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06 NOVEMBER 2016 AL CIRCLE

Global high purity alumina market slated to reach US$3.6 bn by 2021

EDITED BY : DIPANWITA GUPTA 3MINS READ

According to a recently published report by Persistence Market Research (PMR), the global high purity alumina market was valued at US$ 1.2 billion in 2014 and is projected to expand at a CAGR of 6.9 per cent during the forecast period to reach US$ 3.6 billion by the end of 2021.

High purity alumina or HPA is a high-end product of the non-metallurgical alumina market. It is a high-value product that serves as a base material for the manufacture of sapphire substrates used in various applications such as scratch-resistant artificial sapphire glass, light emitting diodes (LEDs), and semiconductor wafers.

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Manufacture of synthetic single crystal sapphires (used as a base substrate for manufacturing LEDs) is a major application of HPA. LEDs are used in traffic lights, LED-backlit LCDs, backlights in electronics, and general lighting products. According to PMRs market assessment, global packaged LED production is witnessing a significant annual growth rate of 9 per cent-11 per cent. This is expected to drive demand for HPA, considering that it finds major application in the manufacture of LEDs.

Hence, the LED application segment is expected to expand at a CAGR of 18 per cent during the forecast period. The HPA market in China is projected to exhibit the fastest growth during the forecast period, owing to a favourable economic environment and the need for technological advancements in electronics products such as mobile phones and cameras.

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From a regional perspective, Asia-Pacific was the largest market for HPA in 2014, accounting for approximately 60 per cent volume share of the overall market. North America ranked second, accounting for over 13 per cent market share followed by Europe in 2014, and is forecast to expand at a CAGR of 16.7 per cent and 15.6 per cent respectively, during the forecast period. This growth is attributed to the positive outlook of the economy in Western Europe.

However, according to the leading minerals development company Altech Chemicals, the global HPA market was estimated at 19,040tpa in 2014 and is expected to increase to 48,230tpa by 2018 growing at a CAGR of 28 per cent. Altech is focused on becoming a leading supplier of HPA to meet the growing global demand for the next generation of high-tech, superior electronics.

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EDITED BY : DIPANWITA GUPTA 3MINS READ

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