Gallium Nitride Device Market Size, Share & COVID-19 Impact Analysis, By Device Type (Opto-Semiconductor Device, Power Semiconductor Device, and Rf Semiconductor Device), By Wafer Size (2-Inch Wafer, 4-Inch Wafer, and 6-Inch and Above Wafer), By Component (Transistor, Diode, Rectifier, Power IC, and Other), By Application (Light Detection & Ranging, Wireless and EV Charging, Radar and Satellite Radio Frequency, and Others), By End User, and Regional Forecast, 2020-2027

The global gallium nitride (GaN) device market size was USD 20.56 billion in 2019 and is projected to grow from USD 21.18 billion in 2020 to USD 39.74 billion in 2032 at a CAGR of 5.20% in the 2020-2032 period. North America dominated the gallium nitride device market with a market share of 35.89% in 2019.

The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over. The global impact of COVID-19 has been unprecedented and staggering, with gallium nitride (GaN) devices witnessing a positive impact on demand across all regions amid the pandemic. Based on our analysis, the global GaN device market will exhibit a growth of 1.03% in 2020 compared to the average year-on-year growth during 2016-2019.

Gallium Nitride (GaN) is a technologically advanced third-band gap semiconductor device. The GaN device is well-suited for high-power transistors and is capable of operating at high temperatures. Large electric fields, greater energy efficiency, higher saturation velocity, breakdown voltage, and thermal conduction are the prime characteristics of the GaN-based device. In February 2020, STMicroelectronics and Taiwan Semiconductor Manufacturing Company collaborated to accelerate the development of GaN process technology for the supply of both integrated and discrete.

COVID-19 Pandemic to Increase Demand Backed by Higher Sales of IoT-based Systems

The COVID-19 pandemic has positively impacted the market. This growth is attributed to the increasing demand for electronics products & services during the period from March 2020 to September 2020. The U.S., China, and the European Union are implementing national lockdowns to reduce the effect of coronavirus. During the lockdown era, several multinational companies have put forward strict government rules & regulations to initiate work-from-home culture, which is set to reflect the growing demand for electronics products such as mobiles, chargers, laptops, and IoT-based devices. The high demand for fast chargers and IoT-based services is set to directly increase the sales of gallium nitride-based semiconductor systems. The COVID-19 pandemic would improve the supply chain and result in the growth of gallium nitride (GaN) semiconductor devices. Thus, it is expected to have a positive effect on the market.

Among all regions, the market in North America and Asia-Pacific showcased the highest impact due to the improved supply chain management of manufacturers. Companies located in Asia-Pacific, such as Toshiba Corporation and Mitsubishi Electric Corporation, improved the operational activities of GaN devices to accomplish their demand. This is anticipated to significantly increase the deliveries of GaN-based systems. However, several companies such as Cree, Inc., Infineon Technologies AG, and EPISTAR Corporation are investing in the digital transformation of GaN devices to provide better productivity, agility, and connectivity. This will be able to recover the market during the period of 2022-2027.

LATEST TRENDS

Introduction of Fast Mobile Chargers with GaN technology is a Significant Trend 

The integration of GaN technology is providing fast-charging capacity to mobile handsets. In September 2020, BBK Electronics (OPPO Company) announced the full adoption of gallium nitride power ICs to enable the production of ultra-thin 50-watt fast battery chargers. The use of GaN components and integrated control solutions are set to reduce the charging time of mobiles. Gallium nitride devices are used to manage the ultra-high-frequency power solutions to trigger a revolution in the power supply field. The increasing use of gallium nitride semiconductors in radar design is likely to propel market growth. Moreover, GaN semiconductors are used in combat aircraft to build tactical radios for wideband communications.

DRIVING FACTORS

Surging Use of GaN for Commercial Applications to Propel Growth

The increasing demand for energy-efficient GaN devices and power semiconductors in wired communication is expected to propel market growth. This growth is attributed to the expansion of the telecommunications domain as various internet service providers are majorly focusing on providing networks with higher capacity, ubiquitous connectivity, and lower latency with optical cable wires. The silicon carbide (SiC) and gallium nitride-based semiconductors are energy-efficient as they enable greater power efficiency at a lower cost. Infineon Technologies is manufacturing silicon (Si), silicon carbide (SiC), and gallium nitride (GaN) for developing light-emitting diodes (LEDs) and lightning arresters to provide external gap protection for power transformers.

The potential use of gallium nitride in 5G infrastructure is also set to augment the market growth. The 4G technology will be replaced by 5G technologies in terms of traffic capacity, latency, energy efficiency, and data rates.  The 5G technology is projected to be launched commercially in the year 2021. It would provide numerous benefits, such as a more efficient communication network with less cost. Telecom giants such as AT&T and Nokia are participating in the research and development (R&D) initiative to build the 5G technology across the U.S.

