Gallium Arsenide (GaAs) Market Size is forecast to reach $632.2 billion by 2026, growing at a CAGR of 7.1% during 2021-2026. GaAs is increasingly used as a replacement for silicon because of its enhanced electronic properties and was selectively grown on GaAs substrates patterned with SiO2 by conventional molecular beam epitaxy. Moreover growing demand for GaAs across various end-user industries such as aerospace & defense, electronics, and communications is analyzed to drive the Gallium Arsenide Market share. In addition, owing to a wide direct band gap material that resists radiation damage, GaAs is an excellent option for outer space electronics and optical windows in high power applications. Further, other key factors driving the growth of the GaAs market include increase in adoption of 5G networks across the world and the advent of IoT has been one of the major reasons responsible for the growing trend of the Gallium Arsenide market size. The technology has given rise to a demand for high-frequency communication devices made with GaAs based ICs. Furthermore, this remarkable growth in the Gallium Arsenide market is providing a huge number of opportunities for wafer, EPI wafer & metal-organic chemical vapor deposition equipment suppliers, and manufacturers in the forecast period 2021-2026.
Request for Sample Report @ https://www.industryarc.com/pdfdownload.php?id=509501
Report Price: $ 5900 (Single User License)
Gallium Arsenide Market Segment Analysis – By Type
Vertical Gradient Freeze (VGF) Grown GaAs segment held significant market share of 40.5% in 2020. VGF Grown GaAs will remain the largest manufacturing technology, and it is expected to witness highest growth during the forecast period as it produces substrates with relatively low defect densities and higher mechanical strength. Vertical gradient freeze (VGF) technology is a proven technique for growing semiconductors composed of multiple elements that include gallium, arsenic, indium, and phosphorus. Such semiconductors offer capabilities that exceed those of wafers created on a single crystal silicon substrate. The main advantages of the VGF process include its scalability, low stress, high mechanical strength, and a defect rate that is orders of magnitude lower than conventional compound semiconductor crystal growth processes. Hence these benefits are analysed to drive the growth rate of the gallium arsenide market in the forecast period 2021-2026.
Gallium Arsenide Market Segment Analysis – By Application
Smart phones segment in Gallium Arsenide market is expected to witness a highest CAGR of 8.5% the forecast period. The demand for Gallium Arsenide is driven by smartphones and other applications across the consumer electronics industry, which require semiconductor ICs. In addition, increasing numbers of Internet of Things (IoT) devices is expected to force the semiconductor industry to invest in this equipment, in a bid to attain intelligent products. Moreover, the continuous advancements in consumer electronics and the use of sensors in various electronic products are proliferating the applications of plasma etching in smartphones and their demand across almost all the industry sectors. In 2018, the South Korean government announced to invest $1.34 billion for the next ten years to support the development of next-generation semiconductor technology, to support Samsung Electronics and SK Hynix. The investment will help Korean companies, such as Samsung and SK Hynix, to enhance their semiconductor manufacturing capabilities. Further with the powerful 5G cellular network being introduced to the world in 2019, mobile devices need a semiconductor that can handle the faster signal speed. As Gallium Arsenide will outperform silicon wafers due to its ultra-high frequency applications will enhance the demand for Gallium Arsenide industry in the forecast period 2021-2026.
Gallium Arsenide Market Segment Analysis – By Geography
Gallium Arsenide market in Asia-Pacific region held significant market share of 36.5% in 2020, owing to growing consumption of smartphones and other high-performance electronics devices in the region. Countries such as India, China, Taiwan, South Korea and so on are few of the prominent markets for Gallium Arsenide, and this is primarily attributed to the growing demand for advanced technologies across numerous end-user industries, high growth of the consumer electronics industry, rising support for the semiconductor industry in the region. In May 2019, Taiwan Semiconductor has opened new branch in Beijing to accommodate the rapid growth in China and engage local talent in its business development efforts. Moreover, the emergence of new technologies in Asia-Pacific has boosted the demand for innovative and user-friendly smart devices. There has been a rising demand from South Korea and Taiwan for semiconductor wafers, due to the large production of consumer electronic devices such as televisions, smartphones, PCs and so on. Further governments of several countries in this region are supporting the growth of semiconductor production by various initiatives, for instance, Made in Chine 2025, Make in India and others will promote the growth of semiconductor industries thereby increasing the growth of Gallium Arsenide market in the forecast period 2021-2026.
