3 February 2022
GaN power devices market to grow at over 57.4% CAGR to 2030
The global gallium nitride (GaN) power devices market is expected to grow at a compound annual growth rate (CAGR) of 57.4% during 2022-2030, driven primarily by demand for GaN in commercial radio-frequency applications, the adoption of GaN in electric vehicles (EVs), escalating demand for wireless charging, and a reduction in the price of GaN devices, according to a report from Atlantic Market Research. Wireless charging in particular has been widely adopted in smartphones and electric vehicles (EVs), with various initiatives across the globe, and has proven to be the major market driver, paving the way for GaN power devices.
By device type, discrete GaN power devices (transistors, field-effect transistors, MOSFETs, etc) comprised more than 50% of the market in 2021, and will grow at a CAGR of 22.4% during the forecast period. The primary reason for their dominance is their ease of fabrication compared with integrated circuits (ICs) and modules. Further, discrete power devices also offer more design flexibility in power systems.
The presence of a large number of companies manufacturing discrete devices (compared with companies involved in IC and module manufacturing) has also aided their market growth. GaN power discrete devices have negligible charge storage, low on-resistance and allow switching efficiencies in excess of existing silicon devices. Further, companies are also engaged in developing new discrete devices, creating further growth opportunities.
By vertical segment, automotive is expected to grow at the highest CAGR of 23.4% during the forecast period. The primary reason for the widespread adoption of GaN power devices in the automotive sector is the ability of wide-bandgap materials such as GaN to cut electricity losses by up to 66% during vehicle battery recharging (according to the Institute of Electrical and Electronics Engineers). Further, GaN based power devices offer high efficiency in terms of converting AC to DC power and also help in improving vehicular operating in the electric traction drive. Due to the growing electric vehicle market and the large amounts of funding going to the startups manufacturing GaN-based power devices, the automotive-based GaN power device market is expected to grow substantially over the forecast period.
By geographic region, North America leads the global GaN power device market after capturing the largest share of over 37% in 2021, and is anticipated to grow at a 23% CAGR during 2022-2030. The North America market is driven primarily by a large amount of investments in the development of GaN power devices. In 2014, the US Department of Energy (DOE) launched the Power America program, with the goal that, by 2030, 80% of all US electricity will flow through power electronics. To achieve this, Power America is working to make wide-bandgap semiconductors such as gallium nitride and silicon carbide (SiC) cost competitive with silicon-based power devices, aiding the adoption of GaN power devices in the energy sector in the USA. The market is also driven by the large pool of GaN power device makers in North America that are committed to innovating new products related to GaN power devices and have captured a large share of the global GaN power device market. Key players in the North America region include Efficient Power Conversion (USA), GaN Systems (Canada), Texas Instruments (USA) and Cree Inc (USA).
The Asia Pacific GaN power device market is expected to rise at the highest CAGR of 24.3% during 2022-2030, driven primarily by funding for the development of GaN-based power devices. Also driving growth is the surge in the number of electric vehicles in Asia Pacific, as it is expected that GaN-based inverters will replace silicon-based power semiconductor devices in electric vehicles due to their efficient AC-to-DC power conversion. The Asia Pacific GaN power device market is also influenced by the presence of key players in the region such as Taiwan Semiconductor Manufacturing Company (Taiwan), Panasonic Corp (Japan), Fujitsu (Japan), Toshiba Corp (Japan), Mitsubishi Chemical Corp (Japan) and others.
The primary strategy adopted by companies in the GaN power device market is product launch, notes Atlantic Market Research. New and advanced products help to improve a company’s market visibility while competing effectively with key competitors already present in the market. The secondary strategy is merger and acquisition, in order to expand a product portfolio and increase market share. M&A also enables companies to extend their market reach into unexplored regions, concludes the market research firm.