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).
- 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
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:
- Altech Chemicals
- Sumito Chemicals Co. Ltd
- Nippon Light Metal Holding Co. Ltd
- Sasol Limited
- Xuancheng Jingrui New Materials Co. Ltd
- Norsk Hydro ASA
- Alcoa Inc.
- Zibo Honghe Chemicals Co. Ltd
- Baikowski SAS
- Polar Sapphire Ltd.
- 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.
Report Code – CMR 1217
Report Code – CMR 20118
Report Code – CMR 0238
For more Chemicals and Materials Market reports, please click here