Gallium Market

Gallium Market Outlook (2024 to 2034)

Newly released data from a Fact.MR report reveals that worldwide revenue from the sales of gallium is projected to increase from US$ 2.45 billion in 2024 to US$ 21.53 billion by the end of 2034. The market has been forecasted to expand at a remarkable 24.3% CAGR from 2024 to 2034.

Gallium is an element with atomic number 31. When gallium achieves high purity, it boasts a brilliant silvery veneer, while in its solid state, it manifests as a blue-grey metal characterized by an orthorhombic crystalline structure. Its constituents neither serve as a primary extraction source nor occur naturally in pure form. In today’s age, mobile phones are becoming indispensable to human existence, with their demand steadily growing.

Gallium finds extensive application in semiconductor production. Gallium is commonly employed in the fabrication of low-melting alloys due to its facile bonding ability with most metals. It stands among the quartet of metals that remain liquid at or near room temperature, alongside cesium, rubidium, and mercury. Of these, gallium exhibits the least hazardous and reactive properties, rendering it the safer and more environmentally friendly choice for high-temperature thermometers, barometers, heat transfer systems, and cooling and heating apparatuses. These attributes and advantages play a pivotal role in aligning with the latest trends in the gallium market.

Key Market Growth Drivers

• Electronics is one of the primary sectors employing gallium. High-speed switching, infrared, and microwave circuits all make use of gallium arsenide, the predominant chemical component of gallium in electronics.
• Gallium is used in the production of semiconducting gallium nitride and indium gallium nitride, which are critical components in blue and violet light-emitting diodes and diode lasers.
• Wide bandgap of gallium nitride facilitates the development of compact, efficient devices capable of handling larger electric fields. Data centers and optoelectronics, and the automotive sector extensively use indium gallium arsenide (InGaAs).
• Gallium arsenide finds application in solar panels, such as those aboard the Mars Exploration Rover, and possesses the capability to directly generate laser light from energy. Gallium nitride (GaN) is a chemical that is extensively utilized as a semiconductor in touch switches, mobile phones, and Blu-ray technology. This widespread use is contributing to the expansion of the gallium market size.
• The healthcare industry is seeing increasing demand for gallium owing to its common presence in medications; gallium nitrate, for instance, is utilized in treating hypercalcemia, a condition that accelerates the formation of bone cancers.

Report Attribute	Detail
Gallium Market Size (2024E)	US$ 2.45 Billion
Forecasted Market Value (2034F)	US$ 21.53 Billion
Global Market Growth Rate (2024 to 2034)	24.3% CAGR
East Asia Market Share (2024E)	22.1%
North America Market Value (2024E)	US$ 311.3 Million
Power Semiconductor Segment Value (2034F)	US$ 9.84 Billion
Key Companies Profiled	Aluminium Corp. of China Ltd.; Nalco; Sumitomo Electric Device Innovations, Inc.; GEO Gallium; NXP Semiconductors; Texas Instruments Incorporated; STMicroelectronics N.V.; Toshiba Corporation; Wolfspeed, Inc.; Kaiman; Infineon Technologies AG; Qorvo, Inc.; MACOM; East Hope; Jinjiang Group.

Why is There Remarkable Increase in Sales of Gallium Worldwide?

“Rising Adoption of Gallium Nitride (GaN) in High-Efficiency Power Devices”

Demand for gallium is increasing due to its rising application in electronic products such as LEDs and other semiconductor devices. Another factor contributing to the increased adoption of gallium is the growing demand for renewable resources, as gallium is used in photovoltaic cells in the generation of electricity from solar energy. Consequently, gallium prices have surged, prompting businesses to seek new sources of the metal to meet the expanding demand.

Semiconductors, integral components of modern electronics, rely on gallium for their production. The utilization of gallium is projected to rise during the forecast period in response to the growing demand for computers, cell phones, and other electronic devices. Demand for gallium is also rising as the solar industry expands, given its role in the production of solar cells. Moreover, the widespread use of gallium nitride (GaN) in high-efficiency power devices, such as electric cars and renewable energy sources, further propels gallium market growth.

Which Obstacles Stand in the Way of Gallium Suppliers?

“Limited Availability and Complexity of Production Process”

Mining for zinc and aluminum usually yields gallium, a rare element, as a byproduct. This indicates that there is a limit to its availability, which leads to expensive prices and an unstable market. The production of gallium is a complex process that involves several steps, including purification and refining. These processes demand specific tools and knowledge, which can significantly raise the cost of producing gallium and hence limit market expansion.

Country-wise Insights

The East Asia region is projected to hold a leading position with 22.1% of the global gallium market share in 2024 and is projected to account for 26% by 2034 due to the wide availability of gallium in the region. The market in North America is forecasted to expand at 27.8% CAGR from 2024 to 2034.

Which Factors are Enabling Producers to Expand Their Market Share in China?

“Heavy Usage of Gallium in Expansive Electronics Sector”

Attribute	China
Market Value (2024E)	US$ 310.4 Million
Growth Rate (2024 to 2034)	26.8% CAGR
Projected Value (2034F)	US$ 3.34 Billion

Not only in East Asia, but China is also one of the leading players in the world because it is a major exporter of gallium. The nation’s status as one of the leading exporters of gallium contributes significantly to market growth. Various factors underpin China's prominence in the market, notably the extensive aluminum and zinc production in the nation, which yield substantial quantities of gallium. Gallium, essential in the production of LEDs and semiconductors, finds extensive usage in China's expansive electronics sector.

• In July 2023, as reported by the CRMA, China accounted for over 80% of gallium production. Chinese customs data for the year 2022 indicate that China exported 94 metric tons of gallium

What is the Growth Outlook for the Gallium Market in the United States?

“Discovery of High-Grade Gallium Generating Lucrative Opportunities for Suppliers”

Attribute	United States
Market Value (2024E)	US$ 247.8 Million
Growth Rate (2024 to 2034)	27.6% CAGR
Projected Value (2034F)	US$ 2.84 Billion

The United States is poised to hold 79.6% revenue share in the North American region in 2024. Sales of gallium are increasing in the country due to the high demand from not only the electronics sector, but also the defense and aerospace, healthcare, and information and communication technology sectors. Revenue in the United States market is projected to increase at a significant pace through 2034 due to the discovery of high-grade gallium.

• In March 2024, a strategically significant deposit of high-grade gallium was discovered within the United States Critical Materials' 6,700-acre claims in Sheep Creek, Montana. Gallium is deemed exceedingly crucial as the United States currently relies solely on imports, primarily sourced from China. Its necessity spans various applications, including semiconductors and defense equipment.
• According to the United States Geological Survey (USGS), the value of the country’s imports of gallium metal and gallium arsenide (GaAs) wafers in 2022 amounted to approximately US$ 3 million and US$ 200 million, respectively.

Category-wise Insights

Based on end use, the market is segmented into automotive, consumer electronics, defense & aerospace, healthcare, industrial & power, and information & communication technology. The information and communication technology segment is projected to hold a substantial portion of the market by 2034. The growth of this segment is being driven by the rising adoption of the Internet of Things (IoT) technology across the world. IoT requires affordable, high-performing devices that enable continuous information sharing, thus driving the adoption of gallium.

Why is the Power Semiconductors Segment Growing at a Substantial Pace?

“High-speed Performance and Reduced Carbon Footprint Associated with GaN”

Attribute	Power Semiconductors
Segment Value (2024E)	US$ 1.02 Billion
Growth Rate (2024 to 2034)	25.4% CAGR
Projected Value (2034F)	US$ 9.84 Billion

Gallium nitride or GaN power semiconductors offer high-speed performance and decreased carbon footprints, making them a game-changer in the electronic industry. The electronics sector has been heavily dependent upon silicon for many years as the main component of semiconductor chips. Gallium nitride power semiconductors are becoming an impressive contender for silicon-based integrated circuits. This is one of the key gallium market trends that suppliers are capitalizing on.

GaN is known for its potential to improve the efficiency, environmental friendliness, and miniaturization of electrical products. GaN is becoming an attractive option due to several factors, including its simplicity of manufacturing compared to silicon chips.

• In July 2023, leading Japanese electronics manufacturer Mitsubishi Electric Corp. announced its acquisition of an undisclosed ownership stake in Novel Crystal Technology (NCT), a start-up that distributes gallium oxide wafers. Mitsubishi Electric aimed to expedite the advancement of GaO power semiconductors by merging its knowledge base with the NCTs.

Competitive Landscape

Key players in the gallium market include Aluminium Corp of China Ltd., Nalco, Sumitomo Electric Device Innovations, Inc., GEO Gallium, NXP Semiconductors, Texas Instruments Incorporated, STMicroelectronics N.V., Toshiba Corporation, Wolfspeed, Inc., Kaiman, Infineon Technologies AG, Qorvo, Inc., MACOM, East Hope, and Jinjiang Group.

• In April 2024, Rio Tinto, a multinational mining company, granted US$ 875,000 to a professor at Missouri University of Science and Technology (Missouri S&T) for a two-year study investigating novel methods to recover essential minerals from waste byproducts of copper extraction and refinement.
• In April 2024, the acquisition of the whole line of GaN power amplifiers and front-end modules from Gallium Semiconductor was completed by Guerrilla RF, Inc. All previously published components and newly developed Gallium Semiconductor cores were purchased by GUER as of April 26th, 2024. The acquisition of this portfolio also included the transfer of all related intellectual property (IP) to GUER. By combining these resources, the company hopes to greatly advance its current endeavors to create and market a new range of GaN devices designed for satellite communications, military, and wireless infrastructure sectors.
• In February 2024, Xiaoqing Song, an associate professor in the Department of Electrical Engineering and Computer Science, received a US$ 300,000 grant from the National Science Foundation to further his research on high-density and high-operation-temperature traction inverters. Song's study investigates the integration of gallium oxide-packed power modules to improve the power density and temperature range of electric cars.
• In September 2023, a completely indigenous gallium nitride (GaN) power switch was created by researchers at the Indian Institute of Science (IISc). This switch may find use in wireless communications and power converters for laptops and electric cars, among other systems. At the IISc Center for Nano Science and Engineering (CeNSE), the whole switch-building process from material growth to device fabrication to packaging was invented internally.

Fact.MR provides detailed information about the price points of key manufacturers of gallium positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new market report.

Segmentation of Gallium Market Research

• By Product Type :

  • GaN Radio Frequency Devices
  • Opto-semiconductors
  • Power Semiconductors

• By Component :

  • Transistors
  • Diodes
  • Rectifiers
  • Power ICs
  • Others

• By Wafer Size :

  • 2-Inch
  • 4-Inch
  • 6-Inch
  • 8-Inch

• By End Use :

  • Automotive
  • Consumer Electronics
  • Defense & Aerospace, Healthcare
  • Industrial & Power
  • Information & Communication Technology
  • Others

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa