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Gallium Arsenide Market

Gallium Arsenide Market

The market for Gallium Arsenide was estimated at $341 million in 2024; it is anticipated to increase to $760 million by 2030, with projections indicating growth to around $1.48 billion by 2035.

Report ID:DS1309128
Author:Vineet Pandey - Business Consultant
Published Date:May 2025
Datatree
Chemicals & Materials
Specialty Chemicals
Gallium Arsenide
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Report Summary
Table of Contents
Methodology
Market Data

Global Gallium Arsenide Market Outlook

Revenue, 2024

$341M

Forecast, 2034

$1.30B

CAGR, 2024 - 2034

14.3%
The Gallium Arsenide industry revenue is expected to be around $389.5 million in 2025 and expected to showcase growth with 14.3% CAGR between 2025 and 2034. The impressive rise of Gallium Arsenide is largely due to the driving forces that give it global importance. The widespread use of this compound is mainly based on its electrical properties making it a valuable semiconductor material, for high frequency uses that silicone based technologies cant match. The crucial role that Gallium Arsenide plays in the telecommunications sector is notably highlighted by its contribution to the development of high speed electronics and optoelectronic devices. With the growth of the electronics and telecommunications markets the demand for Gallium Arsenide is on the rise, in key industries.

Gallium Arsenide is a compound semiconductor from the III V group known for its characteristics such as high electron mobility and direct band gap that make it perfect for applications requiring strong radiation resistance and fast electronic performance efficiency It plays a crucial role in various advanced technologies used across industries, like microwave communications photovoltaic devices and light emitting diodes.

Gallium Arsenide market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2024-2034

Market Key Insights

  • The Gallium Arsenide market is projected to grow from $340.8 million in 2024 to $1.30 billion in 2034. This represents a CAGR of 14.3%, reflecting rising demand across Semiconductor Devices, LEDs & Laser Diodes and Solar Cells.
  • Freiberger Compound Materials, AXT, Sumitomo Electric Industries are among the leading players in this market, shaping its competitive landscape.
  • U.S. and China are the top markets within the Gallium Arsenide market and are expected to observe the growth CAGR of 12.9% to 17.2% between 2024 and 2030.
  • Emerging markets including Brazil, South Africa and Vietnam are expected to observe highest growth with CAGR ranging between 10.0% to 15.0%.
  • Transition like HighSpeed Networking Domination is expected to add $128.7 million to the Gallium Arsenide market growth by 2030
  • The Gallium Arsenide market is set to add $956 million between 2024 and 2034, with manufacturer targeting Solar Cells & Infrared Optoelectronics Application Type projected to gain a larger market share.
  • With Increasing demand in semiconductors, and Rising adoption in solar energy applications, Gallium Arsenide market to expand 281% between 2024 and 2034.
gallium arsenide market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032

Opportunities in the Gallium Arsenide

The Gallium Arsenide industry sees growth opportunities in emerging markets with countries like China and India making significant investments, in advanced manufacturing facilities that leverage Gallium Arsenide technology.

Growth Opportunities in North America and Europe

North America Outlook

North America is well known for its expertise in producing and using Gallium Arsenide. Offers ample growth opportunities due to various factors such as advanced defense systems and the widespread use of solar panels and the ever develop increasing telecommunications industry that significantly boost demand in the regions market landscape. The presence of players like Cree Inc. And Sumitomo Electric Industries creates a competitive environment that drives innovation and affects pricing trends positively. The main driving factors behind this growth are the scalability and increased adoption of 5G technology which are leading to a rise in the utilization of Gallium Arsenide, in communication systems and devices.

Europe Outlook

Europe offers prospects in the Gallium Arsenide market due to its focus on renewable energy and ongoing technological progressions. The market benefits from established competitors like AXT Inc. paving the way for growth opportunities. High demand for high power density devices driven by regulations and clean energy efforts highlight the regions potential for expansion. Improving device efficiency in challenging settings serves as a key factor motivating the adoption of Gallium Arsenide, throughout Europe.

Market Dynamics and Supply Chain

01

Driver: Increasing Demand in Semiconductors, and Accelerating Use in LED and Laser Diodes

The demand for Gallium Arsenide is also on the rise as it plays a role in semiconductor production and benefits from technological progress in the digital era where faster and more efficient semiconductors are also required due to its superior electronic properties, like increased electron mobility and lower energy consumption. A prominent compound in the production of light-emitting diodes and laser diodes, Gallium Arsenide, is also poised to benefit from the burgeoning LED and laser markets.
Gallium arsenide has also attracted a lot of attention in the energy industry because it is also a direct gap semiconductor that greatly improves the efficiency of solar cells. Given the increasing demand for power worldwide and the growing focus on renewable energy sources the use of gallium arsenide in solar cells is also expected to experience significant growth, in the market.`.
02

Restraint: High Production Costs

The high production costs of Gallium Arsenide stemming from its manufacturing process pose challenges for manufacturers, in setting competitive product prices and hinder widespread market acceptance as a result of decreased demand and slower market growth.
03

