Gallium Oxide Substrate Market

Market Outlook of Gallium Oxide Substrates

The global gallium oxide substrate market is anticipated to value at US$ 4.5 million in 2022 and further expand at a CAGR of 8.1% to reach US$ 9.7 million by the end of 2032.

Sales of gallium oxide substrate accounted for nearly 36.3% of the global gallium oxide market at the end of 2021. Application in semiconductors surges the market’s demand growth over the period.

Report Attributes	Details
Gallium Oxide Substrate Market Size (2022E)	US$ 4.5 Million
Gallium Oxide (Parent Market)	US$ 12.4 Million
Forecasted Market Value (2032F)	US$ 9.7 Million
Global Market Growth Rate (2022-2032)	8.1% CAGR
North America Market Share (2022)	~7.9%
Europe Market Share (2022)	~4.8%
China Market Share (2022)	~14.7%
Market Share of Top 3 Countries	~29.6%
Key Companies Profiled	Kyma Technologies, Inc. TAMURA Corporation Novel Crystal Technology Others

Market’s Historic and Future Path Analysis

The adoption of renewable energy technologies along with the shift towards the trend of electrification in end uses has increased the importance of power electronics in the semiconductor industry.

• In today’s world, near about 30% of electricity passes through power electronics along with the growing applications it is expected to reach 80% by the next decade.
• According to the National Renewable Energy Laboratory, GOS is more economically advantageous as compared to silicon material.

Thus, players present in the market are focusing more on the development of the product. This will further increase the product’s adoption, capturing a major share of the emerging market. Wide-gap semiconductor-based technologies that are used to make GOS are poised for rapid growth in the next decade.

• Short Term Growth Factors: Power electronics are necessary across progressive energy applications for storage, transmission, and other applications. Gallium oxide is one of the most promising materials and can lower the overall production cost and enhance the device's performance. This makes the product more techno-economically sound, cost-effective, and more efficient. GOS is the next revolution in power electronics. This, in turn, fuels the market’s demand over the projection period.
• Approaches to Offer Medium-Term Growth Opportunities: Expansion across emerging economies and the introduction of a new application area offers the market immense growth potential over the study period.
• Factors for Long-Term Growth: The production capacity of gallium oxide substrate has doubled in several past years, as the product is very new in the market, and the high penetration rate is attracting more research and development institutes and centers to make the product more efficient. For instance, China's University of Science and Technology has made a detector using the substrate. Hence, R&D and key strategies enable market players to gain high-profit margins over the projected period.

According to the Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at 8.1% CAGR between 2022 and 2032.

Market share analysis of gallium oxide substrate based on application and region is provided in a nutshell in the above image. Under the application segment, the visible/ ultraviolet LED sub-segment dominates with 56.4% market share in 2022.

“Strategic Initiatives by Government and Other Associations by Making More Investment”

Semiconductor components are backbone that power everything in today’s world starting from watches and cars to fighter jets and others. Semiconductors are essential across various energy applications as well.

The material that is used for wide gap technology in the semiconductor is GOS as it has a wide band gap. The scale production of GOS is excepted to increase over a period of time with an increase in the number of applications and capabilities.

With investments across the globe in the semiconductors industry, for instance, Europe has strategically planned to invest its funds that are recovered from the pandemic to build up the semiconductor industry, and the target is set to boost the European semiconductors industry by 2025 positively.

In the U.S., acts have been established that will include federal investments for making the advancement in semiconductor technology. These initiatives are acting as an opportunity for the GOS market because these investments will lead to more facilities and more infrastructure that will consume more GOS.

“Increasing Need for Technological Advancement in Power Devices”

Energy saving and ecological compatibility in semiconductor devices will continue to force the market players for making key advancements in products, keeping in mind the nature and recyclability of the product.

Consumption of electric power has risen by more than 3 times in the past 30 years. The adoption of renewable energy generations in power devices has specifically proliferated the demand for gallium oxide as scientists and researchers are not able to identify more ways to use silicon.

Now they are focusing more on GOS with more bandgap as an alternative to fulfill the needs of the robustly growing market.

