Gallium Oxide Market

Market Overview

The global gallium oxide market size was valued at USD 15.13 million in 2022. It is projected to reach USD 139.12 million by 2031, registering a CAGR of 32.1% during the forecast period (2023-2031). 

The global gallium oxide market is experiencing growth due to the rising need for high-performance power electronics and energy-efficient products. Gallium Oxide, 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.

Market Dynamics

Global Gallium Oxide Market Drivers

Growing Semiconductor Industry

The semiconductor industry is experiencing significant growth, driven by the rising demand for consumer electronics like smartphones, LED lamps, and computers. Gallium Oxide is playing a pivotal role in this growth story. Further, the expanding semiconductor sector in the Asia-Pacific (APAC) region is poised to boost market expansion. An illustrative example is a study conducted by the Associated Chambers of Commerce of India (ASSOCHAM) and EY, which predicts that the Indian electronics and hardware industry will reach a substantial market size of USD 112-130 billion by 2018. This growth is attributed to electronics and hardware manufacturers seeking to expand their production facilities in India to meet the demands of the domestic market as well as markets in the Middle East, Africa, and SAARC countries. Such factors drive market growth.

Increasing Demand for Gallium Oxide Transistor

The surging demand for gallium oxide transistors is also noteworthy. These transistors are increasingly used in high-voltage rectifiers within distribution systems and power conditioning units. This application extends to photovoltaic solar systems and various electric vehicles, including automobiles, trains, and aircraft. Ga2O3 transistors are becoming increasingly common in power distribution systems that recharge electric cars or feed renewable power from solar panels and wind turbines into the grid. This preference for gallium Oxide is driven by its advantages in transistor technology.

High-power transistors play a crucial role in ensuring the efficient operation of electric vehicle charging stations, especially when compared to silicon-based systems. Gallium Oxide's high band gap enables transistors to operate at elevated temperatures, reducing system size requirements by eliminating the need for external cooling mechanisms. Thus, power system manufacturers will likely experience increased demand for gallium oxide transistors, resulting in more compact and efficient systems.

Global Gallium Oxide Market Restraints

High Production Costs and Limited Availability of High-Purity Gallium.

The high production costs and the restricted availability of high-purity gallium present substantial obstacles. Gallium Oxide, a compound of gallium and oxygen, exhibits promising applications in power electronics, optoelectronics, and solar cells. However, gallium oxide is not readily found in nature, necessitating intricate and expensive extraction and purification processes from bauxite, zinc ores, coal, and electronic waste.

In 2019, global gallium production only reached an estimated 380 tons, falling far short of the anticipated demand for gallium oxide in the future. In addition, high-purity gallium, which is required for making gallium Oxide devices, is difficult to come by and expensive to produce because of the various purification stages involved and the large amount of energy required. Therefore, the combination of these challenges significantly impedes the expansion of the gallium oxide market.

Global Gallium Oxide Market Opportunities

Development of Cost-Effective Production Methods and Expanding Aerospace and Automotive Applications

The market opportunity for gallium oxide lies in research and development, specifically focusing on creating cost-effective production methods and expanding its applications within the aerospace and automotive industries. Gallium oxide boasts unique properties, such as a suitable band gap for solar-blind ultraviolet bands, high breakdown field strength, and transparency as a conductive oxide. These attributes open doors for applications, including high-temperature sensors, power converters, ultraviolet detectors, and transparent electrodes in these sectors.

However, the current production methods are costly and inefficient, and device performance is hindered by material quality and doping issues. Therefore, investing in R&D to overcome these challenges and tap into gallium oxide's full potential could significantly enhance its market prospects, addressing the growing demand for advanced semiconductor materials in aerospace and automotive technologies.

Regional Analysis

Based on region, the global gallium oxide market analysis is conducted across North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-Pacific Dominates the Global Market

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 global gallium oxide market in 2022. The prominence of this phenomenon can be ascribed to various crucial aspects. The region 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 are continually investing 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 and Europe is anticipated to grow significantly during the forecast period. North America and Europe also play significant roles in the global gallium oxide market. 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 the field of 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 key contributors to the global gallium oxide market.

Latin America and the Middle East and Africa represent emerging markets for gallium oxide. 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 gallium oxide. This emerging demand provides an opportunity for market expansion and diversification.

Segmental Analysis

The global gallium oxide market is segmented based on technology and application.

Based on technology, the global gallium oxide market is segmented into molecular beam epitaxy, chemical vapor deposition, chemical synthesis, thermal vaporization and sublimation, and others.

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 the Gallium Oxide 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 wide 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.

Based on application, the global gallium oxide market is divided into power and high voltage devices, electroluminescent devices, gas sensors, and others.

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 the gallium oxide 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 gallium oxide 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 gallium oxide as a pivotal player in shaping the future landscape of power and high-voltage electronics.

Recent Developments

• March 2021 - AGC Inc. announced that it had acquired a 100% stake in CMC Biologics A/S, a Denmark-based contract development and manufacturing organization (CDMO) for the acquisition is expected to strengthen AGC's biopharmaceutical business and expand its global network.
• March 2021- FLOSFIA Inc. and DENSO Corporation, one of the world's largest automotive suppliers, announced that they were partnering to develop a next-generation power semiconductor device based on gallium oxide.