Global High Purity Alumina is Anticipated to Account for Market Value of US$ 2,703 Mn by 2025


Date : Oct 12, 2017 Category : Chemical and Material

4N segment is expected to dominate overall consumption of high purity alumina across the globe

High purity alumina, also referred to as HPA is a low volume high value product that serves as a base material for manufacture of sapphire substrates, which in turn, are used in various applications such as light emitting diodes (LEDs), scratch-resistant artificial sapphire glass, and semiconductor wafers, among others. High purity alumina market is composed of non-metallurgical alumina products with purities ranging from 99.99% to 99.9999%. Application of high purity alumina in certain relatively smaller applications including that in lithium-ion batteries are expected to witness robust growth during forecast period. 

Overall global consumption of High Purity Alumina was pegged at around 24,700 tons in 2016. Global High Purity Alumina market is estimated to be valued at US$ 1,048 Mn by 2017 end and is expected to reach US$ 2,703 Mn by the 2025 end, expanding at a CAGR of 12.6% over the forecast period.

The global High Purity Alumina market is anticipated to represent incremental opportunity of US$ 1,756 Mn between 2017 and 2025. In terms of volume, the global High Purity Alumina market is anticipated to register a CAGR of 16.5% over the forecast period, 2017-2025

Factors influencing the global High Purity Alumina market growth

LED based lighting products have surfaced as efficacious alternative to the conventionally used lighting products such as incandescent bulbs and CFLs over past half a decade. Moreover, led based lighting products are relatively more efficient, cost effective and are characterized by relatively longer life-span as compared to conventionally used products. Also, such LED based lighting products, reportedly, consume approximately 85% lesser energy as compared to incandescent lamps.

These factors have prompted adoption of an organized effort on the part of governments across the globe towards phasing out of incandescent lamps over the recent past. Thus, anticipated robust growth in LED production is expected to, in turn, drive the growth in demand for high purity alumina during forecast period.

Also, over the recent past, adoption of high purity alumina as coating for lithium ion battery separators has witnessed steady growth. This, owing to the fact that a high purity alumina coating imparts relatively higher heat resistance and thus ensure improved safety. Use of high purity alumina in lithium ion battery separator coatings or electrode coatings is expected to gain traction owing to anticipated strong growth of global lithium ion batteries market, driven primarily by steady growth in electric and hybrid vehicles market.

The global electric vehicles market is expected to grow nearly 2.9X between 2016 and 2026, thereby registering a CAGR of 11.2%. Similarly, the hybrid vehicles market is expected to register a CAGR of 20.2% during the same period. 

Over the recent past, several new companies have channelized efforts towards development and commercialization of novel production routes that involve use of alternative cost-effective feedstock as against that used in conventional HPA production processes. Introduction of such lower priced yet comparable product offerings is likely to result in disruption in the status quo for global high purity alumina market over the near future. 

Global High Purity Alumina market segmentation and forecast

The global High Purity Alumina market has been segmented on the basis of product type, application, and region. On the basis of product types, the global High Purity Alumina market is segmented into 4N (99.99%), 5N (99.999%) and 6N (99.9999%). Based on the application, global High Purity Alumina market has been segmented into LED, semiconductor, Phosphor and others segments. Key regions covered in the report include North America, Europe, Asia Pacific and LAMEA.

Global High Purity Alumina market analysis, by product type

In terms of product types, 4N HPA segment is expected to dominate the overall global high purity alumina consumption during forecast period. 4N grade HPA product offerings are relatively lower priced as compared to 5N and 6N grade offerings. 4N HPA segment is anticipated to account for nearly 72% share in overall global high purity alumina consumption by 2025 end. Although 4N segment is expected to account for a major share, 5N segment is expected to register relatively faster growth owing to increasing preference for the same from some of the key sapphire manufacturers.

Global High Purity Alumina market analysis, by Application

On the basis of application, LEDs segment is expected to account for a share of nearly 60% in overall HPA consumption by 2025 end. Sapphire substrate based LEDs account for a major share in overall global LED production. The anticipated robust growth in LEDs production is expected to drive the growth in demand for high purity alumina during forecast period. Consumption of HPA for LEDs application was pegged at around 15,000 tons in 2016.

Global High Purity Alumina market analysis, by region

Asia Pacific is expected to be the dominate consumption of high purity alumina and is expected to account for an estimated share of nearly 73% in overall global high purity alumina consumption by 2017 end. A major share in overall global electronics manufacturing and allied industries is concentrated in countries such as China, Taiwan, South Korea and Japan. Nearly, three quarters of overall global synthetic sapphire production capacity and LED fabrication capacity is concentrated in these four countries.

Consumption of high purity alumina in APAC region is expected to increase at a CAGR of 17.3% during forecast period. On the other hand, North America is expected to register a CAGR of 14.6% in terms of consumption of high purity alumina during the forecast period. It is expected to account for a share of around 12% in overall global HPA consumption by 2024 end.

Key players identified across the value chain of the global High Purity Alumina market

Some of the key players reported in this study of the global High Purity Alumina market include:

Sumitomo Chemicals Co., Ltd., Sasol Ltd. HMR, Co., Ltd., Baikowski, Dalian Hiland Photoelectric Material Co., Ltd, Nippon Light Metal Co., Ltd., Hebei Heng Bo New Material, and Xuancheng Jingrui New Material Co., Ltd, among others. Anticipated introduction of relatively lower-priced product offerings manufactured using novel production processes is expected to create a level playing field in global high purity alumina market over the forecast period.


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