GaN Semiconductor Devices Market Report 2025 (Global Edition)

Current scenario of the GaN Semiconductor Device market

Key opportunity of the GaN Semiconductor Device market

• Increasing demand for electric vehicles is an opportunity for the growth of GaN semiconductor devices.

The growing popularity of electric and hybrid vehicles is expected to fuel the growth of the GaN semiconductor device market in the coming years. An electric automobile is a vehicle equipped with an electric motor driven by an externally rechargeable battery. Gallium nitride semiconductor integrated circuits and high-efficiency power transistors are used in electric vehicles. In comparison to silicon, GaN semiconductor devices have a 3x band gap and a 10x breakdown electric field strength, which are useful in electric vehicle applications.

For example,
The US government agency responsible for collecting, evaluating, and disseminating energy information, the Energy Information Administration (EIA), released a report in October 2021 stating that there were 1.31 billion light-duty vehicles (LDVs) in use globally in 2020 and that 2.21 billion LDVs are expected to be in use by 2050. 

Source (https://www.eia.gov/todayinenergy/detail.php?id=50096)

The increasing demand for electric vehicles (EVs) is driven by government subsidies, environmental protection schemes, and improved charging infrastructure. This will allow manufacturers to offer more advanced active health monitoring features for EVs, driving product demand and creating opportunities for market players in the global active health monitoring systems market. Consequently, the increasing use of electric and hybrid vehicles is driving the market for GaN semiconductor devices.

Key drivers of the GaN Semiconductor Device market

Growing Commercial Use of GaN drives GaN semiconductor device market growth.
The Development The market is anticipated to expand as a result of the growing need for power semiconductors and energy-efficient GaN devices in wired communication. This growth is explained by the fact that more internet service providers are concentrating on employing optical fiber wires to create networks with greater capacity, more widespread connectivity, and lower latency. Due to their ability to provide higher power efficiency at a cheaper cost, semiconductors based on silicon carbide (SiC) and gallium nitride are energy-efficient. Infineon Technologies produces silicon (Si), silicon carbide (SiC), and gallium nitride (GaN) for use in the creation of lightning arresters and light-emitting diodes (LEDs), which are used to safeguard power transformers from external gaps. Gallium nitride's possible application in 5G infrastructure is expected to support market expansion as well. In terms of data rates, energy efficiency, latency, and traffic capacity, 5G technologies will supersede 4G technologies. It is anticipated that 5G technology will go on sale in 2021. 

For example,
A consortium, including INEX Microtechnology, Custom Interconnect Ltd, Viper RF, and Compound Semiconductor Applications (CSA) Catapult, is developing a new supply chain for UK radio frequency (RF) gallium nitride (GaN) products and devices for 5G communications. The ORanGaN project, supported by the Department for Science, Innovation, and Technology, aims to enhance 5G infrastructure and resilience within the UK. The project focuses on new manufacturing processes and packaging solutions for 5G components like Monolithic Microwave Integrated Circuit Chips (MMIC), which are used in power amplifiers. The project is expected to end in February 2024, aiming to advance the UK's export capability for RF-GaN manufacturing.

Source (https://csa.catapult.org.uk/blog/2024/01/02/new-sovereign-supply-chain-for-5g-devices-to-be-established-in-the-uk/#:~:text=RF%20power%20amplifiers%20present%20one,value%20of%20%242.5%2D2.7%20billion.)

Numerous advantages would result from it, including a less expensive and more effective communication network. Giants in the telecom industry, such as AT&T and Nokia, are involved in the R&D project to develop 5G technology for the US.

• Growing Demand for Semiconductor Devices Drives the GaN semiconductor device market growth.

Multiple voltages can be supported by GaN semiconductor devices, which are used in power supply and can be connected to laptops, cellophanes, and other devices. GaN HEMTs are efficient at fulfilling these demands since they are high-voltage semiconductors with MHz switching capabilities. Because it reduces the amount of AC/DC conversions, high-voltage DC power supplies are being used in large-scale data centers to increase power distribution efficiency. Shortly, the demand for GaN semiconductor devices is also anticipated to be driven by an increase in the need for high-power applications in the industrial and telecommunications sectors.

