Demand for ‘Portable’ Devices to Upkeep Innovation in GaN Substrate Market

Growing on the back of the compactness of car modules, the automotive and transportation industry is serving as a crucial end-use industry for the expansion of the GaN substrate market, and the ongoing undercurrents of green vehicle agendas are likely to surface new revenue streams for market players. Besides this, as the consumer electronics industry continues to look at wafer-sized innovation to support the smart-sizing of devices, the high power-handling capacity of GaN substrates is giving these components an edge over silicon substrates.

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At present, players in the gallium nitride substrate market consider product innovation as a winning strategy to survive in the highly competitive landscape, and the demand for portable devices and components is further projected to upkeep their interest in the qualitative approach. However, they need to focus on simplifying the design complexity of GaN substrates to achieve a better infiltration rate in end-use industries, which entails a magnified product-level focus and high investment in research & development activities. Given the multichannel growth opportunities upheld by numerous end-use industries, the GaN substrate market is estimated to expand at a healthy CAGR of ~10% during the period of 2019-2027.

gan substrate market infographic

Automation to Intensify Demand for Efficient Semiconductors

In end-use industries such as automotive, healthcare, and aerospace, where drudgery is being fast-replaced by automated processes, the demand for highly-effective semiconductors is mounting. On similar lines, the excellent insulation properties of GaN on sapphire to prevent buffer layers from cracking has been promoting its adoption in these industries.

According to an estimate of the TMR study on the gallium nitride substrate market, GaN on sapphire will account for ~60% of the total sales of GaN substrates; however, the better thermal performance of GaN on silicon technology, coupled with a high drive current, is projected to underpin its adoption in LED applications.

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Rising Demand for LEDs to Lead GaN Substrate Market Growth

In the power industry, where manufacturers expend efforts towards achieving energy efficiency, light-emitting diodes (LEDs) are making inroads. With the growing demand for LED technology, advancements in GaN technology with low-defect density and macro-defect density are deemed favorable components for the development of LEDs with improved electric characteristics. However, an exponential rise in the sales of GaN substrates will arrive from their use in the development of transistors, to reduce the size of ICs in particular, and PCBs in general, thereby downsizing the overall size of electronic devices. 

Significant Opportunities Await in Electronics Industry

There are abundant opportunities for players in the GaN substrate market to capitalize on. To start with, the penetration of intelligent electronic devices such as laptops, smartphones, and smart watches at an exponential rate, and a progressive improvement in their features and functionalities, are likely to bring in lucrative prospects, since GaN substrate-based electronic devices can operate without any external cooling requisites. The advent of fifth generation Internet speed will further portend the arrival of IoT devices, which will thereby ensure sustained opportunities for players in the gallium nitride substrate market in the future.

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