U.S. Gallium Nitride Semiconductor Devices Market (By Product: GaN RF Devices, Opto-semiconductors; By Component; By Wafer Size; By End-use) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

The U.S. gallium nitride semiconductor devices market size was estimated at around USD 0.73 billion in 2023 and it is projected to hit around USD 7.73 billion by 2033, growing at a CAGR of 26.62% from 2024 to 2033.

Key Pointers

• By Product, the opto-semiconductors segment held the largest revenue share of 41% in 2023.
• By Product, the GaN radio frequency (RF) device segment expected to expand at the highest CAGR from 2024 to 2033.
• By Wafer Size, the 4-inch wafer segment had the largest market share in 2023.
• By Wafer Size, the 8-inch wafer segment is poised to exhibit the fastest CAGR from 2024 to 2033.
• By End-use, the Information & Communication Technology (ICT) segment generated the maximum market share in 2023.
• By End-use, the defense and aerospace segment is poised to witness the fastest growth rate through 2033.

U.S. Gallium Nitride Semiconductor Devices Market Overview

The U.S. Gallium Nitride (GaN) semiconductor devices market is experiencing significant growth and technological advancements, positioning itself as a pivotal player in the global semiconductor industry. This overview delves into the key aspects shaping the landscape of GaN semiconductor devices in the United States.

U.S. Gallium Nitride Semiconductor Devices Market Growth

The growth of the U.S. gallium nitride (GaN) semiconductor devices market can be attributed to several key factors. Firstly, the increasing demand for GaN devices across diverse applications such as power electronics, radiofrequency (RF) devices, and optoelectronics is a significant driver. As industries like telecommunications, automotive, and consumer electronics adopt GaN technology for its high power density and thermal stability, the market experiences a surge in growth. Furthermore, ongoing technological advancements in material science and device design contribute to the improved performance and efficiency of GaN semiconductor devices. The expanding applications of GaN in emerging technologies, such as electric vehicles and 5G networks, further propel market growth. The dynamic and competitive landscape, marked by strategic collaborations and product innovations among key players, adds another dimension to the positive trajectory of the U.S. GaN semiconductor devices market.

U.S. Gallium Nitride Semiconductor Devices Market Trends:

• Rapid Adoption in Power Electronics: The U.S. gallium nitride semiconductor devices market is witnessing a pronounced trend in the increased adoption of GaN technology in power electronics. GaN's superior power density and efficiency make it a preferred choice for power applications, including inverters and converters in electric vehicles and renewable energy systems.
• Proliferation in 5G Technology: With the rollout and expansion of 5G networks, there is a growing trend of incorporating Gallium Nitride semiconductor devices in RF amplifiers and components. GaN's ability to handle high-frequency operations and deliver enhanced performance aligns well with the requirements of 5G infrastructure, driving its integration in the telecommunications sector.
• Emergence in Consumer Electronics: GaN semiconductor devices are increasingly finding applications in consumer electronics, particularly in the production of compact and efficient chargers and power adapters. The trend towards smaller, more powerful electronic devices is fueling the demand for GaN technology due to its ability to provide higher power outputs in a smaller form factor.
• Advancements in Manufacturing Processes: Ongoing developments in manufacturing processes contribute to the trend of improved GaN semiconductor device performance. Innovations in epitaxial growth techniques, substrate materials, and device packaging enhance the overall efficiency and reliability of GaN devices, further promoting their widespread adoption.
• Integration in Automotive Electronics: The automotive industry is witnessing a trend of integrating GaN semiconductor devices in various electronic components, such as power modules and onboard chargers. GaN's benefits, including higher power density and reduced energy losses, align with the automotive sector's emphasis on electric and hybrid vehicle technologies.
• Focus on Green Technology: GaN's energy-efficient characteristics contribute to a trend where businesses and industries are increasingly inclined towards environmentally friendly solutions. The reduced energy consumption and enhanced performance of GaN semiconductor devices align with the global focus on sustainability and green technology initiatives.
• Diversification of End-Use Industries: The versatility of GaN semiconductor devices is driving a trend of diversification across various end-use industries. Beyond traditional sectors, GaN is finding applications in healthcare, industrial automation, and other emerging fields, expanding its market presence and contributing to overall market growth.

Product Insights

In 2023, the opto-semiconductors segment dominated the market, contributing the highest revenue share at 41%. This dominance can be attributed to the versatile capabilities of opto-semiconductors in communication, sensing, and data transmission, driving their increased demand. The automotive sector also utilizes these semiconductors for indoor and outdoor lighting, as well as automotive lights. The ongoing expansion of 5G infrastructure presents a substantial growth opportunity, particularly in optical fibers, where opto-semiconductors facilitate high-speed data communication. GaN-based opto-semiconductors play a crucial role in devices like lasers, solar cells, LEDs, and photodiodes. GaN LEDs are recognized as a viable alternative to traditional lighting technologies, while GaN-based lasers find applications in the medical, automotive, and industrial sectors, contributing to the continued growth of this segment.

