Gallium Arsenide Market- By Size , By Production Method , By Application, By Geography - Global Opportunity Analysis & Industry Forecast, 2024-2030
Gallium Arsenide Market Overview
Gallium Arsenide Market size is estimated to reach $570.3 million by 2030 growing at a CAGR of 9.8% during the forecast period 2024-2030. Gallium Arsenide (GaAs) stands at the forefront of high-frequency and high-speed electronics, catering to the surging demand for wireless communication. Its exceptional electron mobility renders it ideal for applications in wireless communications, satellite communications, radar systems, and military technology. The escalating need for GaAs is fuelled by the expanding smartphone usage, rapid adoption of 5G technology, and the proliferation of internet-enabled devices. Notably, the U.S. government's launch of the $1.5 billion Public Wireless Supply Chain Innovation Fund, bolstered by the CHIPS and Science Act of 2022, underscores the strategic significance of GaAs in national security and technological advancement. This initiative aims to drive wireless innovation, promote open and interoperable networks, enhance competition, and fortify supply chain resilience for 5G and next-gen technology. GaAs, as a critical semiconductor material renowned for its efficacy in high-frequency applications, is poised to play a pivotal role in realizing the objectives of this initiative, solidifying its position as a key enabler in the dynamic landscape of wireless technology. As the demand for high-frequency and high-speed devices continues to surge, GaAs is set to be indispensable in shaping the future of wireless communication technology. Furthermore, this remarkable growth in the Gallium Arsenide Market is providing a huge number of opportunities for wafers, EPI wafers & metal-organic chemical vapor deposition equipment suppliers, and manufacturers in the forecast period 2024-2030.
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Market Snapshot :-
Report Coverage
The report: "Gallium Arsenide Market Report– Forecast (2024-2030)”, by IndustryARC covers an in-depth analysis of the following segments of the Gallium Arsenide Industry. By Size: 3’’, 4’’, 6’’ and Others By Production Method: Liquid Encapsulated Czochralski (LEC), Vertical Gradient Freeze (VGF), MOVPE, MBE, and Others By Device Type: Smartphones, Wireless Communication, Detectors, Transistors, Solar Cells, LEDs, Tablets, Laptops, Automotive Electronics, Computers, and Others By Geography: North America (The U.S., Canada, and Mexico), Europe (U.K., Germany, Italy, France, Netherlands, Spain, Denmark, and Rest of Europe), Asia-Pacific (China, Australia, Japan, South Korea, India, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Venezuela, Argentina, Ecuador, Peru, Colombia, Costa Rica, and Rest of South America), Rest of the World (Middle East, and Africa)
Key Takeaways
Gallium Arsenide Market, By Region, 2023
By Production Method - Segment Analysis?
Vertical Gradient Freeze (VGF) Grown Gallium Arsenide segment held a significant market share of 64.5% in 2023. Vertical Gradient Freeze (VGF) stands as the dominant production technology employed by GaAs (Gallium Arsenide) wafer manufacturers. This advanced method enables precise control over crystal growth, ensuring high-quality wafers crucial for semiconductor applications. VGF's scalability and efficiency make it pivotal in the mass production of GaAs wafers, powering modern electronic devices. Moreover, the vertical gradient freeze process offers numerous advantages in the production of high-purity single crystals. The notable benefit is the non-toxic nature of the material produced through this method. This characteristic is particularly important in industries such as aerospace, medical devices, and electrical equipment, where the safety and reliability of materials are paramount. The resulting crystalline structure is symmetrical and perfectly oriented, with a 100% alignment, ensuring optimal performance in various applications. VGF's precision in crystal growth yields high-quality GaAs wafers crucial for semiconductors, meeting demands in aerospace, medical devices, and electrical equipment for safe, reliable, and high-performance materials. As a result, the demand for high-quality GaAs wafers is expected to remain strong in the forecast period 2022-2030.
By Application - Segment Analysis
Smart phones segment in Gallium Arsenide Market is expected to witness the highest CAGR of 13.3% during 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 are 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. For instance, as of 2023, Global System for Mobile Communications Association (GSMA) reports a remarkable 90% global smartphone adoption, reflecting the pervasive integration of these devices into daily life, highlighting their pivotal role in communication, connectivity, and technological advancement worldwide. As Gallium Arsenide will outperform silicon wafers due to its ultra-high frequency applications will enhance the demand for the Gallium Arsenide Market Industry in the forecast period 2024-2030.
