Gallium Oxide Market Size, Share & Trends Analysis Report By Technology (Molecular Beam Epitaxy, Chemical Vapor Deposition, Chemical Synthesis, Thermal Vaporization and Sublimation, Others), By Applications (Power and High Voltage Devices, Electroluminescent Devices, Gas Sensors, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Gallium Oxide Market Size

The global gallium oxide market size was valued at USD 1.2 billion in 2023 and is projected to reach from USD 3.6 billion in 2025 to USD 45.4 billion by 2032, growing at a CAGR of 49.73% during the forecast period (2024-2032).

The increase in gallium oxide market share during the forecast period is related to the growing semiconductor industry and increasing demand for this transistors. The global market is experiencing growth due to the rising need for high-performance power electronics and energy-efficient products. It is, also known as gallium sesquioxide (Ga2O3), can be found in the market as a white powder consisting of rod-shaped crystals, with the β-phase being the most prevalent crystalline form. Ga2O3 is utilized in various applications, including phosphors, cathodes for solid oxide fuel cells, GGG (gallium gadolinium garnets) crystals, piezoelectric crystals, and sputtering targets for GIZO or IGZO materials. This semiconductor material has a wider bandgap than gallium nitride, silicon, and silicon carbide. Due to its extensive bandgap, it is increasingly becoming a preferred material for developing solar-blind photodetectors and power electronic devices, particularly in demanding environmental conditions.

Highlights

• The molecular beam epitaxy segment dominates the global market by technology.
• The power and high voltage devices segment owns the largest market share by application.

Gallium Oxide Market Drivers

Growing semiconductor industry

The semiconductor industry's robust growth, particularly in the Asia-Pacific (APAC) region, continues to drive demand for it. The APAC region, especially China and Japan, dominates the semiconductor market, with China alone accounting for over 50% of global revenue in gallium oxide sales as of 2024. The expanding semiconductor sector, vital for consumer electronics, has led to a substantial rise in the use of it, a material prized for its high critical electric field strength and wide bandgap. Additionally, India's semiconductor and electronics market is expected to experience rapid growth due to ongoing investments and government initiatives to bolster local manufacturing. These developments are anticipated to drive significant market growth through the decade.

Increasing demand for gallium oxide transistor

The rising demand for this transistors, particularly in high-voltage rectifiers and power conditioning units, further fuels market expansion. These transistors are essential in photovoltaic solar systems, electric vehicles, and power distribution systems. These transistors are particularly valued for their efficiency at high temperatures, which reduces the need for external cooling systems, a key advantage over traditional silicon-based systems. The growing popularity of electric vehicles (EVs) in Europe and North America is expected to significantly boost demand for gallium oxide transistors, as these regions emphasize sustainability and the transition to renewable energy sources.

Restraining Factors

High production costs and limited availability of high-purity gallium

One of the major challenges facing this market is the high production cost and limited availability of high-purity gallium. The extraction and purification processes required to produce gallium oxide are complex and expensive. Despite gallium's promising applications in power electronics and optoelectronics, the production of high-purity gallium remains insufficient to meet the anticipated demand. In 2023, global gallium production was estimated at around 380 tons, far short of the market's needs. The recent export restrictions on gallium imposed by China have further exacerbated supply constraints, adding pressure on the global market.

Market Opportunities

Development of cost-effective production methods and expanding aerospace and automotive applications

The gallium oxide market holds significant potential for growth through the development of cost-effective production methods and its expanding use in aerospace and automotive applications. With gallium oxide's unique properties—such as high breakdown field strength and transparency as a conductive oxide—it is well-suited for applications in high-temperature sensors, power converters, and ultraviolet detectors. Recent investments in research and development (R&D) aim to address the material quality and doping issues that currently limit device performance. The automotive industry, particularly in Europe, is a key area where these devices are expected to make significant inroads, improving the efficiency and performance of electric vehicles.