Rising Use of GaN-Based Components in Defense Industry to Fuel Growth

The increasing use of technologically advanced GaN systems in the defense and aerospace sector is anticipated to boost market growth. The growth is attributed to the rising need for increased bandwidth, as well as performance reliability in radio communications, radars, electronic warfare, and others. The SiC material is an ideal choice for the manufacturing of bullet-proof jackets due to its strength and hardness. GaN-based ICs are used in radars to enable efficient navigation and real-time air traffic control. Moreover, GaN can provide higher operating frequencies for military jammers, terrestrial radios, and radar communication. The increasing adoption of wideband GaN power transistors from several defense forces worldwide is projected to aid growth.

RESTRAINING FACTORS

Reduction of Defense Budget May Limit Growth

The U.S. Congressional Budget Office estimated that the federal budget deficit is USD 3.7 trillion in the current fiscal year (2020-2021) and will exceed up to USD 2 trillion in the financial year of 2021 as a result of high spending on the COVID-19 recovery. It is set to reflect a long-term implication on the defense budget. The defense budget was reduced due to the deficit in the federal budget. The reduction in the defense budget will directly impact the lesser demand for military radars, tactical radios, and software-defined radios. It will further change the dynamics of this global industry. Furthermore, the high development and maintenance cost associated with building gallium nitride components is a prime factor that may hamper the growth of this market.

SEGMENTATION

By Device Type Analysis

Opto-semiconductor Device Segment to Dominate Stoked by Rising Usage of Solar Cells & Lasers

On the basis of device type, the market is segmented into opto-semiconductor devices, power semiconductor devices, and RF semiconductor devices. The Opto-semiconductor device segment held a dominant gallium nitride device market share in 2019. This growth is attributable to the increasing demand for Opto-semiconductor devices in the applications of solar cells, photodiodes, lasers, LEDs, and optoelectronics. Moreover, Opto-semiconductors are majorly used in aerospace applications such as pulsed laser and Light Detection and Ranging (LiDAR), which would propel segmental growth.

 

The power semiconductor is majorly used in satellites, space shuttles, and aircraft for the purpose of power supply. The RF semiconductor segment is projected to register a higher CAGR during the forecast period, stoked by the rising use of this device in advanced mobile communication applications. It has numerous beneficial properties, such as high current amplification and low off-state power consumption.

By Wafer Size Analysis

4-Inch Wafer Segment to Hold Highest Share Fueled by Usage in High-power Amplifiers

On the basis of wafer size, the market is classified as a 2-inch wafer, 4-inch wafer, and 6-inch and above wafer. The 2-inch size is a combination of esoteric compounds such as indium phosphide and graphene. It is majorly used in defense applications. The 4-inch wafer segment held the largest share of the market during the forecast period. This growth is owing to its increasing demand for the usage of optoelectronics devices, telecom frontends, high-power amplifiers, and high-temperature devices. The adaptability of a 4-inch substrate for space communication applications is also set to accelerate growth.

The 6-inch and above wafer segment is projected to register a higher CAGR during the forecast period. This growth is fueled by the increasing use of this wafer in defense equipment for high breakdown voltage and low current leakage. The rising adoption of this wafer in commercial applications, such as automotive collision-avoidance systems and wireless cellular base stations, would also contribute to growth.

By Component Analysis

Transistor Segment to Lead Stoked by Their Increasing Adoption in 4G-enabled Devices

Based on components, the Gallium Nitride Device Market is segmented into the transistor, diode, rectifier, power IC, and others. The transistor segment will hold a dominant share in the market during the forthcoming years because of the growing adoption of transistors in 4G-enabled devices. Besides, the increasing adoption of GaN transistors in propulsion systems for electric vehicles in the form of insulated gate bipolar transistors and field-effect transistors would also bolster growth.

Diodes are used to isolate signals from supply sources. They are electrical check valves and enable electricity to flow from positive to negative in only one direction. Rectification, light emission, and inductive load dissipation are some of the major characteristics of diodes.

Rectifiers are power converters used to convert alternating current (AC) into direct current (DC) and vice versa. They act as power supplies for television, computer equipment, and tactical radio communication.

The power IC segment is anticipated to exhibit a significant CAGR during the forecast period. This growth is attributed to the increasing use of GaN-based power ICs in wireless air-base stations to improve communication reliability. The others segment consists of a rectifier diode, used in several applications such as rectifying a voltage, turning AC into DC voltages, and mixing various signals.       

