5G telecommunication infrastructure requires low-latency, high-speed connectivity and seamless network coverage to support applications like autonomous driving, remote surgery, VR/AR, etc. This has accelerated the deployment of 5G networks worldwide which remains one of the major opportunities for the GaN semiconductor market. GaN semiconductors are highly efficient for power transmission and frequency amplification compared to other materials. They enable 5G base stations to operate at higher frequencies, increasing network capacity. GaN semiconductors also help telecom operators to reduce operational costs by merging multiple cellular bands in a single power amplifier unit.
The global Gallium Nitride (GaN) Semiconductor Market is estimated to be valued at US$ 3.36 Bn in 2023 and is expected to exhibit a CAGR of 6.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
The increasing adoption of 5G infrastructure remains a key driver for the GaN semiconductor market. As mentioned earlier, 5G requires advanced network technologies operating at very high and mmWave frequencies to deliver high speed connectivity. GaN based RF transistors and monolithic microwave integrated circuits (MMICs) provide the necessary functionalities like high efficiency power amplification and frequency switching to support 5G deployment. The growing consumer demand for reliable high-speed internet access through applications like IoT, industrial automation, etc. is accelerating the rollout of 5G which in turn drives the adoption of GaN semiconductors. Another major opportunity emerging is the use of GaN for electric vehicles. It enables much smaller, lighter and more powerful battery charging systems compared to silicon. Leading automakers are collaborating to develop GaN based fast chargers capable of charging EVs in 10-15 minutes. This transition towards greener transportation is likely to propel future demand for GaN semiconductors over the forecast period.
The GaN semiconductor market is segmented into opto, radio frequency and power semiconductor. The power semiconductor segment dominated the market and accounted for over 50% share in 2022. Power semiconductors are widely used in power supplies, electric vehicles, industrial motor drives and fast chargers. The growing demand for fast charging electric vehicles and increasing adoption of consumer electronics is fueling the power semiconductor segment growth.
Political: Governments across regions are supporting the adoption of electric vehicles through subsidies and tax benefits. This is positively impacting the GaN semiconductor market.
Economic: The growing investments by automotive and consumer electronics manufacturers in developing fast charging electric vehicles and devices is driving the economic growth of the GaN semiconductor market.
Social: The increasing consumer demand for EVs and smart devices with fast charging capabilities requires advanced power semiconductors like GaN. This is ascribing to changing social trends towards green mobility and smart technologies.
Technological: Advanced GaN semiconductors allow faster charging and higher power density compared to silicon. Leading players are investing heavily in R&D to further enhance the performance of GaN chips for various power applications.
The Global Gan Semiconductor Market Size is expected to witness high growth over the forecast period supported by increasing electric vehicle sales and expanding consumer electronics industry.
Regionally, Asia Pacific dominated the market and accounted for over 40% share in 2023 due to strong presence of automobile and electronic goods manufacturers in China, Japan and South Korea.
Key players operating in the GaN semiconductor market are Reckitt Benckiser Group Plc, NestlÃ© S.A., Abbott Laboratories, Groupe Danone, Royal FrieslandCampina, Baxter International Inc., Fresenius Kabi, and B. Braun Melsungen AG. Key players like Cree Inc. and Efficient Power Conversion Corporation are focusing on developing advanced GaN chips with higher efficiency and power density to capitalize on opportunities in automotive and industrial sectors.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it