Global Gallium Arsenide (GaAs) Wafer Market - Forecasts from 2024 to 2029

Global Gallium Arsenide (GaAs) Wafer Market - Forecasts from 2024 to 2029

Global Gallium Arsenide (GaAs) Wafer Market is expected to grow at a CAGR of 14.33%, reaching a market size of US$1,003.78 million in 2029 from US$391.312 million in 2022.

GaAs devices are in high demand across a range of end-use industries, including communications, aerospace and defense, and electronics, because of their capacity to work more quickly than silicon. This is in turn driving up the need for GaAs Wafers globally. Though the high cost of Gallium Arsenide is currently restraining the use of GaAs wafers in electronics, the efficient use of electricity by GaAs as compared to silicon as a substrate can provide an opportunity for GaAs wafers to be used for various applications. Moreover, properties such as better heat and radiation resistance will drive the use of these wafers for military applications, thus positively impacting the global GaAs market growth during the forecast period.

Market Drivers:

Expanding use of smartphones-

One of the significant factors driving the surge is the increasing demand for Gallium Arsenide (GaAs) devices is the demand for smartphones. In the year 2022, there was a notable expansion in the utilization of smartphones, contributing to the continuous growth in U.S. imports of cellular phones. The import figures surged by $2.8 billion, representing a 4.7 percent increase, reaching a total of $62.6 billion. This marked the highest yearly dollar volume recorded since 2007.

The appeal of GaA devices lies in their capability to operate at faster speeds compared to traditional silicon-based devices. This enhanced speed is particularly advantageous in applications where rapid performance is critical, making GaA devices integral in the development and advancement of technologies within these industries.
Expanding diverse applications-

The influence of GaAs wafers is expanding across diverse fields, driven by the continuous development and adoption of GaAs technology. These advantages, such as higher operating frequency, efficiency at elevated temperatures, and lower power consumption, make GaAs particularly well-suited for specific applications.

In the realm of high-speed communication devices, Gallium Arsenide wafers are preferred semiconductors for applications like optical modulators and switches. The applications of gallium arsenide wafers extend across various electronic device manufacturing processes. They are integral in the production of high-frequency devices, power electronics, high-speed communication devices, photovoltaic cells, integrated circuits, as well as sensors and detectors. This broad range of applications underscores the adaptability and significance of GaAs technology in advancing modern electronic technologies.

Market Restraint:

High cost-

The high production cost of the wafers is anticipated to be a restraining factor affecting the GaAs wafer market. Its price is a significant drawback, which explains its low utilization. To solve this, engineers and researchers are constantly working on new methods of manufacturing thin films of low-cost gallium arsenide to create devices that can replace silicon, thereby fuelling the efficiency of photovoltaic cells.

Global Gallium Arsenide (GaAs) Wafer Market Segmentation by Type into Single Crystal and Polycrystalline-

The segmentation of the Global Gallium Arsenide (GaAs) Wafer Market is based on the type of wafers, distinguishing between Single Crystal and Polycrystalline varieties.

Single Crystal GaAs Wafers find extensive application in high-frequency electronics, serving purposes such as RF devices, microwave circuits, and millimeter-wave technologies. Additionally, they play a crucial role in optoelectronic devices like LEDs, laser diodes, and solar cells.

On the other hand, Polycrystalline GaAs Wafers are primarily utilized in lower-frequency electronics and optoelectronic devices, especially in cases where cost considerations are paramount. They are also employed in certain solar cell applications, showcasing versatility in their usage across different technological domains.

APAC is anticipated to hold a significant share of the Global Gallium wafer market.

Smart technology demand is rising in the Asia Pacific region. The demand for cutting-edge technology products, such as smartphones, computers, laptops, and smart gadgets, is skyrocketing in China, Taiwan, India, and Japan, which is further boosting the expansion of the regional market. These wafers provide increased communication over semiconductor devices by providing better data transmission and quality. China dominates the market for the electronics sector. There is considerable government support in this region which has fostered market growth. For instance, the Chinese government is promoting its indigenous technology market by growing. The GaAs wafer market is expanding because Taiwan has identified it as one of the most important areas for technological advancement. SEMI projected the global market for semiconductor equipment to reach $100 billion in 2022, with Taiwan coming in second in terms of procurement. Low labor and production costs in the area play a significant role in the market's expansion.

Market Developments:

October 2023- Researchers at the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL) enhanced the efficiency of their solar cells by meticulously designing the materials in the cell stack. Utilizing a combination of computational modeling and experimental studies, the scientists cultivated a gallium arsenide (GaAs) heterojunction solar cell employing dynamic hydride vapor phase epitaxy (D-HVPE). This resulted in a certified efficiency of 27%, marking the highest efficiency ever reported for a single-junction GaAs cell grown using this specific technique.
June 2022- Okmetic took part in the Position II initiative, which involved 43 partners and 12 nations, in June 2022. The project's goal was to develop the next generation of advanced catheters and implants by employing the technological solutions that are already available for miniaturization, wireless communication, in-tip AD conversion, MEMS transducer technology, and encapsulation. Numerous customers and apps now have access to these systems.
February 2022- ProAsia Semiconductor Corporation, an Optotech Corporation affiliate in Taiwan, announced its plans to invest USD 107.63 million in the development of devices employing third-generation semiconductor materials. The program would promote the rapidly expanding markets for EVs, 5G, and green energy.

Market Segmentation:

By Type
Single Crystal GaAs Wafer
Polycrystalline GaAs Wafer
By Technique
Vertical Gradient Freeze (VGF)
Liquid Encapsulated Czochralski (LEC) Growth
The Bridgman-Stockbarger Technique
By Application
Consumer Electronics
Communication and Technology
Automotive
General Lighting
Aerospace and Defense
By Geography
North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
UK
Germany
France
Spain
Italy
Others
Middle East and Africa
Saudi Arabia
UAE
Israel
Others
Asia Pacific
Japan
China
Australia
India
South Korea
Indonesia
Thailand
Taiwan
Others