Gallium Nitride (GaN) Semiconductor Devices Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

GaN Semiconductor Devices Market Size

GaN Semiconductor Devices Market Trends & Growth Drivers

Surging Use in Commercial Applications To Propel Market Growth

• The increasing demand for energy-efficient GaN components and power semiconductors in wired communications will drive the market progress.
• Internet service providers are primarily focused on incorporating high capacity, ubiquitous connectivity, and low-latency networks using optical cables in the telecommunication sector, which may lead to the expansion of this sector.
• Moreover, the GaN-based semiconductors also enable greater power efficiency at a lower cost, which results in the rising usage of GaN semiconductor devices in the commercial sector.
• There are currently around 7 billion smartphone connections and are the primary means of internet access, across the world.
• According to a survey, over 70% of internet users worldwide will use their smartphones only to get online by 2025.
• Moreover, major players in the telecommunication sector are involved in research activities to build, improve, and deploy the 5G technology across the world.
• For instance, in June 2024, Nokia and Google Cloud expanded their collaboration to offer software tools and network connectivity to developers to quickly create consumer and enterprise 5G applications. Under the partnership, Nokia’s Network as Code platform now runs on Google Cloud.

Burgeoning Demand for EVs also Drives Market

• The rise in EVs demand around the world would proliferate the sales of GaN semiconductor devices. Semiconductor manufacturers are making efforts to increase the production of advanced GaN systems for EVs.
• This is because GaN and SiC components possess low switching losses and less heat generation, which enhances the efficiency of EVs and gives them a longer driving range.
• Additionally, they offer higher switching frequencies in the motor drive inverters, which govern the spinning direction and angular velocity of the traction motors.
• As pert the Global EV Outlook 2024 report of the International Energy Agency (IEA), in Q1 2024, 25% more electric cars were sold worldwide than the same period the previous year.
• The IEA has further forecast sales to reach 17 million units by the end of 2024, driven by the government efforts to make their manufacturing and purchase cost-effective and expand access to charging infrastructure.

High Product Cost Ill-Affects Market Growth

• The high cost of semiconductor devices made of gallium nitride is the key restraint for the market.
• Being a compound semiconductor, meaning it contains two different metals, GaN is costlier than elemental semiconductors, meaning those made from single metals.
• This is itself because of the requirement for more-sophisticated machinery and higher technical expertise.
• This, in turn, makes devices containing GaN semiconductor chips more expensive than those made from Si and Ge semiconductors.
• Further, high-quality GaN substrates have limited availability, which makes them costlier.

GaN Semiconductor Devices Market Analysis

Product Type Analysis

The opto-semiconductors category holds the largest share, of around 55%, in 2024. This is because these semiconductors have several applications, largely in the sectors of aerospace & defense and consumer electronics, for devices such as photodiodes, LEDs, lasers, optoelectronics, and solar cells. Likewise, the utilization of these semiconductors in the automotive sector for indoor and outdoor lights, automotive lights, and pulse-powered laser systems, is increasing, which drives the market growth in this category.

The rising demand for ADASs around the globe can be viewed as a growth opportunity for players operating in the opto-semiconductors market. For instance, both the U.S. and the European Union are mandated that all new vehicles should be installed with forward-collision warning systems and autonomous emergency braking systems.

Radiofrequency devices are expected to witness the highest CAGR, of 18.5%, over the forecast period. This is attributed to the rapid growth and evolution of the global telecommunications sector, where RF is the key technology enabling voice and data transfer across long distances. In regard to this, the setup of 5G and 6G networks around the world will drive the market in this category.

The following product types are covered in the report:

• Radiofrequency Devices (Fastest-Growing Category)
• Opto-Semiconductors (Largest Category)
• Power Semiconductors

Component Analysis

The power IC category is accountable for the majority of the gallium nitride semiconductor devices market share, in 2024. The need for GaN-based power ICs is increasing, due to their features, including collision avoidance, efficient navigation, and real-time air traffic control. Furthermore, top manufacturers are exceedingly focusing on the advancement of power ICs for automotive and telecom applications, which are strengthening their demand in the market.

The power transistor category will likely witness the highest CAGR, of 18.7%, during the forecast period. This is attributed to the rising usage of these semiconductor components in renewable energy systems, electric vehicles, and telecommunications networks. GaN offers power transistors several advantages, the most prominent of which are reduced energy loss and faster switching.

The report offers insights for the below-mentioned components:

• Power IC (Largest Category)
• Power Transistor (Fastest-Growing Category)
• Diodes & Rectifier
• Power Discrete

Wafer Size Analysis

In 2024, the market is dominated by 4-inch wafers, which hold a share of around 50%. This wafer size offers mass production advantages for semiconductor chips for optoelectronic devices, telecommunication front-ends, and high-power amplifiers. Further, they can be hardened by radiation, which makes them suitable for critical applications in the aerospace & space exploration sectors.

