Around 65.0% share in the global gallium nitride (GaN) semiconductor devices market in 2015 was held by the top four companies, namely Cree Inc., NXP Semiconductors N.V., GaN Systems Inc., and Efficient Power Conversion Corporation. This made the overall competitive landscape consolidated and till date it remains so.
Despite being consolidated, the competition in the global market for gallium nitride (GaN) semiconductor devices is healthy as players focus on research and development to overcome issues in the product and bring about more useful ones. This is expected to stoke good growth in the market.
A report by Transparency Market Research, prepared after thorough primary and secondary research finds that the market for gallium nitride (GaN) semiconductor devices will make gigantic progress in the near future by expanding at a phenomenal 17.0% CAGR from 2016 to 2024. At this rate, the market value will likely speed from US$870.9 mn in 2015 to US$3,438.4 mn by 2024.
Gallium nitride (GaN) semiconductor devices find application in different end-use sectors such as automotive, information and communication technology, defense and aerospace, and consumer electronics, among others. The segment of defense and aerospace, of them, dominated the market with a substantial share of 42.0% in 2015.
North America, Europe, Asia Pacific, and the Middle East and Africa are some of the key geographic segments in the global market for gallium nitride (GaN) semiconductor devices. North America, among them, holds a leading share. Buoyed by the military and defense and consumer electronics sector, the market in the region is expected to rise at a rapid clip in the next couple of years. The TMR report expects it to attain a value of US$266.4 mn by the end of the forecast period.
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Low Power Consumption One of the Key Advantages Pushing up Demand
Key unique perceived benefits of gallium nitride (GaN) semiconductors are low power consumption, increased resistance to temperature, thermal stability, high breakdown voltage, and high electron mobility. These have led to GaN being identified as a green technology in various industries. As a result, GaN semiconductor devices are finding widespread usage in light emitting diodes (LEDs), radio frequency (RF) amplifiers, and power electronics.
Higher Price Deals Blow to Demand
One drawback of gallium nitride (GaN) semiconductor devices is that they are costly due to the high costs incurred in producing gallium nitride as compared to silicon carbide. In addition, packaging, fabrication, and support electronic charges too have driven up their prices, thereby affecting sales. However, with advancement in the GaN technology, which can bring about bulk production, the issue can be tackled.