Intersection of Electronic & Automotive Industries to Fuel Growth of High Purity Alumina Market
Huge CAPEX and OPEX requirements, and poor sustainability credentials, and yet, analysts at Transparency Market Research (TMR) foresee staggering growth of the high purity alumina market during the period of 2018-2026. As per the analysis, the sales of high purity alumina (HPA) will remain upheld by increasing investments coming in from the electronics industry for the manufacturing of LEDs. Also, an intersection of the automotive and electronics industries overlapping lithium-ion applications holds numerous apparent and latent opportunities for market players.
However, despite the enormous sales potential of high purity alumina, with no direct substitutes in the picture, entry into the HPA market implies steep initial investment and sound technical knowledge. That being said, extant players will remain at the helm of the high purity alumina market, who lucidly finance R&D activities to emerge as distinguished manufacturers. Given the profound influence of the changing dynamics, the high purity alumina market is estimated to advance at a compound annual growth rate of ~15 percent during 2018-2026.
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4N to Remain the Gold Standard Grade for End-use Industries
TMR’s study finds that, 4N grade high purity alumina will account for ~64 percent of the total sales in 2018, while alumina with 5N grade of purity is projected to record a striking CAGR of ~18% during 2018-2026. The uptick in sales of alumina with 4N grade can be attributable to the customized demand from end-use industries for the production of LEDs and lithium-ion batteries.
To add to that, the cost benefits provided by these grades are better than those offered by alumina of 5N and 6N grades, which is projected to complement the growth of the high purity alumina market. In the future, as scratch resistance will be the default feature for the glasses of smart gadgets and devices, 4N grade alumina is projected to witness sustained demand.
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Extinction of Incandescent Bulbs to Cause Booming Growth for High Purity Alumina Market
The governments of several countries have pronounced a ban on the use of incandescent bulbs, on account of their inefficiency and a large amount of heat generation. With the drumbeat of authorities to phase out these bulbs, regions such as Europe, Argentina, Malaysia, Korea, the U.S., Canada, and Mexico have implemented this ban, and the quest for efficient alternatives began among end users. However, the profound objections for replacing incandescent bulbs chiefly constituted of the cost-prohibitive nature of alternative lighting technologies, such LEDs.
This serves as an opportunity for players in the high purity alumina market to achieve reduced cost of LEDs by increasing their production capacity and scaling down the prices of their products. Opportunities also await from the construction sector, which operates under stringent regulations to adhere to the green code for optimizing the use of energy, which is likely to create opportunities for LEDs in particular, and for high purity alumina in general.
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Analysts’ Opinion on HPA Market
Authors of the report portend that, the high purity alumina market will grow from ~US$ 1.3 Bn in 2018 to ~US$ 4 Bn in 2026, and efforts taken by manufacturers to reduce overheads cost by boosting production capacity is projected to create enormous opportunities in end-use industries. Sasol Limited illustrates this strategy. In February 2018, the company announced the expansion of its production facility at its Brunsbuettel site in Germany, wherein, an increase in the volume production of high purity alumina by 15 thousand tons per annum is estimated. As the sales of smart devices and gadgets are witnessing an exponential rise in the consumer space, manufacturers will make extensive use of high grade alumina to work on the portability quo of these devices, by downsizing the size of batteries
High Purity Alumina Market Description
- The high purity alumina (HPA) market was valued at ~US$ 1.1 Bn in 2017. The HPA market is expected to rise at a high CAGR of ~15% over the forecast period.
- The global high purity alumina is projected to reach a value of ~4 Bn by the year 2026.
- High purity aluminum oxide is often termed as high purity alumina (HPA). It is a high-value, white, granular chemical produced commercially, either by treating aluminum with specific chemicals or through the use of other aluminous feedstock.
- Some of the most commonly-used processes for high purity alumina production include the alkoxide process, thermal decomposition process, choline hydrolysis process, and modified Bayer process.
- One of the most prominent applications of HPA is its use in LED production. Sapphire produced using high purity alumina as raw material is used as a substrate for LEDs. Single crystal sapphire is characterized by favorable chemical stability and mechanical properties, rendering it ideal for use in the electronics industry, especially in LED production. Another key use of sapphire is in semiconductor application. Single crystal sapphire boules, which are produced using HPA, are sliced into wafers. The wafers are used for a variety of semiconductor-related applications.
- In lithium-ion batteries, high purity alumina is utilized as a separator coating. These batteries are primarily used in electric vehicles and electronic devices. Other applications include alumina ceramics, abrasives, separation membrane, and translucent cosmetics.
Key Growth Drivers of High Purity Alumina Market
- The demand for electronics is expected to increase at a significant rate due to the rising need for smartphones; electrical appliances; and electronic components such as wafers, integrated circuits (ICs), and data storage devices.
- Rise in the demand for high-quality consumer electronic devices is expected to further boost the growth of the high purity alumina market in the coming years. In Asia Pacific, China has become the hub of electronic equipment production in the last few years. The U.S. is expected to create lucrative opportunities for small- to medium-sized electronic manufacturers based in Mexico due to rising investments in electronics, the country’s low-cost production, and the rising number of foreign investment programs in the country. Germany, France, and the U.K. are expected to record strong expansion in automotive electronics and sensors, owing to the rising demand for comfort, engine efficiency, safety, navigation, information, and entertainment features.
- All these factors are expected to boost the growth of the HPA market during the forecast period.
High Demand from LEDs to Drive growth of 4N and 5N Grade in High Purity Alumina Market
- Prominent product types offered in the high purity alumina market are 4N high purity alumina–99.99%, 5N high purity alumina–99.999%, and 6N high purity alumina– 99.9999%.
