The research study covers the present scenario and growth prospects of the global high-purity alumina market for 2016-2020. The report provides detailed segmentation of the market on the basis of product, application and geography.
Technavio chemicals and materials analysts highlight the following three factors that are contributing to the growth of the global high-purity alumina market:
- Growing adoption of LED lighting systems and displays
- Government regulations encouraging energy-efficient lighting systems
- Increase in demand from APAC
Growing adoption of LED lighting systems and displays
In 2015, single-crystal sapphire used in LED manufacturing accounted for over 55% of high-purity alumina production. LED lighting technology provides energy efficiency, durability, sustainability, and safety, which are fueling its use in housing and commercial applications.
“LEDs offer more advantages than incandescent lighting, which is quickly losing its market share among end-users. The global LED lighting market for industrial applications is anticipated to reach USD 6.3 billion by 2020, expanding at a CAGR of close to 22%,” says Chandrakumar Badala Jaganathan, a lead analyst at Technavio for metals and minerals research.
LED lights are used in different application segments such as architectural, residential, industrial, retail, office, hospitality, and outdoor. These lights are highly efficient and moderately priced. Thus, they can address key issues such as resource scarcity, energy crises, and climate change. Light consumes about 20% of total power worldwide, and on an average, up to 40% of energy can be saved every year just by using LED lights. Thus, the demand for LED is driving the global high-purity alumina market.
Government regulations encouraging energy-efficient lighting systems
Energy efficiency has become a global need amid rising concerns over global warming and the rapid depletion of non-renewable power resources. High energy consumption has led countries to frame policies that ban incandescent light bulbs, which have relatively low power efficiency. The Australian federal government had banned the sales of incandescent light bulbs in 2010. It has announced a list of minimum energy performance standards for lighting products.
In Africa, a law was passed in 2011 to ensure that new buildings meet energy-efficient specifications. In 2012, the South Korean government rolled out policies to support energy service (ESCO), which is a non-profit business providing multiple energy solutions like energy conservation, retrofitting, the design and implementation of energy savings projects, energy infrastructure outsourcing, risk management, and power generation and energy supply. The European Union passed legislation in 2013 to phase out halogen and sodium vapor lamps, which are used to light warehouses and factories.
The 2015 International Energy Conservation Code is based on the 2012 document on lighting controls and daylighting. Daylighting controls and occupancy sensors have become essential for most buildings, as these can switch on and off lights automatically on the basis of occupant's presence in a particular space or room. “These regulations by governments of many countries will boost the adoption of LED lights across different sectors. Thus, driving the high-purity alumina market,” says Chandrakumar.
Increase in demand from APAC
APAC accounted for more than 70% of the total market share in 2015. The LED market in APAC is growing at a rapid growth rate posting a demand for high-purity alumina. The market share for APAC is expected to further increase during the forecast period.
China is the prime demand driver and the largest market for aluminum. In 2014, China experienced a slower growth rate than the past few years, growing at a rate of 10%. China is focusing on balancing internal market by encouraging the export of higher value products.
The next major country to contribute to the market growth of LED in APAC during the forecast period is Japan. Commercial LED lighting products have gained maturity in Japan and manufacturers are likely to focus more on the industrial lighting segment. India is also expected to contribute to the global LED industrial lighting market during the forecast period due to the government's Make in India initiative, which encourages manufacturers across the world to build industrial units in India. South Korea and Taiwan are the other major countries in APAC that contribute to the high growth of the LED industrial lighting market due to the presence of multiple industrial units.
These countries are focusing on energy conservation and environment protection, which will lead to the high adoption of LED lights, which in turn will prove to be beneficial for the growth of high-purity alumina market in APAC.
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