High-Purity Alumina Market to Surpass $4 Billion by 2025
Based on volume, high-purity alumina in North America (driven by the U.S.) is projected to exhibit strong growth, with a CAGR of close to 18%.
The high-purity alumina (HPA) market is set to grow from its current market value of more than $1.21 billion to over $4 billion by 2025, according to a recent study by Global Market Insights, Inc. The product of many steps of smelter-grade alumina (SGA) purification, HPA is traditionally extracted via the Bayer process, which relies on dissolving minerals from bauxite with caustic soda, followed by chemical isolation of the product.
HPA’s high brightness is useful for the creation of more efficient and environmentally friendly lighting solutions; it also facilitates advertisement display solutions. Synthetic sapphire obtained from the verneuil process, which is a flame fusion process that uses HPA powder for manufacturing synthetic gemstones, are equivalent to natural sapphires. The increasing use of the product as a base to produce sapphire substrates will thus propel the high-purity alumina market in the coming years.
Some of the crucial challenges facing the global high-purity alumina market involve expensive feedstock, the scarcity and high cost of a skilled workforce, strict government regulations, and high required energy costs. These factors are expected to result in the high pricing of finished products and relatively low profitability.
With over 70% of the industry share, 4N high-purity alumina will see growth at a significant pace due to its huge acceptance in energy-efficient lighting solutions and electronic displays. The 5N HPA will account for over $1 billion by the end of 2025 due to its rising use in sapphire substrates, electrolytic capacitor foils, electronic storage systems and photovoltaic cells.
Based on revenue, hydrolysis technology will capture over $3 billion by 2025. This method involves the addition of alcohol to aluminum to facilitate the hydrolysis of aluminum alkoxide in producing HPA. The appropriate level of purity is achieved by removing contaminants like iron, copper, and silicon to obtain performance benefits such as higher conductivity, brightness, and optimal processing.
Based on volume, LED’s segment will capture over 50% of the high-purity alumina market share. The phosphor segment is projected to reach over $550 million by 2025. Rapid growth of phosphor-based products, such as plasma televisions in which high-purity alumina is used to control the characteristics of phosphorous products, is expected to grow and help boost the HPA market.
The high-purity alumina market is mainly dominated by China due to the presence of large bauxite reserves in the region. Based on volume, North America (driven by the U.S.) is projected to exhibit strong growth, with a CAGR of close to 18%. The regional 4N HPA market is anticipated to capture close to $350 million by the end of forecast period.
For more information, visit www.gminsights.com.