Activated Alumina Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Activated Alumina Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Activated Alumina Market is projected to register a CAGR of over 5% during the forecast period (2022-2027).

The market was negatively impacted due to COVID-19 in 2020. Further, the conditions recovered in 2021, restoring the market's growth trajectory over the forecast period.

Key Highlights

• Over the medium term, the market is majorly driven by increasing concerns related to water pollution by fluorine and gaining significance in the pharmaceutical industry.
• On the flip side, the presence of substitutes such as activated carbon and zeolites that exhibit relatively the same performance characteristics hamper the market's growth.
• Increasing demand for hydrogen peroxide in the post-COVID situation is likely to offer multiple opportunities for market growth.
• The Asia-Pacific region represents the largest market and is expected to be the fastest-growing market over the forecast period owing to the consumption from countries such as China, India, and Japan.

Key Market TrendsIncreased Demand from Oil and Gas Industry

• The activated alumina market is driven by oil and gas industry demand due to its ability to be used as an adsorbent.
• In the oil and gas industry, activated alumina is used to absorb water from natural gas streams. Natural gas is regarded as the fastest-growing source of domestic energy production. Establishing new refinery projects is anticipated to be the critical driver for segment growth.
• China National Offshore Oil Corporation's (CNOOC) oil and gas production is expected to rise more than 6% each year during the 2022-24 period to play a critical role in China's energy supply security. The cumulative output of over 1 bcm has proved the capability and reliability of China's self-made systems for exploration, exploitation, production, and operation of deep-sea gas and oil reserves.
• The Indian Government has adopted several policies to fulfill the increasing demand for oil and gas. It has allowed 100% Foreign Direct Investment (FDI) in many segments of the sector, including natural gas, petroleum products, and refineries. According to the International Energy Agency (IEA), consumption of natural gas in India is expected to grow by 25 billion cubic meters (bcm), registering an average annual growth of 9% during the forecast period.
• Overall, global oil demand is expected to reach 104.1 mb/d(million barrels per day) by 2026, with China and India accounting for about half of the growth through 2026. At the same time, the world’s oil production capacity is expected to rise by 5 mb/d. In the absence of stronger policy action, global oil production would need to rise by 10.2 mb/d by 2026 to meet the expected rebound in demand.
• Owing to all the above mentioned factors for activated alumina, its market is expected to grow significantly post recovery over the forecast period.

Asia Pacific Region to Dominate the Market

• The key countries, including India and China, are anticipated to witness significant growth in their refining capacities, thereby boosting product demand. Increasing demand for freshwater supply owing to population growth in the region will drive the market.
• Rising expenditure on water treatment infrastructure, combined with the increasing demand for gaseous and liquid drying in the oil and gas industry, will accelerate the activated alumina market in the region.
• As a top priority being accorded by the Government of India, the budgetary allocation of the Jal Jeevan Mission has increased significantly to Rs. 50,011 Crore (USD 6.82 billion) in 2021-22. In addition, the 15th Finance Commission tied grants of Rs. 26,940 Crore (USD 3.68 billion) will also be available to PRIs for "water and sanitation" services.
• The Council on Energy, Environment, and Water (CEEW), in association with the 2030 Water Resources Group, is planning to improve wastewater management in India and increase private investments in building wastewater treatment plants.
• National Per Capita Consumption Expenditure of Healthcare and Medical Services in 2021 was CNY 2,115, an increase of 14.8 percent over 2020. Also, the Chinese government promulgated Healthy China 2030, which is a blueprint that outlines its ongoing intentions to prioritize health as a precondition for sustained social and economic development.
• The factors above, coupled with government support, contribute to the increasing demand for activated alumina during the forecast period.

Competitive Landscape

The global activated alumina market is consolidated, with a few major players dominating a significant portion of the market. Some of the major companies (not in any particular order) include BASF SE, Huber Engineered Materials (HEM), Sumitomo Chemical Co., Ltd., Axens, and Honeywell International Inc., among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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