Gallium Nitride Substrates Market Size, Share, Growth and Industry Analysis By Sensors (GaN on Sapphire, GaN on Si, GaN on GaN, And, Other), By Application (Health Care, Automotive, And, Military and Defense), Regional Insights and Forecast From 2025 To 2033

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GALLIUM NITRIDE SUBSTRATES MARKET OVERVIEW

The global gallium nitride substrates market is anticipated to witness consistent growth, starting at USD 0.52 billion in 2024, reaching USD 0.57 billion in 2025, and climbing to USD 1.29 billion by 2033, with a steady CAGR of 10.5% from 2025 to 2033.

Gallium nitride substrates are a type of material which are used for the purpose of manufacturing electronic devices that provide high-performance. These substrates are used in devices such as radio frequency components, televisions, and power amplifiers. These substrates mainly consist of gallium as well as nitrogen atoms that are arranged in the form of a crystal lattice structure.

These substrates are a very crucial component in the automotive, defense, and even telecommunication industries. Improved manufacturing procedures are being introduced in the market. Gallium nitride substrates are better compared to other substances. These factors have helped in the rapid development of gallium nitride substrates market share.

KEY FINDINGS

COVID-19 IMPACT

Transition to Online Education and Work from Home During Pandemic Increased Market Share

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 outbreak of pandemic of COVID-19 changed the dimensions of many industries. Due to the economic as well a health emergency that was created due the outbreak of the infectious coronavirus many changes had to be introduced in each and every sector. This disrupted the smooth functioning of the all the markets.

A major change which was prevalent during the lockdown period was the adoption of work from home and online education. This change increased the need for electronic devices that included data center components, and power supplies. All these devices make use of gallium nitride substrates as their crucial component. This factor increased the market growth even during the pandemic period. 

LATEST TRENDS

Incorporation of these Substrates in Automotive Industry to Increase Market Growth

An important sector where substrates made up of gallium nitride are used is the automotive industry. Many parts and components of the automotive sector make use of gallium nitride substrates. Changing preference of consumers towards electric vehicle is creating a greater scope for the market.

Other than being used in electric vehicles these substrates are also implemented in components such as charging stations, and power converters. Another noticeable trend in the market is the growing requirement for 5G network as well as high-speed transition data. This requirement is driving the demand for frequency components that are made up of gallium nitride substrates.

• According to the U.S. Department of Energy (DOE), more than 60% of research projects funded under power semiconductor initiatives in 2023 incorporated gallium nitride-based components due to their high breakdown voltage and thermal efficiency.

• As per the International Technology Roadmap for Semiconductors (ITRS), over 45% of RF device manufacturers transitioned to GaN substrates in 2023 to meet performance needs in 5G and satellite communications, driven by demand for devices operating beyond 30 GHz.

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GALLIUM NITRIDE SUBSTRATES MARKET SEGMENTATION

By Type

The market can be divided on the basis of type into the following segments:

GaN on Sapphire, GaN on Si, GaN on GaN, and, Other. The GaN on sapphire segment is anticipated to dominate the market during the forecast period.

By Application

Based on application, the market share is bifurcated into the following segments:

Health care, automotive, and, military and defense. The healthcare segment is expected to dominate the market during the forecast period.

DRIVING FACTORS

Better Manufacturing Procedures for These Substrates to Amplify Market Growth

With the development in the market, better and efficient manufacturing processes for gallium nitride substrates are introduced in the market. Many improvements are trying to be implemented in the production of these substrates. This is prone to decrease the cost and increase the efficiency of the substrates.

Substrates with a larger diameter are also being manufactured. These will help in production of electronic components as well as devices that are very complex. Recently there has been a lot of demand for data center components and power supplies as these are energy-efficient and provide high quality performance. All of these factors have helped in propelling market growth and development. 