Opportunity: Emerging Uses in Semiconductor Industry and Strengthening Collaboration for Technological Advancement

Gallium Arsenide is crucial to cutting edge technologies in the semiconductor field due to its exceptional properties like high electron mobility that enables faster computational speeds compared to silicon based alternatives and its superior thermal resilience even in harsh environments. This makes Gallium Arsenide a preferred option, for developing next gen computer chips and frequency integrated circuits.
Many technology companies are teaming up with institutions to explore the capabilities of Gallium Arsenide and push boundaries in research and development initiatives focused around this materials applications. This collaborative approach is expected to open up market avenues and increase worldwide interest, in Gallium Arsenide significantly.
04

Challenge: Dependency on Rare Materials

Another major constraint in the GaAs market is its dependency on rare and expensive raw materials. The scarcity of these resources not only drives up the overall production costs but also poses significant sustainability challenges. These factors collectively impact the market dynamics negatively, further restraining the market expansion of Gallium Arsenide.

Supply Chain Landscape

1
Raw Material Procurement

Rio Tinto

United Materials

2
Refining & Production

Nippon Chemical

Hitachi High-Systems

3
Wafer Fabrication

Sumitomo Electronic Industries

Mitsubishi Chemical Corporation

4
End-User

Wireless Communication

Optoelectronic Devices

Solar Cells

*The illustration highlights the key stakeholders within the supply chain ecosystem.

Applications of Gallium Arsenide in Semiconductor Devices, LEDs & Laser Diodes & Solar Cells

Semiconductor Devices

Gallium Arsenide is widely used in the production of semiconductor devices because of its superior electron mobility and saturation velocity. These features ensure that high-frequency signals are swiftly and efficiently transmitted. Additionally, these devices rely on various crystal structures of Gallium Arsenide, including the zinc blende structure which provides a direct bandgap. Leading players in this field include Freescale Semiconductor and Northrop Grumman.

Solar Cells

The efficiency and functionality of solar cells are drastically improved with the integration of Gallium Arsenide. Its broadband and highly absorptive properties make it a go-to semiconductor material for converting solar energy into electricity. The triple-junction solar cell technology uses a substrate layer of Gallium Arsenide to maximize light absorption and energy conversion. Key market players such as Alta Devices and Solar Junction Corp capitalize on this technology to lead the solar industry.

LEDs & Laser Diodes

Gallium Arsenide phosphide is a of Gallium Arsenide which is utilized to produce red, orange and yellow light-emitting diodes. Meanwhile, in laser diodes, the active layer of the device is mostly made up of Gallium Arsenide. These diodes find large-scale applications in various optical communication and signal processing systems. Companies like Avago Technologies and OSRAM have established a strong presence in this application region.

Recent Developments

December 2024

Leading semiconductor manufacturer, Qualcomm, announced a deal with domestic tech giant Apple to provide Gallium Arsenide-based power amplifiers that will bring about significant energy efficiency and speed enhancement for the next-gen Apple devices.

October 2024

Renesas Electronics, in collaboration with Intel, unveiled a breakthrough Gallium Arsenide Integrated Circuit capable of achieving unparalleled processing speeds for AI systems. Their groundbreaking project has set a new standard in GaAs technology in computer hardware.

July 2024

3M, a global material science corporation, launched a novel Gallium Arsenide solar cell that promises to deliver much higher power conversion efficiencies than traditional Silicon photovoltaic cells.

Gallium Arsenide, a crucial compound in the semiconductor industry, has been demonstrating an upward trend in recent market developments. As electronics become more advanced and renewable energy continues its surge, applications for this compound have been expanding, driving significant growth in the Gallium Arsenide market.

Impact of Industry Transitions on the Gallium Arsenide Market

As a core segment of the Specialty Chemicals industry, the Gallium Arsenide market develops in line with broader industry shifts. Over recent years, transitions such as HighSpeed Networking Domination and Solar Power Revolution have redefined priorities across the Specialty Chemicals sector, influencing how the Gallium Arsenide market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

HighSpeed Networking Domination

Gallium Arsenide has been crucial in advancing high speed data networking by enabling the development of cutting edge semiconductor devices that operate at frequencies, beyond what silicon based technologies can achieve. This advancement has significantly contributed to propelling the telecommunications industry into the realm of high speed data transfer. With the rise of 5G technology advancement comes an increase in the need for Gallium Arsenide based transistors and diodes due to their role in creating fast and compact network equipment that operates efficiently at high speeds. This transformation has had an impact on sectors, like healthcare, transportation and agriculture that depend on quick and reliable data transmission. This industry transition is expected to add $128.7 million in the industry revenue between 2024 and 2030.
02

Solar Power Revolution

The use of Gallium Arsenide in the transition towards solar energy generation has been significant. Its superior photoelectric characteristics, coupled with the ability to function efficiently in extreme environmental conditions, make Gallium Arsenide an invaluable component in manufacturing highly efficient solar panels.

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