High Purity Alumina Market - Forecast(2023 - 2028)

Report Code: CMR 64506 Report Format: PDF + Excel

High Purity Alumina Market Overview

The High Purity Alumina Market size is estimated to reach US$4.9 billion by 2021 and is forecasted to grow at a CAGR of 15.5% during the forecast period 2022-2027. High Purity Alumina also referred to as aloxite, alundum and corundum is a high-purity form of aluminum oxide which is rich in reactivity and is prepared by the hydrolysis of aluminum alkoxide. High purity alumina has superior properties such as electrical isolation, wear resistance, high-temperature resistance and good mechanical strength, thereby boosting its demand. Flourishing application of high purity alumina for coatings, electrical materials, resin fillers, sensors and batteries has created its demand in major end-use industries such as automotive, electrical & electronics, chemicals and building & construction. Furthermore, high purity alumina has major applications in high voltage dielectric components for nuclear energy production, which is influencing the growth high purity alumina industry. Factors such as strong growth in the automotive sector, growing consumption of electronic items and growing nuclear reactor construction are driving the market growth for the High Purity Alumina Market. However, the expensive nature of aluminum can negatively influence the production of high-purity alumina, which can pose a challenge to market growth, thereby affecting the High Purity Alumina Market size. In 2020, due to the COVID-19 pandemic, the demand for high purity alumina was reduced in sectors such as automotive and electrical & electronics which resulted in a revenue drop for the high purity alumina industry thereby affecting the high purity alumina industry outlook.

High Purity Alumina Market Report Coverage

The “High Purity Alumina Market – Forecast (2022 – 2027)” by IndustryARC, covers an in-depth analysis of the following segments in the High Purity Alumina Market.

By Purity – 4N High Purity Alumina, 5N High Purity Alumina and 6N High Purity Alumina.
By Production Method – Hydrolysis, Thermal Decomposition, Vapor-Phased Oxidation and Others.
By Application – Optical Lenses, bio Medical Devices, Coatings, Automotive Sensors, Electric & Display Materials, Resin Fillers, Technical Ceramics, Grinding Wear Components and Others.
By End-Use Industry – Automotive (Light Commercial Vehicles, Heavy Commercial Vehicles and Passenger Vehicles), Building & Construction (Residential, Commercial, Industrial and Infrastructural), Electrical & Electronics (Semiconductors, Insulators, Electrical Power Devices, Lightings, Li-ion batteries and Others), Chemicals (Adhesive, Plasticizers, Rubber Chemicals and Polymer Additives), Mining Industry, Energy Generation and Others.
By Geography - North America (the USA, Canada and Mexico), Europe (UK, Germany, France, Italy, Netherland, Spain, Belgium and the Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, New Zealand, Indonesia, Taiwan, Malaysia and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile and Rest of South America) and Rest of the World (the Middle East and Africa).

Key Takeaways

  • Asia-Pacific dominates the High Purity Alumina Market owing to the flourishing demand of High Purity Alumina which is also known as alundum or corundum from the electrical & electronics and automotive sector, thereby significantly influencing its market growth in the region.
  • The growing demand for fuel-efficient vehicles to tackle pollution problems will accelerate the demand for electric vehicles which will provide growth opportunities for the High Purity Alumina Market and increase the High Purity Alumina Market size.
  • The flourishing mining sector on account of growing demand and consumption for minerals will provide more scope for High Purity Alumina industry for mining applications, thereby having a significant influence on the high purity alumina industry outlook

Figure: Asia-Pacific High Purity Alumina Market Revenue, 2021-2027 (US$ Billion)
High Purity Alumina Market
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High Purity Alumina Market Segment Analysis – by Production Method

Hydrolysis held the largest share in the High Purity Alumina Market share in 2021 and is forecasted to grow at a CAGR of 15.3% during the forecast period 2022-2027. In this method, high purity aluminum alkoxide is synthesized from aluminum metal and alcohol resulting in the formation of hydrated alumina whose calcination provides high purity alumina as the final product. Superior benefits provided by hydrolysis in terms of less formation of acid waste and undesirable by-products have become the contributing factors to its growing preference over other methods such as thermal decomposition and vapor-phased oxidation. Furthermore, the low operational cost of hydrolysis and its ability to recover and reuse the chemicals which are potentially wasted during the manufacturing process is further influencing its market demand. Thus, owing to such advantageous features the hydrolysis segment growth is projected to rise during the forecast period.

