High Purity Alumina Market Trends

Growth Drivers

• Growing Demand for LED Lights - With only about 3% of US homeowners choosing LED as their primary lighting option in 2019, the technology was still in its infancy. In just five years, this situation radically improved, and by 2020, approximately 46% of US houses were using LED lamps as their primary source of lighting. LED lights are more efficient than traditional lights. Most of the energy in LED is converted into light and least is wasted, as less energy is used. Thus, they are known to be the eco-friendliest solution. Hence, owing to this factor the market is estimated to grow.
• Rise in Demand for Automobiles - In the United States, the percentage of people who own cars is rising. In 2020, about 90% of American households had access to at least one automobile, up from approximately 89% in 2015.
• Surge in Adoption of Smartphones - By 2023, there was estimated to be about 5 billion smartphone users worldwide, which would mean that approximately 85 percent of people would be smartphone owners. This number is significantly more than it was in 2016, when there were just about 2 billion users, or approximately 48% of the world's population.
• Growth in Government Initiatives in Order to Adopt Electric Vehicles - Phase 2 of the FAME INDIA project was launched by the Indian government in 2022 for a five-year period with a budgetary support of USD 121 Billion. The Indian government seeks to promote the electrification of public transportation. To this end, 7090 electric buses, 10,000 electric two-wheelers, and 5,000 electric four-wheelers have been purchased with subsidies. Electric vehicles consist of lithium-ion batteries, and high purity alumina is extensively used in these batteries. Therefore, with growing government initiatives the demand for electric vehicles is estimated to increase which would further also boost the market growth for high purity alumina.
• Upsurge in Demand for Electricity - For the previous 50 years, the amount of electricity consumed worldwide has increased steadily, and in 2021, it was expected to be over 25,299 terawatt hours. Electricity usage increased by more than thrice between 1980 and 2021. Since the demand for electricity demand is growing the urge to conserve energy is also growing. Hence, the demand for energy-efficient lighting solution such as LED is estimated to boost the growth of the market.

Challenges

• High Production Cost
• Leads to Rise in Carbon Emission During Manufacturing - It is generally known that the traditional alkaloid process used to make HPA is a notorious "energy hog," producing an average carbon footprint of about 11 ton of CO2 per ton of high purity alumina. Reducing the energy needed for manufacturing operations is the first step in lessening the HPA industry's carbon footprint and environmental effects. The creation of the production facility and the procedures themselves is the first step in this process which requires huge investment. The high purity alumina alkaloid technique also uses pricey, carbon-intensive aluminium metal as its feedstock, which is obviously unacceptable in the long run. Hence this factor is estimated to hinder the growth of the market.
• Stringent Government Regulations