22 May 2020
GaAs wafer market to grow by 2.27 million tonnes at 14% CAGR through 2024
The gallium arsenide (GaAs) wafer market will grow by 2.27 million tonnes, at a compound annual growth rate (CAGR) of 14%, during 2020-2024, forecasts market research firm Technavio. Specifically, the year-on-year for 2020 is estimated to be 13.62%.
Technavio suggests three forecast scenarios (optimistic, probable, and pessimistic) considering the impact of COVID-19.
The market is fragmented, and the degree of fragmentation will accelerate during the forecast period, reckons Technavio. Major market participants currently include Advanced Wireless Semiconductor Co, AXT Inc, Freiberger Compound Materials GmbH, GCS Holdings Inc, IntelliEPI Inc, IQE plc, OMMIC SAS, Qorvo Inc, WIN Semiconductors Corp and Xiamen Powerway Advanced Material Co Ltd.
Although the increasing adoption of smartphones will offer immense growth opportunities, the high production cost of GaAs wafers will challenge the growth of market participants, says Technavio. To make the most of the opportunities, market vendors should focus more on growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments, the firm adds.
Increasing adoption of smartphones has been instrumental in driving growth of the market. However, the high production cost of GaAs wafers might hamper market growth, Technavio cautions.