News

17 December 2008

 

GaAs device market to shrink 5% in 2009

While maintaining its forecast for the GaAs device market to grow 9% from $3.5bn in 2007 to $3.9bn in 2008, market research firm Strategy Analytics has revised its ‘GaAs Industry Forecast Through 2012’ for 2009 to a 5% contraction year-on-year due global recession impacting unit growth across nearly all major end markets.

Growth should return in 2010, but at a reduced compound annual average growth rate (CAAGR) through 2012 of 7%, rather than the previously forecasted 9%.

The corresponding demand for GaAs substrates will decline by 10% in 2009, with growth returning in 2010. The CAAGR for substrate through 2012 should be of 4%, Strategy Analytics reckons.

“Negative growth in handset shipments for the next year, along with slowdowns in other markets, will slow GaAs industry growth over our earlier projections,” notes analyst Asif Anwar. “However, we maintain that the overall metrics for the industry remain strong and we're not going to see the industry collapse as it did in 2001.”

In particular, the cellular handset market will continue to drive around 70% of GaAs device demand through 2012, while the Wi-Fi market will still grow (at a CAAGR of 20%) to become the second largest market for GaAs in 2012. Demand from the military sector will not be affected through 2012, but will continue to grow on the back of strong industry backlog.

See related items:

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Search: GaAs device market

Visit: www.strategyanalytics.com