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The High Purity Alumina Market size is estimated to grow at a CAGR of 25.5% between 2022 and 2027 with the market size forecast to increase by USD 3,500.2 million.
This high purity alumina market research report extensively covers market segmentation by application (LEDs, semiconductors, phosphors, and others), type (4N HPA, 5N HPA, and 6N HPA), and geography (APAC, North America, Europe, Middle East and Africa, and South America). Our report examines historic data from 2017 to 2021, besides analyzing the current market scenario.
The market's growth is influenced by several factors, including the increasing adoption of LED lighting, rising demand for semiconductors, and growing consumption of lithium-ion batteries.
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HPA is a high-purity form of aluminum oxide and is predominantly used in non-metallurgical applications. It has a minimum purity of 99.99% and is used to produce various industrial and consumer products, including LEDs, semiconductors, sapphire glass, separators of lithium-ion batteries, and others.
Based on application, the market is segmented into LEDs, semiconductors, phosphors, and others. The market share growth by the LEDs segment will be significant during the forecast period. High purity alumina is predominantly used as a base material in the manufacturing of synthetic sapphire crystals. These crystals are further used as substrates in the production of LEDs. LEDs with sapphire crystals as substrates have high brightness. Therefore, LEDs are widely used in automobile headlights, home illumination, multimedia displays, advertisement lighting, backlights in mobile phones, and others.
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LED devices are generally produced by growing gallium nitride on a base substrate. Sapphire is predominantly used as the base substrate in LEDs owing to its superior properties, such as high heat resistance, which is required during crystal growth. The growing adoption of LED bulbs and lights over conventional lights and lamps will drive the demand for high purity alumina in LED applications over the forecast period. Furthermore, our report provides a brief analysis of the historical and forecast market share and their segments along with the reasons for growth from 2017 to 2027. The growth of this segment is primarily attributed to the increasing adoption of high purity alumina, which is driven by an increase in the global demand for the High Purity Alumina Industry.
Based on type, the market is segmented into 4N HPA, 5N HPA, and 6N HPA. The 4N HPA segment holds the largest market share. 4N HPA is generally a better choice compared with 99.9% purity and other aluminas, such as Smelter Grade Alumina (SGA). 4N HPA is widely preferred for synthetic sapphire production. As the population grows in interest in electric vehicles (EVs), the demand for energy storage batteries also increases. These high-density batteries require many lithium-ion battery separators to maintain long-lasting energy. 4N ultra-pure aluminum oxide is an important ingredient in the production of lithium-ion battery separators.
APAC is estimated to contribute 72% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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In 2022, the Asia-Pacific (APAC) region was at the forefront of the global high purity alumina market, leading in both consumption and production. High purity alumina (HPA) is a crucial industrial intermediate used in manufacturing LEDs and semiconductors, with key consumers in the region being China, Japan, South Korea, India, Australia, New Zealand, and Indonesia.
APAC's HPA market is experiencing rapid growth due to its strong manufacturing base and increasing global demand for LEDs and semiconductors. Notably, countries like China, Japan, Taiwan, Vietnam, South Korea, Singapore, and Malaysia are major players in the global semiconductor and industrial LED markets.
Additionally, the emergence of China and India as automotive hubs is expected to drive demand for semiconductors and LEDs. As the smartphone market continues to grow in the region, the demand for semiconductor components rises due to factors like rising disposable income, availability of low-cost devices, and the entry of new market players. This, coupled with the presence of numerous smartphone manufacturers, further boosts the semiconductor market in APAC.
The rising adoption of LED lighting technology is the key factor driving the global high purity alumina market growth. LED lighting technology is experiencing continuous demand due to the high adoption of smart lighting systems across different industries and growing concerns over the depletion of non-renewable sources of power generation. High consumption of LED lights in the residential segment and the significant use of street lights in general lighting applications are the factors driving the demand for LED lighting.
