GaN Semiconductor Device Market Size, Share & Trends

Updated on : October 23, 2024

GaN Semiconductor Device Market Size 

The global GaN semiconductor device market size is estimated to be worth USD 21.1 billion in 2023 and is projected to reach USD 28.3 billion by 2028, growing at a CAGR of 6.1% during the forecast period from 2023 to 2028.

Increasing adoption of GaN semiconductor devices in consumer and business enterprises, surging deploymnet of GaN semiconductor devices in energy & power industry, and growing integration of GaN semiconductor devices in automotive industry are some of the major factors driving the market growth globally.

GaN Semiconductor Device Market Forecast to 2028

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GaN Semiconductor Device Market Share

The GaN semiconductor device market share is experiencing significant growth, with its market share expanding rapidly. This growth is driven by the increasing demand for high-performance and energy-efficient electronic devices across various industries, including telecommunications, automotive, and consumer electronics. The market is projected to continue its upward trajectory, fueled by advancements in GaN technology that offer superior properties such as higher power density, greater thermal conductivity, and improved efficiency compared to traditional silicon-based devices. As a result, GaN semiconductors are becoming increasingly essential in applications requiring robust and efficient performance.

GaN Semiconductor Device Market Trends

Several key trends are shaping the GaN semiconductor device industry . One prominent trend is the rising adoption of GaN technology in power electronics and RF applications due to its high efficiency and power handling capabilities. Additionally, the growing focus on renewable energy sources and electric vehicles is driving the demand for GaN-based components in power conversion and battery charging systems. The market is also witnessing increased investment in research and development to further enhance GaN technology, leading to innovations such as GaN-on-silicon and GaN-on-diamond substrates, which promise to improve performance and reduce costs.

GaN Semiconductor Device Market Analysis

The GaN semiconductor device market analysis reveals a robust growth trajectory driven by technological advancements and expanding applications. The market's expansion is supported by the superior properties of GaN semiconductors, which offer advantages in terms of power efficiency, thermal management, and miniaturization. This analysis highlights the growing penetration of GaN devices in sectors like telecommunications, automotive, and consumer electronics, where high performance and efficiency are critical. Furthermore, strategic collaborations and investments by key industry players are fostering innovation and market growth, positioning GaN semiconductors as a pivotal technology for the future of high-performance electronic devices.

GaN Semiconductor Device Market Dynamics

Driver: Growing adoption of GaN semiconductor devices in consumer and business enterprises

The increasing demand for consumer electronics such as laptops, smartphones, power adapters, high-speed chargers, LED lighting, smart home devices, and gaming devices is expected to have a major impact on the growth of this market. The integration of GaN semiconductor devices in consumer electronics results in high power density and enhances efficiency. It enhances charging speeds, offers longer lifespans, and consumes less power. GaN semiconductor devices are also being deployed in enterprise applications as they are being used in base stations and other network equipment. Its high-power handling and high-frequency capabilities enhance wireless communications. Therefore, their increasing demand in the consumer electronics industry and from business enterprises is projected to fuel the market growth.

Restraint: High manufacturing cost

The high cost of GaN semiconductor devices has a major impact on their widespread adoption. Their high cost can be attributed to several factors. Firstly, the production of GaN substrates, the foundation upon which the devices are built, involves intricate techniques that require specialized equipment and expertise. This complexity significantly drives up manufacturing costs compared with more mature semiconductor materials like silicon. Additionally, the low availability of high-quality GaN substrates further contributes to their elevated price, limiting economies of scale in production.

Opportunity: Growing integration of GaN semiconductor devices in automotive industry

The automotive industry is experiencing a rise in demand for GaN semiconductor devices, which are used to improve the performance efficiency of electrification, connectivity, and autonomous driving. The limitations of power conversion in silicon semiconductor devices have led to an increased demand for GaN, which provides improved efficiency, speed, and smaller size to automotive electronics. GaN semiconductor devices can be used in several automotive applications such as hybrid and electric power DC-DC converters, Lidar and driver assist (ADAS) and autonomous navigation systems, motor drives, infotainment systems, and in Class D Audio systems. Therefore, the automotive industry is likely to see an increase in the deployment of GaN semiconductor. 

The GaN market is rapidly expanding as Gallium Nitride (GaN) technology continues to revolutionize industries that require high-performance, energy-efficient solutions. GaN, known for its wide-bandgap properties, enables faster switching, higher power densities, and greater efficiency compared to traditional silicon semiconductors. This makes it ideal for applications in power electronics, RF devices, 5G infrastructure, electric vehicles (EVs), and renewable energy systems. The GaN market is seeing significant demand in sectors like telecommunications, automotive, consumer electronics, and industrial automation, where the need for more compact and efficient devices is growing. As the world shifts towards energy-efficient technologies, the GaN market is expected to experience continued growth, driven by innovations in power conversion, wireless communication, and advanced manufacturing techniques. GaN’s ability to handle high power and operate at high frequencies positions it as a key enabler of next-generation electronics, making it a cornerstone of the future of technology.

