The demand for 5G connectivity worldwide is witnessing massive growth. RF power semiconductors form an integral part of telecommunication infrastructure and play a key role in enabling higher data speeds needed for 5G networks. RF power semiconductors are used in cellphone towers and base stations to transmit wireless signals between devices and networks. They help amplify radio waves and signals to extend their coverage area. However, 5G requires much more antenna sites than previous generations, as the signals have difficulty passing through obstacles and have shorter range. This is fueling the need for low-power and high-performance RF power semiconductors.
The global RF power semiconductor market is estimated to be valued at US$ 20.35 Bn in 2023 and is expected to exhibit a CAGR of 8.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Rapid expansion of 5G mobile subscribers worldwide is expected to drive significant opportunities. According to GSMA, 5G networks are expected to account for almost half of the total mobile market, covering 3.5 billion subscribers by 2025. Furthermore, rising adoption of Internet of Things (IoT) devices also necessitates more network connectivity provided by 5G. This in turn is estimated to boost the demand for RF power semiconductor devices during the forecast period. However, large capital investments required for commercialization and network upgrade to 5G standards can hamper the market growth.
The global RF power semiconductor market is dominated by the telecommunication segment which holds around 45% share. 5G deployment across key regions is driving the demand for RF power semiconductors in the telecom infrastructure. Within telecom, the cellular infrastructure sub-segment is the fastest growing due to ongoing 5G network rollouts. The industrial segment is another major segment accounting for 30% share. RF power semiconductors find wide usage in wireless communication equipment, electric vehicles, industrial robotics etc. The automotive segment is emerging as high growth segment driven by surging sales of electric vehicles. RF power electronics are crucial components in electric powertrain and battery management systems of EVs.
Political: Governments across countries are investing heavily in the development of telecom infrastructure especially 5G networks. Major global economies have also announced plans to invest in high-speed internet connectivity for rural regions which will further propel the demand.
Economic: Growing economies across Asia Pacific and Middle East are expanding their digital networks rapidly to support their economic growth. This provides huge opportunities for RF power semiconductor manufacturers. In addition, rising disposable incomes are driving sales of consumer electronics and automotive.
Social: Increasing smartphone and internet penetration coupled with rising demand for connectivity during work from home is positively impacting the market. 5G-enabled applications around IoT, autonomous driving and telemedicine will see more social acceptance over the coming years.
Technological: Advancements in materials, device architecture and semiconductor manufacturing processes are helping to achieve higher power efficiency and frequency levels. Technologies likegallium nitride (GaN) and silicon carbide (SiC) are enabling more compact and powerful RF electronics for newer applications.
The Global RF Power Semiconductor Market Demand is expected to witness high growth over the forecast period driven by ongoing 5G rollout, increasing penetration of connected devices and electric mobility trend.
Asia Pacific dominates currently with over 40% market share led by countries like China, South Korea and Japan. This can be attributed to early adoption of 5G, flourishing semiconductor industry and presence of leading component manufacturers in the region.
Reckitt Benckiser Group PLC is a U.K. based leading manufacturer of RF power transistors and diodes. Church & Dwight Co. Inc. is a U.S. based company specializing in gallium nitride semiconductor components for wireless base stations and satellites. Okamoto Industries Inc. is a Japanese company known for high power LDMOS FETs and modular RF amplifiers. Karex Berhad is a Malaysian conglomerate operating in various industries including RF electronics. It is a major RF GaN HEMT foundry. Humanwell Group is a Chinese firm engaged in RF electronics design and manufacturing.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it