Hydrothermally grown SnO2 was integrated with AlGaN/GaN high electron mobility transistor (HEMT) sensor as the gate electrode for oxygen detection. The crystalline of the SnO2 was improved after annealing at 400 °C. The grain growth kinetics of the SnO2 nanomaterials, together with the O2 gas sensing properties and sensing mechanism of the SnO2 gated HEMT sensors were investigated. Detection of 1% oxygen in nitrogen at 100 °C was possible. A low operation temperature and low power consumption oxygen sensor can be achieved by combining the SnO2 films with the AlGaN/GaN HEMT structure.