The global indium market is becoming increasingly strategic, as traditional demand from display technologies is joined by rapid growth in optical communications, AI data centres and advanced semiconductors. At the same time, highly concentrated production and tighter Chinese export scrutiny are increasing concerns over security of supply.
Indium is rarely mined as a primary commodity. Instead, it is mainly recovered as a by-product of zinc refining, which makes supply relatively insensitive to rising indium prices. World refinery production was approximately 1,100 metric tons in 2025, with China producing around 760 tons, or close to 70% of the global total.
China’s Export Policy Adds Pressure to the Indium Supply Chain
The most important recent development is the increasing role of export controls.
China placed indium phosphide (InP) under export controls in February 2025. This year, international buyers also report stronger customs scrutiny of indium shipments, including additional requests for information about end users. Indium metal itself was not formally covered by the InP restriction as of June 2026, but uncertainty surrounding exports has increased supply-chain risk.
USGS data also indicate that Chinese exports of unwrought indium fell sharply between September 2024 and September 2025.
AI Data Centres Create a New High-Growth Application
Indium tin oxide, or ITO, continues to represent the largest global application. Its combination of electrical conductivity and optical transparency makes it essential for flat-panel displays, touchscreens and other electronic devices.
However, indium phosphide is emerging as a particularly important growth area. InP substrates are used for high-speed lasers and photodetectors in fiber-optic communication systems. These components are becoming increasingly critical as AI data centres require faster transmission of enormous quantities of information between processors and servers.
Supply constraints are already affecting this segment. Reuters reported in June 2026 that prices for some indium-phosphide wafers had increased by around 250%, while export licensing complications were creating bottlenecks for optical-chip manufacturers.
5G telecommunications infrastructure provides another demand source, as InP-based lasers and receivers enable high-speed fiber networks with low signal losses.
Recycling Becomes More Strategically Important
Supply concentration is also strengthening the economics of indium recovery. Recycling already plays an important role, particularly in Japan and South Korea, where indium is recovered from ITO manufacturing scrap. Unlike many bulk metals, however, recovering indium from end-of-life electronic products can be technically difficult because very small quantities are dispersed across complex devices.
Indium Market Outlook
The indium market outlook remains structurally firm. Display manufacturing will continue to provide its large established demand base, while AI infrastructure, fiber optics, 5G networks and compound semiconductors create higher-value growth opportunities.
The main challenge is supply. With roughly 70% of refined production concentrated in China, and new output largely dependent on zinc-smelting economics, rapid capacity expansion is difficult. As a result, recycling, alternative refining capacity, and secure access to indium-containing feedstocks are likely to become increasingly important competitive advantages across the global indium industry.
More information on the indium market can be found in the in-demand research study “Indium: 2026 World Market Review and Forecast to 2035”.