GaAs Wafer Market

• The rise in the installation of solar systems is driving the market growth

Market CAGR for GaAs wafer is driven by the increase in solar system installations. The desire to lower the cost of solar cell modules is predicted to increase demand for gallium arsenide germanium solar cells (GaAs), which will fuel the growth of the market during the forecast period. Growing demand for decentralized energy generation systems in emerging countries will increase the penetration toward solar energy, such as GaAs wafer, in the upcoming period. Over one billion of the population has poor or zero electricity access.

Initiatives towards off-grid electrification integrated with solar systems will increase the demand for the GaAs wafer.

With the powerful 5G cellular network being introduced to the world in 2019, mobile devices need a semiconductor that can handle the faster signal speed. Due to their ultra-high frequency applications, GaAs wafer can outperform silicon wafers in some of the most important ways. With the emergence of 5G, silicon usage in semiconductor devices will be further reduced. Further, for implementing a 5G network, GaAs wafer can be seen as the next generation of integrated circuits due to their high band gap, which drastically outperforms silicon.

According to the Semiconductor Association, the overall market for semiconductors is expected to surpass $20 trillion by 2025 which drives the market for GaAs wafer.

Furthermore, governments of several countries have been investing heavily in deploying 5G. In 2019, China is expected to invest over $150 billion in its 5G networks through 2025. Similarly, Germany stepped towards accelerating the development of 5G services in the country, pouring additional investments into backing domestic endeavors. Hence growing penetration of 5g will drive the GaAs wafer market revenue.

The growth of semiconductor manufacturing is analyzed to create significant opportunities in the forecast period. In 2020, the Indian Government plans to offer around $1 billion in cash to every company that sets up a chip manufacturing unit in India. Similarly, China's 'Made in China 2025' initiative will create significant demand for semiconductor manufacturing in the forecast period. Moreover, the U.S. government is also committed to investing around $50 billion in the semiconductor industry's growth. Silicon is the most important material for semiconductor electronics.

Silicon devices and integrated circuits are dominant in most applications, from consumer electronics to automotive drives the market for GaAs wafer.

The Global GaAs Wafer Market Industry is projected to experience substantial growth over the next decade. With a market valuation of 0.62 USD Billion in 2024, it is anticipated to reach 1.87 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate (CAGR) of 10.58% from 2025 to 2035, reflecting the increasing adoption of GaAs wafers across various sectors. The market's expansion is likely driven by rising demand in consumer electronics, telecommunications, and renewable energy applications, indicating a robust future for the industry.

The Global GaAs Wafer Market Industry is significantly influenced by advancements in telecommunications, particularly with the rollout of 5G technology. GaAs wafers are integral to the production of high-frequency components essential for 5G infrastructure, including base stations and antennas. As the demand for faster and more reliable communication networks escalates, the market is poised for growth. The increasing investments in telecommunications infrastructure globally are likely to bolster the demand for GaAs wafers, thereby enhancing their market presence. This trend aligns with the overall expansion of the telecommunications sector, which is expected to contribute substantially to the market's valuation.

The Global GaAs Wafer Market Industry experiences a surge in demand driven by the increasing proliferation of consumer electronics. Devices such as smartphones, tablets, and laptops utilize GaAs wafers due to their superior efficiency and performance. As of 2024, the market valuation stands at 0.62 USD Billion, reflecting the growing reliance on high-performance components in consumer technology. This trend is projected to continue, with the market expected to reach 1.87 USD Billion by 2035, indicating a robust growth trajectory. The compound annual growth rate (CAGR) of 10.58% from 2025 to 2035 further underscores the potential for expansion in this sector.

The Global GaAs Wafer Market Industry is also benefiting from the growth in renewable energy applications, particularly in solar energy technologies. GaAs wafers are utilized in high-efficiency solar cells, which are increasingly adopted due to their superior performance compared to traditional silicon-based cells. The global shift towards sustainable energy solutions is likely to drive demand for GaAs wafers, as they offer enhanced efficiency and lower energy costs. This trend is expected to contribute to the overall market growth, aligning with global sustainability goals and the increasing investments in renewable energy projects.

