The Strategy Analytics GaAs and Compound Semiconductor Technologies (GaAs) service release, “Gallium Nitride Laser Diodes: Market and Applications 2006-2011,” projects dramatic 103 percent market growth for GaN-based laser diodes through 2011. The consumer-based optical data storage market, dominating all other applications, will drive demand for GaN laser diodes driven by adoption in gaming, PC and home theater markets.
Strategy Analytics predicts a significant shift in the market by 2011 as the demand from gaming consoles, using low cost, low power GaN laser diodes, is supplanted by a significant rise in the recordable versions of Blu-ray and HD-DVD players, using higher cost, higher- power laser diodes.
“The “format war” between Blu-ray and HD-DVD in the home is still there to be won. It will be dictated by the price of players/recorders and the choice of available titles,” notes Stephen Entwistle, VP of the Strategy Analytics Strategic Technologies Practice. “Since both formats essentially use the same technology, the GaN laser diode manufacturers will be the winners regardless of which technology loses the format war.”
“Early development of the GaN laser diode market was hindered by low manufacturing yields and a lack of competition, compounded by Nichia’s strong IP position,” notes Asif Anwar, Director of the GaAs service. “Continuing advances in substrates and growth technology removed many of the IP issues, so this is allowing traditionally strong manufacturers of consumer laser diodes to enter the market in order to drive volume and lower costs.”
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Strategy Analytics, Inc. – a global research and consulting firm – provides timely insights and strategic business solutions to companies operating at the convergence of information, communications and entertainment technologies. With worldwide headquarters in Boston, MA, and principal offices in England, France and Germany, Strategy Analytics focuses on market opportunities and challenges in the areas of Automotive Electronics & Multimedia, Digital Consumer, Wireless Strategies and Enabling Technologies.