Demand for 'Portable' Devices to Upkeep Innovation in GaN Substrate Market

Growing on the back of the compactness of car modules, the automotive and transportation industry is serving as a crucial end-use industry for the expansion of the GaN substrate market, and the ongoing undercurrents of green vehicle agendas are likely to surface new revenue streams for market players. Besides this, as the consumer electronics industry continues to look at wafer-sized innovation to support the smart-sizing of devices, the high power-handling capacity of GaN substrates is giving these components an edge over silicon substrates.

At present, players in the gallium nitride substrate market consider product innovation as a winning strategy to survive in the highly competitive landscape, and the demand for portable devices and components is further projected to upkeep their interest in the qualitative approach. However, they need to focus on simplifying the design complexity of GaN substrates to achieve a better infiltration rate in end-use industries, which entails a magnified product-level focus and high investment in research & development activities. Given the multichannel growth opportunities upheld by numerous end-use industries, the GaN substrate market is estimated to expand at a healthy CAGR of ~10% during the period of 2019-2027.

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Automation to Intensify Demand for Efficient Semiconductors

In end-use industries such as automotive, healthcare, and aerospace, where drudgery is being fast-replaced by automated processes, the demand for highly-effective semiconductors is mounting. On similar lines, the excellent insulation properties of GaN on sapphire to prevent buffer layers from cracking has been promoting its adoption in these industries.

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According to an estimate of the TMR study on the gallium nitride substrate market, GaN on sapphire will account for ~60% of the total sales of GaN substrates; however, the better thermal performance of GaN on silicon technology, coupled with a high drive current, is projected to underpin its adoption in LED applications. 

Rising Demand for LEDs to Lead GaN Substrate Market Growth

In the power industry, where manufacturers expend efforts towards achieving energy efficiency, light-emitting diodes (LEDs) are making inroads. With the growing demand for LED technology, advancements in GaN technology with low-defect density and macro-defect density are deemed favorable components for the development of LEDs with improved electric characteristics. However, an exponential rise in the sales of GaN substrates will arrive from their use in the development of transistors, to reduce the size of ICs in particular, and PCBs in general, thereby downsizing the overall size of electronic devices. 

Significant Opportunities Await in Electronics Industry

There are abundant opportunities for players in the GaN substrate market to capitalize on. To start with, the penetration of intelligent electronic devices such as laptops, smartphones, and smart watches at an exponential rate, and a progressive improvement in their features and functionalities, are likely to bring in lucrative prospects, since GaN substrate-based electronic devices can operate without any external cooling requisites. The advent of fifth generation Internet speed will further portend the arrival of IoT devices, which will thereby ensure sustained opportunities for players in the gallium nitride substrate market in the future.

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Analysts’ Viewpoint on GaN Substrate Market Growth

The shift from incandescent lamps towards LEDs is underway, and analysts at TMR see this as a promising driver for the growth of the GaN substrate market during the forecast period. Market players who develop only GaN substrate will face an adoption battle for their products, given the traditional popularity of silicon substrate for the development of semiconductors.

Given the fragmented nature of the market, it is recommended to establish strong distribution networks via strategic alliances for improving cross-border sales prospects. On a product-specific level, since innovation fueled by capital-intensive R&D activities is the only resort to cater to the evolving demands from end-use industries, players in the GaN substrate market will witness a moderate level of threat of new entrants.

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  • According to Transparency Market Research’s latest research report on the global GaN substrate market for the historical period of 2017–2018 and the forecast period of 2019–2027, gallium nitride (GaN) devices coupled with an increase in the adoption of white light LEDs is expected to boost the growth of the global GaN substrate market during the forecast period.
  • In terms of revenue, the global GaN substrate market is estimated to reach a value of ~US$ 225 Mn by 2027, expanding at a CAGR of ~10% throughout the forecast period. 

Rising Popularity of GaN Power Electronic devices: A Key Driver

  • Silicon-based power electronic devices such as metal-oxide-semiconductor field-effect transistors (MOSFETs) and insulated gate bipolar transistors (IGBTs) are fundamental elements in any power electronics system used for the conversion, control, and conditioning of electrical energy, from generation to the point of load.
  • The advent of gallium nitride (GaN) devices meant that, they could outperform traditional Si-based power chips. This can be primarily attributed to the higher breakdown strength, faster switching speed, higher thermal conductivity, and lower on resistance associated with GaN devices.
  • Furthermore, GaN devices ensure higher operational frequency and a higher power density as compared to that offered by silicon (10 times greater). Hence, the popularity of GaN devices is increasing in applications such as automotive, LEDs, and LASER diodes. This, in turn, is fuel the growth of the GaN substrate market.
  • Thus, rising popularity of GaN devices is anticipated to have a positive impact on the gallium nitride substrate market. 

Service Providers Forming Strategic Alliances in Expanding GaN Substrate Market

  • GaN substrates are gaining prominence for various applications, owing to their high breakdown voltage, fast switching capabilities, and high operating current. The GaN substrate market has evolved significantly, and key players in the gallium nitride substrate market engage in finding solutions to address the complexities associated with GaN substrates and GaN devices.
  • The global GaN substrate market is fairly fragmented, owing to the presence of several established providers, especially in Asia Pacific. Moreover, the rising prominence of GaN substrates for specific applications has prompted key players to develop cost-effective GaN substrate solutions, and establish their position as key providers of gallium nitride substrate solutions in the market.
  • Therefore, key players operating in the GaN substrate market are engaging in various R&D activities in order to develop innovative solutions and cater to their customers in a better manner, and gain a strong foothold as a provider in the GaN Substrate market space. 

