High Purity Alumina Market Analysis by Type (4N High Purity Alumina, 5N High Purity Alumina, and 6N High Purity Alumina); by Technology (Hydrolysis, and Hydrochloric Acid Leaching); and by Application (LED Blubs, Semiconductor Substrate, Li-Ion Batteries, Optical Lenses, and Bio Medical Devices) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 4757 | Published Date: Mar 29, 2023
The global high purity alumina market size is estimated to reach ~USD 10 Billion by the end of 2035 by growing at a CAGR of ~14% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of high purity alumina was ~USD 3 Billion. The growth of the market can be attributed to growing demand for sustainable and energy efficient product. As a result of their usage of energy-intensive home equipment, households continue to be one of the leading sources of dangerous greenhouse gases today. About 70% of the world's greenhouse gas emissions are caused by household use (with the remainder coming from public and nongovernmental and financial sources). Hence, their preference for conventional alternatives is growing further boosting the market growth.
Additionally, energy-efficient appliances not only reduce greenhouse gas emissions and also help customers save money by lowering the home energy costs. Moreover, the growing government initiatives in order to make people aware about the growing harm caused to the environment owing to greenhouse gases is also estimated to boost the market growth. With the huge demand for items containing carbon, it is challenging to minimize the amount of carbon emissions. The government of UK is working to lower this demand through environmentally friendly home improvements, such as the installation of smart metres (which make it easier for consumers to monitor usage) and the rollout of the "Green Deal," a government programme designed to help businesses and homeowners adopt green technologies.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~14% |
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Base Year Market Size (2022) |
~ USD 3 Billion |
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Forecast Year Market Size (2035) |
~ USD 10 Billion |
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Regional Scope |
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Growth Drivers
With only about 3% of US homeowners choosing LED as their primary lighting option in 2019, the technology was still in its infancy. In just five years, this situation radically improved, and by 2020, approximately 46% of US houses were using LED lamps as their primary source of lighting. LED lights are more efficient than traditional lights. Most of the energy in LED is converted into light and least is wasted, as less energy is used. Thus, they are known to be the eco-friendliest solution. Hence, owing to this factor the market is estimated to grow.
In the United States, the percentage of people who own cars is rising. In 2020, about 90% of American households had access to at least one automobile, up from approximately 89% in 2015.
By 2023, there was estimated to be about 5 billion smartphone users worldwide, which would mean that approximately 85 percent of people would be smartphone owners. This number is significantly more than it was in 2016, when there were just about 2 billion users, or approximately 48% of the world's population.
Phase 2 of the FAME INDIA project was launched by the Indian government in 2022 for a five-year period with a budgetary support of USD 121 Billion. The Indian government seeks to promote the electrification of public transportation. To this end, 7090 electric buses, 10,000 electric two-wheelers, and 5,000 electric four-wheelers have been purchased with subsidies. Electric vehicles consist of lithium-ion batteries, and high purity alumina is extensively used in these batteries. Therefore, with growing government initiatives the demand for electric vehicles is estimated to increase which would further also boost the market growth for high purity alumina.
For the previous 50 years, the amount of electricity consumed worldwide has increased steadily, and in 2021, it was expected to be over 25,299 terawatt hours. Electricity usage increased by more than thrice between 1980 and 2021. Since the demand for electricity demand is growing the urge to conserve energy is also growing. Hence, the demand for energy-efficient lighting solution such as LED is estimated to boost the growth of the market.
Challenges
The global high purity alumina market is segmented and analyzed for demand and supply by application into LED blubs, semiconductor substrate, li-ion batteries (lithium ion battery), optical lenses, and bio medical devices. Out of which, the li-ion batteries segment is anticipated to garner the highest revenue by the end of 2035. The growth of the segment can be attributed to growing adoption of electric vehicles. Additionally, the construction of new EV battery manufacturing facilities is receiving significant investment from automakers all across the world, which is expected to increase HPA usage. Moreover, other than electric vehicles the li-ion batteries are used in wireless headphones. Therefore, growing demand for wireless headphones is also estimated to boost the segment growth. By 2021, sales of true wireless hearables (TWS) had risen to slightly about 299 million units globally. As of 2021, Apple had over 39% of the market among TWS vendors, leading the industry. Further, with the growing trend of smartphones, bluetooth has become new standard in transmitting audio. Hence, this could be the major factor boosting the demand for wireless earphones.
