High purity alumina (HPA) is a premium type of aluminum oxide. It has a minimum purity level of 99.9% and is used as a key component in the creation of synthetic sapphire. The aluminum alkoxide is primarily hydrolyzed to produce HPA, with qualities like excellent brightness and corrosion resistance.
The high purity alumina market in 2023 was USD 3.8 billion, and it will reach USD 15.2 billion by 2030 at a 21.6% CAGR during the forecast period.
The key reasons for enhancing market prospects are the growing preference for LED bulbs over traditional lights and the quickening pace of development in the semiconductor and electronics industries. In addition, the widespread use of sapphire substrates in producing LEDs and expanding use of lithium-ion batteries is favorably influencing market trends.
Contrarily, high production costs for high purity alumina will impede the growth of this industry vertical in the next years.
Market Dynamics
Drivers
The market for high purity alumina is expanding due to new applications for the material in electronics like smartphones, smartwatches, and tablets, as well as the increasing use of LEDs in lighting. Due to advancing technology and rising demand from industries including LED lighting, electronic displays, automotive, and medicine, the need for high purity alumina has surged and reached record levels globally.
The industry is also expanding due to several product breakthroughs, such as the creation of ready-to-use medical bio-ceramics for dental and orthopedic implants. The widespread use of HPA for producing sapphire with few crystal lattice faults and significant research and development (R&D) efforts are stimulating market growth.
Restraints
A rigorous and expensive procedure, including several steps of purification and refinement, is required to produce HPA. The high cost of manufacture significantly constrains the HPA market’s expansion.
Opportunity
The need for HPA will rise due to the exponential expansion of cutting-edge technologies like 5G, the Internet of Things (IoT), and AI. More chips are needed for 5G technology than earlier wireless technology generations.
Market Segmentation
By Product
On the basis of product, the market is segmented into 4N, 5N, and 6N. In 2022, the 4N product category led the industry globally and was responsible for the highest revenue share of more than 40.0%. The product’s use of LEDs is responsible for a substantial proportion of this market. Lithium-ion batteries also employ it as a battery separator. During the projected period, the market will be driven by growth in the lighting and EV industries. In 2022, the 5N product sector had the second-highest revenue share.
By Application
On the basis of application, the HPA market is segmented into LED, semiconductor, phosphor, sapphire, lithium-ion battery, and others. In 2022, the industry was led by the LED application category, with a revenue share of more than 49.65%. Due to increasing demand from the electronics and automotive industries, the semiconductor industry had the second-highest revenue share in 2022. Chips made using semiconductors use HPA. Due to their high electrical conductivity, semiconductors are mostly employed in high-tech industrial sectors like the Internet of Things (IoT), the manufacture of smartphones, and the creation of motherboard chips. Increasing EV demand will propel the need for lithium-ion batteries in the upcoming years.
Regional Analysis
In 2022, Asia Pacific was the biggest regional market, with 71.00% of the revenue share. Increased product demand from the automotive and electronics sectors would have a substantial impact on the local market. For instance, Indian manufacturer Mahindra & Mahindra Ltd. said in December 2022 that it would spend USD 1.21 billion to build an EV facility in Pune, Maharashtra, over the course of the following 7 to 8 years. During the forecast period, North America will have the second-fastest CAGR in terms of revenue.
Key Players
- Almatis, Inc.
- Coorstek Inc.
- Baikowski SAS
- Altech Chemicals Ltd.
- Sumitomo Chemical Co., Ltd., Sasol Limited
- Nippon Light Metal Holdings Company, Ltd.
- Orbite Technologies
- Honghe Chemical
- Sasol ltd
- Polar Sapphire Ltd.
- Hebei Pengda Advanced Materials Technology Company
- Xuancheng jingrui new material co.
The high purity alumina market in 2023 was USD 3.8 billion, and it will reach USD 15.2 billion by 2030 at a 21.6% CAGR during the forecast period. Increased utilization of products, including LED lighting, lithium-ion batteries, optical lenses, photovoltaic cells, phosphors, semiconductors, biomedical devices, and others, is one of the main drivers driving the market’s rapid expansion. The rise in electric car manufacturing is also driving the sector.
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