Industry: Chemicals and Materials
Published Date: February-2025
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 250
Report ID: PMRREP4428
According to Persistence Market Research, the global gallium market is set to grow from US$ 3.7 Bn in 2025 to US$ 17.0 Bn by 2032, expanding at a CAGR of 24.5%.
The growth is driven by the rising demand for semiconductor materials, particularly gallium arsenide (GaAs) and gallium nitride (GaN), which are critical for applications in 5G telecommunications, defense, and electric vehicles. The increasing adoption of these materials in high-performance computing, aerospace, and renewable energy sectors is further fueling demand, as governments worldwide focus on securing a stable supply chain for this strategic element.
| Attributes | Key Insights |
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Gallium Market Size (2025E) |
US$ 3.7 Bn |
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Projected Sales of Gallium (2032F) |
US$ 17.0 Bn |
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Market Growth Rate (2025-2032) |
24.5% CAGR |
A major shift in global supply dynamics has been observed due to China’s export controls in August 2023, which has heightened concerns about supply security. With China accounting for 98% of global primary low-purity production, these restrictions have triggered new initiatives in the U.S., Europe, and Japan to develop domestic production capabilities.
The U.S. Geological Survey’s discovery of high-grade deposits in Montana marks a crucial step toward reducing import dependence. These geopolitical factors are expected to reshape the market, with increasing investments in local refining and recycling technologies.
The price volatility of this element has also influenced market trends, with prices in China dropping in early 2023 due to weak demand from the LED and neodymium (NdFeB) magnet markets, followed by a sharp increase in October due to renewed demand and supply constraints.
This fluctuation highlights the need for diversified sourcing and alternative production methods, pushing market players toward recycling and secondary production. Companies such as Northrop Grumman and IQE plc are at the forefront of innovation, leveraging DARPA-funded projects to advance GaN-based semiconductor technologies for both commercial and military applications.
Gallium is a soft silvery metal and is liquid at room temperature. During bauxite processing, caustic liquor is generated, and gallium is extracted from this as a by-product in impure form. The impure form is further refined to get pure gallium known as 6N Gallium.
In some cases, it is recovered as a by-product from zinc processing. It is generally used in compound form, either as gallium nitride (GaN) or gallium arsenide (GaAs). These two compounds account for the major consumption of gallium worldwide.
Some of the key providers are GEO Gallium, Aluminium Corp of China Ltd, and Nalco, among others.
Expanding GaN Power Semiconductor Production to Support EV Growth
The rapid expansion of GaN semiconductor manufacturing is set to accelerate advancements in electric vehicles. Texas Instruments’ decision to quadruple its production capacity in Japan, along with its existing Dallas facility, strengthens the supply chain for high-efficiency power electronics. This expansion aligns with the surging demand for GaN-based solutions in next-generation EV powertrains, as electric cars accounted for around 18% of total car sales in 2023, up from 14% in 2022.
ROHM and TSMC’s collaboration further highlights the shift toward GaN technology for EV applications. Their focus on high-voltage and high-frequency GaN power devices aims to enhance the efficiency of onboard chargers and inverters.
With nearly 14 million electric cars sold in 2023—a 35% increase from 2022—the demand for superior power solutions continues to grow, as automakers seek energy-efficient technologies for expanding EV production.
GaN’s role in EVs extends beyond efficiency improvements, offering reduced weight and size advantages in power electronics. Battery electric vehicles (BEVs) accounted for 70% of the total electric car stock in 2023, contributing to the overall rise in EV adoption. This shift underscores the growing reliance on high-performance semiconductors, as electric vehicle stock worldwide has now reached 40 million units.
With over 250,000 new EV registrations per week in 2023 more than the total annual EV sales in 2013 the industry’s shift toward GaN-based power solutions is becoming increasingly critical. The continued investment in GaN technology underscores its role in enabling the next generation of efficient and sustainable electric mobility.
Surging Semiconductor Demand Boosts Gallium Adoption
The rising demand for advanced electronics is fueling the adoption of gallium-based materials in applications such as photodetectors, solar panels, and LEDs. With the U.S. electronics industry generating $1.8 trillion in annual sales and employing over 1.1 million workers, gallium is playing a key role in expanding product capabilities.