High Purity Alumina Market Segment Analysis – by End-use Industry

Electrical & electronics held the largest share in the High Purity Alumina Market share in 2021 and is forecasted to grow at a CAGR of 15.8% during the forecast period 2022-2027. The high demand for high purity alumina in the electrical & electronics sector is due to its flourishing application in semiconductors, technical ceramics, LED reflectors, insulators and others. Furthermore, superior properties of high purity alumina such as good electrical insulation and temperature resistance are further driving its demand in the sector. The electrical & electronics sector is showing tremendous growth on account of the growing consumption of electrical components such as semiconductors on a global scale. For instance, according to World Semiconductor Trade Statistics, in November 2021, global semiconductor sales stood at US$49.7 billion, showing a 23.5% increase over November 2020 sales. With the increase in semiconductor sales, the demand for high purity alumina which is used as a semiconductor processing material also increased. This resulted in the positive market growth of high purity alumina in the electrical & electronics industry.

High Purity Alumina Market Segment Analysis – by Geography

Asia-Pacific held the largest share in the High Purity Alumina Market share in 2021 up to 43%. The demand for high purity alumina in the Asia-Pacific is significantly growing on account of flourishing demand from major end-use industries such as automotive, mining and electrical & electronics. Growing mineral consumption, high demand for consumer electronics and technological upgrades in automotive manufacturing coupled with progressing investments have increased the production scale of these sectors. For instance, according to the International Organization of Motor Vehicle Manufacturers, in 2021, India’s automotive production stood at 4.4 million units showing a 33% increase in comparison with the 2020 production level. Also, according to the National Bureau of Statistics, China’s integrated circuit production stood at 359.4 billion showing a 33.3% increase. Furthermore, according to the Ministry of Economy, Trade and Industry, in September 2021, Japan’s mining production increased by 5.6% in comparison to September 2020. With the robust growth of the automotive, electrical & electronics and mining sectors, the demand for high purity alumina for applications in automotive sensors, grinding wear components and electrical insulation also increased, thereby boosting the growth of the high purity alumina industry in the Asia-Pacific region.

High Purity Alumina Market Drivers

Bolstering Growth of Automotive Sector:

High Purity Alumina also called aloxite, corundum or alundum has rich chemical and mechanical properties on account which it is majorly demanded in the automotive sector for applications. Due to its high temperature and wear resistance, a combination of high purity alumina and zirconia is used in automotive sensors for detecting air-to-fuel ratio, furthermore, like coating, high purity alumina is applied on separator sheets of lithium batteries. The automotive sector is showing tremendous on account of technological upgrades coupled with the rapid increase in commercial as well as electric vehicle production. According to the International Organization of Motor Vehicles Manufacturers, in 2021, global production of light commercial vehicles stood at 18.6 million units showing an 8% increase in comparison with 2020 production. Furthermore, according to International Energy Agency, in 2021, nearly 6.6 million electric vehicles were produced and sold worldwide, showing a 6% increase in global automotive market share. With the increase in commercial and electric vehicle production, the demand for high purity alumina is rising for its applicability in automotive sensors and lithium-ion batteries. Thus, the flourishing demand for high-purity alumina on account of growing automotive production will provide growth opportunities to the high-purity alumina industry. 