The Global GaAs Wafer Market Industry is witnessing emerging applications within the automotive sector, particularly with the rise of electric vehicles (EVs) and advanced driver-assistance systems (ADAS). GaAs wafers are utilized in power amplifiers and sensors that enhance vehicle performance and safety. As the automotive industry increasingly integrates advanced technologies, the demand for GaAs wafers is expected to grow. This trend aligns with the global shift towards electrification and automation in transportation, indicating a promising avenue for market expansion in the coming years.

Technological innovations in semiconductor manufacturing are a pivotal driver for the Global GaAs Wafer Market Industry. The continuous development of advanced fabrication techniques enhances the performance and yield of GaAs wafers, making them more attractive for various applications. Innovations such as molecular beam epitaxy and metal-organic chemical vapor deposition are improving the quality and efficiency of GaAs wafers. As manufacturers adopt these cutting-edge technologies, the market is likely to witness increased production capabilities and reduced costs, further stimulating demand across multiple sectors, including telecommunications and consumer electronics.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American GaAs wafer market will dominate over the forecast period, owing to the growing demand for GaAs wafer across numerous end-user industries, high consumer electronics industry growth, and rising support for the semiconductor devices industry in the region. Further, the US GaAs wafer market held the largest market share, and the Canada GaAs wafer market was the fastest-growing market in the European region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: GAAS WAFER MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe GaAs wafer market accounts for the second-largest market share due to the increasing demand for advanced technological devices such as smart devices, smartphones, computers, and laptops. Further, the German GaAs wafer market held the largest market share, and the UK GaAs Wafer market was the fastest-growing market in the European region.

The Asia-Pacific GaAs wafer market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the growing internet penetration in countries including India, Japan, Korea, and China is anticipated to fuel the market growth. The growing penetration of 4G and 5G networks in these countries, coupled with the enhancing pool of smartphone users, is likely to propel the market growth in this region. Moreover, China’s GaAs wafer market held the largest market share, and the Indian GaAs wafer market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the GaAs wafer market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the GaAs wafer industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the GaAs wafer industry to benefit clients and increase the market sector. Major players in the GaAs wafer market, including Semiconductor Wafer Inc (Taiwan), AXT, Inc. (U.S.), Freiberger Compound Materials GmbH (Germany), Xiamen Powerway Advanced Material Co., Ltd. (China), Sumitomo Electric Industries, Ltd. (Japan), and others, are attempting to increase market demand by investing in research and development operations.

AXT Inc (AXT) develops, manufactures, and supplies semiconductor substrates. The company's product portfolio includes indium phosphide (InP), germanium (Ge), GaAs wafer, boron trioxide (B2O3), and raw and purified gallium. It also offers products that include gallium-magnesium alloy and pyrolytic boron nitride (pBN) crucibles. AXT products find applications in areas such as light-emitting diodes (LEDs), fiber optic and wireless telecommunications, lasers, and solar cells for space and terrestrial photovoltaic applications. In April 2021, AXT, Inc. Supplied the First 8-Inch GaAs wafer to major customer.

The 8-inch GaAs wafer substrates, which are silicon-doped, n-type substrates, demonstrate low etch pit densities (EPD) and low levels of slip lines.

Okmetic Inc. manufactures silicon wafers. The Company produces silicon on GaAs wafer, epitaxial wafers, double-side polish wafers, semiconductor wafers, and other related wafers for the sensor and semiconductor industries. Okmetic offers its products throughout the world. In June 2022, Okmetic participated in the EU-wide Position II project that comprised 43 partners and 12 countries. By using available technology platforms for miniaturization, wireless connectivity, MEMS transducer technology, in-tip AD conversion, and encapsulation, the project aimed to create the next generation of smart catheters and implants. These platforms are available to a huge range of consumers and applications.