GaN and SiC power semiconductor market expected to exceed $4.5 billion by 2027

The booming development and promotion of 5G technology around the world will provide new growth prospects for manufacturers of gallium nitride (GaN) and silicon carbide (SiC) power semiconductors. These semiconductors are known for offering small size and high power density, accelerating their adoption as telecom operators expand infrastructure development.

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According to a study by Global Market Insights, the GaN and SiC power semiconductor market is expected to exceed USD 4.5 billion by 2027. The ongoing initiatives taken by governments across the world to adopt 5G technology will drive the industry.

Technological innovations within SiC power modules can reduce device footprint and improve energy efficiency due to the integration of dedicated chipsets and integrated circuits, which is likely to drive its demand in smart grid applications and smart meters. In addition, the industrial motor drive segment is expected to witness high product demand due to the growing trend of industrial automation robots and machinery.

In 2020, discrete GaN accounted for about 2% of the industry share and is expected to grow at a CAGR of about 40% during the forecast period. Discrete GaN power semiconductors have the advantages of low cost and wide bandgap, so the demand for charging applications in consumer electronic devices is increasing.

GaN and SiC power semiconductor devices help increase power density and reduce the size of passive components, thereby driving their application in photovoltaic inverters. The photovoltaic inverter application segment maintained a market share of over 25% in 2020 and is likely to grow at a CAGR of 30% during the forecast timeframe owing to the surge in consumer preference for clean electricity.