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Gallium Arsenide Market

Gallium Arsenide Market

Global Industry Analysis (2018 - 2021), Growth Trends, and Market Forecast (2022 - 2029)

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Industry: Chemicals & Materials | Author Name: Harshad


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Global gallium arsenide market is likely to exhibit a promising growth curve as far as the short-term outlook is considered. The report will uncover the insights into how the market growth will unfold in the next few years.

Widening End User Base Drives Gallium Arsenide Market Forward

The growth in demand for gallium arsenide products, including laser diodes, light-emitting diodes, optoelectronic devices, and monolithic microwave integrated circuits, is considered the primary factor is driving the gallium arsenide market. Gallium arsenide is also a great choice for high-power optical windows and spaces electronics due to its broad direct band gap material that resists radiation damage. The demand for GaAs devices across numerous end-user industries, including aerospace & defense, electronics, and communications, is one factor that is anticipated to propel the market expansion. GaAs is also a great choice for high-power optical windows and outer space electronics due to their wide direct bandgap material that resists radiation damage. Also predicted to offer profitable chances for market expansion are new trends, including more electric aircraft, electronic warfare systems, and developments in broadband cellular network technology.

Other important factors influencing the growth of the gallium arsenide market include a rise in 5G network adoption globally and the emergence of the internet of things (IoT), which has been a big component in the industry's upward trend. According to Gartner, investments in the infrastructure for 5G wireless communication worldwide increased 39% from US$13.7 Bn in 2020 to US$19.1 Bn in 2021. The technology has increased demand for high-frequency communication devices built with I.C.s based on gallium arsenide wafers. Additionally, during the forecast period, manufacturers and suppliers of the wafer, EPI wafer, and metal-organic chemical vapor deposition equipment will have many opportunities due to the gallium arsenide market growth.

Gallium Arsenide Market: COVID-19 Impact

The COVID-19 pandemic had a negative effect on the international economy since lockdowns, and total shutdowns were ordered in practically every part of the globe. Most industries' manufacturing and supply chains saw a severe downturn in the first few months of the year. In the early months of the pandemic, the market, a crucial component of the semiconductor market, also slowed down. Travel restrictions caused supply chains to break down, which in turn had an impact on the gallium arsenide market. The economy was being strangled by a cessation of manufacturing, which also hurt the market because demand depended on it. However, the growing demand for electronic devices during the lockdown and the ongoing advancement of technologies like 5G, LAN, and Wi-Fi in nations like China, Japan, and the U.S. boosted the market to pick up steam earlier than anticipated.

Increasing 5G Penetration to Influence Gallium Arsenide Market Growth

Mobile devices require a semiconductor to manage greater signal speed, as the potent 5G cellular network was launched in 2019. Due to its ultra-high frequency applications, gallium Arsenide outperforms silicon wafers in some of the most significant ways. Additionally, the use of silicon in semiconductor devices will be further diminished with the introduction of 5G. Gallium Arsenide can be considered the next generation of integrated circuits for the deployment of the 5G network because of its high band gap, which significantly exceeds silicon. According to the semiconductor association, the global market for semiconductors is predicted to surpass US$20 Tn by 2025. Gallium arsenide will see a significant increase in demand as a result during the forecast period. Additionally, governments in many nations have significantly invested in 5G implementation. Through 2025, China is anticipated to invest more than US$150 Bn in developing 5G networks. Therefore, increasing 5g penetration will spur growth in the gallium arsenide market throughout the forecast period.

Growth of Semiconductor Industry Boosts Revenue Growth of Gallium Arsenide Market

Significant opportunities are predicted to arise from the expansion of the semiconductor manufacturing industry during the projected period. The Indian government intends to give approximately US$1 Bn in cash to each company establishing a chip manufacturing unit in India in 2020. Similarly, there will be a sizable demand for semiconductor manufacturing during the projection period due to China's Made in China 2025 effort. Additionally, the U.S. government has pledged to invest US$50 Bn to support the expansion of the semiconductor industry. The most crucial component in semiconductor electronics is silicon. In most fields, from consumer electronics to automotive, silicon devices, and integrated circuits are the dominant technology. However, other semiconductor materials, such as gallium arsenide, threaten silicon in some applications. Gallium arsenide is a leading contender for ultrahigh-speed applications in the upcoming supercomputers, and communications technology generation because it performs well in ultra-high frequency applications. As a result, the gallium arsenide market will display momentous growth over the coming years.

High Cost of Production to Hamper Gallium Arsenide Market Growth

Even though the market is expanding significantly compared to silicon, there are some challenges. For instance, unlike silicon, the complementary metal oxide semiconductors (CMOS) logic style cannot be produced using the natural oxide that serves as a mask. The high production costs seriously threaten the gallium arsenide market expansion. It is due in part to the technology's inability to produce large quantities at low cost and in large part to the lack of a simple method for reducing costs generation after generation by utilizing device scaling, such as CMOS. Furthermore, integrating millions or even billions of transistors on a single integrated circuit is difficult using gallium arsenide technology. Unlike silicon, most gallium arsenide integrated circuits (ICs) can only integrate a small number of transistors. Certain challenges are thus likely to deter the market pace in long term.

