High Purity Alumina Market Forecasts to 2028 – Global Analysis By Type (4N High Purity Alumina (HPA), 5N High Purity Alumina (HPA) and 6N High Purity Alumina (HPA)), Technology (Hydrochloric Acid Leaching (HCL) and Hydrolysis), Application and By Geograph

High Purity Alumina Market Forecasts to 2028 – Global Analysis By Type (4N High Purity Alumina (HPA), 5N High Purity Alumina (HPA) and 6N High Purity Alumina (HPA)), Technology (Hydrochloric Acid Leaching (HCL) and Hydrolysis), Application and By Geography

According to Stratistics MRC, the Global High Purity Alumina Market is accounted for $2.17 billion in 2022 and is expected to reach $6.44 billion by 2028 growing at a CAGR of 19.9% during the forecast period. High purity alumina (HPA) is a high-end product that is classified as a non-metallurgical alumina product and has a purity level of at least 99.99%. For applications like light-emitting diodes (LEDs) and synthetic sapphire glass, HPA is used as a base material to create sapphire substrates. It has qualities like excellent brightness, resistance to corrosion, and tolerance to high temperatures. Also, high purity alumina is observed as the high-end form of aluminum oxide and utilized as a base material to manufacture sapphire substrates.

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%.

Market Dynamics:

Driver:

Increasing regulatory norms to encourage the adoption of energy-efficient lighting

Global demand for high-purity alumina is rising as a result of stringent regulations that promote the use of energy-efficient lighting alternatives like LED bulbs. For instance, the Indian government unveiled two programmes in 2015 to increase the commercial production of LED lighting. The Indian government is responsible for 20% of the entire capital costs associated with establishing an LED manufacturing facility under the Modified Special Incentive Package Scheme (M-SIPS). This has helped companies to develop the product at a comparatively low cost.

Restraint:

Fluctuations in the prices of the raw materials

The changes in the pricing of the raw materials used in the manufacturing of high-purity alumina have been highlighted as the key restriction in the high-purity alumina market. Companies producing aluminium oxide are seeing changes in profit margins as a result of variable raw material costs, and they are also having trouble coming up with expansion plans. Thus, the market's expansion is hampered by the ongoing fluctuations in raw material prices.

Opportunity:

Increasing demand in developing nations

In the upcoming years, emerging economies are anticipated to have significant expansion in the high-purity alumina market. These nations' economies are expanding quickly, which is mostly seen by the substantial rise of the manufacturing and construction industries. There are many potential for market players to expand as a consequence of the increase in construction and manufacturing activity in these nations, which is driving demand for goods like LEDs and semiconductors, which are predominantly constructed of alumina.

Threat:

Limitations

Aluminum metal that has already been purified is used as a costly feedstock in the manufacturing of high purity alumina. The production of high-purity alumina is hampered by expensive labor and energy expenses, constrictive environmental conditions, and severe governmental regulations, limited knowledge related to alumina production. These factors may limit market growth in the approaching years.

Covid-19 Impact

The COVID-19 outbreak was a reflection of a decline in High Purity Alumina (HPA) demand internationally, as evidenced by noticeably fewer end-user orders, which led to a reduction in production volume. The demand for high purity alumina is likely to experience a downfall, due to affected supply chain amid lockdown. The companies of different High Purity Alumina (HPA) manufacturers were negatively impacted by the fall in production levels. As a result, during the early stages of COVID-19 spread, there was a drop in the purchase of high purity alumina, which had an adverse effect on the expansion of the global high purity alumina market.

The 4N segment is expected to be the largest during the forecast period

The 4N segment is estimated to have a lucrative growth, due to its inexpensive cost and widespread availability in compared to other grades. It can be utilized in applications including LEDs, electric vehicles, and mining equipment due to its excellent hardness and brightness, resistance to corrosion, and capacity to bear high temperatures. Additionally, government assistance resulting in increased LED usage is likely to drive the 4N HPA market throughout the projection period.

The Light Emitting Diode (LED) segment is expected to have the highest CAGR during the forecast period

The Light Emitting Diode (LED) segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the increased effectiveness, reduced weight, and low power usage. Additionally, the stringent regulations imposed on the installation of energy-efficient bulbs and lights are encouraging the sales of LED, which in turn benefits the market's expansion and encourages the market's adoption of LEDs. Rising demand for HPA around the world, combined with government backing, has resulted in a rise in LED adoption, propelling the worldwide HPA market forward.

Region with highest share

Asia Pacific is projected to hold the largest market share during the forecast period, owing to large population base and growing economies. The automotive and electronics sectors' growing need for high purity alumina is promoting market expansion in this area. The market is growing as a result of the growth and expansion of numerous other end user verticals, including the chemical sector. China and India will end up being the two biggest providers from this area.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to the increased use of high purity alumina in the region's electronics and semiconductor industries. Rising construction activities, favorable government norms for energy-efficient products and other macroeconomic factors have substantially contributed to the increased number of new LED installations which helps in propelling the market size.

Key players in the market

Some of the key players profiled in the High Purity Alumina Market include Almatis, Inc., Alcoa Corporation, Altech Chemicals Ltd., Austral Private Limited, Baikowski, CoorsTek Inc., FYI Resources Limited, Hebei Pengda Advanced Materials Technology Co., Ltd., Nippon Light Metal Holdings Co., Ltd., Orbite Technologies Inc., Polar Sapphire Ltd., Sasol Limited, Sumitomo Chemical Co., Ltd, Zibo Honghe Chemical Co., Ltd.

Key Developments:

In December 2020, Altech Chemicals has confirmed the stipulations of a staggered €5 million deal of a 25 % interest in German subsidiary, Altech Industries Germany to Frankfurt Stock Exchange-listed Altech Advanced Materials.

In December 2020, FYI Resources Ltd., an Australian resource firm, has arrived into collaboration with Alcoa of Australia to track a pilot at FYI's high-purity alumina (HPA) yard in Western Australia.

In September 2020, Altech Chemicals Ltd. announced that it is near to developing a range of high-purity alumina (HPA) that is exactly intended for use in the production of anodes in lithium-ion batteries.

Types Covered:
• 4N High Purity Alumina (HPA)
• 5N High Purity Alumina (HPA)
• 6N High Purity Alumina (HPA)

Technologies Covered:
• Hydrochloric Acid Leaching (HCL)
• Hydrolysis

Applications Covered:
• Lithium-ion Battery
• Phosphor
• Light Emitting Diode (LED)
• Semiconductor Substrate
• Optical Lenses
• Biomedical Devices
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements