REPORT DESCRIPTION

Market Size and Overview:

As per our research report, the global Automotive GaN Devices market is projected to grow at a CAGR of 14% from 2024 - 2030.

The market is currently witnessing significant momentum due to notable advancements in the semiconductor industry, particularly in the development of compact GaN semiconductor devices and their expanding applications within the automotive sector. Throughout the forecast period, technological progress and innovative initiatives will remain pivotal in driving the growth trajectory of the GaN semiconductor devices market. Additional factors contributing to market expansion include the escalating focus on renewable energy generation and the growing demand for LEDs within the automotive and consumer electronics domains.

Industry Overview:

Gallium nitride (GaN), a wide-bandgap semiconductor, exhibits superior breakdown strength, faster switching rates, and enhanced thermal conductivity. The burgeoning market for GaN semiconductor devices stems from various factors, such as the heightened emphasis by internet service providers on deploying high-capacity, low-latency networks employing optical cables. Consequently, there will be a surge in the demand for power semiconductors and energy-efficient GaN components in wired communications. Moreover, the proliferation of GaN semiconductor sales is anticipated, particularly with their integration into 5G infrastructure. GaN semiconductors are poised to play a critical role in contemporary sensor applications, power switching, and RF power. Furthermore, stakeholders in the current GaN semiconductor market are predominantly focused on commercializing GaN semiconductor devices and expanding the adoption of cutting-edge innovations. The shift towards greater energy efficiency has transformed the semiconductor landscape, thus fueling the projected increase in demand for GaN semiconductor devices. Advancements and breakthroughs in GaN semiconductor devices are anticipated to prioritize enhancing energy efficiencies, given the pivotal role of power supply in the electronic ecosystem.

Impact of the COVID-19 Pandemic on the Automotive GaN Devices Market:

 The semiconductor industry has witnessed substantial repercussions from the COVID-19 pandemic, notably due to China's role as a major export hub for raw materials essential in manufacturing smartphones, tablets, and other electronic devices. Manufacturing slowdowns and production reductions have occurred in response to the pandemic, leading to delays in the introduction of new consumer electronics devices. Disruptions in the supply chain, coupled with losses incurred during the pandemic, have impeded the market's expansion. Notably, the GaN-based power device sector has experienced adverse effects, primarily due to government-imposed lockdowns and travel restrictions, which led to office closures and hindered operations.

Market Drivers:

The surging demand for electric vehicles (EVs) and hybrid electric vehicles (HEVs) is a key driver propelling the market forward. Global EV demand escalation is expected to drive up sales of GaN semiconductor devices, given GaN's superior performance, efficiency, and quality, particularly in the medium-voltage range (200-800V) relevant to most automotive applications. Increased adoption of GaN semiconductor devices is anticipated across various automotive components, including control systems, motor drives, brake systems, lighting and displays, and electronic systems in EVs and HEVs. Noteworthy innovations in GaN power semiconductor devices, such as DC-DC converters, electric motors, and inverters, integrated into various vehicle subsystems like mechanical systems, battery systems, and cooling systems, further contribute to market growth.

The suitability of GaN in RF applications is another significant market driver. The RF semiconductor device industry, characterized by substantial demand, relies heavily on GaN semiconductor devices for their capacity to deliver high-power amplification across extremely high-frequency ranges. The adoption of GaN RF applications has been bolstered by the introduction of monolithic GaN MMICs, further driving market expansion.

Market Restraints:

The increased cost associated with producing pure gallium nitride poses a challenge to market expansion. Compared to silicon carbide, a popular semiconductor material for high-voltage power electronics, the production cost of pure gallium nitride is higher. This cost encompasses expenses related to substrate, fabrication, packaging, support electronics, and development, presenting a significant barrier to the commercialization of GaN-based devices.

Moreover, the complexities inherent in the electrical arrangement of GaN devices may impede market growth. Design complexities in GaN power and RF devices, including issues like charge entrapment and current collapse, pose challenges to designers striving to enhance efficiency while minimizing costs and structural complexities. Additionally, the diverse requirements of various applications further compound design complexities, necessitating unique circuit designs and addressing thermal challenges. As GaN devices are smaller in size compared to silicon devices, ensuring accuracy in electron mobility, current conductance, and power output becomes crucial. The evolving reliability requirements across diverse applications, including automotive, aerospace, and defense, necessitate advanced reliability testing techniques to address these challenges.

Silicon Carbide (SiC) as a Substitute for High-Voltage Semiconductor Applications: Silicon Carbide (SiC) emerges as a more effective alternative for high-voltage semiconductor applications, offering improved power efficiency and advanced power handling capacity across several power applications. SiC's superiority lies in its ability to deliver power efficiency at high voltages, flexibility in power rectification, high reliability, and power amplification, and power factor correction. While GaN presents advantages over SiC, particularly in terms of power efficiency, SiC outperforms GaN in high voltage ranges (over 1 kV), making it the preferred choice for high-voltage power semiconductor devices due to its superior toughness and extreme hardness.

