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Defense applications to maintain upwards trajectory for GaN, but can Northrop Grumman and Raytheon keep up?

by Asif Anwar | Sep 28, 2017

Strategy Analytics forecasts the market for RF GaN devices will approach three quarters of a billion dollars by 2021. Fast growth in defense applications, particularly radar, communications and EW, will offset the expected flattening of the infrastructure segment to keep the overall market growth for GaN on an upwards trajectory. The Strategy Analytics Strategic Component Applications (SCA) group report, “RF GaN Market Update: 2016 - 2021,” estimates the market for RF GaN devices  will grow at a 14.1% CAAGR (compound annual average growth rate)  to reach $733.0 million in 2021.



The future continues to look promising for RF GaN adoption in the commercial sector, but revenue growth will be subject to fits and starts dictated by wireless and wired infrastructure market dynamics. The wireless infrastructure segment will continue to be the primary driving force behind the entire market, and increases from this commercial revenue stream have changed the growth profile of the entire market.

However, this growth has been largely the result of the Chinese LTE deployment and as this impulse event comes to an end, GaN component suppliers, equipment manufacturers and operators need to understand the best positioning to take advantage of what is likely to be a rapidly changing market landscape with 5G being the wildcard for future GaN growth.

Key questions that the RF GaN device supply base needs to understand include:

·       How will the GaN equipment/supplier landscape change over time?

·       What product platforms will be important?

·       What are the technology/product differentiators?

·       Where is the next big commercial application for RF GaN?

While the GaN supply chain looks for guidance on these future commercial opportunities, fast growth in defense applications will keep the overall market growth for GaN on an upwards trajectory.

The question is can incumbent US defense companies such as Northrop Grumman and Raytheon that supply GaN based on captive production capabilities take advantage of this growing demand? These companies will need to understand how to better compete against commercial manufacturers as well explore strategic options including partnerships or secondary manufacturing options.RF GaN Market 2016-2021 Segmentation

Strategy Analytics provides strategic and tactical support across the advanced semiconductor technology base to global clients through B2B Consulting Projects and Multi-Country primary research assignments using leading edge tools and techniques.
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