Alumina Trihydrate Market

Market Overview

The Total Addressable Market (TAM) for alumina trihydrate was valued at USD 1.44 billion in 2022. It is estimated to reach USD 2.29 billion by 2031, growing at a CAGR of 5.3% during the forecast period (2023–2031).

Alumina trihydrate, also referred to as aluminum trihydroxide (ATH), is a non-toxic, chemically inert, less abrasive, and halogen-free white powder. It is widely used as a flame retardant. Whenever the chemical is washed and dried, it is also used as a feedstock for a huge range of alumina chemicals. Alumina trihydrate, when heated at 180°C, forms aluminum oxide and water and thus is used extensively as a flame retardant. It mainly consists of four polymorphs: bayerite, gibbsite, nordstrandite, and doyleite. These polymorphs are amphoteric in nature, which get dissolved in acid and alkali, releasing hexaaquaaluminum, tetrahydroxidoaluminate, or its hydrolysis products. Furthermore, it is also used in manufacturing aluminum compounds such as calcined alumina, polyaluminum chloride, aluminum sulfate, zeolites, sodium aluminate, and alumina nitrate.

The rising automotive industry has resulted in increasing demand in the alumina trihydrate market for aluminum trihydroxide (ATH). Additionally, increasing usage of alumina trihydrate in water treatment is the major factor driving the market growth. However, rising preferences for magnesium hydroxide as an antacid in the pharmaceutical industry is a severe challenge to the alumina trihydrate market.

Market Dynamics

What are the factors driving the market growth?

Increasing Demand for Flame Retardant

Explosions and fire-related mishaps have become more likely as the number of residential and commercial buildings has increased. Consequently, numerous nations have enforced severe fire safety standards and processes. This has boosted the use of flame retardants in buildings to comply with government standards. The primary use of flame retardants is in the insulation of electric wires in buildings & construction, and transportation. Circuit boards, electronic casings, and cable & wire systems employ flame retardants. To limit the spread of fires in residential and commercial structures, stringent fire safety regulations push the demand for halogen-free flame retardants. The shift toward more eco-friendly alternatives will enhance demand for non-halogenated flame retardants, hence driving market expansion.

What are the factors restraining the market growth?

Presence of Alternatives

Magnesium hydroxide is a more thermally stable inorganic hydrate than alumina trihydrate. A growing preference for magnesium hydroxide as a replacement for aluminum hydroxide in medical applications to reduce aluminum toxicity in patients with chronic kidney disease can be a challenge for the alumina trihydrate industry. Additionally, magnesium hydroxide is employed as a flame retardant. Magnesium hydroxide is also favored in the pharmaceutical business as an antacid. It is stable up to 572 degrees Fahrenheit. Consequently, it is also utilized as a substitute for alumina trihydrate in polymers with higher processing temperatures. These reasons are anticipated to hamper the market for alumina trihydrate.

What are the future opportunities for the market?

Production of Chemical Compounds

Increasing utilization of alumina trihydrate in the production of other chemical compounds, such as aluminum fluoride, aluminum chloride, aluminum sulfate, and sodium aluminate, creates market opportunities. Over the forecast period, the market for alumina trihydrate is anticipated to experience tremendous growth opportunities due to the increasing application of these compounds across various end-user industries. For example, sodium aluminate is commonly used to soften water and remove dissolved silica and phosphates. Aluminum fluoride is commonly used for making ceramics.

Segmental Analysis

The global alumina trihydrate market size is segmented by application and end-user.

By application, the market is segmented into flame retardant, filler, antacid, and others.

The flame retardant application is anticipated to lead the market for alumina trihydrate. The need for flame retardants has increased significantly in the market, particularly in the automotive and electrical & electronics industries. To lower the risk of fire spreading in residential and commercial buildings, stringent fire safety regulations are driving the growth of the alumina trihydrate market. The expanding consumer electronics industries, along with rigorous environmental regulation on the materials used in the production of consumer electronics, will fuel the expansion of the alumina trihydrate market.

Based on the end-user, the market is segmented into plastics, building & construction, pharmaceuticals, paints & coatings, glass, rubber, and others.

The plastic end-use sector holds the biggest market share. Increasing consumption of plastic in the construction, automotive, and electronics industries is anticipated to drive the plastics market. Plastics have substituted metals in the production of automobile components as a result of regulations requiring a reduction in gross vehicle weight to enhance fuel economy and eventually reduce carbon emissions.

