Gallium Arsenide Market: Market Entry Strategies and Market Expansion 2023-2030

The global gallium arsenide market is on track to experience a promising growth curve in the short-term, as per a recent industry report. The report delves into insights on how the market growth will unfold in the coming years, driven by various factors that are shaping its expansion.

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Widening End User Base Fuels Gallium Arsenide Market Growth

The primary driver behind the growth in demand for gallium arsenide products, such as laser diodes, light-emitting diodes, optoelectronic devices, and monolithic microwave integrated circuits, is the widening end-user base. Gallium arsenide's broad direct band gap material that resists radiation damage makes it an ideal choice for high-power optical windows and outer space electronics. The aerospace & defense, electronics, and communications industries are anticipated to propel the market expansion, and new trends like more electric aircraft and developments in broadband cellular network technology are expected to offer profitable opportunities.

Influence of 5G and IoT

The rise in global 5G network adoption and the emergence of the internet of things (IoT) have significantly impacted the gallium arsenide market. According to Gartner, investments in 5G infrastructure worldwide have seen substantial growth, driving demand for high-frequency communication devices built with gallium arsenide wafers. This trend is expected to create many opportunities for manufacturers and suppliers of wafer and metal-organic chemical vapor deposition equipment, boosting the gallium arsenide market growth.

COVID-19 Impact

The COVID-19 pandemic initially had a negative impact on the gallium arsenide market due to lockdowns and supply chain disruptions. However, the growing demand for electronic devices during the lockdown, along with advancements in technologies like 5G, LAN, and Wi-Fi, helped the market pick up steam earlier than anticipated.

Increasing 5G Penetration

With the introduction of the potent 5G cellular network in 2019, mobile devices require semiconductors that can handle greater signal speed. Gallium arsenide, with its high band gap, outperforms silicon wafers in this regard, making it the next-generation choice for integrated circuits deployed in the 5G network. Governments in various countries, including China, are heavily investing in 5G implementation, further spurring the demand for gallium arsenide during the forecast period.

Growth of Semiconductor Industry

The expansion of the semiconductor manufacturing industry is set to create significant opportunities for the gallium arsenide market. Initiatives like China's Made in China 2025 and the US government's investment in the semiconductor industry will drive demand for gallium arsenide, particularly in ultrahigh-speed applications for supercomputers and communication technologies.

Challenges in Production Cost

Despite the market's expansion, gallium arsenide faces challenges due to high production costs and limitations in device scaling. Unlike silicon, gallium arsenide cannot be produced using natural oxide as a mask, contributing to higher production expenses. Furthermore, integrating millions of transistors on a single integrated circuit is challenging with gallium arsenide technology, limiting its widespread use in some applications.

VGF Grown GaAs Dominates Market

The vertical gradient freeze (VGF) grown gallium arsenide segment holds a significant market share due to its ability to create substrates with low defect densities and higher mechanical strength. The VGF process allows for the growth of semiconductors with multiple elements, enhancing their capabilities over single-crystal silicon substrates. This technology is expected to continue driving the growth of the gallium arsenide market in laser diodes and light-emitting diodes.

Smartphone Category Leads the Market

The smartphone category currently dominates the gallium arsenide market and is expected to maintain its position throughout the forecast period. The ongoing improvements in consumer electronics and the increasing use of sensors in electronic devices are key drivers of gallium arsenide demand. Government support for semiconductor production, especially in the context of the IoT, will further boost the market.

Asia Pacific and North America Lead the Way

Asia Pacific is anticipated to hold the largest revenue share in the gallium arsenide market due to the increasing use of cell phones and high-performance electronics in the region. Government initiatives like Made in China 2025 and Make in India support the expansion of the semiconductor industry, driving the demand for gallium arsenide. In North America, stable revenue growth is expected, driven by the automotive, aerospace, and medical industries.

Competitive Landscape

Several companies are actively participating in the gallium arsenide market, including Freiberger Compound Materials, AWSC, WIN Semiconductors, Sumitomo Electric, China Crystal Technologies, GCSs, Yunnan Germanium, DOWA Electronics Materials, and Century Epitech.


The global gallium arsenide market is poised for significant growth in the short-term, driven by the widening end-user base, advancements in 5G penetration, and expanding semiconductor industry. While challenges in production costs exist, the market's potential remains promising, especially in applications such as smartphones, laser diodes, and optoelectronic devices. The Asia Pacific region leads the market, followed by North America, and the competition among industry players is heating up, indicating a dynamic and thriving market landscape.


Fairfield Market Research

London, UK

UK +44 (0)20 30025888  

USA (Toll-free) +1 (844) 3829746

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