Alumina, commonly known as Al2O3, is primarily used as a feedstock for the fabrication of metallic aluminum, known as smelter grade alumina (SGA). Approximately 90% of alumina is used in aluminum fabrication, and the remaining 10% is dedicated to the non-metallurgical market for industrial use. High-purity alumina, which characterizes alumina with a minimum purity of 99.99%, is the high-end product of the non-metallurgical alumina market.
Technavio’s analysts forecast the global high-purity alumina market to grow at a CAGR of 27.11% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global high-purity alumina market for 2016-2020. To calculate the market size, the report presents the vendor landscape and a corresponding detailed analysis of the top five vendors operating in the market. In addition, the report discusses the major drivers influencing the market growth and the challenges faced by the vendors and the market as a whole. It also examines key emerging trends and their influence on the current and future market scenarios. The report also discusses the regional segmentation for each geography.The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global High-Purity Alumina Market 2016-2020
Technavio recognizes the following companies as the key players in the global high-purity alumina market: Alcoa, Norse Hydro, Orbite Technologies, Rio Tinto Alcan, Sumitomo Chemical, RUSAL, and Zibo Xinfumeng Chemicals.
Other Prominent Vendors in the market are: Hong Fu Crystal Technology, Kyushu Mitsui Aluminium, and Dalian Hiland Photoelectric Material.
Commenting on the report, an analyst from Technavio’s team said: “One trend which is boosting market growth is the increase in aluminous clay resources. The global high-purity alumina market currently has a supply deficit. However, we can expect it to be resolved by the development of new technology that extracts high-purity alumina from aluminous clay resources. High-purity alumina producers are rigorously exploring the earth’s crust for aluminous clay resources. For instance, Australia Minerals and Mining Group (AMMG) reported an increase of 147 million metric tons in aluminous clay resources under its owned projects.”
According to the report, a key growth driver is the growing adoption of LED lighting systems and displays. In 2015, single-crystal sapphire used in LED manufacturing accounted for 55.09% of high-purity alumina production. LED lighting technology provides energy efficiency, durability, sustainability, and safety, which are fueling its use in housing and commercial applications. LEDs offer more advantages than incandescent lighting, which is fast losing market share among end-users. The global LED lighting market for industrial applications was $2.34 billion in 2015 and is anticipated to reach $6.26 billion by 2020, expanding at a CAGR of 21.75%.
Further, the report states that one challenge that could hamper market growth is the rising cost of production. Power prices account for a significant share of the aluminum production cost. Due to increasing demand for energy, the prices are shooting, leading to the closure of many smelters. The traditional high-purity alumina production method, which enhances the purity of alumina, results in massive exploration, mining, labor, reagents, and energy costs. Production costs increase mainly because of the significant amount of electricity consumed during the process. Also, any increase in energy tariff affects a vendor's profit margins.
Alcoa, Norse Hydro, Orbite Technologies, Rio Tinto Alcan, Sumitomo Chemical, RUSAL, Zibo Xinfumeng Chemicals, Hong Fu Crystal Technology, Kyushu Mitsui Aluminium, Dalian Hiland Photoelectric Material.
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