According to a new report published by Allied Market Research, titled, "High Purity Alumina Market by End Use: Global Opportunity Analysis and Industry Forecast, 2019-2026," the global high purity alumina market was valued at $1.1 billion in 2018, and is projected to reach $5.1 billion by 2026, growing at a CAGR of 21.7% from 2019 to 2026.
The demand for high-purity alumina has gained traction, and is expected to grow at a CAGR of 22.0% in terms of volume during the analysis period, owing to increase in demand from applications such as LED bulbs, electronic displays, automotive, and medical. This trend is anticipated to continue with surge in adoption of HPA by end users and emerging technological developments in the electronics industry.
Increase in penetration of LEDs in the lighting market and rise in applications of high-purity alumina in smartphones, smartwatches, and tablets are the major factors propelling the growth of the global high purity alumina market. However, higher cost of production is expected to negatively impact the global high purity alumina market trend in the foreseeable future.
Based on type, the high purity alumina market size is bifurcated into 4N, 5N and 6N high purity alumina. The 4N category of HPA is alumina with the purity level of 99.99%. The 4N category has the lowest price compared with other types of HPA. The 5N category of HPA has a purity level of 99.999%. It finds applications in LEDs, semiconductor substrates, optical lenses, automotive, bio medical, among others. The 6N category of HPA has a purity level of 99.9999% with an impurity level of only 0.0001%. 6N HPA helps to grow sapphire wafers with very high quality as required by high-end applications such as medical (surgical tools & instruments, bio ceramics), automotive (lithium-ion batteries, car polish, electrical insulators, pump and valve components), aerospace, and defense.
Based on technology, the high purity alumina market is bifurcated into hydrolysis and hydrochloric acid leaching (HCL). Hydrolysis is the most adopted technique to manufacture HPA. Orbite Technologies is the first to start the commercial production of HPA using the HCL process, thereby reducing the cost of HPA.
Based on application, the high purity alumina market is bifurcated into LED bulbs, semiconductor substrate, Li-ion batteries, optical lenses, bio medical devices, others. The LED bulbs segment dominated the high purity alumina market in 2018, owing to the shift toward LED lighting as compared to traditional lighting. Moreover, rise need for energy-efficient light sources has increased the demand for LED bulbs, which has fueled the growth of this segment. Increase in per capita consumption of power has boosted the demand for electricity across the globe. This in turn has led to rise in demand for high-purity alumina in the lighting industry. Electronics display serves as the most lucrative application segment, as several companies are investing in enhanced quality products such as high-purity alumina in electronics displays, encompassing tablets, smartphones, and smartwatches.
Based on region, the high purity alumina market is bifurcated into North America, Europe, Asia-Pacific and LAMEA. Asia-Pacific accounted for more than half of the total high purity alumina market share in 2018, and is expected to maintain its lead position during the forecast period, owing to increase in domestic production of energy-efficient lightings, such as LEDs. China is one of the largest countries in the Asia-Pacific region, and is expected to continue its dominance during the analysis period in terms of volume and revenue, since it is a hub for LED manufacturing in Asia-Pacific.
Key Finding of Thehigh Purity Alumina Market:
- The North America high purity alumina market is projected to grow at a highest CAGR of nearly 22.7%, in terms of revenue, during the forecast period.
- The 5N of by type segment of high purity alumina market is anticipated to witness moderate growth rate of 22.3%, in terms of revenue, during the forecast period.
- Asia-Pacific dominated the high purity alumina market with a revenue share of over 69.7% in 2018.
The key players operating in the global high purity alumina market include Orbite Technologies Inc., 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..