Challenge: Manufacturing complexities associated with GaN semiconductor devices

GaN semiconductor devices involve several manufacturing complexities due to their unique properties and material characteristics. The epitaxial growth of GaN layers on substrates is an important step in GaN device manufacturing. These layers must be grown with crystalline quality and low defect density to achieve the desired optimal device performance. Likewise, while going through all the manufacturing processes, equipment, and materials, factors like thermal coefficients, polarization effects, bandgap and chemical stability, dopants in the crystal lattice, a stable gate insulator layer, crystal defect management, and thermal stability play an important role. These challenges can be resolved by launching reliable testing methods.

GaN Semiconductor Device Market Ecosystem

The prominent players in the GaN semiconductor device market are Qorvo, Inc. (US), Wolfspeed, Inc. (US), Sumitomo Electric Industries, Ltd. (Japan), MACOM Technology Solutions Holdings, Inc. (US) and Infineon Technologies AG (Germany). These companies perform organic and inorganic growth strategies to expand themselves globally by providing advanced products of GaN semiconductor devices.

GaN Semiconductor Device Market Segmentation

Discrete semiconductor segment to register largest market share in the GaN semiconductor device market during forecast period

Discrete GaN semiconductor components include GaN transistors and GaN diodes that are individually packaged and marketed. These components are used in diverse applications such as power supply units, inverters, and radio frequency (RF) amplifiers. GaN transistors and diodes effectively manage substantial voltage and current levels, leading to powerful designs. Additionally, they enable more compact and lightweight circuits suitable for applications where constraints on size and weight are paramount

Power & Energy to register highest CAGR in the GaN semiconductor device market during forecast period

The energy & power segment is expected to grow at the highest CAGR during the forecast period. This growth can be attributed to the rising integration of GaN semiconductor devices into electronic systems to work in elevated temperatures, pressures, and voltages. Moreover, The GaN semiconductor technology foresees extensive adoption in energy and power solutions, encompassing realms such as energy storage systems, solar DC to AC inverters, AC solar panels, and volt-ampere reactive (VAR) compensators in the future.

GaN Semiconductor Device Market Regional Analysis

Asia Pacific held for the largest GaN semiconductor device market share in 2022

Asia Pacific is accounted for the largest share of the GaN semiconductor device market in 2022. The presence of established several semiconductor manufacturing companies such as Toshiba (Japan), Nichia Corporation (Japan), and Mitsubishi Electric (Japan), increasing integration in consumer & business enterprise verticals, government-led initiatives for innovation and industrial development are the major factors driving the market growth in Asia Pacific.

GaN Semiconductor Device Market Statistics by Region

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Top GaN Semiconductor Device Companies - Market Key Players

The major players in the GaN semiconductor device companies include

• Qorvo, Inc. (US),
• Wolfspeed, Inc. (US),
• Sumitomo Electric Industries, Ltd. (Japan),
• MACOM Technology Solutions Holdings, Inc. (US) and
• Infineon Technologies AG (Germany). These companies have used both organic and inorganic growth strategies such as product launches, agreements, collaborations, acquisitions, partnerships and expansions to strengthen their position in the market.

GaN Semiconductor Device Market Report Scope

GaN Semiconductor Device Market size Highlights

The study segments the GaN semiconductor device market size based on type, device, application, voltage range, vertical, and region at the regional and global level.

Recent Developments in GaN Semiconductor Device Industry:  

• In June 2023, Qorvo, Inc. announced the launch of QPB3810, a GaN-based power amplifier. It has integrated bias control for 5G massive multiple-input multiple-output (mMIMO) applications.
• In March 2023, Infineon Technologies announced the plan to acquire GaN Systems for USD 830 million. This acquisition will strengthen the GaN portfolio and its position in the power system market.
• In October 2022, Sumitomo Electric Industries, Ltd. announced the launch of GaN-HEMT, which uses N-polar GaN and hafnium (Hf)-based, highly heat-resistant, and high-dielectric material with high capacity and high-speed communications. The company strategically launched the GaN HEMT to strengthen its position for the post-5G era.
• In June 2021, Wolfspeed, Inc. announced a partnership with MaxLinear, Inc. to innovate a new solution that increases the wireless capacity of a 5G base station that supports simultaneous users and increases the speed of data transmissions.
• In January 2021, MACOM signed a cooperative research and development agreement with the US Air Force Research Laboratory regarding the Gallium Nitride-on-Silicon technology. Under this agreement MACOM and Air Force Research Laboratory (AFRL) will work together to transfer AFRL’s production of 0.14 micron GaN-on-SiC semiconductor process to MACOM’s trusted foundry based in US.

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