GAAS LED Market Size, Share, Growth, and Industry Analysis, By Type (Infrared LED and Visible LED), By Application (Lighting Device, Consumer Electronics, Car, Medical Device and Other) and Regional Insights and Forecast to 2032

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GAAS LED MARKET REPORT OVERVIEW

The global GAAS LED Market size was valued at approximately USD 1.8 billion in 2023 and is expected to reach USD 3.2 billion by 2032, growing at a CAGR of 6.50% during the forecast period.

A GaAs LED stands for Gallium Arsenide Light Emitting Diode and is an LED that uses gallium arsenide (GaAs) as the measure material of the light-emitting semiconductor. Based on the III/V materials, GaAs possesses high electron mobility and high light-emitting efficiency, and is more applicable to the infrared (IR) and near-infrared fields.

COVID-19 Impact

GAAS LED Industry Had a Negative Effect Due to Supply Chain Disruptions during COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

Another effect of COVID-19 on the GaAs LED market was the halt in the supply chain operations around the world. Due to the restrictions in material and component access caused by lockdowns, travel restrictions, and factory shutdowns in primary GaAs LED manufacturing regions, such as China. This resulted in manufacturing backlogs and lead delivery times and also in an overall hike in the costs for products related to GaAs.

LATEST TRENDS

Increasing Demand for Infrared (IR) Applications to Propel Market Growth

Today GaAs LEDs are rapidly applied in facial recognition, iris scanning and fingerprint sensors in portable and security devices. The increasing incorporation of biometric authentication in mobile phones and security systems is contributing to the increase in GaAs LEDs application. GaAs LEDs are being used by night vision cameras, infrared security systems, and thermal imaging devices to boost device’s performance especially in low light situations. The GaAs LEDs are particularly applied in the fiber optic communication systems to enable the transmission of high frequency data signals. The growth in the fiber networks being deployed to support the 5G networks and high bandwidth internet is fueling this segment.

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GAAS LED MARKET SEGMENTATION

By Type

Based on type the market can be categorized into Infrared LED and Visible LED.

• Infrared LED- Mostly, it radiates in the thermal infrared range of wavelength around 700 nm to 1000 nm and is not visible to the naked eye. Wavelengths are typical of 850, 880, and 940 nanometers.  IR GaAs LEDs use electrical power to convert it to infrared light, which makes them suitable for power consuming applications.

• Visible LED- Is capable of radiating light in the visible region, mostly in red or near red region of the electromagnetic spectrum, 630-680 nm. This gives it what appears under the naked human eye. However, GaAs LEDs are not as efficient GaN LEDs which are generally used for the blue and white light generations.

By Application

Based on application the market can be categorized into Lighting Device, Consumer Electronics, Car, Medical Device and Other.

• Lighting Device- These the GaAs leaderboard is widely used in infrared lighting in various uses such as night vision, surveillance cameras, surveillance equipment, etcrama. All of them release light in the infrared PA range with wavelengths of 850nm to 940 nm which are not visible by the naked human eye but crucial for the operation of these systems in low light or no light environment.

• Consumer Electronics- GaAs LEDs have a pretty wide application especially in the usage of infrared remote controls on televisions, air conditioners, and many other home appliances. These LEDs have the function of issuing the control signals in infrared for these devices.

• Car- GaAs LEDs are popular in today’s car, especially self-driving cars, LiDAR (Light Detection and ranging) systems. LiDAR works with infrared light that is reflected from objects and calculates distances and mapped a 3D space at the same time. GaAs because of high frequency switching times and because it can operate in the IR region of the spectrum.

• Medical Device-GaAs LEDs are used in pulse oximeters, devices that determine the level of oxygen in the blood. These LEDs are infrared light that ensures it goes through the skin and blood vessels and takes an oxygen reading without having to cut the body.

MARKET DYNAMICS

Market Dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

Rising Demand for Infrared (IR) Technologies to Drive Market Advancement

One of the key driving factors in the GAAS LED market growth is Rising Demand for Infrared (IR) Technologies. As biometric security systems gain popularity (facial recognition, iris scanning, and fingerprint identification) the market for GaAs LEDs has expanded. These systems utilize GaAs LEDs for emitting infrared, and therefore can be necessary components in the portable communication devices, security access systems and other security related products. GaAs LEDs are used in numerous consumer electronics and appliances as remotes, proximity sensors, gesture controllers, etc. With smart homes, Smartphones, smart devices and CEOs becoming inevitable and popular, IR based devices like GaAs LEDs remain in demand.