By Application Analysis

Increasing Use in Combat Aircraft to Boost the Light Detection and Ranging Segment

In terms of application, the gallium nitride device market is segmented into light detection and ranging, wireless and EV charging, radar and satellite radio frequency, and others. The light detection and ranging segment are expected to reach and generate a dominant market share in the coming years. The dominance is due to its increasing use in combat aircraft to calculate distances. It is done by illuminating the target with the help of laser light and calculating the reflection with a sensor. The high demand for UAV LIDAR in corridor mapping applications is anticipated to boost growth.

The wireless and EV charging segment is anticipated to showcase a significant CAGR. This growth is attributed to the surging demand for electric vehicles across the globe. In battlefield operations, warfighters can carry 15 kg or more of batteries to power their radios and other electronic devices, which are critical for their missions. The wireless and EV charging is likely to eliminate the extra load of batteries, thereby increasing the efficiency of the soldier for battlefield operations.

The GaN-based radar system is designed to protect aircraft and naval vessels from rockets, artillery, cruise missiles, unmanned aerial vehicles (UAVs), mortars, and other low-observable targets. Satellite radio frequency is used for satellite communications, full-time satellite TV networks, as well as raw satellite feeds. The X-band radar frequency sub-bands are majorly used in civil, military, and government institutions for air traffic control, maritime vessel traffic control, weather monitoring, and vehicle speed detection for law enforcement.

The other segment consists of power drivers. They are revolutionizing the power engineering world by improving speed, increasing efficiency, and providing higher power density by using silicon MOSFETs.

By End-User Analysis

The Defense Segment to Register a Higher CAGR during the Forecast Period

In terms of end-users, the market is segmented into aerospace, defense, healthcare, renewables, information and communication technology, and others. The information and communication technology segment is expected to procure a dominant share. It would occur because of the increasing adoption of the Internet-of-Things (IoT) technology for commercial applications. Applications such as real-time analytics, artificial intelligence (AI), and connectivity with the advent of 5G can thus shift activities from local devices toward the cloud technology.

In the aerospace segment, GaN devices are majorly used in small cell, remote radio head network densification, and distributed antenna systems (DAS). These devices are used in data centers, servers, transmission lines, base stations, and satellite communication. The growing demand for cost-effective IoT devices and components, AI-based medical imaging, radiography, ultrasound, and magnetic resonance imaging in the healthcare industry is projected to favor the growth

The defense segment is anticipated to project a significant CAGR during the forecast period. This growth is attributed to the increasing adoption of GaN-based systems in military radar, electronic warfare, counter IED-jammers, and 3G/4G base stations. These devices have unique characteristics and are therefore used to build efficient optoelectronic industrial equipment and devices for renewable energy and high-temperature applications used in the consumer & enterprise industry.

REGIONAL INSIGHTS

The gallium nitride (GaN) device market size in North America stood at USD 7.38 billion in 2019. The market in this region is projected to be the largest during the forecast period. This growth is owing to the presence of key players in the U.S., namely, Cree, Inc., Efficient Power Conversion Corporation., Macom, Microsemi, Northrop Grumman Corporation, Qorvo, Inc., and others. The dominance of this region is also attributable to the increasing procurement of gallium nitride devices and other related technologies in the U.S. and Canada. Private firms such as Texas Instruments Incorporated and Qorvo, Inc are focusing on raising funds to build GaN-based devices in the U.S. 

The market in Europe is projected to grow significantly during the forecast period. This growth is attributed to the increasing demand for wireless devices in the U.K., France, and Germany. The aviation industry in the U.K. is gradually expected to adopt an advanced power management solution in SiC devices for power supply and motor control applications. The SiC is a low-weight component that is majorly used to reduce fuel consumption and emissions in the aviation industry.

Asia Pacific is expected to register considerable growth backed by the presence of key market players in this region, such as Epistar Corporation, Mitsubishi Electric Corporation, Nichia Corporation, and Toshiba Corporation. The high demand for GaN devices from emerging economies, such as China and India, for usage in their defense industry, is also anticipated to favor growth.

In the Middle East, the increasing demand for GaN devices from Saudi Arabia for offshore oil & gas exploration and emergency medical services are likely to fuel growth. The rest of the world is also estimated to exhibit significant growth due to the surging adoption of IoT technology in Africa and Latin America.

