In 2023, the GaN substrate market is expected to reach a valuation of USD 5,420.5 million. Furthermore, it is projected to witness a CAGR of 9.7% over the next decade, leading to a substantial value of USD 13,721.9 million by 2033. Growth is attributed to the ongoing undercurrents of green vehicle agendas.
| Attributes | Details |
|---|---|
| Historical Value (2022) | USD 5,014.3 million |
| Current Year Value (2023) | USD 5,420.5 million |
| Expected Forecast Value (2033) | USD 13,721.9 million |
| Historical CAGR (2018 to 2022) | 7.6% |
| Projected CAGR (2023 to 2033) | 9.7% |
GaN Substrate is a semiconductor material, whose advantages are evident in comparison to the other conventional semiconductor materials such as Silicon, Silicon Carbide, Aluminium, Sapphire, and others.
The GaN material is a thin film that is grown on other materials like Sapphire, Silicon, and Silicon Carbide. Out of which, the GaN on sapphire currently holds for most of the share, but SiC is expected to evolve at the fastest rate among others, in the LEDs and Power electronics segment.
Currently, the GaN Substrate holds authority in LEDs possessing a share of nearly 70% of market revenue, while power electronics products are in an evolving stage. Other applications of GaN Substrate also involve inverters (& converters), RF devices, power supply modules, and motor drives which are expected to evolve rapidly in the market.
Factors such as High electron mobility, low switching losses, and fewer lattice mismatches are expected to boost the GaN Substrate Market growth during the forecast period. On the contrary, high implementation cost is one of the major factors that is expected to hamper the growth of the GaN Substrate Market over the analysis period.
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Wider band gap, high break-down voltage, larger critical electric field, and higher thermal conductivity are some of the major factors leading to a rapid shift of industry manufacturers from silicon technology to GaN substrate.
As these properties let the GaN Substrate material operate at much higher voltages, work at high switching frequencies, and increase its ability to handle higher power density, thereby offering enhanced power efficiency, which are the key requirements of power amplifiers and applications pertaining to optoelectronics, they are the captivating interest in the Research and Development fields of these industries.
GaN Substrate also exceeds the limit of their counterpart Si devices in applications like Schottky diodes, FETs, HEMTs, and other advanced transistors and lets them operate efficiently at much higher voltage levels.
These are the key factors that result in gaining attraction for GaN Substrate in the market, with the LED applications being the key drivers holding a share of nearly 70% of revenue in the market for the bulk gallium nitride (GaN) market.
As these devices help in reducing the conduction and switching losses and offer higher efficiency in electronic systems, gradually they are entering a new segment of applications, namely power amplifiers. These applications of GaN Substrate are in an evolving stage but are anticipated to show substantial growth in the upcoming years. All these factors are expected to accelerate the growth of the GaN Substrate Market during the forecast period.
Attributed to the compactness of car modules, the automotive and transportation industry is serving as a crucial end-use industry for the expansion of the GaN substrate market, and the ongoing undercurrents of green vehicle agendas are likely to surface new revenue streams for market players.
Besides this, as the consumer electronics industry continues to look at wafer-sized innovation to support the smart-sizing of devices, the high power-handling capacity of GaN substrates is giving these components an edge over silicon substrates.
Presently small diameters, namely 2 & 4-inch GaN substrate are present. But these are small diameters that lead to wastage of space and edges resulting in lower efficiencies. This is one of the major factors that are expected to hinder the growth of the GaN Substrates market if a large-diameter GaN Substrate is not manufactured successfully.
Additionally, some countries like USA, Japan, and Korea have started adopting large diameters, but to gain a wider acceptance of GaN Substrate may take years to come. Also, high implementation costs can result in impeding the growth of the GaN substrate market over the analysis period.
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In terms of regional platforms, North America holds the largest market share in the GaN Substrate market. The region held 27.3% global market share in 2022. North America is expected to fuel the GaN Substrate market, owing to the massive advancement of technology in the region, over the forecast period.
Further, continuous innovation and development in the semiconductor industry is another growth driver of the industry in the respective region.
According to Future Market Insights, Europe is expected to provide immense growth opportunities for GaN Substrate since it possessed 17.2% share of the global market in 2022. Europe is expected to witness significant market growth, attributed to the increasing demand in nations such as the United Kingdom and Germany.
