Defence services to be the Top Driving Factor in Gallium nitride Market growth- Reveals Fact.MR

Gallium Nitride Market: Overview and Dynamics

Gallium nitride is a glass-like substance that is translucent. It can be used with broader bandwidth and tough structure as a semiconductor unit.

Compared to the semiconductor form of silicon, it tends to lose less energy. Gallium nitride use is growing with the growth of wireless devices. The gadgets based on gallium nitride have numerous applications, from electronics to telecommunications and automotive.

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The wider bandwidth means that energy is quickly transferred from one material to another, which is an advantage while building UV LED cables. Customers choose gallium nitride because of its cost-efficiency and performance, which is 1000 times greater than semiconductors based out of silicon. It can be used for the manufacturing of 5th generation and fast charging devices radio antennas.

It can be used in high electron mobility transistors that dispense higher thermal conductivity, faster-switching speed, to the system. The demand for gallium nitride in forthcoming years is estimated to witness a hike on the back of increasing applications in electronics and semiconductor industry.

The driving factors for the gallium nitride market are the Defence sector, food and beverage industries as well as medical device manufacturing companies. While on the other hand, restraints for the market is government policies against its negative impact on the environment.

In the military and aerospace industry, gallium nitride is used and has fuelled market development. In this industry, demand for the gallium nitride could be observed majorly from manufacturing effective radars and radio communication devices. Gallium nitride offers higher operating rates for radar communications, military jammers, etc. which has helped in increasing demand for gallium nitride from the Defence sector over the past half-decade.

The increasing usage of gallium nitride has enabled the growth of the market in Defence services around the globe. For example, the Defence application wafer size of 2 inches is best used with the combination of esoteric compounds such as graphene and indium phosphide.

Gallium nitride is available in different sizes depending on the application. The major contributor to the demand for gallium nitride is the 4-inch wafers owing to the adoption of gallium nitride in Defence services all over the globe has aided the growth of the market.

Gallium nitride is often used in the food and beverage industries as a substitute to old microwaves with magnetron tubes having a lifespan of between 1,500 hours and 6,000 hours. Also, frequent replacement of the magnetron tubes is set to drive the gallium nitride market which tends to be the effective substitute. Gallium nitride solid-state microwave lasts around 20-30 years, resulting in safer operations and considerably lowers the overall operational costs.

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For multiple applications, such as artificial intelligence, virtual reality and other sensing technologies that work on low latency. These applications necessitates the incorporation of Gallium Nitride. The surge for the use of gallium nitride in the commercial applications is propelling the Gallium nitride market.

Gallium Nitride Market: COVID- 19 Impact Insights

The impact of the pandemic on the Gallium nitride market was staggering and unprecedented. COVID-19 impression on the Gallium Nitride market was positive due to the mounting demand for electronic products during the third quarter. With the implementation of lockdown all around the globe, the market witnessed a halt.

In the third quarter, after the implementation of government regulation, multinational companies started their production and work from a home condition which increased the selling of fast charging laptops, mobile which turned into a boon for the gallium nitride market.

The COVID -19 increased the supply chain of gallium nitride and showed an optimistic impact on the market. According to the leading producer of the gallium nitride the Transphorm, Inc., there was double the sale and production of the product in the second quarter as compared to the first quarter. The sale increased with the demand increase in the automobile, gaming and IT industries.

Gallium Nitride Market: Regional Analysis

On the demand side of the coin, East Asia tends to weigh down as majority of the manufacturers and consumers are positioned in the same region favoring economies of scale. China is set to capture majority of the consumption share not only in East Asia but across the globe. China accounts for the 95% market of gallium nitride because of the development of the 5G base chip station development.

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The worldwide consumption of gallium nitride has increased due to the increasing utilization of LED since the years 2016. A region like North America might show a decline in the gallium nitride market due to the reduction in the Defence budget because of the pandemic. The reduction in the Defence budget will show a direct cut down in military demands such as radar and soft define radios.

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