The global MOCVD equipment market will increase at a compound annual growth rate (CAGR) of 14.13% over the period 2013-2018, forecasts a new report from market analyst firm TechNavio.

According to the report 'Global Metal Organic Chemical Vapor Deposition (MOCVD) Equipment Market 2014-2018' (which cites system suppliers Aixtron SE, Veeco Instruments Inc and Taiyo Nippon Sanso Corp), the main driver is the increasing demand for high-brightness LEDs in the lighting market, as the rapid decline in the average selling price (ASP) of LEDs has led to an increase in the adoption of LEDs for lighting applications.

In addition, power semiconductors form an emerging market for MOCVD equipment. In recent years, gallium nitride (GaN) has replaced the existing silicon technology in many power semiconductor applications due to its various properties such as a wider bandgap, high breakdown voltage, larger critical electric field, and higher thermal conductivity. This has in turn increased the demand for GaN power semiconductors. To satisfy the demand for high-performance electronic devices, semiconductor manufacturers are expected to increase the installation of GaN processing equipment such as MOCVD systems. GaN-on-Si-based power electronics developed on MOCVD equipment can potentially deliver higher performance, higher efficiency, and switching speed, notes the report.