Growing Construction of Nuclear Power Reactors:

High Purity Alumina has wear and high-temperature resistance features due to which it has applicability in the energy generation sector, where it is used in high voltage dielectric components for nuclear energy production. With the substantial increase in energy demand on account of a growing population and rising industrial activities, the demand for nuclear energy has also increased, resulting in the establishment of nuclear energy reactors in various countries. According to China’s State Council, in 2022, China approved the construction of six nuclear power reactors to strengthen its energy supply. Furthermore, according to the US Energy Information Administration, in 2021, the construction of two new nuclear reactors started in Georgia with each having an electricity generation capacity of 1,100 MGW. With such growing construction of nuclear reactors, the demand for high purity alumina for dielectric components also increased, thereby boosting the growth of the High Purity Alumina Market.

High Purity Alumina Market Challenge 

High Cost Associated with Aluminum:

High-purity alumina is produced by hydrolysis of aluminum alkoxide using aluminum metal, but the expensive nature of aluminum metal can pose a challenge to the growth of the high-purity alumina industry. Aluminum prices have risen to their highest level in 13 years as a result of a limited supply brought on by production shutdowns and reductions in Europe owing to high energy costs, problems in China, and concern over potential sanctions against Russia. On February 9, 2022, the LME aluminum cash price ended at $3,247/mt, which was both a record high since July 2008 and a 15.3 percent increase from the year's beginning. Aluminum is found in an impure chemical state in nature due to which its extraction and conversion process requires a lot of time and energy. This results in high raw material cost which is three times more expensive than steel. Furthermore, aluminum being too high in electrochemical series requires a very high temperature to extract it from its ore. The expensive nature of aluminum on account of its high manufacturing cost could impact its usage in the manufacturing of high purity alumina which could slow down the market growth, thereby negatively impacting the High Purity Alumina Market size. 

High Purity Alumina Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the High Purity Alumina Market. Top 10 companies in High Purity Alumina Market are:

  1. Altech Chemicals
  2. Sumito Chemicals Co. Ltd
  3. Nippon Light Metal Holding Co. Ltd
  4. Sasol Limited
  5. Xuancheng Jingrui New Materials Co. Ltd
  6. Norsk Hydro ASA
  7. Alcoa Inc.
  8. Zibo Honghe Chemicals Co. Ltd
  9. Baikowski SAS
  10. Polar Sapphire Ltd.

Recent Developments

  • In November 2021, Frontier Resource Ltd., entered into a conditional agreement to acquire all shares of Dalkeith Capital Pty Ltd., which holds two exploration license applications for high purity alumina in the east of Perth.
  • In November 2021, Altech Chemicals Ltd. signed an option agreement with Advance Atech Chemicals Australia to acquire 49% of the shares in Altech Australia's high-purity Alumina Project
  • In September 2021, Alcoa of Australia Limited, an Alcoa Inc. subsidiary, signed a binding term sheet with FYI Resources Ltd. for the development of high purity alumina.

