GaN substrates market to reach over $4B by 2020
According to a new report by IndustryArc, the global GaN substrates market will cross $4 billion by 2020.
"˜Gallium Nitride (GaN) Substrates Market Analysis, With Forecast (2015 - 2020)' is a study of different types of substrates, devices, and end use industries, which employ GaN. There are four types of substrates, namely, GaN on Sapphire, GaN on Si, GaN on SiC and GaN on GaN.
The market size in 2014 was $2.2 billion, with 4-inch substrates the major contributor. However, there is demand for larger diameter substrates. Making devices on smaller diameters leads to wastage of space and edges whereas larger diameters help in not only saving wastage but also efficient devices. The US, Japan, Korea and some European countries are already adopting larger diameters.
Leading countries in LED market, China and Taiwan are in the transition phase, shifting to 6-inch and 4-inch substrates from 2-inch substrates. LED manufacturers in these countries are now actively making efforts to bring efficiency in production costs and the production process. It is estimated that in China, by 2020, number of LED making MOCVD reactors making devices on 6-inch substrate will be highest. Moreover, production of larger bulk substrates is also estimated to start by 2018 and grow significantly by 2020. Therefore, in the next five years, the market is projected to incline towards larger diameters such as 6-inch and 8-inch.
Currently, the GaN substrates market is led by the LED and Lasers, but, in the period of 2015-2020, power electronics are forecast to be the growth segment. In this industry too, players are looking out for larger diameter substrates to bring cost efficiency in production. The market today is dominated by 2-inch and 4-inch substrates. However, as the end use industries demand devices that can withstand higher powers with low losses, the core components power electronics are expected to become extra effective and adopt 6-inch substrates.