Gallium Oxide Market Segmentation Analysis

Asia-Pacific : Dominant region

Asia-Pacific is the most significant global gallium oxide market shareholder and is anticipated to expand significantly during the forecast period. The Asia-Pacific region held a prominent position in the worldwide market in 2023. The prominence of this phenomenon can be ascribed to various crucial aspects. The area boasts a strong presence of semiconductor manufacturers, with countries like China, Japan, and South Korea leading the way. These nations have nurtured robust electronics industries and continually invest in cutting-edge technologies. This commitment to technological advancement aligns with the growing demand for consumer electronics, electric vehicles, and renewable energy systems across the region. As a result, gallium oxide-based devices have found a receptive market in Asia-Pacific, driven by both the supply-side capabilities and the surging demand for innovative solutions.

North America : Fastest growing region with the highest CAGR

North America and Europe are anticipated to grow significantly during the forecast period. These regions are known for their strong emphasis on technological advancements and innovation. The institution is home to numerous influential figures in the semiconductor industry, positioning itself as a leader in gallium oxide-based device research and development. Moreover, well-established research institutions and favorable government initiatives further bolster market growth. This synergy between industry and academia drives innovation and positions North America and Europe as critical contributors to the global gallium oxide market.

Latin America, and the Middle East and Africa represent emerging markets for it. These regions are experiencing a transformation driven by industrialization, infrastructure development, and investments in the automotive, aerospace, and defense sectors. In addition, these regions' increasing growth and modernization are anticipated to result in a surge in the demand for products based on it. This emerging demand provides an opportunity for market expansion and diversification.

Gallium Oxide Market Segmentation Analysis

By Technology

The molecular beam epitaxy segment dominates the global market and is expected to expand significantly during the forecast period. The Molecular Beam Epitaxy (MBE) sector within these market is gaining importance because it's becoming increasingly vital in producing high-quality, thin-film gallium oxide layers. MBE's ability to create these layers with utmost precision allows control over their composition and thickness down to the atomic level. This makes MBE particularly well-suited for applications where exact material control is crucial, such as power electronics and high-frequency devices.

The molecular beam epitaxy segment is experiencing substantial growth due to the rising demand for gallium oxide-based semiconductors. These semiconductors are prized for their exceptional performance in power electronics thanks to their broad bandgap properties. The MBE section of the gallium oxide market is expected to witness substantial growth and novel breakthroughs in the coming years as industries persist in pursuing high-performing and efficient materials to propel advancements in electronic applications.

By Applications

The power and high voltage devices segment owns the largest market share and is anticipated to expand substantially over the forecast period. In recent years, there has been remarkable growth and innovation in this market, specifically in the Power and High Voltage Devices sector. Gallium Oxide, particularly in its beta phase (β-Ga2O3), has gained considerable recognition as an exceptional semiconductor material due to its impressive characteristics like a wide bandgap and high breakdown voltage. These unique attributes make it exceptionally well-suited for a range of applications in high-power and high-voltage devices, spanning from power electronics and RF amplifiers to advanced power supplies.

The driving force behind this market's expansion is primarily the escalating demand for energy-efficient and high-power electronic systems across various industries. These industries include electric vehicles, renewable energy, and telecommunications, where it is invaluable. Ongoing research and development endeavors to improve the material's performance and decrease production expenses are crucial in facilitating its extensive acceptance. All these factors position it as a pivotal player in shaping the future landscape of power and high-voltage electronics.

Recent Developments

• March 2024- Navitas Semiconductor entered into a strategic partnership with GaN Systems to enhance the efficiency of power conversion systems using gallium oxide technology. This collaboration, announced in early 2024, aims to leverage gallium oxide’s superior properties for next-generation power electronics, particularly automotive and consumer electronics.
• April 2024- Infineon Technologies continues expanding its gallium oxide-based product portfolio, focusing on high-voltage power electronics. In 2024, the company announced advancements in gallium oxide transistors, crucial for improving energy efficiency in various industrial applications.