Expansion of the Consumer Electronics Market to Expand the Market

The expanding use of GaAs LEDs in the burgeoning smartphones, tablets, wearable devices and the requirements of biometric sensors, optical communication and gestural applications are regarded by the report issuers as the drivers of the GaAs LEDs market. As facial recognition through 3D sensing and applications in Augmented Reality and Virtual Reality become integrated in consumer devices, GaAs LEDs are also being incorporated. GaAs LEDs are useful in AR/VR systems used in depth sensing, gesture control, and spatial positioning. With the increase in usage in the games, movies, and business appliance AR/VR technology increases the demand for GaAs LEDs.

Restraining Factor

High Manufacturing Costs Poses Potential Impediments to Market Growth

GaAs is costlier than other semiconductor materials such as silicon Si and gallium nitride GaN. It is worth mentioning that Gallium and Arsenic are difficult to extract and refine which lead to higher total production cost. The latter brings additional expenses than the former because the manufacturing of GaAs LEDs needs specialized equipment and highly controlled conditions. Such considerations make GaAs LEDs comparatively less financially viable than other LED technologies, especially on large-scale applications.

Opportunity

Growth in Medical and Healthcare Devices to create opportunity for the product in the Market

GaAs LEDs are employed in wearable health devices, starting from fitness trackers and smartwatches for measuring pulse and oxygen saturation using infrared radiation. The rise of health awareness internationally and the subsequent increase in application of non-intrusive health monitoring devices are major market opportunities for GaAs LEDs. The GaAs LEDs are also critically used in medical diagnostic devices, including pulse oximeters and other non-contact sensors, as has been witnessed during the COVID 19 crises. Given that the healthcare industry is affecting increased technological adoption and extending the applications of diagnostic devices, the GaAs LED market will also experience similar growth.

Challenge

Competition from Other LED Technologies could be a potential challenge for consumer

The visible light communication application uses Gallium Nitride based LEDs which are highly efficient and perform better in general lighting, automotive and consumer electronics. These markets are dominated by GaN LEDs which leaves applications of GaAs LEDs fairly limited to the infrared (IR) range. Consumer electronics and general-purpose lighting applications are mostly filled with cheap to produce silicon-based LEDs. This competition places pressure on GaAs LED manufacturers by placing their higher costs in light of the fact that they offer special performance benefits which must be explained.

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GAAS LED MARKET REGIONAL INSIGHTS

• North America

In terms of R & D investment, particularly in the United State, the region is relatively developed; however, large-scale manufacturing as observed in the Asia Pacific region is not well developed. North America is more concerned with the specialized uses and advancements that occur in fields such as aerospace, defense as well as telecommunication.

• Asia

Asia Pacific has emerged as the most dominant region in the GAAS LED market share due to a convergence of factors that propel its leadership in this dynamic industry. Asia Pacific more specifically China, South Korea, Japan, and Taiwan boasts of extensive manufacturing companies in the semiconductor and LED industries. These countries have developed supply chains for manufacturing and supply of automotive components including suppliers and manufacturing bases and are skilled in semiconductor technology such as GaAs based components.

• Europe

Another vitally important region is Europe, especially in such fields as automotive and medical industries where GaAs LEDs are applied. However, Europe has limited manufacturing capacity of GaAs LEDs compared to the Asia Pacific region; hence Asia Pacific dominates the industry.

KEY INDUSTRY PLAYERS

Key Players Transforming the GAAS LED Market Landscape through Innovation and Global Strategy

Key enterprises in the GAAS LED  Market are employing various strategies to sustain their market presence amidst rising competition and evolving consumer preferences. Organizations are committing significant resources toward Research and Development with an aim being in having better GaAs LED technologies that are efficient, productive and sustainable. For instance, OSRAM Opto Semiconductors and Avago Technologies Ltd. that is now part of Broadcom are working on increasing the effectiveness of GaAS LEDs for the telecommunication and infrared gadgets. Everyone is seeking different applications of GaAs LEDs such as medical equipment, automobiles, and everyday use electronic products for the additional products and the new markets.

List of Top GAAS LED Companies

• Silan(China)
• OPTOTECH(Germany)
• WIN Semi(Taiwan)
• Sanan Optoelectronics(China)
• Broadcom(U.S.)

INDUSTRIAL DEVELOPMENT

February 2022- Taiwan based company, ProAsia Semiconductor Corporation., an arm of Optotech Corporation.,Taiwan intends to invest NT USD 3 billion ($107.63 million) to produce chips using the third generation semiconductor materials. It has shown that the program will sustain the flow for the rapidly growing.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated time frame. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.