The global high purity alumina market is also segmented and analyzed for demand and supply by type into 4H high purity alumina, 5N high purity alumina, and 6N high purity alumina. Amongst which, the 4N high purity alumina segment is anticipated to grow significantly over the forecast period, backed by its growing use in LED light. Additionally, there has been growing government initiatives to make people adopt LED light, hence further boosting the segment growth. Moreover, throughout the projected period, the segment is expected to be driven by growth in the lighting and EV industries. Moreover, growing demand for electric vehicles and rising government policies to boost its adoption is estimated to increase the growth of the segment.
Our in-depth analysis of the global high purity alumina market includes the following segments:
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By Type |
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By Technology |
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By Application |
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The market share of high purity alumina in Asia Pacific, amongst the market in all the other regions, is projected to grow by the end of 2035, backed by growing population which is further boosting the demand for vehicles, along with growing demand for smartwatch and smartphones. In 2021, about 50 percent of respondents in Hong Kong owned wearables in their households. Moreover, light emitting diode (LED) bulb acceptance is growing, which is a key market driver in this region. The value-adding characteristics of LED products, such as longevity, dependability, brightness, and low radiated heat, contributed to their expanding popularity and helped to change the industry for the better. Technology using Light Emitting Diodes (LEDs) is what has largely caused this transformation. Many factors, including macroeconomic conditions, which affect new construction and, as a result, the quantity of new lighting installations, have an impact on the Asia Pacific market. Regulations requiring energy efficiency and growing consumer awareness are further boosting demand for LED lamps.
The North America high purity alumina market is estimated to be the second largest, to grow at a highest share over the forecast period. The growth of the market in this region can be attributed by the rising LED bulb adoption and expanding electronics & semiconductor industries. Moreover, high purity alumina is widely utilized in non-metallurgical applications such as refractories, abrasives, high aluminum cements, aluminum chemicals and activated bauxite and alumina. Additionally, the high purity alumina has a wide range of uses in the production of sapphire substrates. Sapphire substrates are favoured window materials despite their remarkable chemical and mechanical characteristics, such as their resistance to thermal shock, high temperatures, minimum dielectric loss, and sand and water erosion, among others. Additionally, it has a wide range of uses in things such as semiconductors, electric & hybrid cars, LED lights, smartwatches, smartphones, li-ion battery separators, optical lenses, sodium lamps, and plasma displays. Hence, growing demand for electronics and EV vehicles in this region is estimated to boost the growth of the market.
Additionally, the market in Europe region is also anticipated to have a significant growth over the forecast period, backed by consumer electronics' rising popularity and a number of non-metallurgical industrial uses. Also, the rise of the market would be fueled by growth in Europe's electronic manufacturing industry, particularly in Germany, the UK, and France. Moreover, there has been growing technology advancement in LED technology which is estimated to decreased electricity use is also estimated to drive the market growth in this region.
Polar Sapphire has concluded a controlling investment from Ara Partners, a private equity firm that specializes in investments in industrial decarbonization. Polar Sapphire was anticipated to get immediate and ongoing funds from the investment to support its expansion. In order to address end customer markets that are expanding quickly, Ara Partners and the Polar Sapphire management team were expected to speed the company's expansion plans.
In order to achieve the Sustainable Development Goals (SDGs), Nippon Light Metal Holdings Company, Ltd. engaged in research and technical development pertaining to the development of industrial products and methods of manufacturing industrial products capable of contributing to the reduction of environmental impact, based on our Group's Management Policy. To contribute to building a sustainable society, their group would actively work towards achieving carbon neutrality.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Smruti Ranjan, Rajrani Baghel
Ans: The major factors driving the growth of the market are growing demand for LED lights, rise in demand of automobiles, surge in adoption of smartphones, and others.
Ans: The market size of high purity alumina is anticipated to attain a CAGR of ~14% over the forecast period, i.e., 2023 – 2035.
Ans: High production cost, leads to rise in carbon emission manufacturing, and stringent government regulations are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Sasol Limited, Nippon Light Metal Company, Ltd., Orbite Technologies Inc., Xuancheng Jing Rui New Material Co., Ltd., and more.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, technology, application and by region.
Ans: The 4N high purity alumina segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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