The Global Gallium Nitride (GaN) Semiconductor Device Market is valued at USD 19.65 billion in 2020. Between 2020 and 2026, the market was estimated to grow at 4.65 percent compound annual growth rate. This growth was credited to the upscaling demand for power electronics since GaN semiconductor devices consume less power and are highly efficient. These semiconductors express dynamic electrical properties, including, high thermal conduction, high breakdown voltage, large electric field, and so forth. Such devices also help in reducing switching and conduction losses and improving the efficiency of electronic systems. These properties make them a suitable choice to be used in different switching devices.
The GaN technology is estimated to witness a booming demand in the healthcare sector, given the ongoing pandemic. Hospitals have started using robots equipped with GaN elements to conduct complicated surgeries. Significant equipment, such as, Magnetic Resonance Imaging (MRI), sonograms among others use gallium nitride semiconductor devices due to their precise positioning capabilities which help with surgeries. GaN technology is also projected to substitute silicon in medical instruments, like, nerve-muscle simulators, artificial heart pumps, and other devices that require charging. However, COVID-19 has disrupted sales of electronic goods as well as the supply chains. Demand for gallium nitride semiconductor devices due to the pandemic due to hampered sale.
Within the global gallium nitride semiconductor devices market, the opto-semiconductors segment has ruled in 2019. They had a revenue share of 35 percent. The segment is also likely to grow considerably due to its increased application in LED devices, solar cells, lasers, photodiodes, and optoelectronics. The automotive sector is also using opto-semiconductors in numerous applications, like, automotive lights, pulse-powered laser, and so forth. Within this segment, the Gallium nitride radio frequency devices segment is likely to record a high growth rate during 2020 and 2027. The growth is a result of the wide application of GaN radio frequency devices in consumer electronics and defense.
Based on components, the transistor segment led the GaN semiconductor devices market in 2019 with a revenue of 25 percent revenue share. With the mounting adoption of 4G-enabled devices has led to growth in the demand for high power GaN-based transistors for base stations in the telecommunications sector. Gallium nitride transistors are more efficient and work at high power density. The power IC segment is going to witness significant growth during the forecast period.
Based on wafer size, the 4-inch segment ruled the Global Gallium Nitride Semiconductor Device Market in 2019. The segment has a market share of 35 percent. The application of 4-inch wafers is increasing to resolve the problems with 2-inch wafers. They are used in high-power amplifiers, optoelectronics devices, high-temperature devices among others. The 6-inch segment is likely to expand at a considerable CAGR due to the benefits of uniform voltage supply and specific current control.
The Information and Communication Technology (ICT) segment has the highest market share based on end-use applications. The segment had a 20 percent market share in 2019 and is likely to grow due to the increasing use of Internet-of-Things (IoT) technology. IoT devices require cost-effective and efficient components to facilitate constant information exchange.
Lastly, region-wise, North America is dominating the Global Gallium Nitride Semiconductor Device Market in 2019. The market share of 33 percent of North America is owing to the rising investments by the defense and aerospace sector in research development. The Information and Communication Technology sector in this region has been increasingly implementing Gallium Nitride Semiconductor Devices in radio frequency devices.
The Asia-Pacific region is likely to come up as the fastest emerging market in the upcoming years due to the increasing technological advancements that are causing efficient and better performing radio frequency components.
The Global Gallium Nitride Semiconductor Device market has some dominant players, including, Cree, Inc., Efficient Power Conversion Corporation, Fujitsu Ltd., GaN Systems, Infineon Technologies AG, and NexGen Power Systems among others.