Players such as Novel Crystal Technology have increased the research and development expenses for making the product better or the development of new technology that will help in the production of new power devices that are more technologically advanced as compared to other products in the market.

“Dependence on Raw Materials and its Fluctuating Prices: Obstacle to be bridged”

The rise in demand for GOS indicates that more production of GOS is required. As the product is not available in the oxide form in nature, it is directly dependent on other materials for products that are sources of many other materials and energy industries, i.e. bauxite, sulphidic zinc ores, and coal are the sources of the product.

Gallium also occurs in very low amounts in nature at a diverse group of locations. Production of gallium is also limited due to market factors including the infrastructure required for new technology need to be installed, which will consume high capital investment, and the cost of the technology is also high.

As the production cost is high and due to limited players present in the market, the selling price of the product is controlled by them and the product may lose its hype and attractiveness which is boosting the market. China is the leading manufacturer of coal, thus, fluctuation in coal prices and the trade war with China can adversely affect the business line and market across the globe.

“Availability of Alternatives to Restrict Market Growth”

An increase in awareness among society across the globe for using organic, renewable materials, and sources has led to the development of many organic materials that are used and does not harm the nature and human race in long run.

Government and privately held research laboratories and institutes are continuously working on bringing the alternates and have brought organic LEDs that use organic material for emitting light as compared to other LEDs, which use inorganic materials such as yellow phosphorus, and others.

Adoption of LEDs across regions has created a surplus demand and with the growing demand, customers will get more aware with respect to time, which result will shift consumers towards organic LEDs.

The growing concerns about preserving nature and the craze for organic products can penetrate the market with robust growth because it has many ecological and economic benefits that can fulfill the demanding aspects of today’s consumers. Thus, organic LED can be considered an effective alternative for today’s customers, and is hampering the growth of the market.

Country-wise Insights

What Factors make the US market profitable for the GOS Market Growth?

The United States has strong environmental regulations under the Environmental Protection Act, which controls the release of toxic compounds into the atmosphere. In addition, emerging applications of semiconductor industries have driven the consumption of GOS in recent years and are expected to rise with respect to time across the country.

Further, new strategic initiatives by the U.S. government and investing more in research and development activities will lead to more demand for the product in the future. The U.S. has been consuming GOS, which has impacted the market making it more reliable for other foreign players to invest in the market.

Why is the China Gallium Oxide Substrate Market Expected to Be Highly Lucrative?

China is the most lucrative market for the growth of the GOS market due to the presence of excess raw material, additionally, the labor cost is low. Further, the growing semiconductor industry across China offers the market immense growth opportunity.

Category-wise Insights

Why Tin Dopant Rules the Market?

Tin (Sn) is identified as the key material in the class of semiconductors. This material offers higher electron mobility and band gap and other remarkable properties that distances it from the rest of the material.

As the number of applications is increasing in semiconductors great opportunities are awaiting for the material in the future and are poised to take a new role in the industry.

How Visible/ Ultraviolet LED Application Spur the Market’s Growth?

Gallium oxide substrates are used in making visible/ ultraviolet LEDs. Ultraviolet LEDs are used in the purification process for instance, in the purification of water, and others. with the increase in demand for more purified products and visible LEDs across various industries, more GOS are required in the production of visible/ ultraviolet LED.

Market’s Competitive Landscape Analysis

Gallium oxide substrate is in the infant stage as of now, still, the demand and production have doubled in recent years. Market players are planning to fill the demand gap by expanding capacity and investing more in the focused business segment. The robustly growing market is attracting foreign players to invest in the market.

The limited number of players in the GOS market makes it a saturated market. Tamura Corporation and Novel Crystal technology are the leading players in the market followed by Kyma Technologies. As the players are limited, they have the power to control the selling price of the product. In recent years, the production of the material has doubled parallel to an increase in demand. The market also projects the growth potential for new entrants.

Fact.MR has provided detailed information about the price points of key manufacturers of gallium oxide substrate positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Gallium Oxide Substrate Industry Research

• By Dopant :

  • Sn
  • Fe
  • Others

• By Application :

  • Visible/ Ultraviolet LEDs
  • Power Semiconductors
  • Ultraviolet Detectors

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA