Global increase in aluminum demand from key end-use industries such as automobile and packaging is expected to drive cryolite market growth over the next seven years. This market is expected to witness significant growth rates owing to increasing aluminum application scope in end-use industries.
Asia Pacific dominated the regional market with over 60% of the total aluminum demand in 2014. China emerged as the leading country from Asia Pacific with over 40% of the global aluminum demand. Cryolite industry growth is directly dependent on the increasing aluminum demand. Key regions such as North America and Europe are expected to witness average growth rates over the forecast period.
Increasing aluminum demand from automobile for manufacturing lightweight and fuel-efficient vehicles is expected to drive the demand over the forecast period. Reduction in vehicle body weight by 10% can improve the fuel efficiency by 6–8%. Replacing traditional sheet components and cast iron with lightweight materials, such as aluminum can, vehicles can mount, advance emission control equipment, safety devices, and electronic systems.
Globally, aluminum content in light commercial vehicles is expected to reach over 17 million tons in future, which is anticipated to be the most important part of the cryolite market demand.
Increasing use of fillers in synthetic resins for abrasives manufacturing is expected to drive the demand over the forecast period. This is the second largest application for the industry and is expected to witness moderate growth rates over the forecast period. It is also used as a binding agent for grinding or cutting discs.
Cryolite is used as a coloring agent and opacifier in end-use industries such as pyrotechnic, glass, and ceramics. It is also used as an opacifier in enamel production. The application as coloring agent and opacifier amounts to a limited usage in these industries.
High melting point cryolite temperature results in the aluminum extraction process to be carried out at temperatures ranging from 900 to 1000º C. This factor is expected to hinder cryolite industry participant’s growth as researchers are finding alternate methods to extract aluminum at lower temperature gradients.
Fluctuating aluminum prices are also expected to affect industry participant’s growth. Increasing research investment for potential plastics replacement by aluminum is expected to open new avenues for industry participants in the global cryolite market.
Asia Pacific emerged as the leading regional market over the past few years. Shift in preference of automobile manufacturers in Asia Pacific regions such as China, India, Thailand, and Malaysia is expected to drive the demand. These regions are characterized by government subsidies and population expansion coupled with increase in middle-class disposable income.
Key regions such as Europe and North America are anticipated to witness moderate growth rates owing to the presence of major automobile manufacturers in these regions. By 2025, North America has set a target to have seven out of ten pick-up trucks to be aluminum-bodied.
North America has also set a target for use of aluminum in automobile to reach 85% in aluminum hood penetration, 45% in doors, and 18% in complete bodies. This factor is anticipated to drive the aluminum consumption over 270 million tons.
According to the North American Government, every automobile manufacturer should have an aluminum body program in place. Major automobile manufacturers such as Ford and General Motors are expected to be the major consumers of aluminum sheet.
Cryolite market is price-sensitive and is characterized by the presence of a high degree of completion among industry participants. Major cryolite industry participants operating in the market include Do Fluoride Chemicals Co., Ltd., Fluorsid S.p.A, S.B. Chemicals, Xinhai Chemicals Co., Yuzhou Deyi Chemical Co., Zhengzhou Flworld Chemical Co., and Henan Buckton Industry & Commerce Co.
NEED A CUSTOM REPORT?
We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities.
Contact us now to get our best pricing.
We are GDPR and CCPA compliant! Your transaction & personal information is safe and secure.
"The quality of research they have done for us has been excellent."
The ongoing pandemic has led to a decline in exploration activities in the oil & gas sector. A number of EPC projects have also witnessed an indefinite pause that has transpired into a slump in the requirement for drilling and excavation services. Economic repercussions of the trend are expected to be highly evident in the Middle East. The report will account for Covid19 as a key market contributor.