Conversely, the GaN radio frequency (RF) device segment is poised to experience the fastest Compound Annual Growth Rate (CAGR) until 2033. GaN's wide-bandgap nature endows it with exceptional electrical and physical properties, including high power density, efficiency, switching frequency, thermal conductivity, and breakdown voltage. This has resulted in widespread adoption in high-power RF applications. Beyond conventional RF uses like power amplifiers, GaN RF devices are gaining traction in military and space applications. Notably, in military radars, GaN has emerged as a preferred solution for developing solid-state transmitters across different gigahertz frequency bands, replacing traditional klystron tubes. With substantial investments in the military and defense sector, particularly in the United States, significant market growth is anticipated in this segment.

Component Insights

In the U.S. gallium nitride semiconductor devices market, the power IC segment has secured a significant share. GaN power ICs play a pivotal role by consolidating multiple functions in power electronics onto a single chip, enhancing reliability, speed, efficiency, and cost-effectiveness. These power ICs come in both 'half-bridge' and 'single' forms, finding application in diverse sectors such as fast chargers, renewables, data centers, and electric mobility. Notably, U.S. companies are actively enhancing their power IC solutions, particularly for the automotive and telecom sectors, thereby propelling the expansion of this market segment. For instance, in March 2023, Efficient Power Conversion Corporation introduced two 100 V power stage ICs, rated at 25 A (EPC23103) and 15 A (EPC23104), specifically designed for motor drives, DC-DC applications, and Class-D audio amplifiers.

Concurrently, the rectifier segment is anticipated to experience the most rapid growth in the market throughout the forecast period. GaN rectifiers are extensively employed for their capability to withstand high-temperature environments. This characteristic makes them particularly valuable in various consumer electronics and military & aerospace applications. Furthermore, their compact size positions GaN rectifiers as a preferred choice for a majority of consumer electronics manufacturers over traditional silicon (Si) rectifiers.

Wafer Size Insights

In 2023, the 4-inch wafer segment claimed the largest share of revenue in the market. The increasing adoption of 4-inch wafers in the U.S. semiconductor industry is notable, as they address limitations associated with 2-inch wafers. Moreover, the cost-effectiveness of producing these wafers on a larger scale has contributed to their prominence. Recent advancements in segments like optoelectronics devices, high-power amplifiers, and high-temperature devices have spurred a heightened demand for GaN devices utilizing 4-inch wafers. Particularly, these wafers are well-suited for wideband GaN power amplifiers integral to software-defined radios, defining the substantial growth observed in this segment.

Conversely, the 8-inch wafer segment is poised to exhibit the fastest Compound Annual Growth Rate (CAGR) through 2033. Designed to dynamically supply high-watt GaN for GaN-on-silicon transistors and other electronic peripherals, 8-inch wafers play a crucial role in reducing parasitic capacitance by up to 90%. This makes them a preferred choice in power electronics and compound semiconductor devices, ensuring enhanced productivity and precise process control compared to 4- and 6-inch wafers. Devices manufactured using 8-inch wafers find application in various automotive components such as radios, music systems, V2V communication systems, in-vehicle smartphone chargers, and interior lighting systems. The continuous expansion of the U.S. automotive industry, driven by technological advancements, serves as a significant driver for the notable growth in this segment.

End-use Insights

In 2023, the Information & Communication Technology (ICT) segment emerged as the leader in revenue share within the market. This prominence is largely attributed to the rapid expansion of 5G infrastructure in the U.S., facilitated by supportive government initiatives and the presence of major telecom service providers like AT&T, Verizon, and T-Mobile. GaN semiconductor devices are pivotal in this sector due to their high breakdown voltage, thermal stability, and electron mobility, making them well-suited for deployment. Furthermore, GaN devices contribute to improved 5G base station performance by reducing equipment weight and size, enhancing overall energy efficiency. Key industry players such as Qorvo, NXP Semiconductors, and Infineon Technologies have introduced innovative products, playing a crucial role in expanding the market within the ICT segment.

Concurrently, the defense and aerospace segment is poised to witness the fastest growth rate through 2033, propelled by substantial investments from the U.S. government in upgrading the nation's defense infrastructure. GaN technology's advantages, including higher frequency bandwidth, transmit power, and efficiency within a smaller footprint, have driven its adoption in next-generation electronic warfare, radar, and communication systems. Government grants allocated to defense organizations have further stimulated growth in this sector. An illustrative example is the microelectronics center of BAE Systems in New Hampshire, which received a USD 35 million grant from the Department of Commerce in December 2023 to enhance its GaN capabilities.

U.S. Gallium Nitride Semiconductor Devices Market Key Companies

• Wolfspeed Inc. (formerly Cree, Inc.)
• Efficient Power Conversion Corporation
• Fujitsu Ltd.
• GaN Systems
• Infineon Technologies AG
• NexgenPowerSystems
• NXP Semiconductor
• Qorvo, Inc.
• Texas Instruments Incorporated
• Toshiba Corporation

U.S. Gallium Nitride Semiconductor Devices Market Segmentations:

By Product

• GaN Radio Frequency Devices
• Opto-semiconductors
• Power Semiconductors

By Component

• Transistor
• Diode
• Rectifier
• Power IC
• Others

By Wafer Size

• 2-inch
• 4-inch
• 6-inch
• 8-inch

By End-use

• Automotive
• Consumer Electronics
• Defense & Aerospace
• Healthcare
• Industrial & Power
• Information & Communication Technology
• Others