Gallium Nitride Substrates Market - Forecast(2024 - 2030)
Gallium Nitride Substrates Market
The global market for GaN Substrates is estimated to grow from $7.2 million in 2021 to at a robust CAGR of 17.0% during the forecast period 2022-2027. Substrates are integral part of the electronics industry, which form the base of electronic products where field effect transistors, diodes, integrated circuits (ICs), and similar devices are fabricated. The substrates are formed from different semiconductor materials in different sizes and are also called wafers. Gallium Nitride (GaN) is a compound semiconductor material which possesses notable advantages over the conventional semiconductor materials. This material serves its best as the substrate for optoelectronic products such as Lasers, LEDs. Gallium Nitride (GaN) is a compound semiconductor and wide band gap material which possesses remarkable advantages over other semiconductor materials such as Silicon, Silicon Carbide, sapphire, Aluminum, Zinc Oxide and other single crystal substrates. In October 2020, Cree, Inc. has announced the sale of its LED products business unit, Cree LED, to Smart Global Holdings, a group of specialty memory, compute, and storage solution manufacturers, for up to $300 million. These are established in the optoelectronics and ultra violet optoelectronics. The nitride devices such as light emitters, transistors, diodes, and so on today are largely dependent on the hetero-epitaxial growth of GaN on foreign substrates such as Silicon, Silicon Carbide, and Sapphire. The large part of Gallium Nitride Substrates Market today comprises of such substrates and it is moving towards adopting the bulk GaN substrates.
Report Coverage
The report:?“Gallium Nitride Substrates Market?– Forecast (2022-2027)”,?by IndustryARC covers an in-depth analysis of the following segments of the Gallium Nitride Substrates Market?Report.
By Size –?2 Inch, 4 Inch, 6 Inch, 8 Inch
By Type – GaN on Silicon, GaN on Sapphire, GaN on Silicon Carbide, Bulk GaN
By Product –?LEDs, Lasers, Power Switching Devices and Others
By End Use Industry –?Health care, Automobiles, Consumer Electronic goods, General Lighting, Industrial and Power sectors, Military and Defense and Others.
By Geography -?North America (U.S, Canada, Mexico), Europe (Germany, UK, France, Italy, Spain, Russia and Others), APAC (China, Japan India, SK, Australia and Others), South America (Brazil, Argentina and others) and RoW (Middle East and Africa).
Key Takeaways
Gallium Nitride Substrates Market, By Industry, 2021 (%)
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Gallium Nitride Substrates Market Segment Analysis - By Type
Sapphire substrates account for larger share of nearly 80% in 2021. The dominance is due to the LED industry which utilizes sapphire substrates predominantly. As LED industry accounts for larger share of 78% in the overall substrates market, sapphire market is estimated to generate highest in market values. Furthermore, the market is estimated to grow at 8.5% during 2022-2027 and will continue to maintain its dominance till 2027 owing to consistent global demand, particularly from Asian countries. The GaN on Gallium Nitride Substrates Market is largely dominated by blue and green lasers. Although the market is forecast to grow with a lower growth rate of 2.6% in the study period with demand from power electronics, the penetration of these substrates would not be high to take over other substrates. There is also a large-based research underway related to bulk GaN usage in power electronics industry that can trigger relatively aggressive growth for this market.?
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Gallium Nitride Substrates Market Segment Analysis - By End Use Industry
General Lighting application accounts for a major share of 41% in 2021. During 2022-2027, it is estimated that automobiles segment will witness high growth owing to the demand from power electronics and LEDs. Owing to the demand for backup power in hospitals, the electrical devices such as generators, power control devices are estimated to witness hike demand. Hence, the PSDs are forecast to register the high growth in healthcare along with LEDs which grow on the demand for lighting. The growth is also estimated to be steered by both these segments owing to the rise in electric vehicles sales. Moreover, the quality and needs of lighting in cars has witnessed innovation past few years which is estimated to escalate LED lighting in automobiles. For instance, the increase in adaptive lighting and creative interior lighting requires LEDs as they can be available in smaller sizes providing high amount of light.
