Global High Purity Alumina Market: Snapshot
The global market for high purity alumina market is rising due to significant rise in demand for lithium-ion batteries, LEDs, and related products. Rise in demand for LED products in developing countries are driving the force for global high purity alumina market. It has usage in various applications such as thermal decomposition process, alkoxide process, modified bayer process, and choline hydrolysis process. High purity alumina is also used for coating of sapphire glass. Separators of lithium-ion battery that are found in portable electronics and electric vehicles. There is a rise in demand for high purity alumina by smartphones manufacturers due to rise in use of sapphire glass. The major factor driving the market is LED productions. LED’s substrate includes high purity alumina’s sapphire as a material. The crystal sapphire is derived from high purity alumina possesses favorable mechanical properties and chemical stability. This makes it ideal for the electronic industry. The global market for high purity alumina is also driven by sapphire’s use in semiconductor applications. High purity alumina is used as separators in Li-ion batteries that are used in electronic devices and electric vehicles. The other applications of high purity alumina are abrasives, alumina ceramic, translucent cosmetics, and separation membrane.
The global high purity alumina market is expected to expand at a remarkable CAGR of 15.4% during the forecast period of 2018 to 2026. The global market’s revenue was valued at US$1,100 mn during 2017 and is expected to rise significantly during the forecast period.
Higher Adoption of Lithium-Ion Batteries Due to Rise of Electric Vehicles
The high purity alumina market is segment according to product type into 4N high purity alumina that is 99.99%, 5N high purity alumina that is 99.999%, and 6N purity alumina which is 99.9999%. Among these, demand for 4N high purity alumina that is lithium-ion batteries with 99.99% will rise during the forecast period due to its significant use in electric vehicles in emerging countries such as South Korea, U.S., and china. Gigafactory, the lithium-ion battery manufacturing company in U.S. has already increased the demand for high purity alumina market. This company manufactures solar panel, energy storage, and electric vehicles. Its demand in storage capacitors, LEDs, and lithium-ion based batteries will fuel the market for the same. Thus, 4n high purity lithium is expected to lead the market during the forecast period.
Asia Pacific to Lead Market Owing to Demand in Emerging Countries
The high purity alumina market was led by Asia pacific during 2017 due to highest market share held by this region. Asia pacific is expected to lead the market during the forecast period due to emerging developing countries such as China, Taiwan, South Korea, and japan dominating the market for electronic equipment production during the forecast period. North America is expected to rise during the forecast period due to its high consumption of high purity alumina market. The market in U.S is expected to generate lucrative opportunities for medium to small based manufacturers owing to rise in investment of electronics and from foreign programs. The rise in demand is due to factors such as entertainment features, information, navigation, safety, comfort, and engine sufficiency.
Some of the leading companies in the global high purity alumina market are Polar Saffire Ltd., Altech Chemicals Ltd., Nippon Light Metal Co. Ltd. Sumitomo Chemical Co. Ltd., and Sasol Ltd.
High Purity Alumina 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
High Purity Alumina Market – Application Analysis
- Li-ion Batteries
High Purity Alumina Market – Regional Analysis
- North America
- Russia & CIS
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
- 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