KEY INDUSTRY PLAYERS

Key Players Focus on Business Expansion through New Product Launches & Signing Contracts

The industry is represented by the presence of many dominant players holding significant market shares. They are focusing on strategic partnerships, mergers and acquisitions, and collaborations. The competition landscape of the market depicts the domination of selected players such as Cree, Inc., Infineon Technologies AG, Efficient Power Conversion Corporation., Epistar Corporation, GaN Systems, and Macom. The key players are majorly focusing on diverse product portfolios of the global gallium nitride semiconductor, inventory management, supply chain management, maintenance, and other solutions.  In June 2019, Integra Technologies and the U.S. Air Force (USAF) signed a contract to expand GaN device technology for radar applications. The nitride GaN semiconductor device technology is majorly used for solid-state radio frequency (RF) power applications.

LIST OF KEY COMPANIES PROFILED:

• Cree, Inc. (The U.S.)


• Infineon Technologies AG (Germany)


• Efficient Power Conversion Corporation. (The U.S.)


• Epistar Corporation (Taiwan)


• GaN Systems (Canada)


• Macom (The U.S.)


• Microsemi (The U.S.)


• Mitsubishi Electric Corporation (Japan)


• Nichia Corporation (Japan)


• Northrop Grumman Corporation (The U.S.)


• Nxp Semiconductors. (Netherland)


• Qorvo, Inc (The U.S.)


• Texas Instruments Incorporated. (The U.S.)


• Toshiba Corporation (Japan)

KEY INDUSTRY DEVELOPMENTS:

• In May 2021, Raytheon Technologies Corporation entered into partnership with GlobalFoundries to develop and commercialize a gallium nitride (GaN) on silicon process for 5G and 6G RF. The GaN process technology improves RF performance. It maintains operational and production costs and enables levels of power and power efficiency for 5G and 6G RF millimeter-wave operating frequency standards.


• In January 2021, Yaskawa Electric Corporation, a Japanese power electronics firm, entered into a partnership with Transphorm, a GaN-based power conversion product provider in California. Under the agreement, Yaskawa will use Transphorm’s GaN power devices for industrial power conversion applications that include variable frequency drives and servo motors.


• In February 2021, Northrop Grumman signed a contract worth USD 236.9 million with the U.S. Department of Defense to develop eight gallium nitride active electronically scanned array radar systems for the U.S. Marine Corps.


• In April 2020, Nexperia launched a new range of GaN FET devices featuring next-gen high-voltage GaN HEMT H2 technology in TO-247 and CCPAK surface mount packaging. The new technology employed through-epi vias, reducing defects and shrinking die size by around 24%.


• In April 2020, Transphorm Inc. launched SuperGaN power FETs along with the Gen IV GaN platform. The company’s advanced technology includes advancements in design ability, performance, and cost compared to its previous GaN generations.

REPORT COVERAGE

The gallium nitride device market research report provides a structured analysis of the market. It majorly focuses on key aspects such as leading market players, device type, components, applications, industrial presence of global gallium nitride GaN devices, and the leading technological trends of the GaN semiconductor device market. Besides this, the report offers highlights of key industry developments. Furthermore, it offers several factors that have contributed to the growth rate of the GaN semiconductor devices market report over recent years.

Report Scope & Segmentation

ATTRIBUTE	DETAILS
Study Period	2016-2027
Base Year	2019
Forecast Period	2020-2027
Historical Period	2016-2018
Unit	Value (USD billion)
Segmentation	By Device Type Opto-Semiconductor Device Power Semiconductor Device RF Semiconductor Device
By Wafer Size 2-Inch Wafer 4-Inch Wafer 6-Inch and Above Wafer
By Component Transistor Diode Rectifier Power IC Other
By Application Light Detection & Ranging Wireless and EV Charging Radar and Satellite Radio Frequency Others
By End User Aerospace Defense Healthcare Renewables Information and Communication Technology Others
	By Geography North America (By Device Type, By Wafer Size, By Component, By Application, By End User, and By Country) The U.S. (By Device Type) Canada (By Device Type) Europe (By Device Type, By Wafer Size, By Component, By Application, By End User, and By Country) The U.K. (By Device Type) Germany (By Device Type) France (By Device Type) Russia (By Device Type) Italy (By Device Type) Rest of Europe (By Device Type) Asia-Pacific (By Device Type, By Wafer Size, By Component, By Application, By End User, and By Country) China (By Device Type) India (By Device Type) Japan (By Device Type) Australia (By Device Type) South Korea (By Device Type) Rest of Asia- Pacific (By Device Type) Middle East (By Device Type, By Wafer Size, By Component, By Application, By End User, and By Country) Saudi Arabia (By Device Type) Israel (By Device Type) Turkey (By Device Type) Rest of the Middle East (By Device Type) Rest of the World (By Device Type, By Wafer Size, By Component, By Application, By End User, and By Country) Africa (By Device Type) Latin America (By Device Type)