High Purity Alumina Market - North America, Europe, EMEA, APAC : US, Canada, China, Germany, UK - Forecast 2023-2027

High Purity Alumina Market Forecast 2023-2027

The High Purity Alumina Market size is estimated to grow by USD 3.50 billion at a CAGR of 25.5% between 2022 and 2027. The increasing adoption of LED lighting is driven by its energy efficiency and long lifespan, leading to cost savings for consumers and businesses. The rising demand for semiconductors is fueled by the growing use of electronic devices in various industries, including consumer electronics, automotive, and healthcare. The growing consumption of lithium-ion batteries is driven by the increasing popularity of portable electronic devices and electric vehicles, which require these batteries for power storage. Overall, these factors are driving growth and innovation in the LED lighting, semiconductor, and lithium-ion battery markets.

What will be the Size of the High Purity Alumina Market During the Forecast Period?

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Market Segmentation

This 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.

By Application 

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 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.

By Type 

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). This 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.

By Region

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 market, leading in both consumption and production. This 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 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. 

Market Definition

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.

Market Dynamics

The market is experiencing significant growth driven by the demand for batteries in electric vehicles (EVs) and lithium-ion battery technologies. As a critical component, alumina-coated separators with nano thickness enhance battery performance and durability. In the lighting sector, LED technology, known for its energy efficiency, relies on high-purity alumina (HPA) for sapphire substrates. Cutting-edge microelectronics and semiconductors also utilize HPA for its exceptional purity. With advancements like the HiPurA HPA processing technology, manufacturers extract HPA from Boehmite, ensuring battery cathode precursor-grade aluminum salts and minimizing waste in chemical product manufacturing. This underscores HPA's pivotal role in powering smartphones, LCDs, and various LED lighting installations funded by the Energy Department.

Key Market Driver

The rising adoption of LED lighting technology is the key factor driving the market growth. LED lighting technology is in high demand due to the widespread adoption of smart lighting systems across various industries and increasing concerns about the depletion of non-renewable sources of power generation. The technology is known for being energy-efficient, aligning with the objectives of the Energy Department and global efforts to promote sustainability. LEDs also play a significant role in microelectronics and semiconductors, where sapphire is a crucial substrate material, further driving the demand for LED lighting. The residential sector's high consumption of LED lights and the significant use of street lights for general lighting applications are key factors driving this demand.

 

Moreover, the imperative to reduce electricity consumption and the rising awareness of green technology have prompted manufacturers to prioritize energy-efficient and eco-friendly lighting solutions, such as LED lighting. LED lights used in general lighting applications are expected to be highly sought after in the coming years, largely due to favorable incentives offered by governments. This trend is driving increased demand for lighting installation projects utilizing LED lighting technology. LEDs are also integral to LCD displays and play a crucial role in microelectronics and semiconductors, further contributing to their growing popularity in general lighting. The expanding global LED lighting market is anticipated to boost the global market for high-purity alumina (HPA) during the forecast period. Since a sapphire-based substrate is predominantly used in LED lights, and HPA is the primary material for producing sapphire, the growing demand for LED lighting is expected to fuel the market in the forecast period.

Significant Market Trend

The growing adoption of lithium-ion batteries in energy storage systems will fuel the 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. 

Major Market Challenge

The high cost of production of HPA is a major challenge to 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 companies, which will affect their profitability and may affect the growth of the global HPA market during the forecast period.

Who are the Major High Purity Alumina Market Companies?

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.

Market Customer Landscape

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 Market Customer Landscape

Market Analyst Overview

High purity alumina (HPA) is a critical material used in various industries, including the electronics industry for producing separator sheets in EV batteries. It enhances battery stability and reduces capacity losses, crucial for energy-efficient vehicles. ChemX Materials Ltd specializes in HiPurA high purity alumina (HPA) processing technology, ensuring quality for demanding applications. HPA's properties, like thermal capacity and resistance to thermal runaway, make it ideal for products like scratch-resistant glass, optical lenses, and LED bulbs. Its use extends to semiconductor wafers and radio frequency integrated circuits in New Energy Vehicles (NEVs), showcasing its versatility and importance.

Furthermore, this is a crucial material in various industries, especially in the production of energy efficient products like lithium-ion (Li-Ion) batteries. It is used as a coating on the anode to improve battery performance and reduce the risk of thermal runaway and burns. HPA is also essential in the production of LED bulbs, where it is used for LED preparation and as a component in seed sapphire crystal for superior light transmission. Additionally, HPA is used in gas separation and ultra-filtration processes due to its high purity and chemical resistance. Its applications extend to the production of Silicon Carbide and in the manufacturing of components for watches and televisions. High purity alumina (HPA) is instrumental in the production of energy-efficient products like light-emitting diode (LED) bulbs. It is used in the manufacturing process to create a crackle effect in the bulbs, enhancing their aesthetic appeal. Additionally, HPA is used in the production of crucibles, which are essential for various industrial processes involving cobalt.

High Purity Alumina Market Scope
Report Coverage	Details
Page number	167
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 25.5%
Market growth 2023-2027	USD 3.50 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	24.4
Regional analysis	APAC, North America, Europe, South America, and Middle East and Africa
Performing market contribution	APAC at 72%
Key countries	US, China, Taiwan, South Korea, and Japan
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
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.
Market dynamics	Parent market analysis, Market Forecasting, 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
Customization purview	If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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