Aluminum Oxide Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The aluminum oxide market is expected to register a CAGR of over 4%, during the forecast period. The major factors driving the growth of the market studied are the increasing demand from the pharmaceutical and industrial manufacturing sector, and growing production of porous ceramics. However, increasing health risks due to exposure to aluminum oxide remains one of the major concerns for the market studied.

• The medical and pharmaceutical segment dominated the market. It is likely to grow during the forecast period, with increasing investments into the healthcare industry across the world.
• The huge potential as biomaterial in the medical industry is likely to provide opportunities for the market studied, during the forecast period.
• Asia-Pacific dominated the global market, owing to the surging demand from the medical, industrial manufacturing, and electronics industries.

Key Market Trends

Aluminum Smelting Segment to Dominate the Market Demand

• Aluminum oxide is primarily used to produce aluminum from smelting process, as nearly 90% of the total aluminum oxide produced is consumed in the aluminum smelting industry. The aluminum oxide is used to produce the primary aluminum metal at a ratio of 2:1 (2 metric ton of alumina produces 1 metric ton of aluminum).

• Aluminum is the second-most used metal in the world and is mainly used in the transportation, building and construction, electrical engineering, container packaging, and other industries, due to its durability, strength, lightweight, and recyclability.

• Together, the two aluminum companies formed a joint venture called Elysis, to develop this technology further for larger-scale production and commercialization, with a package planned for sale, beginning in 2024.
• Apple partnered with both these aluminum companies and the Governments of Canada and Quebec, to collectively invest a combined USD 144 million for future R&D.
• From the above-mentioned points the demand for segmentation is expected to increase during the forecast period.

Asia-Pacific Region to Dominate the Market

• Asia-Pacific region dominated the global market share of aluminum oxide, owing to the increasing investments and production in the end-user industries, such as medical & pharmaceuticals, electronics, industrial manufacturing, etc.
• China is one of the fastest-growing economies globally, and almost all the end-user industries have been growing owing to the rising population, living standards, and per-capita income. However, owing to the international trade turbulences and unfavorable geopolitical affairs, the growth rate is expected to slow down in the initial years of the forecast period. But the growth is expected to take up the pace in the latter part of the forecast period, considering the favorable conditions and relations in the future.
• China is the world’s top producer of aluminum oxide.

• Southwest China’s Guizhou province is increasingly becoming the largest producer, due to friendly policies and the easy availability of raw materials. Guizhou’s abundant bauxite resources have given an edge in developing aluminum production, as bauxite is the raw material used to produce aluminum products in many industrial processes.

• Thus, all such factors are expected to drive the demand for the market studied in the region during the forecast period.

Competitive Landscape

The global aluminum oxide market is consolidated, with the top five players accounting for around 40% of the global market. Some of the major players in the market include Aluminum Corporation of China Limited (CHALCO), Xinfa Group Co. Ltd, China Hongqiao Group Limited, Sasol and Alcoa Corporation, among others.

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