Published: Feb, 2017
Efficient Power Conversion Corporation, NXP Semiconsuctors N.V., and GaN Systems Inc. were the top three players in the global gallium nitride (GaN) semiconductor devices market in 2015 and accounted for over 47% of its value. Several companies operating in the market are aiming to strengthen their sales channel through mergers and partnerships with various global distributors and sales representatives, finds Transparency Market research (TMR) in a new study.
Key players are allocating large funds to research and development activities in order to ensure rapid business development. “Through these activities, players are making attempts to mitigate issues related to reliability of GaN semiconductors, which in turn will help them in boosting their sales,” says TMR’s lead analyst.
Asia Pacific to Rise to Fore by End of Forecast Period
The opportunity in the global GaN semiconductor devices market was pegged at US$870.9 mn in 2015 and is poised to reach US$3,483.4 bn by 2024, expanding at a significant CAGR of 17.0% from 2016 to 2024. On the basis of wafer size, the 4 inch segment will continue to be at the forefront of growth until 2024, accounting for 53.95% of the overall market revenue. The 8 inch segment is expected to progress at a phenomenal CAGR of 33.6% during the forecast period. The rising demand for 8 inch based GaN semiconductor devices can be attributed to their excellent switching characteristics and small parasitic capacitance.
North America was the leading revenue contributor in 2015. However, Asia Pacific is estimated to surpass the region by the end of the review period. China, India, Korea, and Japan will be sights of high growth rate in the region. The flourishing growth of the electronics sector is one of the primary factors driving the growth of the region. Moreover, the lower production and labor costs in the region are attracting international companies to set up their production facilities, which in turn is propelling the growth of the region. The valuation of the regional market is anticipated to rise to more than US$1 bn by the end of 2024.
Widening Application Area to Foster Growth Prospects
The rapid advancements in the GaN technology are facilitating expansion in the area of applications of GaN based devices, which in turn is escalating the growth of the market. The high saturation velocity and breakdown voltages of GaN semiconductor devices, along with their high electron mobility and high thermal conductivity, are increasing their adoption in radio frequency amplifiers, high voltage applications, and LEDs.
Owing to their benefits, these devices also find applications in the defense industry and thus, with the increasing requirement for enhanced responsiveness and improved battlefield performance, the market is expected to tread along a healthy growth track. The rapid economic growth in emerging economies along with the robust growth of sectors such as consumer electronics, automotive, defense, and ICT is influencing the growth of the market positively.
High Cost of Producing Gallium Nitride Restricts Market Growth
The high production cost of pure gallium nitride is restricting the material from taking over silicon carbide, which has been the primary material used for high voltage power electronics for over a decade. “The cost of the production of GaN devices adds up with each process, including fabrication, packaging, and development, which in turn is hindering the commercialization of these devices,” says a TMR’s analyst. However, the advent of electric vehicles is opening new avenues for the GaN semiconductor devices manufacturers.
The information in this preview comes from a Transparency Market Research titled ‘GaN Semiconductor Devices Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2016 - 2024.’
The global GaN semiconductor devices market is segmented as follows:
Global GaN semiconductor devices market, by Products
- Power Semiconductors
- GaN Radio Frequency Devices
Global GaN semiconductor devices market, by Wafer Size:2 inch
- 4 inch
- 6 inch
- 8 inch
Global GaN semiconductor devices market, by Application:
- Information and Communication Technology
- Consumer Electronics
- Defense and Aerospace
Global GaN semiconductor devices market, by Geography:
- North America
- Asia Pacific
- Rest of the World
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