Strategic Collaborations: Latest Trend among Key GaN Substrate Market Players

  • Key players operating in the GaN substrate market are forming strategic collaborations for the development of advanced and cost-effective GaN solutions in the market.
    • For instance, in October 2018, Sumitomo Electric Industries, a prominent provider of GaN substrates, announced a partnership with engineered materials firm - II-VI Inc., based in the U.S., to establish a vertically-integrated 150 mm wafer fabrication platform to manufacture gallium nitride on silicon carbide (GaN-on-SiC) high-electron-mobility transistor (HEMT) devices for next-generation 5G wireless networks.
  • This move is expected to help Sumitomo to accelerate both, its wide-bandgap RF product roadmaps and consolidate its leading position in the near future. 

Global GaN Substrate Market: Competition Landscape

  • Detailed profiles of the providers of GaN substrates have been mentioned in the report to evaluate their financials, key product offerings, recent developments, and strategies.
  • Key players operating in the global GaN substrate market include
    • Mitsubishi Chemical Holdings
    • Sumitomo Electric Industries
    • SCIOCS
    • Kyocera Corp
    • PAM XIAMEN
    • Toshiba Corporation
    • Soitech
    • GaN Systems Inc. 

Global GaN Substrate Market: Key Developments

  • Key providers of GaN substrates, such as Mitsubishi Electric Corporation, are engaged in the development of innovative GaN solutions in the GaN substrate market.
    • For instance, in October 2018, Mitsubishi Chemical Holdings, a prominent provider of GaN substrate solutions, joined forces with the Research Center for Ubiquitous MEMS and Micro Engineering, National Institute of Advanced Industrial Science and Technology (AIST), Japan. As a part of this collaboration, the company developed a gallium nitride-high electron mobility transistor (GaN-HEMT) in a multi-cell structure (multiple transistors cells arranged in parallel), bonded directly to a single-crystal diamond heat-dissipating substrate with high thermal conductivity.

In the report on the global GaN substrate market, we have discussed individual strategies, followed by the company profiles of providers of GaN substrates. The ‘Competition Landscape’ section has been included in the GaN substrate market report to provide readers with a dashboard view and market share analysis of key players operating in the global GaN substrate market.

Global GaN Substrate Market – Scope of the Report

[170 Pages Report] TMR’S report on the global GaN substrate market studies the past as well as current growth trends and opportunities in order to gain valuable insights into the market for the period of 2019 to 2027. The report provides overall revenue of the global GaN substrate market for the 2017–2027 period, considering 2018 as the base year and 2027 as the forecast year. The report also provides the compounded annual growth rate (CAGR) for the global GaN substrate market for the 2019–2027 period. 

The report has been prepared after extensive research. Primary research involves bulk of the research efforts, wherein, analysts have conducted interviews with market leaders and opinion makers. Extensive secondary research involves reaching out to key players’ product literature, annual reports, press releases, and relevant documents to understand the global GaN substrate market. 

Secondary research includes Internet sources and statistical data from government agencies, websites, and trade associations. Analysts have employed a combination of the top-down and bottom-up approaches to study various phenomena in the global gallium nitride substrate market. 

The report includes an elaborate executive summary, along with a snapshot of various segments and sub-segments included in the scope of the study. Furthermore, the report throws light on the changing competition dynamics in the global GaN substrate market. These indices serve as valuable tools for existing market players and for entities interested in participating in the global GaN substrate market. 

The report delves into the competition landscape of the global gallium nitride substrate market. Key players that are operating in the global market have been identified, and each one of them has been profiled for distinguishing business attributes. Company overviews, financial standings, recent developments, and SWOT are some of the attributes of players operating in the global GaN substrate market, which have been profiled in this report. 

Key Questions Answered in Global GaN Substrate Market Report

  • How are alliances and partnerships between players widening the scope for the growth of the global gallium nitride substrate market?
  • What are revenue share projections of key segments under various criteria in the global GaN substrate market for the forecast period?
  • Which segment is likely to generate leading revenue by the end of the forecast period, i.e. 2027?
  • How are advancements in GaN technology space having an impact on the global GaN substrate market? 

Global GaN Substrate Market – Research Objectives and Research Approach

The comprehensive report on the global GaN substrate market begins with an overview of the market, followed by the scope and objectives of the research study. Following this, the report provides a detailed explanation of objectives of this study. 

For reading comprehensibility, the global gallium nitride substrate report has been compiled in a chapter-wise layout, with each section being further divided into small sections. The entire report comprises an exhaustive collection of graphs and tables that are appropriately interspersed in the entire compilation. Pictorial representation of actual and projected values of key segments is visually appealing to readers. This also allows comparison of the market shares of key segments in the past and at the end of the forecast period. 

The report analyzes the global GaN substrate market in terms of product, application, end-use industry, and region. Key segments under each criteria have been studied at length, and the market share of each of them by the end of 2027 has been provided. Such valuable insights enable market stakeholders in making informed business decisions for investments in the global GaN substrate market.

GaN Substrate Market: Segmentation

Product

GaN on Sapphire

GaN on SiC

GaN on Si

Others

Application

LEDs

LASERs

RF Devices

Transistors

Others

End-use Industry

IT & Telecom

Consumer Electronics

Automotive

Healthcare

Aerospace & Defense

Others

Region

North America

Europe

Asia Pacific

South America

Middle East & Africa