High Purity Alumina Market

High Purity Alumina an Important Material in Clean Technologies

High purity alumina (HPA) is >99.99% pure and finds application in high-growth industries such as electronics, automotive, and energy. In 2018, demand for high purity alumina was projected to reach over 30,000 ton per annum with 4N (99.99%) contributing to a majority of the portion. Predominant consumption of 4N HPA in LED applications, as well as in lithium-ion battery separators will continue to drive the growth of high purity alumina market. In the past few years, demand for high-performance grades has increased compared to low-cost grades, with significant demand coming from electric vehicles, and energy storage market. This is expected to create a favourable ground for expansion of high purity alumina market in future.

It is estimated that over the next few years, demand for 5N and 6N high purity alumina is expected to exhibit staggering growth. 5N HPA has improved scratch resistance, hardness, as well as chemical stability, which makes it a suitable material for sapphire manufacturing. Sapphire displays have better scratch resistance, and durability compared to displays in the market. With its high thermal stability, and polishing performance, 6N HPA is also poised for high demand growth, especially attributing to accelerating consumption by aerospace & defense, healthcare, and electronics industries.

Rise of Electric Vehicles Bodes Well for High Purity Alumina Demand

Global production, and consumption of high purity alumina remains concentrated in Asia Pacific, spearheaded by China that has been the most prolific producer, and consumer in high purity alumina market across Asia Pacific. China is the world’s largest production hub for LED epi wafer and has a strong foothold in LED lighting for automotive, general, and display applications. Europe, and North America are also expected to present ample growth opportunities to high purity alumina market owing to rise in electric vehicles market.

Upsurge in the use of lithium-ion batteries is likely to escalate growth of high purity alumina market, especially in energy storage, and electric vehicles market. Europe aspires to become leading market for lithium-ion batteries and the market is expected to grow tenfold over the next 5-7 years. Furthermore, EU has taken initiatives such Battery 2030+ to develop future battery technologies and strengthen value chain in the field of energy storage.

High Purity Alumina Becomes a Critical Component in Li-ion Battery Revolution 

There is a drastic shift in electrification of transport and electric vehicles are gaining high market penetration rates due to green initiatives by EU, China, and US Battery separators/electrodes are key to the performance and safety of high temperature electric vehicle batteries. Companies are investing largely in Li-ion batteries with more than 50 mega factories under construction to meet the growing demand for Li-Ion batteries, indicating a robust revenue generation opportunity in high purity alumina market. High purity alumina improves battery life cycle and reduces self-discharge along with better thermal stability. It is a precursor to ceramic coated Li-Ion battery separators and currently, more than 60% of coated battery separators used in the industry consume high purity alumina. The number is expected to reach beyond 80% by the end of 2030, which again suggests an impressive growth prospect for high purity alumina market.

Traditionally, LED lighting has been the key driving factor behind the growth of high purity alumina market. With LED production slated for 10-12% growth in the next 5-7 years, high purity alumina market is also set to thrive on the back of it. LED uses less energy compared to incandescent (75% less energy consumption) and fluorescent lights (40% less energy consumption). As it is highly energy-efficient compared to other commercial lighting technologies, several nations including Japan, South Korea, US, China, India, and EU have been promoting the usage of LED lighting. More than 85% of the total LEDs in the market use sapphire substrate produced with the help of high purity alumina. There is a significantly rising demand for better quality high purity alumina (4N+ grades) from LED manufacturers, which sustains the growth of high purity alumina market.

Threat from High Operating Costs, and Cost Competitive Substitutes Prevails

Manufacturing of high purity alumina is a very energy- and capital-intensive process. Furthermore, majority of the producers use common process (hydrolysis of aluminium alkoxide) that uses expensive feedstock such as aluminium metal.  Manufacturing processes that are currently implemented have high operating and capital expenditures. These processes also have environmental implications with restrictive overlay of government regulations.

Furthermore, there is a moderate threat of substitution for high purity alumina in LED market due to increasing usage of silicon carbide, and silicon substrates. Although there is no major substitute for high purity alumina in the production of synthetic sapphire, these products are cost-competitive, and makes a viable substitute. A few of the prominent manufacturers in the Li-ion battery market have opted to go for cost-competitive products such as boehmite as a coating material. However, research shows that sodium leaching was occurred with boehmite coating that can create dendrites, thus compromising safety of the battery.

Supply Concentrated in Asia Pacific

Asia Pacific has become the manufacturing hub of high purity alumina with more than six companies contributing to the two-thirds of the world’s output. Companies such as Sumitomo, Hebei pengda, Zibo Xinfumeng, Nippon Light Metal, and Bestry Technology are some of the leading manufacturers in the region. Recognised multinational companies operating in industry have diverse business portfolios with high purity alumina being only a small part of their entire offerings. On the other hand, Chinese companies remain focused on high purity alumina as their key product and thereby meet growing domestic demand. Strategic alliances have become a preferred strategy for a competitive advantage. In 2020, FYI Resources signed a MoU with Alcoa for developing superior-quality high purity alumina. This memorandum will help the participants enhance their current capacities, and technical know-hows.

The Global High Purity Alumina Market Has Been Segmented As Below:

By Type

• 4N high purity alumina (HPA)
• 5N high purity alumina (HPA)
• 6N high purity alumina (HPA)

By Technology

• Hydrolysis
• Hydrochloric Acid Leaching

By Application

• LED Lighting
• Semiconductor Substrate
• Li-ion Batteries
• Optical Lenses
• Biomedical Devices
• Others

By Region     

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
• Latin America
  • Brazil
  • Mexico
• MEA
  • Saudi Arabia
  • UAE
  • South Africa

Key Elements Included In The Study: Global High Purity Alumina Market

• High Purity Alumina Market by Product/Technology/Grade, Application/End-user, and Region
• Executive Summary (Opportunity Analysis and Key Trends)
• Historical Market Size and Estimates, Value and Volume, 2018 - 2021
• Volume Consumption at Regional and Country Level, 2022 - 2029
• Market Dynamics and Economic Overview
• Market Size in Value and Volume, Growth Rates, and Forecast Figures, 2022 - 2029
• Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
• Regional and Product/Grade/Application/End-user Price Trends Analysis
• Production Output Analysis (Major Producing Regions)
• Key Trade Statistics (Import and Export)
• Value Chain and Five Force’s Analysis
• Regional/Sub-region/Country Market Size and Trend Analysis
• Company Market Share Analysis and Key Player Profiles

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Disclaimer:

• The segmentation/company profiles/countries depicted above may vary in the actual report.