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According to Future Market Insights, Asia-Pacific is expected to provide immense growth opportunities for the GaN substrates market. Asia-Pacific region accounts for a significant share of the GaN Substrate Market, with Japan, China, and Korea being the major contributors in the terms of production and consumption. Major factors like less labor and production costs in these countries act as catalysts in helping manufacturers to set up production facilities.
According to Future Market Insights, the Middle East & Africa are expected to provide immense growth opportunities for GaN Substrates Market. The developing GaN substrate market in the Middle East & Africa is expected to aid in the flourishing market during the forecast period.
| Countries | 2022 Value Share in Global Market |
|---|---|
| United States | 15.4% |
| Germany | 8.1% |
| Japan | 5.4% |
The United States GaN substrate market has grown substantially due to the increasing demand for energy-efficient devices and the rapid adoption of GaN technology across various industries. The United States is a hub for technological innovation and advancements, particularly in the semiconductor industry.
The rapid growth of the electric vehicle market in the United States directly impacts the market. GaN substrates enable efficient power conversion and higher power density. This makes them essential components for EV charging infrastructure and powertrain systems.
The deployment of 5G networks in the United States is driving the demand for GaN substrates in RF power amplifiers and base station equipment. GaN substrates provide high power efficiency and wide bandwidth. As a result, they are well-suited to high-speed data transmission in 5G networks.
Germany has a well-established research ecosystem and benefits from strong government support for technological advancements. The government's focus on fostering innovation, particularly in the fields of power electronics and telecommunications, has led to numerous research initiatives and collaborations.
This favorable environment encourages the development and commercialization of GaN substrates, fostering growth in the market. The deployment of 5G networks in Germany is creating a significant demand for GaN-based RF devices. GaN substrates enable the development of high-power and high-frequency RF components required for 5G base stations and small cells.
The country's strong focus on expanding its 5G infrastructure is expected to drive the demand for GaN substrates in the telecommunications sector.
Japan has been at the forefront of GaN-on-Silicon (GaN-on-Si) technology development. GaN-on-Si substrates provide a cost-effective solution compared to traditional silicon carbide (SiC) substrates. The country's semiconductor manufacturers are investing in GaN-on-Si technology to improve device performance and reduce manufacturing costs.
This trend is expected to impact the Japan GaN substrate market positively. The automotive industry in Japan is a key driver of the GaN substrate industry. GaN-based power devices find extensive use in electric vehicles (EVs) and hybrid vehicles due to their high-power capabilities and improved efficiency. As the adoption of EVs continues to grow in Japan, the demand for GaN substrates is expected to increase significantly.
| Countries | Value CAGR (2023 to 2033) |
|---|---|
| United Kingdom | 7.2% |
| China | 7.1% |
| India | 12.1% |
The United Kingdom is witnessing significant investments in GaN-related research and development activities. Both academic institutions and private companies are actively engaged in advancing GaN substrate technologies, which is expected to drive innovation and foster market growth. The United Kingdom has increasingly focused on energy efficiency initiatives to reduce carbon emissions and achieve sustainability goals.
GaN substrates, with their superior energy efficiency and power density, are gaining traction in various sectors, including power electronics and renewable energy systems. GaN-on-Si (Gallium Nitride on Silicon) technology is gaining popularity due to its cost-effectiveness and compatibility with existing silicon manufacturing processes. This trend is expected to contribute to the growth of the United Kingdom GaN substrate market.
China's push towards renewable energy and electric vehicles has created a surge in demand for power electronics. The rapid growth of the electric vehicle market in China is driving the demand for power electronics, which, in turn, fuels the adoption of GaN substrates. The rollout of 5G networks in China has created a significant demand for high-frequency GaN-based RF devices.
China also has a robust consumer electronics industry, with a strong emphasis on innovation and product development. GaN-based devices, such as power supplies and RF components, are extensively used in smartphones, tablets, laptops, and other consumer electronics products.
The demand for high-performance and energy-efficient devices in the consumer electronics sector is driving the growth of the China GaN substrate market. Moreover, China has a well-established semiconductor manufacturing ecosystem, with several key players investing in GaN substrate production facilities.
The India GaN substrate market is poised for substantial growth. The growing need for efficient power management systems in India, coupled with the government's focus on renewable energy and electric vehicle adoption, is fueling the demand for GaN-based power electronics. With the rollout of 5G networks in India, there is a surge in demand for GaN-based radio frequency devices.
The deployment of 5G infrastructure and the need for advanced wireless communication systems are expected to drive the growth of GaN substrates in the telecommunications sector. The Indian defense and aerospace sectors are also increasingly adopting GaN-based devices for radar systems, electronic warfare, and satellite communication.
