High Purity Alumina (HPA) Market- Snapshot
High purity aluminum oxide is often termed as high purity alumina. It is a high-value, white, granular chemical produced commercially either by treating aluminum with specific chemicals or through use of other aluminous feed stock. Some of the most commonly used processes for high purity alumina production include alkoxide process, thermal decomposition process, choline hydrolysis process, and modified Bayer process.

One of the most prominent applications of high purity alumina 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 chemicals stability and mechanical properties, rendering it ideal for use in the electronics industry, especially in LED production. Another key use of sapphire is in the semiconductor application. Single crystal sapphire boules, which are produced using high purity alumina, are sliced into wafers. The wafers are used for a variety of semiconductor-related applications. In Li-ion batteries, high purity alumina is utilized as separator coating. These batteries are primarily consumed by electric vehicles and electronic devices. Other applications include alumina ceramics, abrasives, separation membrane, and translucent cosmetics. 

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 high purity alumina has impurity level of only 0.01%, with 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 impurity level of only 0.001%, with purity level of 99.999%. It is used in liquid crystal display (LCD) and semiconductor industries in sputtering and thin film applications. High purity alumina 6N grade has impurity level of only 0.0001% with 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. 

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 high purity alumina have been conventionally used for sapphire, an increasing preference for the latter has been witnessed in the last few years. This is because 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.

The consumer electronics industry is a leading and rapidly expanding manufacturing industry. Globally, in 2016, the total electronics & electrical equipment production was estimated to be valued at US $ 2.1 Trn. Demand for electronics is expected to increase at a significant rate due to rising need for smartphones; electrical appliances; and electronic components such as wafers, integrated circuit (IC), and data storage devices. Rise in demand for high-quality consumer electronic devices is expected to further boost demand for high purity alumina 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 investment 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. Use of high purity alumina is rising in the electronic industry due to its characteristic properties such as high plasma corrosion resistance and relatively high strength, which make it ideal for use in semiconductor wafer processing equipment and other related components. 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 high purity alumina market.

In 2017, Asia Pacific was the leading region of the high purity alumina market, accounting for a significant market share. Consumption of high purity alumina is concentrated predominantly in electronics production hubs such as China, Japan, South Korea, and Taiwan. 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 emergence of low-cost high-purity alumina producers during the initial phase of the forecast period.

Companies 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 (high purity alumina) product. 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., and Polar Sapphire Ltd.

 

High Purity Alumina (HPA) Market – Overview

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 by use of other aluminous feed stock. Some of the most commonly used processes for HPA production include alkoxide process, thermal decomposition process, choline hydrolysis process, and modified Bayer process. Prominent product types offered in the HPA market are 4N HPA–99.99%, 5N HPA–99.999%, and 6N HPA– 99.9999%.

Developing economies such as those in Asia Pacific in particular are expected to witness strong growth in adoption of LEDs for lighting applications over the forecast period. Increasing demand for HPA from the electronics industry and for other applications such as lithium-ion battery, sapphire glass for optical applications, and sapphire screens among others is expected to fuel the high purity alumina market during the forecast period.

High purity alumina is utilized in applications such as LED production, semiconductor industry, sapphire substrates (such as sapphire glass, monocrystals, LCDs, etc.), lithium-ion battery production (as battery separator coatings) among others. Production costs for LEDs and related products have declined over the recent past. Furthermore, this trend is expected to continue over the forecast period. Thus, steady rise in demand for LEDs and the corresponding increase in LED production are expected to drive the consumption of high purity alumina during the forecast period.

Recent advances in LED technology have prompted governments to quickly adopt the technology. With development in energy efficient technology, developed as well as developing economies are quickly moving to LEDs to avert an energy crisis. For instance, the government of China offers substantial subsidies for LED production in order to ensure rapid expansion of the LED industry in the country. Also, the U.S. Department of Energy has highlighted the benefits associated with the switchover to LED lighting against conventional lighting. Accordingly, there has been a significant focus on increasing the penetration of LEDs, especially in lighting applications in the U.S..

Companies 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, Sumitomo Chemical Co., Ltd. expanded the production capacity of a manufacturing facility for high-purity alumina, used mainly as a raw material for sapphire substrates used in LEDs, from 1,600 tons per year to 3,200 tons per year.

Production of high purity alumina is highly capital intensive, which creates high entry barriers for new entrants. High production costs result in high cost of end-products and relatively low profitability. Thus, the market is highly consolidated and is mainly dominated by major players based in China, Japan, South Korea, and the U.S.

The report analyzes and forecasts the market for high purity alumina at the global and regional level. The market has been forecast based on volume (tons) and revenue (US$ Mn) from 2018 to 2026. The study includes drivers and restraints of the global high purity alumina market. It also covers the impact of these drivers and restraints on the demand for high purity alumina during the forecast period. The report also highlights opportunities in the high purity alumina market at the global and regional level. 

The report comprises a detailed value chain analysis, which provides a comprehensive view of the global high purity alumina market. The Porter’s Five Forces model for the high purity alumina market has also been included to help understand the competitive landscape. The study encompasses market attractiveness analysis, wherein applications are benchmarked based on their market size, growth rate, and general attractiveness. 

The study provides a decisive view of the global high purity alumina market by segmenting it in terms of grade, application, and region. These segments have been analyzed based on the present and future trends. Regional segmentation includes the current and forecast demand for high purity alumina in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The report also covers the demand for individual application segments in all regions.

The study includes profiles of major companies operating in the global high purity alumina market. Key players profiled in the global 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., and Polar Sapphire Ltd. Market players have been profiled in terms of attributes such as company overview, business strategies, recent developments, financial details, etc.

The report provides the estimated market size of high purity alumina for 2017 and forecast for the next nine years. The global size of the high purity alumina market has been provided in terms of volume and revenue. Market numbers have been estimated based on grade, application, and region. Market size and forecast for each grade and application have been provided in terms of global and regional markets.

High Purity Alumina Market – Grade Analysis

  • 4N
  • 5N
  • 6N

High Purity Alumina Market – Application Analysis

  • LEDs
  • Semiconductor
  • Phosphor
  • Li-ion Batteries
  • Sapphire
  • Others

High Purity Alumina Market – Regional Analysis

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
    • Russia & CIS
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • ASEAN
    • South Korea
    • Australia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa

Key Takeaways

  • The report provides extensive analysis of market trends and shares from 2017 to 2026 at the global as well as regional level, in terms of grade and application segments
  • It also provides detailed country level analysis and forecast for key countries (the U.S., Canada, Germany, France, the U.K., Italy, Spain, Russia & CIS, China, Japan, India, ASEAN, South Korea, Australia, Brazil, Mexico, GCC, and South Africa) and the rest of the area in each region with respect to different segments
  • Detailed Porter’s Five Forces Analysis and Value Chain Analysis have been provided. They include integration between market players, along with identification of potential key customers for the high purity alumina market.
  • The report further analyzes various market drivers, inhibitors, current & future market trends, and emerging applications
  • The report comprises detailed pricing analysis with respect to grade, application, region, and key players. It includes regional and county level production output scenario.
  • Competition landscape covers key companies’ profiling, market share analysis, market footprint analysis, competitive benchmarking, and competition matrix for key players