The 6-inch category is expected to witness the highest CAGR, of around 18.8%, in the coming years. This can be ascribed to the advantages of the 6-inch GaN semiconductors, such as precise current control and uniform voltage supply, which lead to their rising applications for automotive collision avoidance devices, power amplifiers of wireless cellular base stations, and defense equipment, in the automotive, consumer electronics, and defense sectors.

We have analyzed the following wafer sizes:

• 2 Inches
• 4 Inches (Largest Category)
• 6 Inches (Fastest-Growing Category)
• 8 Inches

End Use Analysis

The telecommunications category dominates the market in 2024. Telecommunications infrastructure needs high-performance RF components, which can easily be fabricated using GaN semiconductor devices. RF components made from this material offer effective thermal management capabilities, high power density, and appreciable efficiency for amplifiers, satellites, and base stations.

The application of GaN semiconductor devices in the military, defense, & aerospace industry is increasing at the highest rate, over this decade, as these devices improve data transmission and execution dependability in armed services, communications, and radars. Moreover, GaN ICs are widely used in radars to facilitate collision resistance policy, empower efficient navigation, and enable real-time air traffic surveillance. Also, these semiconductors are widely used in military jammers and terrestrial radios.

The report contains analysis for the following end uses:

• Automotive
• Consumer Electronics
• Military, Defense, & Aerospace (Fastest-Growing Category)
• Medical Devices
• Telecommunications (Largest Category)
• Industrial & Power
• Others

Geographical Analysis

• In 2024, North America accounts for the largest revenue share of the gallium nitride semiconductor devices market, of 45%.
• This is owing to the rising internet penetration and the massive adoption of smartphones. It has been projected that the 5G network would cover more than half of the region by 2030.
• Moreover, mobile operators are heavily investing in content and media capabilities, along with 5G services and IoT applications.
• In addition, licensed cellular IoT is gaining momentum in the region, with the total connections expected to surpass 930 million by 2025.
• Furthermore, at the end of 2019, North America reported a total of 587,000 5G connections, and by 2022, this number had risen to 162 million.
• This can be majorly attributed to the rising adoption of 5G technology, primarily in the U.S.
• The growth in the market can also be attributed to the upgradation of large and ultra-large data centers, from 10 G transceivers to new 40 G and 100 G transceivers, for higher digital signal transmission speed.
• Asia-Pacific will likely witness the highest CAGR, of 19.0%, over this decade, led by China, South Korea, and Japan.
• These countries are hubs for the consumer electronics, telecommunications, and automotive industry, with the aerospace & space exploration sector also rapidly spreading wings here.
• By 2025, it is expected that 66%, 49%, and 36% of the total mobile connections in South Korea, Japan, and China, respectively, will be 5G.
• Additionally, India is one of the fastest-expanding markets for modern consumer electronics, which characteristically contain GaN semiconductors.
• Moreover, Taiwan is the world’s largest semiconductor manufacturing hub, which makes these chips easily available in the region for various applications.

The following regions and country are covered in the report:

• North America (Largest Regional Market)
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • Germany (Largest and Fastest-Growing Country Market)
  • France
  • U.K.
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • India (Fastest-Growing Country Market)
  • Japan
  • Australia
  • South Korea
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest Country Market)
  • Mexico (Fastest-Growing Country Market)
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

Gallium Nitride Semiconductor Devices Market Share

The market is fragmented as GaN semiconductor devices find diverse applications, which carry varying standards and quality requirements. Many applications also need customized components, and often, companies lead in offering such products for particular applications. Further, the three regional manufacturing hubs for these products—North America, APAC, and Europe—are dominated by their own unique sets of companies. Leading to more fragmentation and low standardization are the different market dynamics and regulatory standards in these regions. The major companies in the market are engaged in extensive R&D and regularly update the qualities and functionalities of their products.

GaN Semiconductor Device Company News

• In June 2024, Efficient Power Conversion Corporation launched GaN field-effect transistor rated for 50 Volts and 8.5 milliohms. The FET is designed for the USB-C ports in electric vehicles, consumer electronics, and in-vehicle charging systems.
• In June 2024, Texas Instruments Inc. launched a three-phase GaN intelligent power module rated for 650 V for higher inverter efficiency in HVAC and other electrical appliances.
• In June 2024, NXP Semiconductors N.V. and Vanguard International Semiconductor Corporation revealed intentions to create a JV by the name of VisionPower Semiconductor Manufacturing Company Pte Ltd. The new company will establish a fabrication factory for 300-mm wafers, which will be used for 130–40-nm power management, mixed-signal, and analog products.
• In October 2023, Infineon Technology AG completed the previously announced acquisition of GaN Systems Inc. for USD 830 million.
• In December 2023, Toshiba Corporation signed an MoU with Okinawa Institute of Science and Technology School for research and collaboration on carbon-neutrality, quantum computing, and other fields of technology.