21 December 2022
GaN device market grows at 12.13% CAGR from $6.24bn in 2021 to $7bn in 2022
According to a report from the Business Research Company, the global gallium nitride (GaN) device market is estimated to have risen at a compound annual growth rate (CAGR) of 12.13% from $6.24bn in 2021 to $7bn in 2022. This is despite the Russia–Ukraine war disrupting the chances of global economic recovery from the COVID-19 pandemic, at least in the short term, since it has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, affecting many markets across the globe. Longer term, the GaN device market is expected to grow at a CAGR of 15.38% to $12.41bn in 2026.
The GaN device marketis is expected to be boosted by the increasing use of technically advanced GaN systems in the defense & aerospace sector. Growth is attributed to the rising need for increased bandwidth, as well as performance reliability in radio communications, radars, electronic warfare, and others. GaN-based integrated circuits are used in radars to enable efficient navigation and real-time air-traffic control. Moreover, GaN can provide higher operating frequencies for military jammers, terrestrial radios, and radar communication. For example, in April, US-based radio frequency (RF) and microwave solution provider MACOM Technology Solutions Inc was awarded a contract from the US Department of Defense (DoD) to develop a high-power transmitter.
GaN in 5G multi-chip modules
A growing trend in the GaN device market is the incorporation of GaN in multi-chip modules (MCMs) for 5G telecom infrastructure, since the increased electrical performance of such hybrid microcircuits boosts efficiency, and a primary concern is to reduce energy consumption. Because 5G multi-chip modules help to reduce the size and weight of radio units, mobile network operators can reduce the cost of putting 5G on cell towers and rooftops. For instance, in June 2021, Netherlands-based chip designer and manufacturer NXP Semiconductors NV announced the integration of GaN technology into its multi-chip module platform for 5G energy efficiency.
TI the largest competitor in GaN device market
Texas Instruments Inc was the largest player in the GaN device market in 2021, with a 11.25% share of the market. TI’s growth strategy focuses on offering innovative solutions through the launch of new products. For example, in November 2020 it launched its next generation of 600V and 650V GaN field-effect transistors (FETs) for industrial and automotive applications.
North America the largest region
North America was the largest region in the GaN device market, at $2.13bn in 2021. The GaN device market in North America is supported by government initiatives aimed at increasing the production of electric vehicles.