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High purity alumina (HPA) is a non-metallic product with a minimum purity level of 99.99% alumina. It finds wide application in the production of LEDs, lithium-ion batteries, phosphor screens, semiconductor substrates and more. HCL leaching method is one of the commonly used techniques to commercially produce HPA. It involves dissolving bauxite ore in hydrochloric acid at high temperature to extract alumina. The process yields high purity alumina with fewer contaminants and lower carbon emissions compared to other techniques. The growing demand for HPA from various end-use industries especially in the green energy sector is expected to drive the HCL leaching high purity alumina market over the forecast period.
The global HCL Leaching High Purity Alumina Market is estimated to be valued at US$ 2.4 Bn 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:
One of the key trends in the market is increasing demand for HPA from lithium-ion batteries industry. HPA acts as a separator material in lithium-ion batteries providing high conductivity, preventing short circuits and improving battery life and safety. With rapid adoption of electric vehicles worldwide, the demand for lithium-ion batteries is surging which in turn is promoting the HCL leaching HPA market growth. Another major trend is the rising popularity of HPA in LED production. HPA delivers high light extraction, thermal conductivity and durability in LED chips. It allows manufacturing of LEDs with higher brightness, power efficiency and lifespan facilitating green transition.
Porter’s Analysis
Threat of new entrants: The high capital requirements for setting up manufacturing facilities pose barriers for new players entering the market. Additionally, established players have significant economies of scale which discourage new entrants.
Bargaining power of buyers: The presence of several buyers for HPA reduces their bargaining power. However, the buyers do have moderate bargaining power as HPA has applications in diverse industries.
Bargaining power of suppliers: The suppliers of key raw materials such as alumina have moderate bargaining power due to the availability of substitutes. However, suppliers have established supply relationships which provide some bargaining power.
Threat of new substitutes: There is a low threat of substitute products/materials as HPA has unique properties that are difficult to replicate. New materials may pose a medium threat in the long run.
Competitive rivalry: The market is consolidated with key global players. Players compete based on product quality, consistency in supply and price.
Key Takeaways
The global HCL leaching high purity alumina market is expected to witness high growth, exhibiting 13% CAGR over the forecast period, due to increasing demand from LED lighting. The market size for 2023 is estimated to reach US$ 2.4 Bn.
Regional analysis: Asia Pacific dominates the global HPA market and is expected to maintain its leading position during the forecast period Growing demand for HPA from end-use industries such as LED lighting is driving market growth. China accounts for the major production and consumption of HPA globally.
Key players operating in the HCL leaching high purity alumina market include Alcoa Inc., Bukowski, Orbite Technologies Inc., Altech Chemicals Limited, Sumitomo Chemical Co., Xuancheng Jingrui New Material Co., Ltd., Nippon Light Metal Company Ltd., Dalian Hiland Photoelectric Material Co., Ltd., Sasol, and Rusal. Key players are focusing on enhancing production capabilities to cater to increasing HPA demand. Players also pursue backward integration and partnerships with end users to strengthen market position.
