According to a recently published market research report, the global high purity alumina (HPA) market was valued at US$ 1.2 billion (bn) in 2014 and is projected to grow at a compound annual growth rate (CAGR) of 6.9% during the forecast period to reach US$ 3.6 bn by the end of 2021.
HPA is a high-end product of the non-metallurgical grade alumina market. It is a high-value product that serves as a base material for the manufacture of sapphire substrates used in a wide range of applications such as light emitting diodes (LEDs), scratch-resistant artificial sapphire glass, and semiconductor wafers.
According to the market assessment, global packaged LED production which is currently witnessing a significant annual growth rate of 9%-11%, is expected to be a major demand driver for HPA. Hence, the LED application segment is naturally expected to expand at a CAGR of 18% during the forecast period.
The Chinese HPA market, owing to a favorable economic environment and growing need for technological advancements in the electronics consumer durables segment, is projected to exhibit the fastest growth during the forecast period.
As per data revealed in the report, Asia-Pacific was the largest market for HPA in 2014, accounting for approximately 60% volume share of the overall market. North America (US + Canada) ranked second, accounting for over 13% market share followed by Europe in 2014, and is forecast to expand at a CAGR of 16.7% and 15.6% respectively, during the forecast period. This growth is primarily attributed to the positive outlook of the economy in Western Europe.
High purity alumina market segmentation:
The global HPA market is segmented on the basis of product, application, and region. By product, the market is categorized as 4N, 5N, and 6N. On the basis of application, the market is categorized as LED, semiconductor, phosphorus, and others. Key regions covered in this report include North America, Latin America, Europe, Asia-Pacific, and the Middle East & Africa.
By product type, 4N HPA was the largest segment in 2014, accounting for 54.1% volume share of the overall market. This segment dominated the market in 2015 and is expected to continue to do so during the forecast period.
Key factors driving the high purity alumina market growth include rising demand for LED lighting and displays, wider application in smartphones, and government support for the production of HPA products. However, there are challenges in the market too. Increasing purchase and associated costs may hinder HPA market growth in coming years. Major trends witnessed in this market, as indicated in the report, include the manufacture of HPA from aluminium smelter waste and increasing focus on R&D to deliver product customization.
