News: Markets
29 October 2025
Power GaN device market growing at 42% CAGR to $3bn by 2030
The power gallium nitride (GaN) device market is rising at a compound annual growth rate (CAGR) of 42% from $355m in 2024 then growing sixfold from now to about $3bn by 2030, forecasts Yole Group in its report ‘Power GaN 2025’.
GaN has emerged as one of the most disruptive semiconductor technologies of the decade, offering a compact, efficient and thermally superior alternative to silicon-based systems. “Power GaN is transitioning from promise to production reality,” says Roy Dagher, technology & market analyst, Compound Semiconductors, at Yole Group. Consumer applications, particularly fast chargers, have been the early adopters, driving volume growth and ecosystem maturity. “We see an acceleration across all end markets,” Dagher adds. “Its efficiency, compactness, and performance advantages make it a key technology for the next decade of power electronics.” By 2030, the consumer and mobile segment is projected to constitute over 50% of the total power GaN device market.
Data centers: the golden road for GaN
In particular, the explosion in artificial intelligence (AI) computing and data traffic is transforming data-center power architectures. The growing number of servers and communication systems is driving electricity demand and CO2 emissions, intensifying the need for higher-efficiency power conversion. GaN is particularly well suited for power supply units (PSU) above 3kW, delivering improved form factors, reduced heat losses, and lower operational costs.
In 2025, NVIDIA’s new data-center architecture announcement has catalyzed a wave of collaborations with leading power semiconductor manufacturers, including Texas Instruments, Navitas, Infineon Technologies, Innoscience, and onsemi. The aim is to integrate GaN devices into 800V HVDC power systems. These partnerships mark the beginning of large-scale GaN deployment, with Yole Group anticipating first commercial rollouts around 2027.
The telecom & infrastructure segments collectively are hence expected to grow at a 53% CAGR to more than $380m in GaN revenues by 2030, making data centers one of the most promising growth pillars of the power GaN market.
“Data centers represent a turning point for GaN,” says Dagher. “The combination of AI, electrification and sustainability goals makes GaN indispensable for next-generation server and telecom power systems.”
Other segments are also gaining traction, with Enphase Energy’s first GaN-based micro-inverter and Changan Automobile’s first GaN-based onboard charger (OBC) marking significant milestones that strengthen confidence in GaN technology and pave the way for wider penetration across the power electronics market.
Despite short-term delays linked to the xEV market slowdown, the automotive & mobility segment is expected to grow at a 73% CAGR between 2024 and 2030.
Coexistence of integrated and foundry ecosystems reinforcing resilience and scalability
As the semiconductor industry strives for higher efficiency and sustainability, GaN now stands at the core of the global energy and digital transition, reckons Yole. From fast chargers to data centers and electric vehicles (EV), power GaN is reshaping the way energy is converted and managed, the firm adds.
At the same time, the market is shifting toward integrated device manufacturer (IDM)-driven business models — where vertical integration offers tighter control over technology and supply — as foundries remain essential to the industry’s growth. Established foundries are expanding their GaN capacity, and new entrants are emerging to serve fabless companies and IDMs seeking additional sourcing flexibility. This coexistence between integrated and foundry-based ecosystems is reinforcing the resilience and scalability of the global power GaN supply chain, concludes Yole.