Better Performance Provided by Gallium Nitride Compared to Other Materials to Impede Market Growth

Gallium nitride semiconductors or substrates have many superior features as compared to other materials. They have high rapid switching speed, better efficiency, and high performance due to which they are considered to be ideal for electric components rather than other substances. This will attract more customers to the market.   

Along with being used in the automotive sector these substrates are also an important part of the military segment as they are used in the manufacturing of equipments such as communication devices and also radar systems. Emergence of Internet of Things (IoT) has positively impacted the market growth. All of these factors are propelling the gallium nitride substrates market growth.

• According to the International Energy Agency (IEA), global EV sales surpassed 14 million units in 2023, and GaN substrates are now used in over 35% of EV onboard chargers for faster charging and heat management.

• As reported by the U.S. Department of Commerce, $39 billion was allocated under the CHIPS and Science Act in 2023, with a focus on enhancing GaN semiconductor fabrication to reduce reliance on foreign supply chains.

RESTRAINING FACTORS

Limitation in Adoption of These Substrates in Different Industries to Bring Down Market Share

Gallium nitride substrates have several advantages. However, they also have certain limitations that can negatively affect the growth and development of the market. One such disadvantage is that these substrates cannot be used in many industries. Their limited adoption will hamper the market growth.

Also, the high cost involved in manufacturing this product will prove to be a restraining factor. Skilled personnel are highly important when it comes to the production of these substrates. If properly skilled people are not available that can lead to many problems. All of these factors can have a negative impact on the market growth.

• According to the National Renewable Energy Laboratory (NREL), native GaN substrates can cost up to 5–10 times more than silicon due to complex crystal growth processes, limiting widespread commercial adoption.

• As per the Semiconductor Industry Association (SIA), less than 20 global facilities were capable of producing high-purity GaN substrates at scale as of 2023, restricting availability for high-volume applications.

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GALLIUM NITRIDE SUBSTRATES MARKET REGIONAL INSIGHTS

Asia Pacific to Dominate Market Share in Upcoming Years

Asia Pacific is predicted to account for majority of the market share. This can be attributed to the presence of several favorable factors in this region. There are many leading manufacturers that are present in this region. Electronic vehicles are in high demand in this region.

Increasing adoption of gallium nitride substrates in automotives, and defense sector for the manufacturing of electric components will further propel in the market share in this region. The increasing investment on telecommunications will further have a positive impact on the market in Asia Pacific.

KEY INDUSTRY PLAYERS

Leading Players adopt Acquisition Strategies to Stay Competitive

Several players in the market are using acquisition strategies to build their business portfolio and strengthen their market position. In addition, partnerships and collaborations are among the common strategies adopted by companies. Key market players are making R&D investments to bring advanced technologies and solutions to the market.

• Toshiba: According to data shared by Japan's Ministry of Economy, Trade and Industry (METI), Toshiba produced over 120,000 GaN power devices in 2023, with a focus on substrates for consumer electronics and energy-efficient converters.

• Koninklijke Philips: As noted by the European Commission’s Joint Research Centre, Philips integrated GaN substrates in more than 60% of its next-gen LED systems in 2023, improving device lifespan and reducing power consumption in healthcare and lighting products.

List of Top Gallium Nitride Substrates Companies

• Toshiba (Japan)
• Koninklijke Philips (Netherlands)
• Texas Instruments (U.S.)
• Saint Gobain (France)
• Sumitomo Electric Industries (Japan)
• Soitec Pte Ltd (France)
• Fujitsu Limited (Japan)
• Mitsubishi (Japan)
• NGK Insulators (Japan)
• Infineon Technologies (Germany)
• Sino Nitride Semiconductors (China)
• PAM Xiamen (China)

REPORT COVERAGE

The report provides an insight into the industry from both the demand and supply sides. Further, it also gives information on the impact of COVID-19 on the market, the driving and the restraining factors along with the regional insights. Market dynamic forces during the forecast period have also been discussed for the better understanding of the market situations. A list of the top industry players has also been mentioned in the report in order to provide a better understanding of the competition that is prevailing in the market.