High Purity Alumina Market Size, Share & Trends Analysis Report By Application (LED, Li-ion Battery, Semiconductor, Phosphor), By Product (4N, 5N, 6N), By Region (Asia Pacific, North America), And Segment Forecasts, 2023 - 2030

Report Overview

The global high-purity alumina market size was valued at USD 3.18 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 22.2% from 2023 to 2030. The increasing use of high-purity alumina (HPA) in batteries of electric vehicles (EVs) and components in electronics manufacturing is anticipated to drive industry growth during the forecast period. The lithium-ion battery consists of a thin coating on the separator sheet and a nano thickness for alumina-coated separators to improve battery performance. This HPA enhances the durability of the battery by increasing its ability to withstand a high rate of discharge. Of the available materials, HPA is considered a better anode candidate for lithium-ion batteries as it offers high capacity, low cost, and low equilibrium potential.

The U.S. was the largest consumer of HPA in North America in 2022. Nearly half of the demand for lighting in the U.S. has now shifted to LED as they are considered more energy efficient. According to the U.S. Energy Department, the country is expected to implement the majority of its lighting installation projects by 2035 and is likely to have LED lighting technology in the residential sector using ENERGY STAR products. ENERGY STAR-qualified products consume around 75% less energy when compared to LCD. As a result of its consumption in LED manufacturing for residential and commercial lighting, the HPA market is anticipated to grow over the forecast period.

Hence, HPA manufacturers have been focusing on increasing capacity. For instance, in November 2022, Orica and Alpha HPA Ltd., both Australia-based players, signed a Memorandum of Understanding to set up an HPA manufacturing plant in North America. The project is in the initial stage of feasibility and is set to expand Alpha HPA’s presence in the region. Growing demand for LED lighting, electronics, and EV batteries is one of the key drivers for the industry, where the product is widely used for its properties, such as thermal stability, brightness, and superior hardness. HPA witnesses significant demand in plasma displays, as it is an energy-efficient and cost-effective substitute for conventional materials including incandescent light bulbs. It is also an essential base material for synthetic sapphire substrates that are used in numerous microelectronics, especially in semiconductors.

Product Insights

On the basis of products, the global industry has been further categorized into 4N, 5N, and 6N. The 4N product segment dominated the global industry in 2022 and accounted for the maximum share of more than 40.0% of the overall revenue. The high share of this segment can be attributed to the application of the product in LEDs. It is also used as a battery separator for lithium-ion batteries. Growth in the lighting and EV industries is anticipated to drive the market during the forecast period. The 5N product segment accounted for the second-largest revenue share in 2022.

The segment is projected to witness a significant CAGR during the forecast period. Properties, such as chemical stability, scratch resistance, and extreme hardness, make it suitable for sapphire production, which is used in the production of high-quality lenses. 6N fetches the highest premium and finds usage in solid-state lasers, semiconductors, and sensors. It finds applications in advanced technologies and electronics for its properties including better polishing performance and thermal stability. Growing technological advancements including 5G services are anticipated to support the demand for HPA over the coming years.

Application Insights

On the basis of applications, the global industry has been further categorized into LED, semiconductor, phosphor, sapphire, lithium-ion battery, and others. The LED application segment dominated the industry in 2022 and accounted for the maximum share of more than 49.65% of the overall revenue. The semiconductor segment held the second-largest revenue share in 2022 owing to the rising demand from the electronics and automobile industries. HPA finds application in semiconductor chips. Semiconductors have high electrical conductivity and are primarily used in high-tech industrial fields, such as the Internet of Things (IoT), smartphone production, and motherboard chip production. Rising demand for EVs is anticipated to drive the demand for lithium-ion batteries in the coming years.

Automotive manufacturers across the globe are investing heavily in building new plants for manufacturing EV batteries, which is anticipated to augment the consumption of HPA. For instance, in July 2022, Volkswagen announced that it has invested USD 20.3 billion to construct its EV battery manufacturing plant by 2030. Such developments are expected to support HPA market demand in the near future. Phosphor is another vital application segment, which is projected to register a significant CAGR, in terms of revenue, from 2023 to 2030. HPA is used to make aluminate phosphor that is further processed in LED production. Phosphor is preferred in LED making owing to its properties, which luminesces the radiation impact of ultraviolet light exposure by the indicator lights.

Regional Insights

Asia Pacific dominated the global industry in 2022 and accounted for the maximum share of more than 71.00% of the overall revenue. A rise in product demand from the automotive and electronics industries is anticipated to significantly contribute to the regional market. The EV market is expected to witness growth over the forecast period. For instance, in December 2022, Indian automaker Mahindra & Mahindra Ltd. said it would invest USD 1.21 billion to set up an EV plant in Pune, Maharashtra in the next 7 to 8 years. North America is anticipated to register the second-fastest CAGR, in terms of revenue, during the forecast period.

About USD 40 billion of investments have been planned in the U.S. to set up about 15 new plants to supply critical EV battery components. For instance, in November 2022, Hyundai Motor Group and SK On Co., Ltd. announced their plan to invest up to USD 5 billion to build a new EV battery plant in the U.S. Europe is also anticipated to register significant growth during the forecast period. Lithium-ion battery manufacturers are expanding their operations across Europe to cater to the growing EV demand. For instance, in August 2022, Contemporary Amperex Technology Co., Ltd. (CATL), one of the leading battery manufacturers based in China, announced an investment of approximately USD 7.58 billion to start a new battery plant in Hungary. Such investments are anticipated to drive market growth in the coming years.

Key Companies & Market Share Insights

The industry is highly competitive and is anticipated to expand on account of the growing penetration of HPA use in various end-use industries. Key players would continue to cater to market demand in the coming years. For instance, in July 2022, CoorsTek Inc., a Japanese semiconductor ceramics manufacturer, announced that it is planning to expand its production capacities at its existing Nagasaki prefecture facility in Japan. The plant is anticipated to operate with an additional capacity in 2024. Such investments are projected to support HPA growth in the coming years. Some of the prominent players in the global high-purity alumina market include:

• Almatis, Inc.

• Altech Chemicals Ltd.

• Baikowski

• CoorsTek Inc.

• FYI RESOURCES

• HONGHE CHEMICAL

• Nippon Light Metal Holdings Co., Ltd.

• Orbite Technologies Inc.

• Polar Sapphire Ltd.

• Sumitomo Chemical Co., Ltd.

High Purity Alumina Market Report Scope

Global High Purity Alumina Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global high-purity alumina market report on the basis of product, application, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • 4N

  • 5N

  • 6N

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • LED

  • Semiconductor

  • Phosphor

  • Sapphire

  • Lithium-ion Batteries

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

  • Europe

    • Germany

    • U.K.

    • France

    • Spain

    • Italy

  • Asia Pacific

    • China

    • Japan

    • South Korea

  • Central & South America

    • Brazil

  • Middle East & Africa