GaAs wafer: Key market research findings
- APAC dominates the market geographically
- Mobile devices account for a majority of the market’s revenue
- Key vendors – AWSC, GCS, and WIN Semiconductors
Technavio’s market research analysts predict the global GaAs wafer market to grow at a CAGR of 13% between 2016 and 2020. The growth of the market is spurred by the rising penetration of LEDs in general lighting. GaAs is the most widely-used semiconductor for LED manufacturers. As lighting consumes around 20% of the global electricity production, the governments of countries such as China, Japan, India, and Brazil are focusing on promoting energy-efficient lighting technologies. Furthermore, growing awareness about power saving and energy management is triggering the adoption of energy-efficient technology. In 2015, the global GaAs market was dominated by APAC with a market share of more than 59%. The presence of major vendors such as WIN Semiconductors, Advanced Wireless Semiconductor Company (AWSC), and Global Communication Semiconductor (GCS) in the region will fuel the growth of the GaAs market in APAC during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the GaAs segments based on the application.
“Recent research carried out by the analysts at Technavio has shown that the GaAs content in smartphones is increasing substantially. This increase in the GaAs content is because smartphones require more GaAs wafers due to the requirement of many frequency bands to accommodate 3G and 4G networks. New wireless bands, carrier aggregation, and multiple input and multiple output (MIMO) antenna techniques are major factors behind the increase in GaAs content in cellular terminals,” says Sunil Kumar Singh, Lead Analyst, Hardware & Semiconductor, Technavio Research.
Currently, mobile devices account for more than 61% of the overall market revenue to become the dominant shareholder in the global GaAs wafer market. The high growth rate of this segment can be attributed to the need for improved battery performance in mobile devices. Smartphones require more GaAs content as more frequency bands are required to accommodate 3G and 4G networks. An increase in the amount of GaAs content coupled with the increasing penetration of these devices across the globe will contribute to the growth of this segment during the forecast period.
The market, which was valued at almost $624 million in 2015, has immense potential for growth primarily due to an increase in GaAs wafer applications in areas such as mobile devices, wireless communications, and defense. Advanced Wireless Semiconductor Company (AWSC), Global Communication Semiconductors (GCS), and WIN Semiconductors are the leading vendors in the market.
A more detailed analysis is available in the Technavio report, Global GaAs Wafer Market 2016-2020.