VGF Grown GaAs Category Dominates Gallium Arsenide Market with an Ability to Create Substrates with Low Defect Densities

In 2021, the vertical gradient freeze (VGF) grown gallium arsenide segment held a sizable market share. Due to its ability to create substrates with comparatively low defect densities and higher mechanical strength, VGF-grown gallium arsenide is expected to continue to be the manufacturing technology with the highest growth during the forecast period. Growing semiconductors with multiple elements like gallium, arsenic, indium, and phosphorus are now possible with the help of vertical gradient freeze (VGF) technology. Such semiconductors have superior capabilities to wafers made on a single-crystal silicon substrate. The VGF process has an order of magnitude lower defect rate than traditional compound semiconductor crystal growth processes, scalability, low stress, high mechanical strength, and other benefits. As a result, these advantages are examined to propel the growth rate of the gallium arsenide market and the adoption of this technology in laser diodes and light-emitting diodes.

With Ongoing Improvements in Consumer Electronics, Smartphone Category Dominates Gallium Arsenide Market

In the forecast period, the smartphone category held the largest market share, and it is anticipated that it will rule the gallium arsenide market during the forecast period. Smartphones and other consumer electronics applications that require semiconductor I.C.s are the main drivers of gallium arsenide demand. The semiconductor sector will also be forced to invest in similar machinery as the number of Internet of Things (IoT) devices grows to produce intelligent products. Plasma etching applications in smartphones are expanding, as is the need for them across practically all industry sectors due to the ongoing improvements in consumer electronics and the usage of sensors in various electronic devices. To support Samsung Electronics and S.K. Hynix through 2025, the South Korean government stated in 2018 that it would invest US$1.34 Bn over the following ten years in developing next-generation semiconductor technologies. The investment will aid Korean businesses like Samsung and S.K. Hynix in improving their capacity for semiconductor production. Additionally, with the introduction of the robust 5G cellular wireless communication network in 2019, mobile devices require a semiconductor that can handle the increased signal speed.

Asia Pacific to Dominate Gallium Arsenide Market on Account of Unprecedented Growth in Smartphone and Other Device User Base

Over the forecast period, it is anticipated that the market in Asia Pacific will account for the largest revenue share due to the increasing use of cell phones and other high-performance electronics in the area. India, China, Taiwan, South Korea, and other nations are only a few major markets. Moreover, the main reasons for this is the rising demand for cutting-edge technologies across a wide range of end-user industries, the booming consumer electronics sector, and the growing support for the gallium arsenide market in the region. The development of new technologies in the Asia Pacific region has also increased demand for cutting-edge, user-friendly smart devices. Additionally, the governments of numerous nations in this region are supporting the expansion of semiconductor production through many initiatives. Made in China 2025, Make in India, and other initiatives, for instance, will encourage the expansion of the semiconductor industry, thereby boosting the gallium arsenide industry.

North America’s gallium arsenide market is anticipated to experience stable revenue growth throughout the forecast period due to the expansion of the automotive, aerospace, and medical industries. The global market development is greatly influenced by governmental rules that prevent the excessive use of gallium arsenide. Strong product innovation, high discretionary income, a substantial presence of key industrial companies in the area, and rising sales of consumer electronics gadgets are all credited with the region's growth. The rising demand for cutting-edge technology devices, including smart devices, smartphones, computers, and laptops, is one of the key driving forces in this region. The demand for GaAs wafers in the region is increasing at a promising rate due to the increased introduction of innovative high-tech gadgets such as smart devices, cell phones, computer systems, and laptop computers.

Global Gallium Arsenide Market: Competitive Landscape

In October 2021, Gallium Arsenide epiwafer manufacturer Visual Photonics Epitaxy (VPEC) of Taiwan overtook British competitor IQE in market share for the segment, surpassing it by 14–15%. Similarly, in April 2021, AXT, Inc. provided the first 8-inch gallium arsenide wafers to a major customer. The n-type, silicon-doped 8-inch Gallium Arsenide substrates exhibit low etch pit densities (EPD) and few slip lines.

A few of the gallium arsenide market players include Freiberger Compound Materials, AWSC, WIN Semiconductors, Sumitomo Electric, China Crystal Technologies, GCSs, Yunnan Germanium, DOWA Electronics Materials, and Century Epitech.

Global Gallium Arsenide Market is Segmented as Below:

By Type

  • LEC Grown GaAs
  • VGF Grown GaAs
  • Other

By Application

  • Smartphones
  • Computer
  • Photovoltaic Cells
  • Laser Diodes
  • Infrared Emission
  • Automotive Electronics
  • Military Area
  • Wireless Communication
  • Optoelectronic Devices
  • Other

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • UK
    • France
    • Germany
    • Russia
    • Rest of Europe
  • Asia Pacific
    • Japan
    • South Korea
    • India
    • China
    • Rest of Asia-Pacific
  • LAMEA
    • Latin America
    • Middle East
    • Africa

Key Elements Included In The Study: Global Gallium Arsenide Market

  • Gallium Arsenide Market by Product/Technology/Grade, Application/End-user, and Region
  • Executive Summary (Opportunity Analysis and Key Trends)
  • Historical Market Size and Estimates, Value and Volume, 2018 - 2021
  • Volume Consumption at Regional and Country Level, 2022 - 2029
  • Market Dynamics and Economic Overview
  • Market Size in Value and Volume, Growth Rates, and Forecast Figures, 2022 - 2029
  • Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
  • Regional and Product/Grade/Application/End-user Price Trends Analysis
  • Production Output Analysis (Major Producing Regions)
  • Value Chain and Five Force’s Analysis
  • Regional/Sub-region/Country Market Size and Trend Analysis
  • Company Market Share Analysis and Key Player Profiles

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Disclaimer:

  • The segmentation/company profiles/countries depicted above may vary in the actual report.

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