Gallium Nitride Substrates Market Segment Analysis - By Geography
Asia-Pacific region accounts for 44% share in the market in 2021 and it is the major producer as well as the consumer for this market. The region market in 2021 was worth over $2.9 billion. Japan, China, and Korea are the leading countries in APAC region contributing to over 80% of the production. Moreover, 90% of the bulk GaN substrate production is emerged from Asia-Pacific region players, with Japan as the leading supplier. In the coming years, China is estimated to significantly govern the market similar to the past. The cheaper and faster LED production stirred the LED industry before 2019 and it positioned itself as the major threat to the global players. The cost of the gallium material, fabrication, and packaging is lower in China compared to other regions, attracting more and more manufacturers into the market. However, as the players take over the substrate production and attain global share, the quality remains the major addressable issue.
Gallium Nitride Substrates Market Drivers
Growing Demand From The Automotive Led Industry To Drive Gallium Nitride Substrates Market
LED industry is the major end user of the GaN substrates and holds potential to grow considerably in the future with growing adoption of LEDs in the lighting as well as other applications. Moreover, the industry is constantly evolving and embracing innovation which is estimated to enhance market value of the LED as well as subsequently create demand for substrates. The GaN LEDs were estimated to be 120 billion units in 2014 in volume and grew to close to 150 billion units by 2021. This is a huge number and is mainly driven by lighting segment. Although the market is projected to showcase relatively non-aggressive growth during 2022-2027, LED industry would continue to be the major consumer for GaN Substrates. The consistent demand for LEDs can be attributed to the increasing penetration of LEDs into different applications in countries such as Korea and Taiwan. With rising competition among players in these countries, there is a shift towards newer applications such as automotive and smart lighting. The LEDs can be used in headlamps, sidelights, low beam lights and so on.
Gallium Nitride Substrates Market Value To Rise Riding On Demand For Wide Bandgap Substrates
Wide gap substrates have emerged as the suitable replacements for the conventional substrates owing to the wide band gap, because of which they can operate at high temperatures and have higher switching capacity. This enables the devices to serve applications that were difficult before. Apart from that, these semiconductor materials enable to make smaller devices offering high performance. Some examples of these materials are: Gallium Nitride, Silicon Carbide, Zinc Oxide and so on. These semiconductor materials not only improve the performance but also save energy and cut down the losses. Gallium Nitride and Silicon Carbide are the potential and emerging wide gap semiconductor materials. Both are emerging progressively into several end use markets, though GaN is showcasing slow growth relatively. With high demand from power electronics sector, the market for SiC is forecast to shine and grow significantly in the period 2022-2027. There are significant numbers of substrate manufacturers as well as device manufacturers which produce devices based on these materials and are proactively taking steps to create innovative and useful products. Cree Inc. owns large scale commercial production and research center related to SiC and GaN products. Cree Inc. has shipped over 1 billion GaN devices till today, while Soraa has launched ‘smart’ LED lamps in early 2022.
Gallium Nitride Substrates Market Challenges
Growing Demand For Patterned Sapphire Substrates Force Players To Increase Capacity
The growing adoption of patterned substrates in sapphire industry is compelling companies to produce patterned substrates and increase the capacity. Companies are proactively making efforts to cater to the demand. Moreover, to stabilize the raw materials, the LED chip companies are reserving the PSS capacity. Currently, the 2-inch substrates and 4-inch substrates account for major share in the market. In future, with demand for larger diameter substrates, the focus of the companies is on increasing production capacity of 4-inch along with 6-inch. Additionally, the strong LED demand is hiking the demand for PSS substrates as well is forcing companies to increase capacity to as large as 30 million substrates per month. Last year in 2021, the capacities of many companies saw rise and the companies have plans to expand further. Rigidtech Microelectronics accounted for a significant share in the total capacity in 2021; this company recently had also set up factory in China with monthly capacity of 100,000 PSS to meet the demand of its customers. Few companies such as Aptech Co. and Zhao Xin have raised sufficient capital in the same year to increase production lines. This shift to PSS and increasing capacity has resulted in price reduction and will continue to effect in the next five years. But for the conventional substrate manufacturing companies, it is financially challenging and difficult to shift production to PSS and keep ahead in the competition.
Gallium Nitride Substrates Market Landscape
Acquisitions, Partnerships and R&D activities are key strategies adopted by players in the Gallium Nitride Substrates Market. GaN Substrates top 10 companies include
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