Asia Pacific High Purity Alumina (HPA) Market size crossed USD 1.1 billion in 2020 and is estimated to expand at over 15.6% CAGR between 2021 and 2027. The increasing acceptance of light emitting diode (LED) bulbs and the budding electronics & semiconductor industry will propel the market revenue.

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High purity alumina products are expensive forms of Aluminum Oxide (Al2O3) which finds strong demand for non-metallurgical usage around the world. The product is utilized as a base to produce sapphire substrates that have wide industry applications. It is utilized for manufacturing a wide array of products, including plasma display screens, scratch-resilient sapphire glass for smartwatches and smartphones, LED lights, Li-ion battery separators, sodium lamps, semiconductors, electric vehicles, optical lenses, hybrid cars, and others.

The increasing acceptance of light emitting diode (LED) bulbs has been a major driver for the market. The value-adding attributes, such as durability, reliability, brightness, low radiated heat led to the rising approval of LED products initiating a positive alteration in the industry. Light Emitting Diode (LED) technology is the primary reason for this revolution. The global lighting market is impacted by multiple factors, such as macroeconomic conditions, which are influencing new construction and consequently the number of new lighting installations. Energy-efficiency regulations and rising awareness among consumers are further fueling the demand for LED bulbs.

However, the high production cost associated with HPA may hamper the market growth during the forecast timespan. Additionally, the high purity alumina industry observed some decline in revenue on the account of the COVID-19 disease. Nevertheless, several countries have entered into a recovery phase which will create a positive outlook for the industry growth.

APAC Market, By Technology

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The hydrolysis method is the most feasible method to synthesize high purity alumina (HPA). High purity alumina is produced on including alcohol to the aluminum metal, which further synthesizes alumina. Later, the concluding product is obtained by Calcination. The added advantage of hydrolysis is reduced operational cost as it recovers the acid which can be re-used. Increasing consumption of high purity alumina in various applications is said to bolster the market demand.

APAC Market, By Product

The 5N grade in the high purity alumina market is set to observe around 16.3% growth rate till 2027. It consists of a purity level of 99.999% and is used in liquid crystal display (LCD) and semiconductor industries in sputtering and thin-film applications. The increasing demand for LCDs is primarily owing to their manufacturing design, which contributes to less power consumption compared to the other displays.

APAC Market, By Application

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The LEDs segment is anticipated to acquire more than 49% of the market share during the forecast timeline owing to the expanding usage of ligh emitting diode-based apparatus around the region. The strong demand from the segment is attributed to the surging consumption of LEDs which have taken a considerable market share from the traditional light bulb.

Additionally, key industry participants are increasingly investing in LED technology to make the product more cost-effective. Ongoing research & development activities in conjunction with favorable government norms for energy-saving technology are certain to drive the high purity alumina consumption in the LEDs segment.

Competitive Industry Landscape

The HPA industry is moderately fragmented in nature with the presence of several small and medium-scale manufacturers along with some well-known global brands, such as Sumitomo Corporation. The key industry participants are investing in R&D projects and implementing strategic initiatives, such as production capacity expansion, mergers, and acquisitions, among others. For instance, in March 2020, Altech Chemicals Limited announced that a high purity alumina plant with 4,500 tpa capacity is under production in Johor, Malaysia intending to help the company to strengthen its foothold in the industry.

Some of the major manufacturers of high purity alumina include Altech Chemicals Limited, Baikowski SA, Sumitomo Corporation, Nippon Light Metal Holdings Co., Ltd., Alcoa Corporation, Zibo Honghe Chemical Co., Ltd., CHALCO Shandong Co., Ltd., Hebei Pengda Advanced Materials Technology Co., Ltd., Rio Tinto Alcan, Inc., Norsk Hydro ASA, Shandong Keheng Crystal Material Technologies Co., Ltd., and Austral Private Limited.