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1. High Purity Alumina Market - Market Overview
    1.1 Definitions and Scope
2. High Purity Alumina Market - Executive Summary
    2.1 Key Trends by Purity
    2.2 Key Trends by Production Method
    2.3 Key Trends by Application
    2.4 Key Trends by End-use Industry
    2.5 Key Trends by Geography
3. High Purity Alumina Market – Comparative analysis
    3.1 Market Share Analysis - Major Companies
    3.2 Product Benchmarking - Major Companies
    3.3 Top 5 Financials Analysis
    3.4 Patent Analysis - Major Companies
    3.5 Pricing Analysis (ASPs will be provided)
4. High Purity Alumina Market - Startup companies Scenario Premium Premium 
    4.1 Major startup company analysis:
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Product portfolio
        4.1.4 Venture Capital and Funding Scenario
5. High Purity Alumina Market – Industry Market Entry Scenario Premium Premium 
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Successful Venture Profiles
    5.4 Customer Analysis – Major companies
6. High Purity Alumina Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porter's Five Force Model
        6.3.1 Bargaining Power of Suppliers
        6.3.2 Bargaining Powers of Buyers
        6.3.3 Threat of New Entrants
        6.3.4 Competitive Rivalry
        6.3.5 Threat of Substitutes
7. High Purity Alumina Market – Strategic Analysis
    7.1 Value/Supply Chain Analysis
    7.2 Opportunity Analysis
    7.3 Product/Market Life Cycle
    7.4 Distributor Analysis – Major Companies
8. High Purity Alumina Market – by Purity (Market Size - US$ Million/Billion)
    8.1 4N High Purity Alumina
    8.2 5N High Purity Alumina
    8.3 6N High Purity Alumina
9. High Purity Alumina Market – by Production Method (Market Size - US$ Million/Billion)
    9.1 Hydrolysis
    9.2 Thermal Decomposition
    9.3 Vapor-phased Oxidation
    9.4 Others
10. High Purity Alumina Market – by Application (Market Size - US$ Million/Billion)
    10.1 Optical Lenses
    10.2 Bio-Medical Devices
    10.3 Coatings
    10.4 Automotive Sensors
    10.5 Electric & Display Materials
    10.6 Resin Fillers
    10.7 Others
11. High Purity Alumina Market - by End-use Industry (Market Size - US$ Million/Billion)
    11.1 Automotive
        11.1.1 Light Commercial Vehicles
        11.1.2 Heavy Commercial Vehicles
        11.1.3 Passenger Vehicles
    11.2 Building & Construction
        11.2.1 Residential
        11.2.2 Commercial
        11.2.3 Industrial
        11.2.4 Infrastructural
    11.3 Electrical & Electronics
        11.3.1 Semiconductors
        11.3.2 Insulators
        11.3.3 Electrical Power Devices
        11.3.4 Lightings
        11.3.5 Li-ion Batteries
        11.3.6 Others
    11.4 Chemicals
        11.4.1 Adhesives
        11.4.2 Plasticizers
        11.4.3 Rubber Chemicals
        11.4.4 Polymer Additives
    11.5 Mining Industry
    11.6 Power Generation
    11.7 Others
12. High Purity Alumina Market – by Geography (Market Size - US$ Million/Billion)
    12.1 North America
        12.1.1 the USA
        12.1.2 Canada
        12.1.3 Mexico
    12.2 Europe
        12.2.1 the UK
        12.2.2 Germany
        12.2.3 France
        12.2.4 Italy
        12.2.5 the Netherlands
        12.2.6 Spain
        12.2.7 Belgium
        12.2.8 Rest of Europe
    12.3 Asia-Pacific
        12.3.1 China
        12.3.2 Japan
        12.3.3 India
        12.3.4 South Korea
        12.3.5 Australia and New Zeeland
        12.3.6 Indonesia
        12.3.7 Taiwan
        12.3.8 Malaysia
        12.3.9 Rest of APAC
    12.4 South America
        12.4.1 Brazil
        12.4.2 Argentina
        12.4.3 Colombia
        12.4.4 Chile
        12.4.5 Rest of South America
    12.5 Rest of the World
        12.5.1 the Middle East
   Saudi Arabia
   Rest of the Middle East
        12.5.2 Africa
   South Africa
   Rest of Africa
13. High Purity Alumina Market – Entropy
    13.1 New Product Launches
    13.2 M&As, Collaborations, JVs and Partnerships
14. High Purity Alumina Market – Industry/Competition Segment Analysis Premium 
    14.1 Company Benchmarking Matrix – Major Companies
    14.2 Market Share by Key Application - Major companies
    14.3 Market Share by Key Product Type/Product category - Major companies
15. High Purity Alumina Market – Key Company List by Country Premium Premium 
16. High Purity Alumina Market Company Analysis - Business Overview, Product Portfolio, Financials and Developments.
    16.1 Company 1
    16.2 Company 2
    16.3 Company 3
    16.4 Company 4
    16.5 Company 5
    16.6 Company 6
    16.7 Company 7
    16.8 Company 8
    16.9 Company 9
    16.10 Company 10 and more
* "Financials would be provided to private companies on best-efforts basis."
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