GaAs Markets Forecast To Shrink In 2009

Market research specialist Strategy Analytics is calling for positive growth in the GaAs industry for 2008, but a downturn in 2009. In the firm's latest GaAs report, "GaAs Industry Forecast Through 2012," the GaAs industry is protected to expand to $3.9 billion in 2008 from a level of $3.5 billion in 2007. However, the firm's projections show a 5-percent reduction in GaAs market size in 2009. GaAs growth is expected to return in 2010, albeit with a reduced compound annual average growth rate (CAAGR) of 7 percent through 2012. This represents a reduction in the company's early projected CAAGR of 9 percent through 2012.

According to Asif Anwar of Strategy Analytics, "Negative growth in handset shipments for the next year, along with slowdowns in other markets, will slow GaAs industry growth over our earlier projections. 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." The report cites that demand for GaAs will remain strong in the military sector through 2012, and that the cellular handset market will drive around 70 percent of GaAs device demand through 2012, with W-Fi representing the second largest market for GaAs through 2012.