About the Report
High purity aluminium is a conductor with lower resistance and higher conductivity, available at a reasonable price in the market, unlike silver and other expensive conductors. High purity aluminium finds application extensively in semiconductors, especially in chip processing, flat panel display production, thin film production, capacitor foils manufacturing, storage system, and others.
Over the past half-decade, high purity aluminium market has shown promising growth, owing to its penetration in the semiconductors industry. Its long-term growth too can be assessed from the growth of the semiconductor industry. Rapid penetration of the product in the world of electronics is set to bolster demand over the coming years. In a recently published report by Fact.MR, deeper insights on the subject of 'high purity aluminium' demand and supply analysis have been offered. The market has been analyzed in 20+ high-growth countries, along with the COVID-19 pandemic impact on this space.
Historical & Future Projections
Over the past half-decade, high purity aluminium has witnessed rapid growth of 9.6%. Demand growth over this period can be solely assessed analyzing the demanded quantity across industries, ranging from semiconductors, aerospace, automotive, and others. On the supply side, product supply ability from manufacturers has remained stable over the same period. Therefore, price points of high purity aluminium have balanced over the same period.
In mid H1 and H2 of FY2020, aluminium prices declined by nearly 3%, cascading the effect to the high purity aluminium market. By the end of H2 of FY2020, returned to their normal state, owing to the restarting of industries in China and Taiwan. Stabilization of supply ability by the 2nd quarter is set to strengthen prices over the short-term forecast period.
Assessing the market in three major timelines over the long-term forecast period, in the short run (2020-2022), the market is anticipated to expand at a moderate pace. Medium-term demand growth of high purity aluminium is set to bolster, owing to diversification of the application portfolio. In the long-run forecast period, the market is set to portray nominal growth in high purity aluminium demand.
Why is High Purity Aluminium Demand High in Taiwan?
East Asia is the largest semiconductor manufacturer in the world, especially Taiwan and China. Therefore, demand concentration of high purity aluminium is closely connected to the growth of the semiconductor industry in Taiwan.
Incentive provision and government policies on the production of semiconductors lower the cost of overall electronics good produced. Therefore, manufacturers across the globe are eying the manufacturing of semiconductors in the country. This provides a strong sign for high purity aluminium demand over the long-term forecast period from the country.
How Big is the Opportunity for High Purity Aluminium Market in China?
Followed by Taiwan, China captures a major supply network of semiconductors in the region. Policies, positioning of industry, and collaborations play an important role in the market. Manufacturers of high purity aluminium have collaborated with key semiconductor producers in China and Taiwan under a two-part tariff plan.
Moreover, supply in China and consumers positioned in U.S.-allied countries have affected the price of high purity aluminium by a higher level, affecting manufacturers’ position in China. All in all, demand for high purity aluminium is set to strengthen over the long-term forecast period.
How is the United States Faring in the High Purity Aluminium Landscape?
The United States followed will account for significant demand for high purity aluminium, owing to the positioning of limited but substantial semiconductor manufacturers in the country. Key manufacturers of semiconductors here are Micron, Texas Instruments, Intel, General Motors, and Qorvo, besides a few others.
Demand for high purity aluminium is set to grow at a higher pace over the medium- and long-run forecast period, owing to rising demand from these firms in the region.
How will Demand Growth of Semiconductors Impact High Purity Aluminium?
According to the Semiconductor Industry Association, “semiconductor sales in FY2020 increased by nearly 5.1% as compared to FY2019, and the market is projected to grow at a stronger rate in FY2021. Since the beginning of Q2 of FY2020, demand growth of semiconductors has been observed at its highest point in Q4 of FY2020.
Among the end-use industries considered for high purity aluminium, semiconductors have higher demand ratio and also a governing growth rate. Therefore, over the long-term forecast period, semiconductors are anticipated to be the proverbial key to the expansion of the high purity aluminium market size.
Is there Potential for High Purity Aluminium in the Aerospace and Defense Industry?
Growing defense investments and technological enhancements in aerospace & defense research will bolster high purity aluminium demand over the short-term and medium-term forecast period. Technological race to strengthen defense equipment will cascade the effect, demanding more high purity materials, including aluminium.
The aerospace industry and aluminium are strongly connected, owing to the utilization of aluminium for the construction of the body of aircraft. But in the perspective of high purity aluminium, it is used to manufacture circuit boards, chip sets, and storage systems to enhance the overall conductivity of the designed craft. This is to enhance the overall experience of the cockpit and the durability of the machine.
