High Purity Alumina Market Size, Share, Competitive Landscape and Trend Analysis Report by Type, Technology and Application : Global Opportunity Analysis and Industry Forecast, 2020-2026

High Purity Alumina Market Outlook - 2026

The global high purity alumina market was valued at $1.3 billion in 2019, and is projected to reach $4.8 billion by 2026, growing at a CAGR of 20.7% from 2020 to 2026.

High purity alumina (HPA) is a premium product that falls under non-metallurgical alumina products, characterized by a minimum purity level of 99.99%. HPA is utilized as a base material to manufacture sapphire substrates in applications such as light-emitting diodes (LEDs) and artificial sapphire glass. It possesses properties such as corrosion resistance, high brightness, and can withstand high temperatures.

High adoption of LED bulbs over traditional bulbs coupled with technological evolution drives the growth of the global high purity alumina market. The demand for LED bulbs is significantly high in the developing economies such as China and India. The government of these countries has encouraged people to use energy-efficient lights to reduce the energy consumption of the country. In addition, the Indian government has distributed 210 million LED bulbs in the country at the end of 2018, and issued tenders on LED streetlights retrofit projects. Moreover, international bidders are entering into joint ventures with local lighting companies to meet bid requirements related to revenue, production capacity, and manufacturing capability. Escalating demand for HPA across the globe coupled with government support has led to surge in adoption of LEDs; thereby, driving the growth of the global HPA market. In addition, 4N high purity alumina is used in manufacturing of Li-ion batteries. Automobile manufacturers are focusing toward the manufacturing of electric vehicles (EVs), owing to environmental regulations imposed by the government of several developed and developing countries such as the U.S., Germany, China, and India to curb the environmental pollution and reduce dependency on convention fuel sources. This is expected to increase the demand for Li-ion batteries to be used in electric vehicles. This factor is expected to drive the demand for high purity alumina from Li-ion battery manufacturers.

However, surge in pricing of HPA and stringent government regulations on the extraction of "Red Mud" can hamper the growth of the global high purity alumina market. On the contrary, growing demand for high purity alumina from the emerging economies such as China and India due to upsurge in demand for LED bulbs and rapidly growing medical sector are expected to offer remunerative opportunities for high purity alumina market growth in the near future.

The global high purity alumina market size is segmented on the basis of type, technology, application, and region. On the basis of type, the market is categorized into 4N, 5N, and 6N. By technology, it is bifurcated into hydrolysis and hydrochloric acid leaching (HCL). The applications covered in the study comprise LED bulbs, semiconductor substrates, li-ion batteries, optical lenses, bio-medical devices, and others. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. 

The major key players operating in the global high purity alumina market include Norsk Hydro ASA, Sumitomo Chemical Co., Ltd., Baikowski SAS, Alcoa Inc., Nippon Light Metal Holdings Company, Ltd., Altech Chemicals Ltd., Zibo Honghe Chemical Co. Ltd., Sasol and Xuan Cheng Jing Rui New Material Co. Ltd., and Hebei Pengda Advanced Materials Technology Co., Ltd. Other players operating in this market include AEM Canada, Kraton, Rio Tinto Alcan Inc., Polar Sapphire Ltd., Shandong Keheng Crystal Material Technologies Co., Ltd., and Chalco Shandong Co., Ltd. These major key players are adopting different strategies such as joint venture, agreement, and business expansion to stay competitive in the global high purity alumina market.

Global High purity alumina Market, By Region

Asia-Pacific accounted for a major market share in 2019, owing to growth in economies of the countries such as China and India. Presence of established HPA players in the region and rise in demand for HPA from the automotive and electronics industries are expected to increase the demand for HPA across the region. In addition, the stringent regulations imposed by the government on the production, import, and sale of incandescent lights has led to the growth of smart lighting industry that manufactures LED bulbs; thereby, driving the demand for HPA across the region.

Global High purity alumina Market, By Type

4N high purity alumina segment accounted for a major share in 2019 in the high purity alumina market. 4N HPA finds its major demand in LED bulbs and electronic displays. Leading companies in this market are spending more on R&D to offer product customization as per the requirements of the application areas. Government support, leading to growing adoption of LEDs, coupled with less cost compared with other types of HPA is expected to drive the market for 4N HPA during the forecast period.

Global High purity alumina Market, By Technology

Depending on technology, the hydrolysis segment accounted for a major high purity alumina market share in 2019. The alumina refiners across the globe has increased their production to meet the growing demand for primary aluminum across the globe. Due to this the demand for hydrolysis technology to extract alumina has been surged significantly as this technology also helps recover acid, which can be re-used; thereby, reducing operating costs. In addition, it also helps in providing HPA product customization to the end users. These factors are anticipated to increase the demand of hydrolysis technology to extract alumina and eventually will drive the growth of the global high purity alumina market.

Global High purity alumina Market, By Application

Depending on application, the LED bulb segment accounted for a major high purity alumina market share in 2019. The demand for LED bulbs in comparison to traditional incandescent bulb has been surged significantly across the globe. Implementation of stringent regulations to deploy energy-efficient lights across the globe fuels the penetration of LEDs in the market. In addition, government initiative to encourage the people to use LED bulbs to reduce the energy consumption is likely to increase the demand for LED bulbs. The Indian government has distributed 210 million LED bulbs in the country under the “UJALA Scheme” at the end of 2018, and issued tenders on LED streetlights retrofit projects. Moreover, international companies are forming joint ventures with local lighting companies to increase the production capacity and manufacturing capability to meet the growing demand of LED bulbs across the country. Escalating demand for HPA across the globe coupled with government support has led to surge in adoption of LEDs; thereby, driving the growth of the global HPA market.

