LONDON — The GaAs semiconductor market will generate revenues of $3.5 billion in 2009, a 5 percent contraction from the value for 2008, according to market research company Strategy Analytics Inc. (Boston, Mass.).

The global economic slowdown is responsible and also caused the market to miss a previous forecast for 2008 year-on-year growth of 9 percent and achieve 6 percent. As a result the 2009 GaAs market will be approximately the same as it was in 2007.

Strategy Analytics expects growth to return in 2010, with all major end-demand sectors growing through 2013. However, annual revenues will fall short of previous expectations of $5 billion. The overall growth will be tempered as a result of the economic downturn and growth will show signs of flattening out in 2013. Overall, the GaAs, RF and microelectronic device market will grow at a CAAGR (compound annual average growth rate) of 4 percent through 2013, to be worth $4.5 billion.

"The GaAs industry effectively shut down as handset manufacturers turned off the taps in the final quarter of 2008," said Asif Anwar at Strategy Analytics, in a statement. "However, Strategy Analytics believes that the market has bottomed out and multiple GaAs device insertions in cellular handsets will be augmented by demand from other wireless markets as well as requirements from defense, consumer, fiber optic and automotive sectors."