Aluminum is one of the most important metals, as it imparts toughness, corrosion resistance as well as lightness to the end product. From construction and transportation to consumer goods and electronics, the uses of the metal are vast. With urbanization and industrialization, primarily in developing nations, the demand for the metal is surging rapidly. This, in turn, is leading to the rising requirement for alumina (aluminum oxide), the primary raw material, for aluminum production. In 2018, the alumina market valued $61,093.4 million, and the revenue is predicted to increase at a CAGR of 2.2% between 2019 and 2024.
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Specialty-grade Al2O3displays high power density, efficient work ability, and long product life cycle, which allow for customization and defect-free manufacturing of the end-use products. Such properties are highly desired in the expanding electrical and electronics, automotive,chemical, and consumer durable niches of developing countries, such as Brazil, China, and India. This, along with the increasing mining of bauxite, is leading to a shift in the global production of the oxide to Asia-Pacific (APAC). The region is expected generate a high demand for chemical and metallurgical-grade alumina, and to make the most of it, global metal and mining firms are setting up processing facilities here.
Another important application of the metal’s oxide is as refractories, which are used in furnaces during the manufacturing of steel, glass, and cement and in power generation equipment. The application areas of steel, an allow of iron and other metals, are as wide as of aluminum, which is why the demand for it is rising across the globe. Along with the expansion of steel’s end-use industries, an improvement in the quality of the alloy being produced is also being witnessed. Steel with higher strength is now becoming mandatory for use in skyscrapers in earthquake-prone and high-wind-velocity areas. This is leading to the rising demand for specialty alumina for the production of high-quality steel.
The brightest prospects for the alumina market growth are also expected from APAC, due to its high-volume bauxite mining and processing capacity. Additionally, regional countries, such as China, Japan, and India, are among the largest automobile producers in the world. With the increasing focus on decreasing the vehicle weight to increase their fuel efficiency, aluminum is being increasingly used, thereby driving the demand for its oxide. Within the region, China generated the highest demand for Al2O3, owing to its huge automotive, electrical and electronics, and clean energy sectors. During the forecast period, the requirement for the metal oxide is predicted to surge the fastest in India.
Therefore, owing to the growth of the industries where steel and aluminum are essential materials, the market for alumina is also predicted to prosper during the forecast period.