April 17, 2024

HCL Leaching is Driving the Global High Purity Alumina Market Towards New Horizons

High purity alumina or HPA is an advanced material that finds wide applications in LED lights, electronic devices and lithium-ion batteries due to its properties such as high hardness, corrosion and wear resistance along with electrical conductivity. HPA is majorly used as a coating on LED and electronic components to provide protection from heat, moisture and environmental stresses. Rapid expansion of electronics and semiconductor industries has fueled the demand for HPA in recent years. The HCL leaching production process for HPA offers cost advantages over the conventional methods and has higher recovery rates of alumina. This has led HCL leaching to emerge as the most adopted production method for HPA globally. The global HCL Leaching High Purity Alumina Market is estimated to be valued at US$ 3.2 Billion in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
Growth in the electric vehicles industry is one of the major market trends boosting the HPA demand. HPA is a key component in lithium-ion batteries that are widely used in electric vehicles. Stringent environmental regulations regarding vehicular emissions are encouraging automakers to shift towards electric mobility. Rapid urbanization and rising disposable income in developing countries are also contributing to the electric vehicles growth. According to International Energy Agency, the global electric car stock crossed 10 million in 2020 and is projected to grow over 26% annually till 2030. This exponential rise in electric vehicles will significantly drive the consumption of HPA in the coming years. Another notable trend is the increasing utilization of HPA in LED manufacturing. HPA improves light extraction efficiency, luminescence and thermal stability of LEDs. Mounting LED lighting adoption in residential, commercial and industrial sectors owing to their energy efficiency is propelling the HPA consumption.

Porter’s Analysis
Threat of new entrants: The threat of new entrants in the global HCL Leaching High Purity Alumina market is low owing to the high capital costs required to enter the market and establish a production facility. However, some new players are able to overcome the entry barriers by collaborating with existing players.

Bargaining power of buyers: The bargaining power of buyers in the HCL Leaching High Purity Alumina market is moderate. Buyers can negotiate on price and quality standard but have limited alternatives.

Bargaining power of suppliers: The bargaining power of suppliers is low given the presence of many suppliers in the market. Suppliers also do not have significant impact over the prices in the global market.

Threat of new substitutes: The threat of substitutes is moderate as high purity alumina has substitutes like sapphire and silicon carbide but they are not considered as an economical and feasible substitute.

Competitive rivalry: The competitive rivalry in the global HCL Leaching High Purity Alumina market is high owing to presence of numerous regional and international players competing over market share.

Key Takeaways
The global HCL Leaching High Purity Alumina market is expected to witness high growth. The stringent regulations regarding energy efficiency and increasing demand for LEDs and semiconductors are major factors driving the adoption of HCL Leaching High Purity Alumina.

Regional analysis: The Asia Pacific region dominates the global HCL Leaching High Purity Alumina market owing to presence of various end-use industries and rapid industrialization. China dominates the Asia Pacific market accounting for over 30% of the global demand for HCL Leaching High Purity Alumina.

Key players: Key players operating in the HCL Leaching High Purity Alumina market are Sumitomo Chemical, Sasol, Nippon Light Metal, Altech Chemicals, Orbite Technologies, and Dalian Hiland Photoelectric Material. Sumitomo Chemical and Sasol collectively account for over 30% share of the global HCL Leaching High Purity Alumina market.