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The gallium arsenide components market is estimated to grow at a CAGR of 6.19% between 2022 and 2027. The size of the market is forecast to increase by USD 3,266.55 million. The growth of the market depends on several factors, including the rising adoption of smartphones and tablets, the increased demand for data, and the faster product replacement cycle and increased design complexity.
This report extensively covers market segmentation by type (LEC grown GaAs and VGF grown GaAs), application (mobile devices, wireless communication, and others), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Technavio categorizes the global GaAs components market as a part of the global semiconductor equipment market within the global semiconductors and semiconductor equipment market. The parent global semiconductor equipment market covers manufacturers of semiconductor equipment, including manufacturers of raw materials and equipment used in the GaAs components market. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The rising adoption of smartphones and tablets is notably driving the market growth, although factors such as the availability of alternative devices may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Gallium Arsenide Components Market Driver
The rising adoption of smartphones and tablets is one of the key drivers supporting the gallium arsenide components market growth. Shipments of smartphones will reach more than 2 billion units by 2020 due to the availability of low-cost smartphones in emerging markets such as China and India and increasing internet penetration worldwide. The growth in the shipments of smartphones will drive the demand for GaAs components used in mobile handsets, particularly GaAs power amplifiers.
Smartphones currently require more GaAs content, as they need many frequency bands to accommodate 3G and 4G networks. The increasing demand for tablets is also contributing to market growth. There are many local market participants that have started introducing tablets in their respective countries. Such local vendors' participation will drive market growth during the forecast period.
Significant Gallium Arsenide Components Market Trend
The emergence of high-powered electronic devices is another factor supporting the gallium arsenide components market growth. Consumer electronic devices are now integrated with components that are quick, prompt, innovative, lightweight, energy-efficient, and compact. These demands cannot be achieved using silicon-based wafers without compromising significantly on performance. Silicon wafers have already reached their saturation stage with respect to such demands. GaAs technology, when used in today's high-powered devices, delivers high speed, accuracy, and reliability. GaAs components are energy-efficient and are small enough to fit into compact devices. GaAs-based semiconductor devices have brought a lot of opportunities for customers and vendors.
For customers, GaAs offers high-powered electronics that are mobile, prompt, and energy-efficient, saving on power and time. For manufacturers, GaAs offers a reduction in cost in the long run and substantial improvement in device characteristics that allow the addition of new performance capabilities to the device, enabling vendors to introduce better offerings in the market. This will have a positive influence on the market during the forecast period.
Major Gallium Arsenide Components Market Challenge
The availability of alternative devices is one of the factors hindering the gallium arsenide components market growth. Since 2012, GaN, SiGe, LDMOS, and CMOS devices have emerged as alternatives to GaAs devices. Power amplifiers use GaN and LDMOS devices, while SiGe devices are increasingly used in low-noise amplifier (LNA) applications. CMOS power amplifiers are being used in entry-level phones and are expected to be used in smartphones as well.
Therefore, the end-user segments served by GaAs components are now being targeted by these alternative technologies. On the other hand, GaAs can only operate at a maximum of 14 V (volts). To cater to high-voltage requirements, high-power RF semiconductor companies use non-silicon substrates such as GaN. This could significantly lower the demand for GaAs components during the forecast period.
Key Gallium Arsenide Components Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Gallium Arsenide Components Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
axt.com - The company offers gallium arsenide components such as wafer substrates. Also, this segment focuses on developing, manufacturing, and distributing of high-performance compounds, and single-element semiconductor substrates.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the LEC Grown GaAs segment will be significant during the forecast period. The LEC-grown GaAs segment by type dominated the global gallium arsenide components market in 2022. It is expected to maintain its dominance during the forecast period owing to growing development in wireless communication, satellite technology, and other wireless networks. Moreover, the high usage of semi-insulating GaAs single crystals in the semiconductor industry, such factors will increase the segment growth during the forecast period.
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The LEC Grown GaAs segment was valued at USD 3,549.91 million in 2017 and continue to grow by 2021. The segment provides several benefits for developing GaAs, which include ease in scalability, more effectiveness, reduction in the harmful temperature fluctuations used to grow wafer crystals, provides control over crystal carbon content, and it has good insulation properties. Such benefits and the growing semiconductor industry are expected to increase the demand for LEC-grown GaAs, which in turn is expected to propel the growth of the market in focus during the forecast period.
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APAC is estimated to contribute 79% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The GaAs components market in APAC is expected to grow moderately during the forecast period. APAC is the highest revenue-contributing region in the market in focus, primarily because of the high demand for gallium arsenide components from communication device manufacturers. Increasing demand for power applications, along with the presence of high-growth economies, is a major driver of the GaAs components market in APAC. The significant growth of the consumer electronics sector is also contributing to market growth during the forecast period.
The GaAs components market in APAC witnessed certain challenges in 2020 owing to the COVID-19 outbreak. However, the lifting of lockdowns across several countries in 2021 resulted in a substantial rise in business operations. The demand for various consumer electronics, such as mobile phones and laptops, was high to avail of the work-from-home facility. Moreover, owing to the large-scale vaccination drives in 2021, travel restrictions were eased and the operation of manufacturing units resumed at full capacity due to the growing demand for mobile devices. Such factors are expected to propel the growth of the regional market focus during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Type (LEC grown GaAs and VGF grown GaAs), Application (Mobile devices, Wireless communication, and Others), and Geography (APAC, North America, Europe, South America, and Middle East and Africa).
Gallium Arsenide Components Market Scope |
|
Report Coverage |
Details |
Page number |
162 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.19% |
Market growth 2023-2027 |
USD 3,266.55 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.62 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 79% |
Key countries |
US, South Korea, China, India, and Taiwan |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Analog Devices Inc., AXT Inc., Broadcom Inc., CMK Ltd., DOWA Electronics Materials Co Ltd, Edmund Optics Inc., Freiberger Compound Materials GmbH, Furukawa Denshi Co. Ltd., Hanergy Thin Film Power EME BV, II-VI Inc., Logitech Ltd., MACOM Technology Solutions Holdings Inc., Murata Manufacturing Co. Ltd., NXP Semiconductors NV, Qorvo Inc., Reade International Corp., Skyworks Solutions Inc., Sumitomo Electric Industries Ltd., Umicore NV, and Western Minmetals SC Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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