In addition, the need to reduce electricity consumption and growing awareness of green technology has made manufacturers focus on energy-efficient and eco-friendly lighting technology such as LED lighting. LED lights used in general lighting applications will be in high demand during the forecast period, primarily because of favorable incentives provided by governments. The growing global LED lighting market is expected to drive the global market for HPA during the forecast period. A sapphire-based substrate is majorly used in LED lights, and HPA is the starting material used to produce sapphire. Thus, the growing demand for LED lighting will increase the demand for the sapphire-based substrate, which, in turn, is expected to drive the global HPA market during the forecast period.
The growing adoption of lithium-ion batteries in energy storage systems will fuel the global high purity alumina market growth. Energy storage systems are used for storing electrical energy for use at a later time when required. These systems have enabled a change in energy generation dynamics and are being widely adopted globally. In utility applications, energy storage systems are widely used to store energy during periods of low demand, and the stored energy is utilized during peak-demand periods by transmitting it into the grid. These systems facilitate the generation and distribution of stored electrical energy, balancing it as per the requirements of the end-users to maximize the use of generated energy.
Energy storage systems are mainly of four types: electrochemical, thermal, mechanical, and chemical. Electrochemical energy storage systems are the most efficient energy storage systems for renewable energy applications such as solar or wind. With the growing focus on bringing more renewables into the energy mix, the market for electrochemical energy storage systems is expected to grow significantly over the forecast period.
The high cost of production of HPA is a major challenge to the global high purity alumina market growth. HPA is a high-value product due to its high purity level. The cost of production of high purity alumina is increasing owing to the rising cost of raw materials, energy, and labor. In addition, the market is highly controlled by regulatory bodies. Stringent government regulations and restrictive environmental standards further enhance the overall production cost of HPA. Commercially, there are multiple processing ways to produce HPA. The major processes used to produce HPA are the thermal decomposition method, the water-soluble process, and the alkoxide hydrolysis process.
The cost of HPA is determined by factors such as the price of refined aluminum metal, utilities, power, and material handling costs. Several other factors, such as the economic performance of China and fluctuation in energy costs, will have an impact on the price of HPA. Asia is a crucial region for the supply of HPA. The high cost associated with the production of HPA is hindering the growth of the market. The rising energy cost and prices of raw materials are expected to increase the production cost for comapnies, which will affect their profitability and may affect the growth of the global HPA market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Altech Advanced Materials AG - The company offers high-purity alumina such as Ultra High Purity Alumina Powder and Tablets.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Alpha HPA Ltd., Altech Advanced Materials AG, Altech Chemicals Ltd., AluChem Inc., Baikowski SA, CoorsTek Inc., Devtaar GmbH, FYI Resources Ltd., HPA Sonics, Nippon Light Metal Co. Ltd., Norsk Hydro ASA, Orient Abrasives Ltd., Oyak, Polar Sapphire Ltd., Sasol Ltd., Sumitomo Chemical Co. Ltd., United Company RUSAL, Vizag Chemical International, Advanced Energy Minerals, and Alcoa Corp.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global High Purity Alumina Market Customer Landscape
In March 2020, India imposed a complete lockdown to prevent the community spread of the disease. However, in 2021 many countries in APAC have started vaccination drives, including India and China. This resulted in the reduced number of COVID cases and the restoration of commercial and economic activities, which boosted the demand for an HPA market in the region. APAC is a hub for auto component manufacturing, and the demand for HPA witnessed high growth due to resuming manufacturing activities. Therefore, with robust demand for sensors, LEDs, and semiconductors by the automotive industry, the HPA market is expected to witness high growth during the forecast period.
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High Purity Alumina Market Scope |
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Report Coverage |
Details |
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Page number |
167 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 25.5% |
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Market growth 2023-2027 |
USD 3,500.2 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
24.4 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 72% |
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Key countries |
US, China, Taiwan, South Korea, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alpha HPA Ltd., Altech Advanced Materials AG, Altech Chemicals Ltd., AluChem Inc., Baikowski SA, CoorsTek Inc., Devtaar GmbH, FYI Resources Ltd., HPA Sonics, Nippon Light Metal Co. Ltd., Norsk Hydro ASA, Orient Abrasives Ltd., Oyak, Polar Sapphire Ltd., Sasol Ltd., Sumitomo Chemical Co. Ltd., United Company RUSAL, Vizag Chemical International, Advanced Energy Minerals, and Alcoa Corp. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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