Gallium Arsenide Components Market by Type, Application and Geography - Forecast and Analysis 2023-2027

Gallium Arsenide Components Market Size 2023-2027

The gallium arsenide components market is estimated to increase by USD 3.27 billion and grow at a CAGR of 6.19% between 2022 and 2027. The market's expansion hinges on several factors, including the escalating adoption of smartphones and tablets, heightened data demand, and accelerated product replacement cycles alongside increased design intricacies. Challenges like the availability of alternative devices, a slowdown in smartphone sector growth, and high production costs impede growth. These dynamics underscore the market's reliance on technological advancements and consumer preferences, driving innovation and competition among manufacturers. However, the industry grapples with the need to address consumer affordability concerns amidst rising production expenses and shifting market dynamics. Balancing these factors is crucial for sustained growth and market resilience, necessitating agile strategies to navigate challenges and capitalize on emerging opportunities in the rapidly evolving landscape of mobile technology.

What will be the size of the Gallium Arsenide Components Market During the Forecast Period?

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Market Segmentation

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.

By Type

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 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 3.55 billion 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. 

Key Regions

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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 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.

Market Dynamics and Customer Landscape

In the realm of telecommunication and 5G Cellular Network, Gallium Arsenide (GaAs) stands out as a pivotal semiconductor material. Its high electron mobility, along with VGF technology, powers essential components like power amplifiers, low noise amplifiers, and RF mixers, crucial for 5G wireless communication. GaAs, alongside indium and phosphorus, facilitates plasma etching in the manufacturing of optoelectronic devices and microwave integrated circuits. With its superior performance in high-frequency applications, GaAs is a cornerstone of IoT and aerospace industries, driving innovation in laser diodes and light emitting diodes. In the dynamic landscape of 5G cellular networks and the IoT (Internet of Things), Gallium Arsenide emerges as key semiconductor materials. Its utilization in power amplifier, low noise amplifiers, and RF mixers ensures optimal performance, facilitating seamless connectivity and efficient data transmission. The precise control of operating voltage and wafer size further enhances the capabilities of GaAs-based components, enabling them to meet the demands of modern telecommunications infrastructure.

Key Market Driver

The rising adoption of smartphones and tablets is one of the key drivers supporting the 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 Market Trend

The emergence of high-powered electronic devices is another factor supporting the 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 Market Challenge

The availability of alternative devices is one of the factors hindering the 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 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 Market Customer Landscape

Who are the Major Gallium Arsenide Components Market Players?

Companies 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 Inc.- 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:

• Analog Devices 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.

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.

Segment Overview

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).

• Type Outlook
  • LEC-grown GaAs
  • VGF-grown GaAs

• Application Outlook 
  • Mobile devices
  • Wireless communication
  • Others

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is witnessing unprecedented growth driven by the proliferation of 5G technology and the increasing demand for high-frequency applications in the aerospace, defense, and telecommunications sectors. Gallium arsenide (GaAs) technology, known for its high electron mobility and unique properties, powers advanced RF semiconductor material like power amplifiers, low noise amplifiers, and Filter and Duplexer, crucial for Light Emitting Diodes, 5G wireless communication, and radar systems. This market's expansion is fueled by strategic collaborations, facility enhancements, and talent acquisition in engineering labs and educational institutions. With its role in enabling low-latency communication, higher data rates, and enhanced connectivity, GaAs components are at the forefront of meeting global connectivity demands and driving the evolution of communication technologies.

In today's interconnected world, the electronics industry plays a pivotal role, with advancements in semiconductor ICs driving innovation across various sectors. From the aerospace industry to consumer devices and even defense and Satcom, the demand for cutting-edge technology is ever-growing. In the communications industry and IoT, RF Mixer and filters are vital for 5G cellular networks. Gallium arsenide technology powers power amplifiers and low noise amplifiers, enhancing mobile phone performance in radio frequency applications and telecommunication. One such technology, Gallium Arsenide (GaAs), is revolutionizing wireless communication systems with its high-frequency capabilities. GaAs RF semiconductors power essential components like power amplifiers, low noise amplifiers, and filters, crucial for 5G cellular networks and satellite communication.

As 5G technology continues its evolution, the need for high-frequency applications and low latency communication becomes paramount. VGF technology and GaAs technology, with their high electron mobility and unique properties, stands at the forefront of this revolution, enabling modern smartphones and IoT devices to achieve enhanced connectivity and increased bandwidth. In the realm of defense and aerospace, GaAs components facilitate electronic warfare systems and radar technology, showcasing their versatility and reliability even in military applications. With complex manufacturing processes and a focus on RF product solutions, GaAs technology continues to drive global connectivity and meet the demands of communication technologies across commercial and military sectors alike.

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 3.27 billion
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 forecasting 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 the market forecast period.
Customization purview	If our market research 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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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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