24 March 2020
RF semiconductor market growing at 8.5% CAGR from $17.4bn in 2020 to $26.2bn by 2025
The RF semiconductor market size will rise at a compound annual growth rate (CAGR) of 8.5% from $17.4bn in 2020 to $26.2bn by 2025, according to a report available from ResearchAndMarkets.com.
A major driving factor is the increasing demand for RF devices for smartphones. Also, due to the rising penetration of LTE and advanced technologies, the need for RF semiconductors is increasing. Moreover, the increasing importance of advanced RF devices in radar and electronic warfare (EW) systems is driving the growth of the RF semiconductor industry. However, the rising cost of RF devices with performance improvements is restraining market growth.
Based on material, GaN to grow at highest CAGR
The demand for gallium nitride (GaN)-based RF semiconductors is expected to grow at the highest CAGR during the forecast period, aided by its characteristics such as high breakdown voltage, high power density, high-frequency operation, high efficiency, and excellent thermal conductivity properties. In the higher frequencies being utilized for 5G, GaN is 10-15% more efficient than LDMOS/silicon devices. Hence GaN is expected to gain traction for 5G applications, particularly for base-station power amplifiers, driving the market for GaN during the forecast period.
Based on frequency band, VHF & UHF to hold significant share from 2020 to 2025
On the basis of frequency, the bands that are expected to hold the largest market share during the forecast period are VHF and UHF, which are considered to be among the most important frequency bands for modern wireless communication systems. Growing demand from CATV and wired broadband applications along with the increasing penetration of LTE technology worldwide are expected to be the key drivers for the RF semiconductor market for the VHF and UHF frequency bands.
APAC RF semiconductor industry to grow at significant CAGR
The geographic region of the RF semiconductor industry that is expected to grow at the highest CAGR during the forecast period is the Asia-Pacific (APAC), which is experiencing increasing penetration of LTE technology. In particular, RF semiconductors are in massive demand for consumer device applications in countries like China, Japan and South Korea. Increasing focus of governments on the development of infrastructure to support 5G technology is expected to booost demand for RF semiconductors across APAC.