July 14, 2024

Rapid Adoption of GaN in electric vehicle charging infrastructure to boost the growth of Gallium Nitride Power Device Market

The global Gallium Nitride Power Device Market is estimated to be valued at US$ 345.33 Mn in 2023 and is expected to exhibit a CAGR of 24% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Gallium nitride (GaN) power devices are semiconductor devices that are used for power conversion applications. They have advantages over conventional silicon power devices such as higher breakdown voltage, higher switching frequency, and improved power density. Due to these advantages, GaN power devices are increasingly being adopted across various industries for power conversion applications such as RF power amplifiers, power supplies, EV fast charging, and renewable energy infrastructure. The rising adoption of electric vehicles globally is fueling the demand for efficient and fast EV charging networks which is driving the demand for GaN power devices.

Market key trends:
The gallium nitride power device market is witnessing increasing adoption across EV charging infrastructure owing to the technology’s compelling advantages over silicon. GaN power devices allow for faster charging times while maintaining higher efficiencies. They enable greater power density and smaller component size in EV charging systems. Leading automakers and EV charging network providers are investing heavily in developing next-gen fast charging networks based on GaN power electronics to enhance customer experience. Additionally, the increasing installations of renewable energy sources is another major trend fueling the adoption of gallium nitride semiconductors as they improve the efficiencies of solar and wind power conditioning systems.
Porter’s Analysis

Threat of New Entrants: The threat of new entrants in the gallium nitride power device market is low as it requires significant initial investments for research and development and infrastructure. Established players hold significant market share and have technical expertise.

Bargaining Power of Buyers: The bargaining power of buyers is moderate. The presence of multiple manufacturers reduces the bargaining power of individual buyers. However, large volume buyers have significant influence on pricing.

Bargaining Power of Suppliers: The bargaining power of suppliers is moderate. Significant investments are required for procuring raw materials like gallium and nitrogen which makes supplier switching difficult. However, the presence of multiple material suppliers reduces their influence.

Threat of Substitutes: The threat of substitutes is low as gallium nitride provides better efficiency and power handling compared to other materials like silicon and gallium arsenide. Technological innovations make substitution difficult in short term.

Competitive Rivalry: The competitive rivalry is high due to presence of numerous global as well as regional players. Players compete based on product performance, features, pricing and innovation which increases rivalry.

Key Takeaways

The global Gallium Nitride Power Device market is expected to witness high growth, exhibiting CAGR of 24% over the forecast period, due to increasing demand for high-efficiency power electronics devices and fast charging infrastructure.

Regional analysis: The Asia Pacific region is expected to dominate the global gallium nitride power device market during the forecast period. This is attributed to presence of key players, rapid industrialization and increase in electronics manufacturing. China accounted for largest market share in Asia Pacific followed by Japan and India due to huge investments in renewable energy sector.

Key players operating in the gallium nitride power device market are Cree Inc., Efficient Power Conversion (EPC) Corporation, Infineon Technologies, GaN Systems Inc., Macom, Microsemi Corporation, Mitsubishi Electric Corporation, Navitas Semiconductor, Qorvo, Inc., and Toshiba Electronic Devices & Storage Corporation. Key players are focusing on expanding their manufacturing facilities and investing in research & development of new gallium nitride based devices with wider bandgap and higher operating voltages.