Owing to the surging use of metallurgical-grade alumina for aluminum manufacturing, especially in the Asia-Pacific region, and the low cost of alumina, the global alumina market value is predicted to rise from $61,093.4 million in 2018 to $54,907.3 million by 2024. According to the estimates of the market research organization, P&S Intelligence, the market will advance at a CAGR of 2.2%, in terms of value, and a CAGR of 3%, in terms of volume, from 2019 to 2024.
The growing need for high-quality glass, specialty steel, and cement and the expansion of the construction sector, on account of the macroeconomic growth in Asia-Pacific and Europe, are the major factors driving the demand for alumina across the world. Russia, India, the U.K., the U.S., and China generate a high requirement for alumina, on account of the high-volume manufacturing and use of steel in these countries. This is subsequently propelling the requirement for the oxide, as it will be needed for use as a refractory material.
Besides, the emergence of innovative technologies is also expected to fuel the requirement for chemical-grade alumina, which will, in turn, propel the growth of the alumina market. The use of chemical-grade alumina will be driven by the surging need for eco-friendly, energy-efficient, and technologically feasible products and the implementation of favorable government regulations. For example, the U.S. and the European Union (EU) have enacted several regulations for augmenting the domestic production of liquid crystal displays (LCDs) in order to meet the soaring demand for high-resolution, large-panel, and flexible LCD TVs.
Globally, the alumina market was dominated by the Asia-Pacific region from 2014 to 2018, and this trend will continue during the forecast period as well. This is credited to the surging need for high volumes of metallurgical-grade alumina and chemical-grade alumina, primarily in China, on account of their extensive use in refractories, abrasives, and ceramics in the country. Other regional countries, such as Indonesia, Australia, and India, also manufacture huge volumes of aluminum and account for large-scale use of metallurgical-grade alumina.
The alumina market is highly fragmented in nature, with several Chinese players accounting for a large number of market shares, on account of their huge manufacturing capacities. The Aluminum Corporation of China Limited held a substantial share in the market in 2018. Moreover, many players operating in the industry are actively focusing on joint ventures for cost optimization, production flexibilities, and catering to client needs in various locations all over the world.
Hence, the demand for alumina will rise sharply in the coming years, mainly because of the high-volume production of alumina across the world.
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