PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1171598
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1171598
The global gallium arsenide (GaAs) wafer market was valued at US$179.360 million in 2020 and is projected to expand at a CAGR of 10.54% over the forecast period to reach US$361.787 million by 2027.
The ability to operate at faster speeds than silicon is driving the demand for GaAs devices across various end-use industries such as communications, aerospace and defence, and electronics which, in turn, is boosting the demand for GaAs Wafers globally. Though the high cost of Gallium Arsenide is currently restraining the use of GaAs wafers in electronics, the efficient use of electricity by GaAs as compared to silicon as a substrate can provide an opportunity for GaAs wafers to be used for various applications. Moreover, properties such as better heat and radiation resistance will drive the use of these wafers for military applications, thus positively impacting the global GaAs market growth during the forecast period.
Drivers
The substantial growth drivers for the market are the growing adoption of smartphones and the increasing penetration of light-emitting diodes (LEDs) in general lighting. The rising prominence of IoT has been one of the key reasons responsible for the increasing market trend. The technology has propelled a demand for high-frequency communication devices that are made with GaAs-based ICs. Also, with various companies expanding their communication infrastructure, the demand for GaAs-based devices is likely to increase, which will fuel the growth of the GaAs wafers market in the forthcoming years. The need for GaAs devices across various end-user industries such as aerospace & defence, electronics, and communications is rising, which, in turn, is accelerating the demand for GaAs Wafers globally. Furthermore, another crucial factor driving the growth of the GaAs wafer market includes the rising adoption of 4G and 5G technologies worldwide.
Restraint
The high production cost of the wafers is anticipated to be a restraining factor affecting the GaAs wafer market. Its price is a significant drawback, which explains its low utilization. To solve this, engineers and researchers are constantly working on new methods of manufacturing thin films of low-cost gallium arsenide to create devices that can replace silicon, thereby fuelling the efficiency of photovoltaic cells.
Asia Pacific to Dominate the Market
Asia Pacific region has an is an increasing demand for smart devices. China, Taiwan, India, and Japan have soaring demand for advanced technological devices such as smart devices, computers, laptops, and smartphones further propelling the regional market's growth. The product offers enhanced connectivity through improved data transmission and quality than the semiconductor devices. GaAs products can be manufactured on a large scale with very high yield rates, thus, improving business growth. The rising Internet penetration, 4G and 5G networks, as well as the expansion of the electronic industry, are projected to fuel the development of the global GaAs market. The demand for GaAs wafers in the area is growing robustly. China dominates the market for the electronics sector. There is considerable government support in this region which has fostered market growth. For instance, the Chinese government is promoting its indigenous technology market by funding its industry players. The requirement for a safe, reliable, and clean energy source in various countries is likely to soar the demand for solar cells, which will help the development of the market of GaAs wafers. Taiwan has recognized the wafer market as one of the most critical areas of technological development, thus, driving the market growth. According to SEMI, the world semiconductor equipment market is estimated to cross the USD 100 billion mark in 2022, with Taiwan ranked second in procurement. The region's low labor and production costs are important factors fuelling the market's growth. Owing to the increasing production, Taiwan is expected to hold a substantial market share in the market studied. Consumer spending and changing consumption patterns towards more discretionary spending are expected to significantly contribute to the growth of semiconductor manufacturing in the region.
Key Developments
COVID-19 Pandemic
The COVID-19 pandemic and the subsequent government implementations regarding lockdowns and social distancing severely affected the semiconductor sector, impacting the manufacture of semiconductor components and lowering customer demand, thus, impeding the growth of the global market.
Segmentation
Single Crystal GaAs Wafer
Polycrystalline GaAs Wafer
Vertical Gradient Freeze (VGF)
Liquid Encapsulated Czochralski (LEC) Growth
The Bridgman-Stockbarger Technique
Consumer Electronics
Communication and Technology
Automotive
General Lighting
Aerospace and Defense
North America
South America
Europe
Middle East and Africa (MEA)
Asia Pacific