June 23, 2024

The Global Gallium Nitride (GaN) Semiconductor Market Is Driven By The Growing Adoption Of Electric Vehicles

Gallium nitride (GaN) semiconductors possess several advantages over silicon including the ability to operate at higher voltages, frequencies, and temperatures, while providing higher power density and energy efficiency. GaN is a next-generation wide bandgap semiconductor material that is a more capable replacement for legacy semiconductors like silicon or gallium arsenide in RF power applications. GaN semiconductor chips and devices can production smaller, lighter and more energy efficient products. The material is ideal for applications such as fast charging electric vehicles, 5G telecommunications, military radar systems, and more.

The global Gallium Nitride (GaN) Semiconductor Market is estimated to be valued at US$ 3.36 Bn in 2023 and is expected to exhibit a CAGR of 6.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
GaN offers nearly 30% more efficiency than silicon, and can help improve the range of electric vehicles significantly. OEMs are actively developing GaN based charging solutions that can fast charge EVs in under 15 minutes. GaN technologies can also help reduce size and weight of on-board chargers. The need to enhance the performance of power electronics in EVs is estimated to boost demand of GaN semiconductors over the forecast period.
Porter’s Analysis

Threat of new entrants: The threat of new entrants in the GaN semiconductor market is moderate. New entrants face high setup and infrastructure costs to enter this market.

Bargaining power of buyers: The bargaining power of buyers in the GaN semiconductor market is low. There are many established players in the market providing standardized products.

Bargaining power of suppliers: The bargaining power of suppliers in the GaN semiconductor market is moderate. Suppliers have some control over pricing and supply of raw materials.

Threat of new substitutes: The threat of new substitutes in the GaN semiconductor market is low. GaN based semiconductors provide unique performance advantages over existing alternatives.

Competitive rivalry: Competition in the GaN semiconductor market is high. Companies focus on new product development, performance improvements and competitive pricing to gain market share.

Key Takeaways

The Global Gan Semiconductor Market Size is expected to witness high growth. Regional analysis comprises the North America region dominates the GaN semiconductor market currently owing to presence of major players and government initiatives for development of new technologies. The Asia Pacific region is expected to grow at the fastest pace during the forecast period supported by increasing adoption of GaN devices in wireless infrastructure and power supplies applications.

Key players operating in the GaN semiconductor market are Reckitt Benckiser Group Plc, Nestlé S.A., Abbott Laboratories, Groupe Danone, Royal FrieslandCampina, Baxter International Inc., Fresenius Kabi, and B. Braun Melsungen AG. These companies focus on new product launches and funding innovative startups working on GaN semiconductors. For instance, in 2022, Panasonic announced a $100 million investment program to accelerate the practical application of GaN in various industries such as electric vehicles and renewable energy infrastructure.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it