Alumina Market Size

Alumina Market Size

Global Alumina Market size was estimated more than USD 40 billion in 2020 and is anticipated to grow at a CAGR of 4.7% from 2021 to 2027. Shifting customer preference toward lightweight materials and rising demand of aluminum for automotive and construction industries will augment the demand for specialty alumina over the forecast period.

Aluminum Oxide, commonly known as Alumina, is a white crystalline chemical compound, generally produced from Bauxite. It is widely used in different engineering applications including anti-corrosion materials, wear & abrasion resistance parts, electronics industry, etc. Alumina is a cost-effective product and offers quality features such as high durability, brightness, low heat radiation, and high stability at elevated temperature.

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Advanced aluminum materials are continuously capturing the automotive industry owing to their higher safety and performance. As lightweight materials are improving fuel efficiency, the global automakers are shifting their preferences by replacing iron and steel components with the lighter materials.

According to the U.S. Department of Energy, 10% reduction in vehicle weight subsequently improves 6%-8% fuel efficiency, further reducing CO₂ emissions. Additionally, the rising demand for compact body panels and higher load bearing performance for light commercial vehicles will significantly boost the growth of alumina market. Rapidly growing automotive industries in emerging economies will impact the demand for high-quality alumina in near future.
 

Modern living standards aggressively create opportunities for consumer electronics and construction industries. Aluminum is widely adopted for roofing and wall cladding systems, including frames, staircases, panels, etc., in the recent years. Wall cladding is majorly chosen for commercial construction owing to its cost-effective, functional, and aesthetic appearance.
 

Moreover, electronic components and home appliances, such as smartphones, laptops, TV panels, refrigerators, washing machines, etc., are manufactured with a considerable amount of aluminum to offer higher performance at an affordable price. These panels and solid sheets are produced from high-quality aluminum sheets, further proliferating the alumina market share in the coming years.
 

The volatile price of raw materials due to fluctuating production rates is likely to hamper the business growth in the near future. Moreover, the recent COVID-19 pandemic negatively impacted the production capacity due to temporary suspension of mining activities, low workforce, and value chain disruption across the globe. Nevertheless, rapid vaccination policies along with lifting of government restrictions and quick recovery of the construction sector will revive the overall alumina market value in the coming years.