Automotive GaN Devices Market – By Device Type

• Opto-semiconductors
• Power Semiconductors
• RF Semiconductors

Categorized by Device Type, the Automotive GaN Devices Market includes Opto-semiconductors, Power Semiconductors, and RF Semiconductors. Opto-semiconductors emerged as the top revenue-generating category in 2021. The market growth in this segment is fueled by increased utilization within the automotive industry for pulse-powered laser systems, vehicle lighting, and indoor/outdoor lighting applications. Market participants in Opto-semiconductors stand to benefit from the growing global demand for Advanced Driver Assistance Systems (ADASs). Compliance with U.S. and EU regulations mandates the inclusion of forward-collision warning and autonomous emergency braking systems in all new vehicles.

Automotive GaN Devices Market – By Component

• Power IC
• Power Transistors
• Diodes & Rectifiers
• Power Discretes

Segmented by Components, the Automotive GaN Devices Market comprises Power ICs, Power Transistors, Diodes & Rectifiers, and Power Discretes. Power ICs dominate the production of gallium nitride semiconductor devices and are expected to maintain this dominance in the foreseeable future. GaN-based power ICs are increasingly indispensable due to their capabilities in collision avoidance, navigation efficiency, and real-time air traffic control. Leading manufacturers are dedicating significant efforts to enhancing power ICs for telecom and automotive applications, consequently driving market demand.

Automotive GaN Devices Market – By Wafer Size

• 2 Inches
• 4 Inches
• 6 Inches
• 8 Inches

Classified by Wafer Size, the Automotive GaN Devices Market is segmented into 2 Inches, 4 Inches, 6 Inches, and 8 Inches categories. The 6-inch category is projected to demonstrate a Compound Annual Growth Rate (CAGR) of approximately 25% throughout the forecast period. This growth can be attributed to the advantages offered by 6-inch GaN semiconductors, including precise current regulation and consistent voltage supply, leading to their expanded usage in defense equipment, wireless cellular base station power amplifiers, and automotive collision avoidance devices.

Automotive GaN Devices Market – By Application

• Lighting and Lasers
• Radio Frequency
• Power Drives

Categorized by Applications, the Automotive GaN Devices Market includes Lighting and Lasers, Radio Frequency, and Power Drives. The power drives segment is anticipated to register the highest CAGR during the forecast period. The global Electric Vehicle (EV) market is witnessing significant expansion, attracting numerous new participants. Market growth drivers encompass expanding renewable energy generation, increased EV charging infrastructure and adoption, and heightened consumer awareness. The superior performance and efficiency features of GaN devices in high-voltage regions (over 400 V) are driving the surge in demand for motor drives.

The rapid advancement of GaN technology has spurred the introduction of innovative, cost-effective, and well-designed products by numerous enterprises. Moreover, the utilization of GaN semiconductor devices has proliferated to meet the growing demand for high-power and high-temperature applications. GaN devices, characterized by their ability to operate at high frequencies, power densities, and temperatures while delivering enhanced efficiency and linearity, find extensive applications in high-voltage scenarios, radio frequency amplifiers, and Light Emitting Diodes (LEDs).

Automotive GaN Devices Market - By Region

• North America
• Europe
• Asia Pacific
• South America
• Middle East and Africa

North America emerged as the leading revenue contributor in the Automotive GaN Devices market in 2021. This can be attributed to increased internet penetration and widespread adoption of smartphones. The region's market dominance is further expanding due to rising Research and Development (R&D) investments by the aerospace and defense sectors. The Asia Pacific region is poised to register the highest CAGR during the forecast period. GaN devices are gradually replacing their silicon counterparts across various application sectors in the Asia Pacific region, including consumer electronics, telecommunications, automotive, and industrial domains. China, being a major producer and distributor of raw materials for wide bandgap semiconductors, is poised to bolster the revenue of the APAC GaN semiconductor devices market.

Key Players in the Market:

 Efficient Power Conversion Corporation

NexGen Power Systems Inc.

NXP Semiconductor N.V.,

Cree, Inc.

Qorvo

Texas Instruments Inc.

Fujitsu Ltd.

GaN Systems Inc.

Infineon Technologies AG

Freescale Semiconductor Inc.

Toshiba Corporation.

Recent Notable Events in the Automotive GaN Devices Market:

Product Launch - In March 2021, Cree introduced four new multistage monolithic GaN-on-SiC microwave integrated circuit (MMIC) devices, expanding the company's RF solutions portfolio and offering excellent power added efficiency (PAE) in compact, commercially viable packages.

Partnership - In April 2021, Nexperia and United Automotive Electronics Systems (UAES) forged a partnership to produce GaN-based semiconductor devices for automotive applications.

Product Launch - In May 2021, Infineon Technologies unveiled a new line of integrated power stage (IPS) GaN power devices under the CoolGaN device family, catering to low-to-medium power applications such as adapters, chargers, and motor drives.

Product Launch - In November 2021, Sumitomo Electric Device Innovations USA Inc. and Sumitomo Electric Industries Ltd. introduced a range of five new X-band GaN devices.

Partnership - In November 2021, GaN Systems Inc. collaborated with Universal Scientific Industrial Co. Ltd to develop GaN power modules for the EV market.

Product Launch - In November 2020, Texas Instruments Incorporated launched the next-generation 600V and 650V GaN field-effect transistors (FETs) designed for high-voltage power management applications in both commercial and automotive settings.