17 November 2017
GaN device market to grow at 4.6% CAGR to $22.47bn in 2023
The gallium nitride (GaN) device market is expected to rise at a compound annual growth rate (CAGR) of 4.6% from $16.5bn in 2016 to $22.47bn in 2023, according to the report ‘Gallium Nitride Semiconductor Device Market - Global Forecast to 2023’ from MarketsandMarkets.
Major factors driving growth include the vast addressable market for GaN in consumer electronics and automotive, the wide-bandgap property of GaN material encouraging innovative applications, the success of GaN in RF power electronics, and increasing adoption of GaN RF devices in military, defense and aerospace applications. However, the preference for silicon carbide (SiC) in high-voltage power semiconductor devices is expected to be a potential restraint for the overall GaN device market. This is expected to limit growth over the next few years.
The largest share of the GaN device market in 2016 comprised optoelectronic devices, due to their wide application in consumer and enterprise, industrial, and automotive applications. GaN light-emitting diodes are widely used in laptop and notebook displays, mobile displays, projectors, televisions and monitors, signs and large displays, etc. The use of GaN-based LEDs for interior and exterior lighting such as headlights and signal lights, car interior lighting, fog lights, stop lights, and dome lights in the automotive industry has also contributed to the larger market size.
The market for GaN-based power devices is expected to grow significantly during the forecast period of 2017-2023 due to superior features such as minimum power loss, high-speed switching miniaturization, and high breakdown voltage compared with silicon-based power devices. Also, the large total addressable market (TAM) such as power distribution systems, industrial systems, heavy electrical systems, turbines, heavy machinery, advanced industrial control systems, and electro-mechanical computing/computer systems, as well as several new clean-tech power applications - such as high-voltage direct current (HVDC), smart grid power systems, wind turbines, wind power systems, solar power systems, and electric vehicles and hybrid electric vehicles (EV/HEV) - are among the prime reasons for the faster growth.
The Asia-Pacific (APAC) region is expected to be the largest region in the GaN device market during the forecast period, due to the increasing demand for LEDs in various industries such as consumer and enterprise, industrial, and automotive applications. Further, electric vehicle charging and electric vehicle production markets, as well as increasing renewable energy generation, are driving the market in APAC.