Market Trends of GaN Semiconductor Devices Industry
Consumer Electronics to Hold Significant Market Share
- Gallium nitride (GaN) semiconductors have emerged as crucial components in the consumer electronics industry. Due to their unique properties, these semiconductors have rapidly gained popularity in power electronics. Compared to traditional silicon-based devices, GaN semiconductors offer higher breakdown voltage and lower on-resistance.
- Compared to traditional silicon-based semiconductors, GaN semiconductors exhibit lower power losses due to their higher electron mobility and wider bandgap. In smartphones, GaN-based power management chips enable faster charging, longer battery life, and reduced heat generation. Similarly, GaN semiconductors allow for more efficient power conversion in laptops, resulting in extended battery life and reduced device weight.
- The increasing penetration of smartphones is likely to aid the growth of the studied market. According to Ericsson, in 2023, the number of smartphone mobile network subscriptions worldwide reached almost seven billion. It is expected to exceed 7.7 billion by 2028. India, China, and the United States have the highest number of smartphone mobile network subscriptions.
- GaN semiconductors perform well in high-frequency applications, making them suitable for the ever-increasing demands of modern electronic devices. In smartphones, GaN-based radio frequency (RF) amplifiers enhance signal quality, leading to improved call clarity and faster data transfer rates. In laptops, GaN-based power amplifiers enable high-speed wireless connectivity and enhance overall performance. Furthermore, in consumer wearables, GaN semiconductors facilitate stable wireless communication and enable the integration of advanced sensors.
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China to Witness Significant Growth
- China has emerged as the leading manufacturer and user of semiconductors and associated goods in recent decades. The surge in demand for semiconductor chips in China is largely due to the rapid expansion of the digital environment. In addition, government programs contribute to the increased adoption of digital technologies in China. One such initiative is "Made in China 2025," which aims to encourage the integration of advanced technologies like robotics, IoT, automation, and advanced ICT solutions such as AI, AR/VR, and ML in the industrial sector.
- The growth of the country's GaN semiconductor market is also influenced by the rising popularity of smartphones, smart TVs, laptops, tablets, home appliances, etc. The consumer sector has been the primary force behind GaN adoption by OEMs due to the material's cost and efficiency advantages, and this trend is anticipated to continue without deceleration. GaN enables smartphone manufacturers to produce chargers with reduced dimensions and a better price-to-power ratio.
- China is also known as a leading producer of motor vehicles and is expanding its investment in the automotive industry to enhance its market position. As a result, the Chinese government has recently lifted various restrictions on foreign investment to promote automotive manufacturing within the nation.
- Moreover, the growing demand for luxury vehicles owing to the rising disposable income of the consumers is creating a favorable outlook for the studied market's growth as more electronic and control units feature in these vehicles, which drives the demand for GaN semiconductors. For instance, according to the China Association of Automobile Manufacturers (CAAM), in December 2023, monthly automobile production in China stood at 2,273 thousand units of passenger vehicles and 310 thousand units of commercial vehicles.
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