As a flame retardant, the building and construction industry makes extensive use of alumina trihydrate. Increasing public awareness of building safety has contributed to the creation of energy-efficient structures. As a result, ordinary plastics are continuously replaced with flame-retardant plastics in these structures. 

Based on the product type, the global alumina trihydrate market is segmented into ground, dry, wet, and precipitate.

The ground segment is anticipated to be the most lucrative sub-segment of the market. Ground alumina trihydrate is a white crystalline powder with a low impurity content, good stability, uniform particle size, and excellent dispersibility. To obtain finer particle sizes, alumina hydrate is ground using mechanical mills and ball mills lined with ceramic. This grade is also used in the paper industry as a substitute for titanium dioxide and as a filler, flame retardant, and smoke suppressant in thermoplastics, thermosets, SMC/DMC molding, FRP, and PVC. Ground alumina trihydrate can enhance the products' anti-leak, arc resistance, wear resistance, and anti-aging performance.

Regional Analysis

The global alumina trihydrate market is divided into North America, Europe, Asia Pacific (APAC), and LAMEA.

Asia Pacific holds the largest alumina trihydrate market share and is anticipated to grow at the highest rate during the forecast period. Alumina trihydrate has a wide range of applications as a flame retardant in various industries such as plastics & buildings & construction. The rising demand for alumina trihydrate in Asia results from the rise in infrastructure and vehicle production, particularly in China. As a flame retardant, it is utilized in constructing wiring insulation and as an effective coating for automobiles. Circuit boards are potential ignition sources; therefore, insulating wires and cables with a flame retardant are essential. Factors like the ready availability of raw materials and labor, as well as advanced technologies and innovations, have contributed to the expansion of the Asia-Pacific economy. The presence of huge chemical manufacturing companies coupled with increasing government support will likely drive the market's growth.

North America is expected to grow significantly owing to the rapidly growing construction industry, increasing expenditure on research & development activities, and the good presence of leading regional manufacturers. North America's regional market is dominated by the United States, followed by Canada. This is due to the large-scale production and expanding building and construction industries in the United States. Canada's building and construction industry is experiencing lucrative growth opportunities. The low cost involved in establishing a facility and the availability of low-cost labor in comparison to the United States is attracting manufacturers to establish their plants in Canada.

Europe is estimated to drive the alumina trihydrate industry during the forecasted period owing to the increasing demand for paints and coatings in the automotive industry and booming construction industry with rising investment in the remodeling of houses and commercial buildings. According to the International Trade Administration (ITA), it is estimated that Germany had the largest automotive sector, with sales of 5.7 million vehicles last year. Advancing technologies and well-developed infrastructure also fuel the demand for alumina trihydrate.

Latin America and MEA are expected to witness a steady alumina trihydrate market growth owing to improving economic conditions, industrial growth, and government support, especially in Africa. However, the Middle East is expected to witness strong regional growth owing to its well-developed economy and industrial base. Despite being small, the chemical industry in Latin America is dynamic and has great growth potential. Despite various government restrictions on foreign ownership, there are ample opportunities for investment in the sector.

Recent Developments

• January 2022- The acquisition of RHI Magnesita's 50% ownership stake in the 50/50 joint venture, Magnifin Magnesiaprodukte GmbH & Co. KG (Breitenau, Austria), by Huber Engineered Materials, was finalized on December 31, 2021. Martinswerk GmbH distributes MAGNIFIN products globally as part of the HEM Fire Retardant Additives (FRA) strategic business unit, which manufactures a variety of halogen-free flame retardants, smoke suppressants, and specialty aluminum oxides.
• September 2020- The Fire Retardant Additives division of Huber Engineered Materials (HEM), a portfolio business of J.M. Huber Corporation (Huber), is preparing a plan for a major sustainability project and significant investment in a new power plant at its Martinswerk facility in Bergheim, Germany. The project proposes replacing the current lignite power plant with a natural gas-fired cogeneration power plant to produce 100 percent of the production site's required steam (thermal energy) and electricity. Significant sustainability benefits should result, including a 40% reduction in carbon dioxide emissions, a 100% reduction in ash by-products, and the elimination of daily lignite truck traffic to the site, which reduces traffic and emissions throughout the local community.

Alumina Trihydrate Market Segmentation

By Application

• Flame Retardant
• Filler
• Antacid
• Others

By End-User

• Plastics
• Building & Construction
• Pharmaceuticals
• Paints & Coatings
• Glass
• Rubber
• Others

By Type

• Ground
• Dry
• Wet
• Precipitate

By Region

• North America
• Europe
• Asia Pacific
• LAMEA