For example,
The Semiconductor Industry Association (SIA) today announced global semiconductor industry sales totaled $46.2 billion during February 2024, an increase of 16.3% compared to the February 2023 total of $39.7 billion but a decrease of 3.1% from the January 2024 total of $47.6 billion. Monthly sales are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average. SIA represents 99% of the U.S. semiconductor industry by revenue and nearly two-thirds of non-U.S. chip firms.

Source (https://www.semiconductors.org/global-semiconductor-sales-increase-16-3-year-to-year-in-february/) 

Moreover, a thin power supply is required for surface-emitting organic light-emitting lamps, which are common for interior lighting. Thus, it is anticipated that gallium nitride devices will help identify an ultra-thin power source. Power supply and conversion applications for gallium nitride power devices are numerous. 

For example,
Infineon's GaN technology solutions maximize power density and offer benchmark efficiency for the growth of the infrastructure supporting telephony. 

Source (https://www.infineon.com/cms/en/product/technology/gallium-nitride-gan/)

Furthermore, by minimizing the footprint of the gallium nitride power supply and offering the maximum level of solution robustness, employing Infineon's GaN transistors for efficient power conversion lowers operational costs.

Key restraints of the GaN Semiconductor Device market

Growing defense budget reduction hampers the GaN semiconductor device market growth.
The federal budget deficit, according to estimates from the U.S. Congressional Budget Office, is USD 3.7 trillion for the current fiscal year (2020–2021) and might reach USD 2 trillion in the financial year 2021 due to significant spending on the COVID-19 recovery. The Congressional Budget Office predicts a $188 billion decrease in the federal budget deficit this fiscal year to $1.5 trillion, a temporary drop due to the start of the year on an October weekend and expected tax revenues due to better returns on investments and postponed tax collection due to natural disasters. Over the next decade, the cumulative budget deficits will be 7% smaller than last year, mainly due to an agreement between President Biden and Congress Republicans that temporarily lifted the statutory debt ceiling in exchange for government spending restrictions. However, deficits will continue to pose challenges for lawmakers due to debt servicing, an aging population, and rising healthcare expenses. It is anticipated to have long-term effects on defense spending. The federal budget deficit resulted in a reduction of the defense budget. The lower demand for software-defined radios, tactical radios, and military radars would be directly impacted by the defense budget cut. It will further alter the international industry's dynamics. 

How did COVID-19 impact the GaN Semiconductor Device market?

The COVID-19 epidemic has had a favorable effect on the industry. The rise in demand for electronics goods and services between March 2020 and September 2020 is the reason for this growth. To lessen the impact of the coronavirus, the United States, China, and the European Union are enacting countrywide lockdowns. To promote a work-from-home culture during the lockdown period, several multinational corporations proposed stringent government rules and restrictions. This move was made in response to the increased demand for electronic products, including laptops, smartphones, chargers, and Internet of Things devices. Gallium nitride-based semiconductor systems are expected to see a direct increase in sales due to the increased need for rapid chargers and Internet of Things services. Gallium nitride (GaN) semiconductor devices would grow as a result of the COVID-19 pandemic and the improvement of the supply chain. It is therefore anticipated to benefit the market. Because of the manufacturers' enhanced supply chain management, the markets in North America and Asia-Pacific showed the greatest impact of all the areas. Asia-Pacific businesses, including Toshiba Corporation and Mitsubishi Electric Corporation, enhanced GaN device operations to meet market demand. It is expected that this will lead to a notable rise in GaN-based system deliveries. To improve productivity, agility, and connection, several businesses, including Cree, Inc., Infineon Technologies AG, and EPISTAR Corporation, are investing in the digital transformation of GaN devices. This has the potential to revive the market between 2022 and 2027.

Our study will explain complete manufacturing process along with major raw materials required to manufacture end-product. This report helps to make effective decisions determining product position and will assist you to understand opportunities and threats around the globe.

The Global GaN Semiconductor Devices Market is witnessing significant growth in the near future.

In 2023, the Opto-semiconductors segment accounted for noticeable share of global GaN Semiconductor Devices Market and is projected to experience significant growth in the near future.

The Discrete Semiconductor segment is expected to expand at the significant CAGR retaining position throughout the forecast period.

Some of the key companies Wolfspeed Inc. (US) , Inc. (US) and others are focusing on its strategy building model to strengthen its product portfolio and expand its business in the global market.

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