Inquiry Before Buying @ https://www.industryarc.com/reports/request-quote?id=509501
Gallium Arsenide Market Drivers
Growing Penetration of 5G
With the powerful 5G cellular network being introduced to the world in 2019, mobile devices need a semiconductor that can handle the faster signal speed. Gallium Arsenide due to its ultra-high frequency applications able to outperform silicon wafers in some of the most important ways. Moreover, with the emergence of 5G, silicon usage in semiconductors will be further reduced. Further for the implementation of 5G network, GaAs can be seen as the next generation of integrated circuits due to its high band gap, which drastically outperforms silicon. According to semiconductor Association, it is expected that the overall market for semiconductors could pass a whopping $20 trillion by 2025. This will create significant demand for GaAs in the forecast period. Furthermore governments of several countries have been investing heavily for the deployment of 5G. In 2019, China is expected to invest over $150 billion in its 5G networks through 2025. Similarly, Germany made a step towards accelerating the development of 5G services in the country, pouring additional investments into backing domestic endeavours. Hence growing penetration of 5g will drive the Gallium Arsenide Market growth in the forecast period 2021-2026.
Growth of Semiconductor industry creates significant demand for Gallium Arsenide Market
Growth of semiconductor manufacturing is analysed to create significant opportunities in the forecast period. In 2020, Indian Government is planning to offer around $1 billion in cash to every company that sets up a chip manufacturing unit in India. Similarly, China’s ‘Made in China 2025’ initiative will also create significant demand for semiconductor manufacturing in the forecast period. Moreover, U.S government is also committed to invest around $50 billion for the growth of semiconductor industry. Silicon is the most important material for semiconductor electronics. Silicon devices and integrated circuits are dominant in most applications from consumer electronics to automotive. However, in certain areas, silicon is being challenged by other semiconductor materials, such as gallium arsenide. Gallium arsenide excels in ultra-high frequency applications and has emerged as leading contenders for ultrahigh speed applications in the next generation of supercomputers and communication equipment. Hence Gallium arsenide has become relatively important and is expected to increase sharply in the forecast period 2021-2026.
Gallium Arsenide Market Challenges
High Production Cost
Although Gallium Arsenide market is growing at a significant phase it poses some difficulties, compared with that of silicon. For instance, unlike silicon, there is no natural oxide that acts as a mask to produce simple elements of the Complementary Metal Oxide Semiconductor (CMOS) logic style. High production cost of Gallium Arsenide act as major threat for the growth of the market. This is partly due to this technology not being able to achieve high volumes to bring the cost down and in a large part also because of not having a straightforward way to bring costs down generation after generation by exploiting device scaling like CMOS. Further GaAs technology does not easily lend itself to integrating millions or billions of transistors on one integrated circuit. Most GaAs ICs can manage to integrate only a handful of transistors unlike silicon. Hence these challenges hamper the market growth in the forecast period 2021-2026.
Gallium Arsenide Market Landscape
Product launches, acquisitions, Partnerships and R&D activities are key strategies adopted by players in the Gallium Arsenide market. Gallium Arsenide top 10 companies include Advanced Wireless Semiconductor Co., AXT Inc., Freiberger Compound Materials GmbH, GCS Holdings Inc., IntelliEPI Inc., IQE Plc, OMMIC SAS, Qorvo Inc., WIN Semiconductors Corp., and Xiamen Power way Advanced Material Co. Ltd. among others.
Acquisitions/Product Launches
In 2021 AXT, Inc., a leading manufacturer of compound semiconductor substrate wafers, has developed and shipped its first 8-inch diameter gallium arsenide (GaAs) substrates to a major customer. The 8-inch GaAs substrates, which are silicon doped, n-type substrates, demonstrate low etch pit densities (EPD) and low levels of slip lines.
In 2019, PAM-XIAMEN develops advanced crystal growth and epitaxy technologies, range from the first generation Germanium wafer, second-generation Gallium Arsenide with substrate growth and epitaxy on III-V silicon doped n-type semiconductor materials based on Ga, Al, In, As and P grown by MBE or MOCVD, to the third generation Silicon carbide and Gallium Nitride for LED and power device application.
Key Takeaways
Gallium Arsenide market in Asia-Pacific region held significant market share of 36.5% in 2020, owing to growing consumption of smartphones and other high-performance electronics devices in the region.
Vertical Gradient Freeze (VGF) Grown GaAs will remain the largest manufacturing technology, and it is expected to witness highest growth during the forecast period as it produces substrates with relatively low defect densities and higher mechanical strength
The demand for Gallium Arsenide is driven by smartphones and other applications across the consumer electronics industry, which require semiconductor ICs. In addition, the trend of increasing numbers of Internet of Things (IoT) devices is expected to force the semiconductor industry to invest in this equipment, in a bid to attain intelligent products.
Gallium Arsenide companies are strengthening their position through mergers & acquisitions and continuously investing in research and development (R&D) activities to come up with solutions to cater to the changing requirements of customers.
Related Reports
A.Semiconductor Market
https://www.industryarc.com/Report/18466/semiconductor-market-research-report-analysis.html
B.Compound Semiconductor Market
https://www.industryarc.com/Research/Compound-Semiconductor-Market-Research-507438
For more Electronics Market reports, please click here