- The 4N grade of HPA has an impurity level of only 0.01%, with a purity level of 99.99%. It is commonly used in LEDs, energy storage capacitors, and lithium-ion batteries, as well as in decorative and bright-finish applications. 5N grade high purity alumina has an impurity level of only 0.001%, with a purity level of 99.999%. It is used in liquid crystal displays (LCDs) and semiconductor industries in sputtering and thin film applications.
- High purity alumina 6N grade has an impurity level of only 0.0001%, with a purity level of 99.9999%. It is used in sputtering and thin film applications. In addition, it is utilized in abrasive, alumina ceramics, separation membranes, etc.
- The use of 5N grade high purity alumina, especially in the production of single crystal sapphire, has increased over the recent past. Moreover, this trend is expected to continue during the forecast period.
- Although 4N grade and 5N grade of HPA have been conventionally used for sapphire, an increasing preference for the latter has been witnessed in the last few years. This is because the concentration of trace elements is relatively lower in 5N as compared to 4N. Furthermore, the use of 5N grade ensures better yield and throughput as compared to 4N.
Lucrative Opportunities in Global High Purity Alumina Market
- The consumer electronics industry is a leading and rapidly expanding manufacturing industry. Globally, in 2016, total electronics & electrical equipment production was valued at US $ 2.1 Tn.
- The use of high purity alumina is rising in the electronics industry, due to its characteristic properties such as high plasma corrosion resistance and relatively high strength, which makes it ideal for use in semiconductor wafer processing equipment and other related components. The demand for high purity alumina in semiconductor applications is expected to rise steadily over the forecast period.
- All these factors are expected to augment the growth of the high purity alumina market over the period of forecast.
Asia Pacific to Dominate Global High Purity Alumina Market
- In 2017, Asia Pacific was the leading region in the high purity alumina market, accounting for a significant share of the global HPA market. Consumption of high purity alumina is concentrated predominantly in electronic production hubs such as China, Japan, South Korea, and Taiwan.
- The consumption of high purity alumina is expected to rise in North America during the forecast period, spearheaded by the U.S. This is due to the emergence of low-cost high purity alumina producers during the initial phase of the forecast period, thus boosting the high purity alumina market in the region
Leading Players in HPA Market
- Major players operating in the high purity alumina market include
- Sumitomo Chemical Co. Ltd.
- Sasol Ltd.
- Baikowski SAS
- Hebei Heng Bo New Material Technology Co. Ltd.
- Nippon Light Metal Co. Ltd.
- Altech Chemicals Ltd.
- Polar Sapphire Ltd.
- Companies in the high purity alumina market are continuously adopting the strategy of expanding their geographical footprint through capacity expansion, introduction of new products, and expansion of end-use portfolios.
- For instance, Altech Chemicals Limited signed a sales and distribution agreement with Mitsubishi Corporation's Australian subsidiary, Mitsubishi Australia Ltd (Mitsubishi), for its proposed high purity alumina product.
High Purity Alumina Market - Scope of the Report
A latest study collated and published by Transparency Market Research (TMR) analyzes the historical and present-day scenario of the global high purity alumina (HPA) market, to accurately gauge its potential future development. The study presents detailed information about the important growth factors, restraints, and key trends that are creating the landscape for the future growth of the high purity alumina market, to identify the opportunistic avenues of the business potential for stakeholders. The report also provides insightful information about how the HPA market will progress during the forecast period of 2018-2026.
The report offers intricate dynamics about the different aspects of the high purity alumina market that aids companies operating in the HPA market in making strategic development decisions. TMR’s study also elaborates on the significant changes that are highly anticipated to configure the growth of the high purity alumina market during the forecast period. It also includes a key indicator assessment to highlight the growth prospects of the high purity alumina market, and estimate statistics related to the market progress in terms of value (US$ Thousand) and volume (Tons).
The report mentions the company profiles of key players that are currently dominating the high purity alumina market, wherein, various development, expansion, and winning strategies practiced and executed by leading players have been presented in detail.
Key Questions Answered in TMR’s Report on the HPA Market
The report provides detailed information about the high purity alumina market on the basis of comprehensive research on various factors that are playing a key role in accelerating the growth potential of the market. Information mentioned in the report answers path-breaking questions for companies that are currently functioning in the market and are looking for innovative ways to create a unique benchmark in the high purity alumina industry, so as to help them make successful strategies and take target-driven decisions.
- Which grade is likely to generate the highest revenue by 2026?
- How are key market players successfully earning revenue out of the advantages of high purity alumina?
- What will be the Y-o-Y growth of the high purity alumina market between 2019 and 2026?
- What are the indicators expected to drive the high purity alumina market?
- Which regions are likely to provide profitable scope of opportunities for high purity alumina market competitors?
Research Methodology – High Purity Alumina Market
The research methodology adopted by analysts for combining the high purity alumina market report is based on detailed primary as well as secondary research. With the help of in-depth insights of the industry-affiliated information that is obtained and legitimated by market-admissible resources, analysts have offered riveting observations and authentic forecasts of the high purity alumina market.
During the primary research phase of the HPA market report, analysts interviewed industry stakeholders, investors, brand managers, vice presidents, and sales and marketing managers. On the basis of data obtained through the interviews of genuine resources, analysts have emphasized the changing scenario of the high purity alumina market.
For secondary research, analysts scrutinized numerous annual report publications, white papers, industry association publications, and company websites to obtain the necessary understanding of the high purity alumina market.
High Purity Alumina Market - Segmentation
TMR’s research study assesses the high purity alumina market on the basis of grade, application, and region. This report presents the extensive market dynamics and progressive trends associated with different segments, and how they are influencing the growth prospects of the HPA market.
Middle East & Africa