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Military growth rate for GaAs chips better than commercial market

GaAs demand from military sector to grow at a CAGR of over 13 percent

Growing momentum behind the use of solid-state technologies in radar, electronic warfare, communications and other systems will drive increased demand for GaAs devices through 2018. According to the Strategy Analytics Advanced Defense Systems (ADS) service report, "˜GaAs Industry Outlook 2013-2018' and associated spreadsheet model predicts that GaAs device demand from the defense sector will grow at almost three times the growth rate for the commercial GaAs device market.

The military GaAs device market will grow at a CAGR (compound annual growth rate) of nearly 13 percent, exceeding over half a billion dollars by 2018. While GaAs devices are used in Electronic Warfare (EW) and smart munitions applications, the communications and radar applications will drive the bulk of demand. The largest usage of GaAs devices will continue to come from radar applications which will account for over 60 percent of the merchant GaAs military market revenue.

"Changing battlefield philosophies including a shift toward more asymmetric conflicts will place a premium on electronic capabilities," noted Asif Anwar, Director of the ADS service. "GaAs devices have traditionally played an important role in defense applications and future system requirements are driving increasing demand for solid-state solutions which will propel demand for GaAs devices as well as other compound semiconductor technologies."

"GaAs will also continue to be an enabling technology for commercial markets with increasingly sophisticated smartphones ramping up GaAs device content as well as growth in non-cellular markets," commented Eric Higham, North American Director for ADS.

 "However, there will be serious challenges in the future as increasing competition from technologies like silicon and GaN, along with new system and PA architectures slow the future growth rate in the commercial GaAs device market to below historical averages."           

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