Global High Purity Alumina Market Growing Despite Supply Deficits, Environmental Concerns

April 28, 2014 - PRLog -- TechNavio, the independent tech-focused global research firm, has published its report on the Global High Purity Alumina Market, which is posting a strong CAGR of 27.29 percent from 2013-2018.

The report highlights several important drivers for this market, including growing adoption of LED displays, as high purity alumina is used in the manufacturing of sapphire substrate for LEDs.

“In 2013, sapphire single-crystal applications used in LED manufacturing accounted for 55 percent of high-purity alumina production,” says Faisal Ghaus, Vice President of TechNavio Research.

Additionally, the report indicates that the resolution of current alumina supply deficits will have significant positive outcomes on the market size over the projected period.

High-purity alumina producers are currently rigorously exploring the earth’s crust for aluminous clay resources. AMMG reported an increase of 147 million metric tons in aluminous clay resources under its owned projects. An increase in aluminous clay resources will enable the Global High-purity Alumina Market to overcome the supply deficit and enhance the production of high-purity alumina.

But even given these growth factors, the market is not without its challenges over the next four years.

The traditional high-purity alumina production method, which enhances the purity of alumina, results in huge exploration, mining, labor, reagents, and energy costs, and a growing number of strict regulations on energy use and environmental impact will directly affect the market

“Aluminum smelters generate harmful emissions, which lead to an increase in the carbon footprint. Strict regulations are set to mitigate the effects extraction of aluminum, alumina, and in bauxite mining,” says Ghaus.

The energy crisis is also a serious concern for high-purity alumina producers, as manufacturing demands a considerable amount of energy. A rise in energy prices or a reduction in subsidy will substantially affect operational costs. The vendors, therefore, have to incur additional costs or suffer operational losses.

To determine the scenario for these vendors in the next 3-4 years, TechNavio analysts have conducted in-depth analysis of the impact of market drivers, challenges and trends featuring data on product segmentations, vendor shares, growth rate by revenue and an evaluation of the different buying criteria in the order of importance.

If you are interested in more information on this topic and our upcoming research on the Global High Purity Alumina Market (http://www.technavio.com/report/global-high-purity-alumin...) please send an e-mail to media@TechNavio.com.

About TechNavio

TechNavio is a leading global technology research and advisory company. Founded in 2003, TechNavio has about 200 analysts globally and develops over 2000 pieces of research every year. We cover more than 500 technologies across 80 countries.

We focus on emerging trends that can shape a market, and model these trends using a mix of quantitative and qualitative tools in our proprietary research methodologies in order to build forecasts across market segments and geographies. These forecasts and analysis are used to help our customers identify new and existing opportunities in their markets. We also help customers assess their competitive position in a constantly changing technology market scenario.

TechNavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Our analysts obtain the information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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