The gallium nitride semiconductor devices market shall touch $72,813.1 million in 2030 from $12,084.6 million in 2021. Moreover, the market is predicted to grow at a 22.1% CAGR from 2021 to 2030 owing to the lower costs of GaN semiconductor devices in comparison to silicon variants, swifter device speed, and greater efficiency of energy. Furthermore, the global market is influenced by the rising count of robot shipments, which increased by 100,000 in 2022 from 500,000 in 2020.
The rapid integration of advanced technologies in electronics will drive the gallium nitride semiconductor devices market. It is projected that by 2025, mobile data traffic will reach 160 exabytes every month. The surging demand can be satisfied by supporting high data transfer rates and large bandwidths through extremely high-frequency bands. For instance, 5 mmWave ranges from 24 GHz to 300 GHz will offer smooth connectivity, enhanced performance, and increased coverage. Capitalizing on the new technology, an American telecommunication company launched a mmWave 5G network in 2020, accompanied by the introduction of the S20 Ultra and Galaxy S20 Plus.
The opto-semiconductors category led the product type segment of the gallium nitride semiconductor devices market in 2021, generating revenue of approximately $5.0 billion. This can be attributed to the wide usage of semiconductors in several sectors, majorly consumer electronics and aerospace & defense, for numerous devices. Additionally, the application of these devices in the automotive sector, for pulse-powered laser systems and automotive lights, is rising, which, in turn, will fuel growth in the market. A lucrative opportunity for market players in the opto-semiconductors market is the surging demand for ADAS.
Within the component segment, the power ICs category will rule the gallium nitride semiconductor devices market from 2021 to 2030. Because of the need for real-time air traffic control, efficient navigation, and collision avoidance, the requirement for GaN-based power ICs is increasing. These factors will offer opportunities to the key players by increasing the demand for these components. Moreover, the technological advancements in power ICs designed for telecom and automotive applications by top manufacturers will augment growth in the market.
North America dominated the gallium nitride semiconductor devices market in 2021, and it is expected to continue this trend in the future, by generating approximately $26 billion revenue in 2030. This can be credited to the greater adoption of smartphones and increasing internet penetration. As per predictions, more than 50% of this region will be covered by a 5G network by 2030, which would fuel growth in the economy. Furthermore, all of this will go hand in hand with the aggressive investments in media and content abilities, IoT applications, and 5G services.
Thus, the rising demand for power semiconductors in energy-efficient wired communications, with the consistent efforts of internet service providers for reduced latency, smooth connectivity, and enhanced capacity via optical cables, will drive this market.