COVID-19 Analysis:

• The raw materials required to produce primary aluminum is aluminum oxide, also called alumina. The demand for high purity alumina is likely to experience a downfall during the corona virus pandemic due to affected supply chain amid lockdown.

• Bauxite is a raw material required to produce alumina. COVID-19 pandemic outbreak and amid lockdown declared by the governments of the various countries has affected the mining of bauxite. Due disrupted production and supply of bauxite to alumina refineries, the market has been badly affected. 

• The freight train used to carry the bauxite ore has been halted as government has only allowed the transportation of daily essential products due to which the production of alumina has been hampered.

Figure: Global Alumina Production, Dec-2019 To March 2020 (Thousand Metric Tons)

• According to the International Aluminum Institute (IAI), the global alumina production on December 2019 was 11,307.0 thousand metric tons in comparison with 10,943.0 thousand metric tons in April 2020, registering a decline in production rate by 3.22%. The decline in production rate of alumina was due to supply shortage of bauxite and closure of alumina refineries due to COVID-19 outbreak and amid lockdown globally.

• The hampered alumina production has directly affected the production of primary aluminum and its products across the globe.

Figure: Global Aluminum Production, Dec-2019 to April 2020 (Thousand Metric Tons)

• According to the International Aluminum Institute (IAI), the global aluminum production on December 2019 was 5,439.0 thousand metric tons in comparison with 5,255.0 thousand metric tons in March 2020, registering a decline in production rate by 3.38%. The decline in production rate of aluminum was due to supply shortage of alumina and closure aluminum smelters across the world due COVID-19 outbreak and amid lockdown.

• Due to these the industrial manufacturing activities has been hampered globally. Around 80% of the aluminum is consumed by construction, transport, and electrical sectors. The demand for aluminum in these sectors is likely to decrease due to COVID-19 situation. Due to this, the demand for alumina will also be reduced till the industrial activities across these sectors resume.

• According to UNIDO (United Nations Industrial Development Organization), the MSME (Micro, Small & Medium Enterprises) sector across the developing economies such as India has been worst affected due to outbreak of COVID-19 and the lockdown imposed thereafter. This is expected to decline the demand of aluminum and its products and eventually will restrain the demand of alumina. In addition, the demand for alumina will gradually increase when government will lift the ongoing restriction and MSME sector will resume their operations. 

• The production of alumina is also likely to hamper during and after the lockdown due to non-availability of workers. According to UNIDO (United Nations Industrial Development Organization), 30%-70% of pre-COVID-19 workforce of alumina refineries have migrated back to their hometowns due to uncertainties and loss of income during the lockdown. This non-availability or less availability of workforce will directly affect the annual production of high purity alumina.

Key Benefits For Stakeholders

• The global high purity alumina market analysis covers in-depth information of major industry participants.
• Porter’s five forces analysis helps analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
• Major countries have been mapped according to their individual revenue contribution to the regional market.
• The report provides an in-depth analysis of the global high purity alumina market forecast for the period 2020–2026.
• The report outlines the current global high purity alumina market trends and future estimations of the global high purity alumina market from 2019 to 2026 to understand the prevailing opportunities and potential investment pockets. 
• The key drivers, restraints, and global high purity alumina market opportunity and their detailed impact analysis is elucidated in the study.

  High Purity Alumina Market Report Highlights

Aspects	Details
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 Bulbs Semiconductor Substrate Li-ion Batteries Optical Lenses Bio Medical Devices Others
By Region	North America  (U.S, Canada, Mexico) Europe  (Germany, France, Italy, Spain, UK, Rest of Europe) Asia-Pacific  (China, Japan, South Korea, India, Australia, Rest of Asia-Pacific) LAMEA  (Brazil, Saudi Arabia, South Africa, Rest of LAMEA)
Key Market Players	BAIKOWSKI SAS, HEBEI PENGDA ADVANCED MATERIALS TECHNOLOGY CO., LTD, ZIBO HONGHE CHEMICAL CO., LTD, NIPPON LIGHT METAL HOLDINGS COMPANY, LTD, ALCOA CORPORATION, ALTECH CHEMICALS LTD, NORSK HYDRO ASA, SASOL LTD, XUANCHENG JINGRUI NEW MATERIAL CO., LTD, SUMITOMO CHEMICAL CO., LTD

Analyst Review

According to the analyst, surge in demand from end-user industries such as electronics, healthcare, and automotive drives the growth of the global high purity alumina market. Furthermore, rise in adoption of energy-efficient lighting, such as LED bulbs, and government encouragement to the consumers toward usage of LED bulbs against incandescent bulbs to save the energy consumption are some of prominent factors that drive the growth of the global high purity alumina market. In addition, growing demand for bio-medical devices across the globe to treat the growing number of corona virus affected patients and also the patients suffering the from other diseases and ailments are anticipated to drive the growth of the high purity alumina market. The growing demand for electric vehicles across the globe to curb the carbon emission has led to increase in demand for Li-Ion batteries to power these electric vehicles and to reduce the dependency on the conventional fuels such as diesel and petrol. This factor is expected to surge the demand for high purity alumina during the forecast period. As per the analyst, the consumption of HPA is highest in Asia-Pacific due to increase in industrialization in this region.

Author Name(s) : Anil Chaudhary| Krunal Yeware and Eswara Prasad | Eswara Prasad

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