By Geography - Segment Analysis
Gallium Arsenide Market in Asia-Pacific region held significant market share of 48.5% in 2023, owing to the 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 a 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 devices industry in the region. 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, South Korean tech giant Samsung Electronics expects to invest $230 billion over the next 20 years to develop what the country's government called the world's largest chip-making base, in line with efforts to boost the national chip industry. The collaborative efforts between governments and industry players signify a strategic move to strengthen the semiconductor supply chain in the APAC to promote the growth of semiconductor industries thereby Enhancing the Gallium Arsenide Industry Outlook in the forecast period 2024-2030.
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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 is able to outperform silicon wafers in some of the most important ways. Moreover, with the emergence of 5G, silicon usage in semiconductor devices will be further reduced. Additionally, the implementation of a 5G network, Gallium Arsenide can be seen as the next generation of integrated circuits due to its high band gap, which drastically outperforms silicon. For instance, according to the 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 Gallium Arsenide in the forecast period. Furthermore, governments of several countries have been investing heavily in 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 size growth in the forecast period 2024-2030.
Growth of Semiconductor industry creates significant demand for Gallium Arsenide Market
The semiconductor industry has been growing rapidly owing to the increasing demand for electronics in various applications, including smartphones, tablets, personal computers, automotive, industrial, and other electronic devices. For instance, according to the Semiconductor Association, by 2025, the whole market for semiconductors is predicted to surpass a staggering $20 trillion. Moreover, the three semiconductor materials being used in power electronics are silicon (Si), silicon carbide (SiC), and gallium nitride (GaN). Among these, silicon does not perform well in higher energy density and temperature conditions, and SiC and GaN cannot be used for higher currents and are often too expensive. Therefore, gallium arsenide (GaAs) is widely used in microelectronics owing to its suitability for high frequency and temperature, but not for controlling and converting electrical. ?Moreover, gallium arsenide is widely used in microelectronics due to its suitability for high frequency and temperature, addressing specific performance needs. Gallium arsenide excels in ultra-high frequency applications and has emerged as a leading contender for ultrahigh-speed applications in the next generation of supercomputers and communication equipment. Hence Gallium Arsenide Industry has become relatively important and is expected to increase sharply in the forecast period 2024-2030.
Gallium Arsenide Market Challenges
Environmental Concern Associated with Gallium Arsenide.
GaAs production poses environmental risks due to arsenic byproducts, leading to health issues. Improper disposal of GaAs devices releases toxic arsenic and gallium, polluting soil, water, and air. This environmental contamination threatens wildlife and humans with severe health consequences, emphasizing the importance of responsible manufacturing and disposal practices for GaAs-based technology. To mitigate these environmental concerns, various regulations and best practices have been established to ensure the safe handling and disposal of GaAs-based devices. For example, the European Union's Restriction of Hazardous Substances (RoHS) directive restricts the use of hazardous substances, including arsenic, in the manufacture of electronic equipment. Additionally, some companies have implemented recycling programs to ensure that GaAs-based devices are disposed of safely and responsibly. ?The environmental concerns associated with GaAs, particularly the release of toxic chemicals during production and disposal, pose a significant challenge to market growth
Gallium Arsenide Industry Outlook
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:?
Recent Developments
In December 2022, The Vital group ("VITAL") has announced the completion of the acquisition of 5N Plus Belgium, located in Tilly, Belgium. The transaction will strengthen VITAL's position in the European market and enhance its capability to produce, recycle, and deliver specialty metals and their compounds to customers around the world. ? In April 2021, AXT, Inc. Supplied the First 8-Inch Gallium Arsenide Wafers to Major Customer. The 8-inch Gallium Arsenide substrates, which are silicon doped, n-type substrates, demonstrate low etch pit densities (EPD) and low levels of slip lines. In October 2021, Taiwan-based epiwafer maker Visual Photonics Epitaxy (VPEC) has emerged as the world's top supplier of Gallium Arsenide epiwafers with its market share in the segment surpassing that of British peer IQE by 14-15%
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