GaN substrate market to grow at 10% CAGR to 2027

In terms of revenue, the global gallium nitride (GaN) substrate market will expand at a compound annual growth rate (CAGR) of ~10% to $225m in 2027, estimates a report by Transparency Market Research.

GaN substrates promise to dramatically enhance the performance, efficiency and ubiquity of sophisticated power management and control functions. If low-cost bulk GaN substrate is not available, GaN can be grown on other substrates such as sapphire, silicon carbide (SiC) or silicon. For better cost economics, GaN devices can be fabricated on large-diameter silicon substrates in existing silicon CMOS (complementary metal-oxide-semiconductor) fabs. GaN devices are gaining popularity due to various advantages that they offer including high breakdown voltage, high switching speed, high thermal conductivity and low on-resistance. This is expected to have a positive impact on the gallium nitride substrate market.

GaN substrates have evolved significantly since their introduction a few years ago. The growing use of GaN technology devices for high-frequency, high-voltage, and high-temperature applications is expected to drive the global GaN substrate market during the forecast period.

Increasing adoption of white-light LEDs is another factor boosting the GaN substrate market. GaN substrates are increasingly being used to make white-light LEDs, in addition to power devices, that exceed the performance of current devices, as they offer improved electric characteristics. Furthermore, rapid advances in GaN technology have led to the development of efficient GaN substrates with low defect density and free macro defect density. Hence, they can increasingly be used for realizing white-light LEDs. The increasing adoption of white-light LEDs is hence expected to drive growth of the GaN substrate market.

Asia-Paciffic region to remain dominant
Having accounted for a key share of the global GaN substrate market in 2018, the Asia-Pacific region is expected to continue to dominate between 2019 and 2027 due to the rising popularity of GaN devices for various applications in several end-use industries. China constituted a significant share of the Asia-Pacific market in 2018, and the country will see large investments in R&D, targeted at innovating new technologies. Also, the region is home to prominent GaN technology companies that are engaged in R&D on innovative GaN solutions and their introduction to the marketplace.

North America has emerged as the second-largest market for GaN substrates. The region is expected to maintain a considerable share of the global market during the forecast period, due to the increasing adoption of GaN substrates for various applications such as white-light LEDs and the increasing adoption of electric vehicles. GaN-based devices and GaN substrates can be employed in several applications in the automotive sector, such as LiDAR, 48V–12V power distribution, and high-intensity headlights. The region therefore presents significant opportunities for the GaN substrate market, the report reckons.

Europe is expected to be a lucrative market for GaN substrates throughout the forecast period due to the growing popularity of GaN devices and their rising use in the automotive industry in countries in Western Europe and Central Europe. The European market is anticipated to increase in the next few years due to rapid industrialization in the region. Furthermore, key players are engaged in making technical advances in GaN technology to overcome the challenges associated with devices based on this technology.

Key players in the global GaN substrate market are displaying synergies through close cooperation and collaboration in sales, marketing and technical advances. GaN substrate suppliers are also expanding by forming strategic alliances with peers as well as various research institutions in order to establish themselves as players in the global market.

Tags: GaN substrates

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