
21.6% from 2021 - 2029
2017 - 2019
2021 - 2029
Revenue in USD million/billion and CAGR from 2021 to 2029
By Product, By Component, By Wafer Size, By End-Use, By Region
North America, Europe, Asia Pacific, Latin America, Middle East & Africa
Cree, Inc., Efficient Power Conversion Corporation, Fujitsu Ltd., GaN Systems Inc., MACOM Technology Solutions, Qorvo Inc., Cree Inc., Infineon Technologies AG, NexgenPower Systems, NXP Semiconductor, Texas Instruments Incorporated; Toshiba Corporation, Analog Devices Inc., Sumitomo Electric Industries, and ST Micro Electronics.