The Indian government has launched various initiatives and policies to promote the domestic semiconductor industry. Programs such as "Make in India" and "National Electronics Policy" aim to boost indigenous manufacturing and reduce dependence on imports.
| Segments | 2022 Value Share in Global Market |
|---|---|
| 2-inch GaN Substrate Size | 30.4% |
| GaN Substrate on SiC Type | 28.1% |
The dominance of the 2-inch GaN substrate segment can be attributed to several key factors. Its established technology and compatibility with existing manufacturing processes have made it a widely adopted standard in the industry. The 2-inch size strikes a balance between cost and yield, offering a larger surface area while remaining cost-effective.
It has become the preferred choice for producing GaN-based devices due to its moderate surface area, enabling economies of scale. Moreover, the market demand for GaN devices has predominantly been met by 2-inch substrates, as they provide sufficient space for device fabrication at a reasonable cost per unit.
The compatibility of the 2-inch GaN substrate with foundry services further contributes to its dominance, as many fabrication facilities offer specialized services for this size.
The GaN-on-SiC substrate segment dominates the market due to its superior material properties, well-established technology, and wide adoption in RF and power electronics. GaN-on-SiC substrates offer excellent performance, efficiency, and reliability. This is due to the combination of GaN's wide bandgap, high breakdown voltage, and high thermal conductivity.
Additionally, SiC provides a lattice match and high thermal conductivity. Together, these characteristics contribute to the superior properties of GaN-on-SiC substrates. Extensive research, development, and manufacturing investments have matured GaN-on-SiC technology, resulting in large-area substrates with low defect densities.
This technology has found significant application in RF power amplifiers, wireless base stations, radar systems, satellite communications, and power conversion devices. The demand for high-performance power electronics and RF devices across various industries has driven the growth of GaN-on-SiC substrates.
There are many prominent market players in the GaN substrate market, who are working hand-in-hand to provide the best-in-class GaN Substrates for enhancing the global arena. However, there are many global start-ups in the GaN substrate market, that are stepping forward in matching the requirements of the GaN Substrate domain.
Global Startups of GaN Substrate Market
Some of the key participants present in the global GaN Substrate market include Saint Gobain/IVWorks, Sumitomo, Mitsubishi, SCIOCS, Kyocera Corp, PAM XIAMEN, Toshiba Corporation, Soitech, GaN Systems Inc., and Cree, among others.
Attributed to the presence of such a high number of participants, the market is highly competitive. While global players such as Saint Gobain/IVWorks, Sumitomo, Mitsubishi, SCIOCS, and Kyocera Corp. account for a considerable market size, several regional-level players are also operating across key growth regions.
Recent Developments
The global market is estimated to be valued at USD 5,420.5 million in 2023.
The global market recorded USD 5,014.3 million in 2022, exhibiting a CAGR of 7.6%.
The global market is expected to progress at a CAGR of 9.7%.
North America is likely to embrace the maximum share in the global market by 2033.
The global market is predicted to account for USD 13,721.9 million by 2033.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Size 5.1. 2-inch 5.2. 4-inch 5.3. 6-inch 5.4. Higher than 6 Inches 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Type 6.1. Sapphire 6.2. Si 6.3. SiC 6.4. GaN 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Production Process Type 7.1. Hydride Vapor Phase Epitaxy-based (HVPE) 7.2. Ammonothermal Growth-based 7.3. Metal-Organic Chemical Vapor Deposition (MOCVD) 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End User 8.1. Healthcare 8.2. Automotive 8.3. Military and Communication 8.4. General Lighting 8.5. Consumer Electronics 8.6. Power Generation 8.7. Telecom 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 9.1. North America 9.2. Latin America 9.3. Western Europe 9.4. Eastern Europe 9.5. South Asia and Pacific 9.6. East Asia 9.7. Middle East and Africa 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 17. Key Countries Market Analysis 18. Market Structure Analysis 19. Competition Analysis 19.1. Cree Inc. 19.2. Kyocera Corp. 19.3. MonoCrystal 19.4. Sumco Corp. 19.5. Sumitomo Electric Industries 19.6. 10+ 19.7. Saint Gobain Ltd. 19.8. Mitsubishi Chemical Corporation 19.9. Texas Instruments Incorporated 19.10. GaN Systems Inc. 19.11. MTI Corporation 20. Assumptions & Acronyms Used 21. Research Methodology
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GaN Substrate Market
