PUBLISHER: Fairfield Market Research | PRODUCT CODE: 1519315
PUBLISHER: Fairfield Market Research | PRODUCT CODE: 1519315
The global gallium market is projected to experience significant growth over the forecast period,with market size expected to reach $2.83 billion in 2024 and soar to $15.22 billion by 2031, reflecting a remarkable CAGR of 27.20%. This expansion is primarily driven by the increasing demand for gallium nitride (GaN) across various applications.
Gallium Overview
Gallium, a soft silvery metal, remains unique due to its liquid state at near room temperature. It is commonly obtained as a by-product during the processing of bauxite to produce alumina, where caustic liquor is generated. This caustic liquor contains gallium, which is subsequently extracted and refined into pure gallium, known in the industry as 6N Gallium. Additionally, gallium can be recovered as a by-product from zinc processing. Gallium is predominantly used in its compound forms, namely gallium nitride (GaN) and gallium arsenide (GaAs), which account for a substantial portion of its global consumption.
Key Product Types
Based on product type, opto-semiconductors hold a significant share of the market revenue. This substantial share is due to the extensive use of opto-semiconductors in a variety of devices such as optoelectronics, lasers, photodiodes, solar cells, and LEDs.
Major Gallium Manufacturers
Increasing Electronic Vehicle Adoption to Drive Gallium Application
The surge in electronic vehicle (EV) adoption globally is a crucial driver for gallium market growth. Gallium nitride (GaN) plays a pivotal role in enhancing the performance of EVs by improving power density, cost efficiency, and reducing vehicle charging times. These attributes are essential for automakers aiming to provide better driving experiences and more efficient energy use.
Gallium in the Electronics Sector
The electronics sector significantly contributes to the demand for gallium, with its widespread use in photodetectors, solar panels, and LEDs. Additionally, gallium is vital in applications such as solar cells, integrated circuits, and laser diodes. The growing incorporation of gallium in these technologies is expected to propel market sales further.
Research and development activities focusing on specialty alloys are also poised to boost gallium usage. Notably, the rapid expansion of the electronics industry in countries like India and China presents significant growth opportunities for the gallium market.
Challenges Due to Gallium Price Fluctuations
One of the critical challenges facing the gallium market is the constant fluctuation in gallium prices. These price variations can create uncertainties and hinder market growth. Furthermore, issues related to the recycling of gallium compounds, which are used in various electronic products, may also limit market expansion opportunities in the coming years.
Regional Market Dynamics
North America: North America is expected to maintain a leading position in the global gallium market, driven by a significant increase in the demand for electronic consumer goods. The region's robust manufacturing sector for other alloys and biomedical applications of gallium also contributes to the market's growth.
Europe: European countries are predicted to exhibit stable demand for gallium, supported by the growing semiconductor industry.
Asia: South Asia & Pacific and East Asia are expected to witness a surge in gallium demand, driven by the expanding semiconductor industry in these regions.
Recent Industry Developments
Efficient Power Conversion Corporation launched the EPC9157, which integrates Renesas ISL 81806 with EPC2218 eGAN, achieving over 90% efficiency. This innovation highlights the continuous advancements in gallium-based technologies, contributing to the market's growth.
Competitive Analysis
Market Segmentation