Global High Purity Alumina Market Grows Tremendously at a CAGR of 20.90%

Introduction

High-purity alumina (HPA) is a high-quality non-metallurgical alumina product that is at least 99.99% pure. HPA is the first step in making sapphire substrates used in things like LEDs and fake sapphire glass. It doesn't rust, has a high brightness level, and can handle high temperatures. The global high-purity alumina market is growing because more people are using LED instead of traditional lights, and technology is improving. LED products last longer, are more reliable, give less heat, and are used more. This has increased the need for HPA. HPA is also used to make the batteries that power electric cars.

Market Dynamics

Increased Use of LED Bulbs in Place of Conventional Bulbs Drives the Global Market

People's choices are shifting away from conventional bulbs and toward LED bulbs on a global scale. The demand for LED bulbs is relatively high due to the expansion of the commercial, maritime, and horticultural lighting industries in the United States. New applications, such as smart lighting and light communication, are appearing in the lighting business. The installation of tight regulations fuels the deployment of energy-efficient lighting worldwide.

The Indian government distributed 210 million LED bulbs throughout the country towards the end of 2018 and invited bids for retrofit projects utilizing LED streetlights. Foreign bidders are now forming joint ventures with local lighting companies to meet bid requirements for revenue, production capacity, and manufacturing capability. A surge in LED adoption is fueled by increased HPA demand and global government assistance, causing the HPA market to grow globally.

Increased Demand from Developing Nations Creates Tremendous Opportunities

The market for high-purity alumina has a lot of promise in emerging economies. This is attributed to the rise in LED light demand from countries like Singapore, Thailand, Malaysia, Indonesia, Vietnam, and the Philippines. The Middle East's market for LED lighting is anticipated to rise more swiftly due to the Gulf Cooperation Council's (GCC) efforts to reduce carbon footprints and fulfill the region's growing electricity demand. The growth in automobile demand in Southeast Asian countries is another element boosting the HPA market's progress. According to the ASEAN Automotive Federation, the SEA vehicle market saw sales of USD 3.2 million over the preceding five years, expanding at a CAGR of 11%. The federation also claims that SEA buyers will continue wanting to purchase new cars.

The rapidly growing medical sector in emerging countries is projected to impact the high-purity alumina market because alumina is utilized in bio-medical equipment. The number of middle-class residents in ASEAN countries is predicted to nearly triple between 2010 and 2030, vastly boosting the expansion of the medical sector. The aging population in places like Singapore is anticipated to increase medical demand, supporting the growth of the high-purity alumina market.

Regional Analysis 

Asia-Pacific contributes the most to total revenue and is anticipated to grow at a CAGR of 21.20% over the projection period. China, Japan, South Korea, Australia, India, and the rest of the area constitute the Asia-Pacific region. Asia-Pacific had the largest market share (69.7%) for high-purity alumina in 2019. China dominates the Asia-Pacific area in producing and consuming high-purity alumina, with a market share of 48.9% in value and 49.6% in volume. As the economies of countries like China and India grow, established HPA providers enter the area, and the automotive and electronics industries experience a surge in demand, the need for HPA in the region is projected to increase.

North America is anticipated to grow at a CAGR of 21.80% during the forecast period. The main reason propelling the HPA market in this region is the rise in demand from end-user industries, including, among others, LED bulbs, smartphones, smartwatches, and medical. The increased CO2 emission concerns and stringent environmental regulations to encourage the usage of LEDs in this region are major driving factors for the HPA market in North America. Legislative support for the area's growing energy-saving measures has facilitated LED adoption in North America. The surge in sales of electric cars and local technical advancements are other factors contributing to the need for HPA in North America.

Key Highlights

• The global high-purity alumina market was valued at USD 1,620.00 million in 2022. It is projected to reach USD 8,940.29 million by 2031, growing at a CAGR of 20.90% during the forecast period (2023-2031).
• Based on type, the global high-purity alumina market is bifurcated into 4N HPA, 5N HPA, and 6N HPA. The 4N HPA segment is the major contributor to the market and is estimated to exhibit a CAGR of 21.30% during the forecast period.
• The global high-purity alumina market is bifurcated based on technology into Hydrolysis and Hydrochloric Acid Leaching (HCL). The hydrolysis segment is the major contributor to the market and is estimated to exhibit a CAGR of 20.90% during the forecast period.
• Based on application, the high-purity alumina market is bifurcated into LED Bulbs, a semiconductor substrate, li-on batteries, optical lenses, biomedical devices, and others. The LED bulbs segment is the major contributor to the market and is estimated to exhibit a CAGR of 21.70% during the forecast period.
• Asia-Pacific is the most significant revenue contributor and is expected to increase at a CAGR of 21.20% during the forecast period.

Competitive Players

1. Alcoa Corporation
2. Altech Chemicals Ltd
3. Nippon Light Metal Holdings Company Ltd
4. Baikowski Sas
5. Hebei Pengda Advanced Materials Technology Co. Ltd
6. Norsk Hydro Asa
7. Sasol Ltd
8. Sumitomo Chemical Co. Ltd
9. Zibo Honghe Chemical Co. Ltd
10. Xuancheng Jingrui New Material Co. Ltd.

Recent Developments

Recent Developments

• January 2022- For Battery Cleantech, Polar Sapphire received USD 4.1 million from Sustainable Development Technology Canada (SDTC). Polar Sapphire will be able to construct a demonstration line using financing from SDTC to produce high-purity alumina needed to manufacture lithium-ion batteries.
• January 2022- Polar Sapphire's investment by Ara Partners was disclosed. The acquisition will provide Polar Sapphire with immediate and continuous finance for its growth. With the funding, the business can construct its first significant commercial production, with a capacity of 1,000 tonnes annually (TPA).

Segmentation

1. By Type
   1. 4N
   2. 5N
   3. 6N
2. By Technology
   1. Hydrolysis
   2. Hydrochloric Acid Leaching (HCL)
3. By Application
   1. LED Bulbs
   2. Semiconductor Substrates
   3. Li-ion Batteries
   4. Optical Lenses
   5. Bio-medical Devices
   6. Others