The semiconductor sector’s record-breaking $627.6 billion revenue in 2024 underscores the increasing reliance on innovative materials for integrated circuits, laser diodes, and high-performance computing.
India and China are emerging as key growth hubs, driven by rapid expansion in electronics manufacturing. India's domestic production surged from $29 billion in 2014-15 to $101 billion in 2022-23, with mobile phone manufacturing reaching $49.3 billion.
Government initiatives, including the $17 billion PLI scheme and semiconductor incentives, are further fueling investments in next-generation electronic components and high-efficiency semiconductors.
Integration of GaN in High-Power and Space Applications
Advancements in semiconductor design are accelerating the adoption of high-performance materials for defense, aerospace, and infrastructure. Guerrilla RF’s GaN on SiC power amplifiers are enhancing communication networks and satellite connectivity, offering improved efficiency across multiple frequency bands.
Micross Components' expansion of rad-hard power solutions supports next-generation space missions, where size, weight, and energy efficiency are critical. The increasing demand for high-power-density solutions is driving further investment in GaN-based devices, making them essential for modern electronic systems.
Constant Fluctuations in Gallium Prices
The extraction and refining processes require advanced technologies and energy-intensive procedures, leading to high operational costs. The recovery process is complex and inefficient since gallium is present in low concentrations in raw materials. This increases the overall cost of production, making it less competitive compared to alternative materials. The high costs also restrict its adoption in price-sensitive markets.
Scaling Advanced Manufacturing Capabilities
The acquisition of Tagore Technology’s Power GaN IP by GlobalFoundries positions it as a leader in high-power semiconductor manufacturing, with applications in AI, IoT, and automotive sectors. This move, supported by substantial CHIPS Act funding, allows for rapid scaling of production, ensuring a reliable supply of energy-efficient components for datacenters and power electronics.
As demand for high-performance solutions rises, companies with strong fabrication capabilities and access to advanced GaN technologies will gain a competitive edge, opening new opportunities in industries reliant on high-efficiency power systems.
Strengthening Domestic Supply and Technological Advancements in North America
North America holds a 25.4% market share in the global market, driven by rising domestic production efforts and government-backed supply chain initiatives.
US Critical Materials’ discovery of a high-grade deposit in Montana strengthens the region’s resource base, while its collaboration with Idaho National Laboratories enhances refining capabilities.
These advancements align with national strategies to reduce reliance on imports, ensuring a stable supply for semiconductors, 5G, and aerospace applications.
In Canada, Rio Tinto’s initiative to extract critical materials from its alumina refinery could add up to 40 tonnes annually, significantly boosting regional output.
With financial backing from the Quebec government, this effort enhances local sourcing for high-tech industries, including electric vehicles and power electronics. As these projects progress, North America is set to expand its role in global supply chains, supporting advanced manufacturing and securing long-term resource availability.
The market is shaping into an oligopolistic landscape, driven by strategic expansions, acquisitions, and government-backed initiatives. Companies like Rio Tinto and US Critical Materials are working on securing domestic gallium supply, reducing dependence on imports.
Infineon Technologies and Texas Instruments are scaling up GaN semiconductor manufacturing, strengthening the power electronics sector.
GlobalFoundries and ROHM-TSMC partnerships indicate growing consolidation in GaN power devices, particularly for EVs and AI datacenters. Micross Components and Guerrilla RF are expanding specialized applications in aerospace and defense, reflecting increasing market segmentation.
These developments highlight a market characterized by limited but dominant players controlling supply chains and technological advancements.
Recent Industry Development
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Forecast period |
2025-2032 |
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Historical data available for |
2019-2024 |
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Market analysis |
USD million for value |
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Key countries covered |
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Key market segments covered |
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Key companies profiled |
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Report Coverage |
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Customization & pricing |
Available upon request |
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The global gallium market is anticipated to surge ahead at a CAGR of 24.5% through 2032.
The current valuation of the gallium industry is US$ 3.7 Bn.
The gallium market is likely to reach a valuation of US$ 17.0 Bn by 2032.
Opto-semiconductors accounted for 35.1% share of the market in 2021.
