Chemical companies often bear the brunt of the massive waste generation that emanates from the production of chemical compounds and their spent forms which should be recycled. The Aluminum Oxide Market has faced a similar challenge, which has gradually been resolved with the efforts made by key market players. Washington Mills, one of the world’s largest producers of abrasive minerals and products has pioneered a closed-loop recycling process. This process solely focuses on the recycling of aluminum oxide that is already spent. The recycling of aluminum oxide will greatly help in the reduction of waste generation and increase the value of this chemical compound by making it more environmentally friendly. According to the Trade Map provided by the International Trade Centre, 1.9 million tons of aluminum oxide and aluminum hydroxide were imported by the United States of America in 2018. A majority of this portion after primary usage is landfilled and not sent into recycling facilities. This results in excessive waste that key producers of aluminum oxide are accountable for converting into a reusable form. Through recycling facilities, spent aluminum oxide grits are returned to their original manufacturers, making the entire process a closed-loop manufacturing system. This has highly benefitted the global aluminum oxide market as the demand for aluminum oxide rises in several industries, including pharmaceutical, paints and coatings, industrial manufacturing, and others. As per data collected by the International Trade Centre, aluminum oxide worth $19 billion was imported in different countries of the world. Such is the high volume generation of this chemical compound as the demand for its abrasive property increments. During the forecast period 2019-2025, the aluminum oxide market will grow with a CAGR of 4.9%. In 2018, the market earned a revenue of $21.6 billion.
The APAC Region Leading the Global Aluminum Oxide Market
According to IndustryARC’s research, the APAC region has emerged as the leading region of the aluminum oxide market with an evaluated 46% share out of the total revenue earned by the market in 2018. The primary reason for this share is the presence of industrial manufacturing units in South-east Asian countries, including India, China, South Korea, and others which are generating a high demand for aluminum oxide. The pharmaceutical industry in the APAC region is steadily growing with the government recognizing the potential of financial savings obtained from producing drugs indigenously. As per the Chinese government’s mission titled ‘Made in China 2025,’ China is set to focus on the pharmaceutical industry as one of the most promising industries. The government also wishes to shift the general opinion of the country as the world’s factory to producing high value, good quality products. In 2017, China was able to gain approval for 38 generic drugs from the U.S. Food and Drug Administration. The aluminum oxide market has benefitted tremendously from these factors as the compound is used as a desiccating agent and ab absorbent. Key market players of the aluminum oxide market are also increasing their presence in the APAC region. Almatis, one of the key companies operating in this market, increased its alumina production facilities in India. In June 2018, the company formally announced setting up of a new plant in Falta, West Bengal for meeting the increasing demand of Indian industries. Followed by this development, India imported 2.7 million tons of aluminum compounds in 2018, thus providing the needed impetus to the aluminum oxide market in the region.
Increasing Demand for Ceramics Boosting the Aluminum Oxide Market Growth
The demand for ceramic is growing at a fast rate owing to its wide range of applications in several industries. Ceramic is also gaining immense popularity for its use in 3D printers which are also being employed in a multitude of industries. The technical ceramics market earned a revenue of $6 billion in 2018 for its temperature stability and additional rigidity. In the healthcare industry, ceramic is being used in bone implants, which are printed through 3D printers.
Similarly, ceramic teeth are also preferred in dentistry as they bear an identical resemblance to a person’s actual teeth, thus instilling trust in dental patients. This compound is also increasingly employed in the automotive industry as filters. These filters are used to remove particles from molten metal, which is further used to manufacture cars and other vehicles. Aluminum oxide is the most widely used ceramic for its abrasive nature and high strength. It can withstand even the harshest environments, which is why it is increasingly used in different industries.
Ø Pharmaceutical Industry Propelling Demand In The Aluminum Oxide Market
The healthcare industry is one of the fastest-growing industries in the world, owing to the rising incidence of diseases and massive R&D initiatives being carried out in healthcare institutions across the world. According to the European Federation of Pharmaceutical Industries and Associations, an estimated $38 billion was invested by the pharmaceutical industry in Europe for increasing competitiveness in the global economy. Furthermore, 750,000 employees are working in this industry in Europe alone. These statistics are reflective of the expansion of the pharmaceutical industry, which is taking place in an unprecedented manner. The industry is driving forward based on innovations such as ceramics being used for their biocompatibility and subsequent creation of biomaterials. Relatively newer medical innovations such as surgical cement have propelled the aluminum oxide market with increasing demand for alumina. These factors have provided the necessary growth to the market and will be responsible for its gain in revenue in the upcoming years. The market segment of the pharmaceutical industry will hold promising growth opportunities for the market and will grow with a CAGR of 4.6% during the forecast period 2019-2025.
Aluminum Oxide Market: Competitive Landscape
Key players of the aluminum oxide market have consistently focused on refining production techniques for meeting the rising demand for aluminum oxide. Owing to its abrasiveness and low reaction to acids while exhibiting a high boiling demand, different kinds of industries are openly using this compound to maximize production. Some of the companies which are ahead of the curve in the aluminum oxide market are Sasol Limited, Tirupati Industries, Chemicals India Company, Khambhalay Abrasive, Nivaka Pharmaceuticals Industries, MTC Wesgo, Snam Abrasives Pvt. Ltd., and Almatis. Sasol Limited is a South-Africa based chemical company that produces some of the finest chemical products in the world. In February 2018, Sasol Limited formally announced the expansion of their alumina capacity in Germany. This facility is located in Brunsbuttel, and the capacity has been increased by 15,000 tons per year.
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