All in all, growing aerospace & defense industry is set to bolster demand for high purity aluminium. Growth of high purity aluminium is anticipated to strengthen with rising investments in both these sectors.
What are the Key Barriers for High Purity Aluminium Manufacturers?
A key barrier for high purity aluminium market growth is its long-run risk associated with the concentration of a majority of demand from the semiconductor industry. High purity aluminium demand bubble has been growing at a rapid rate for semiconductors, which puts it at a risk of strong explosion, affecting investor confidence in the market.
Also, high purity aluminium has a number of substitutes in the market, ranging from copper, brass and silver. Copper has strongly penetrated the semiconductors industry, and has lesser chance of going obsolete over the long-term forecast period. As such, growth of such substitutes may hinder the penetration of high purity aluminium in the market to some extent.
Supply-side barriers include higher cost of production and lower margins for manufacturers, with lower production rates for players who have no linearly integration of aluminium supply. Therefore, players with strong cash flow and who are linearly integrated could generate higher dollar opportunity over the next ten years.
Fact.MR has profiled the following prominent high purity aluminium manufacturers in its report:
- Join World
- Kyushu Mitsui Aluminium
- Nature Alu
- Nippon Light Metal Holding Co.
- Norsk Hydro
- Showa Denko KK
- Sumitomo Chemicals Co., Ltd.
Historical Data Available for
US$ Mn for Value & Kilo Tons for Volume
Key Regions Covered
Key Countries Covered
Key Segments Covered
Key Companies Profiled
Customization & Pricing
Key Questions Answered in Report
- Which Application Accounts for the Highest Demand?
High purity aluminium, being an effective conductor, is extensively used to manufacture semiconductors. Therefore, the demand pie is captured by invincible semiconductors application. Over the long-run forecast period, semiconductors are set to dominate demand, even more as compared to the current market share.
- Does the Defense Industry Have a Strong Stand in High Purity Aluminium Demand?
Followed by the semiconductors industry, defense and aerospace will hold significant demand share of high purity aluminium. The market is set to grow on back of increasing defense budgets and aerospace investments.
- Which are Potential Countries for Setting up High Purity Aluminium Plants?
Considering the demand for high purity aluminium across regions over the period of 2015-2030, East Asia is set to hold the demand torch, followed by North America and South Asia & Oceania. Growing semiconductor industry in China and Taiwan is set to spike demand for high purity aluminium over the coming years.
- Why Do China and Taiwan Play a Major Role in Driving Demand for High Purity Aluminium?
China and Taiwan hold governing market shares of semiconductor production. Establishment of new semiconductor fabrication sites in China and Taiwan will provide an impetus to the high purity aluminium market over the medium-run forecast period.
- What are the Key Pricing Strategies Adopted by Players in the High Purity Aluminium Market?
According to the simple gravity model approach, presence of manufacturers and consumers in the vicinity enhances overall sales of a firm and reduces the price of high purity aluminium, thus creating a win-win situation on both sides of the trade coin.
- What are the Key Strategies Adopted by Players in the High Purity Aluminium Market?
Players are prying to position their products in Asia Pacific, especially China, Taiwan, and Vietnam, owing to the presence of numerous consumers in these region. Of the manufacturers pushing their products, Chinese manufacturers have an upper hand owing to lower price points of the product channeled in the region.
Enquiry before Buying
- Is the high purity aluminium market research conducted by Fact.MR?
Yes, the high purity aluminium report has been compiled by expert analysts of Fact.MR, through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to a research analyst.
- What research methodology is followed by Fact.MR?
Fact.MR follows a methodology that encompasses the demand-side assessment of the market, and triangulates the same through a supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions.
- Who are the respondents for primary research?
Fact.MR speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, and industry experts. For a full list of primary respondents, please reach out to us.
- What are the sources of secondary research?
Fact.MR conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.
- Is a sample of this report available for evaluation?
Yes, you can request a sample, and it will be sent to you through an email.
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Key Segments Covered of High Purity Aluminium Market
- Chip Production
- Flat Panel Display Production
- Thin Film Production
- Electrolytic Capacitor Foils
- Electronic Storage Systems
- Wires & Coils
- North America
- Latin America
- East Asia
- South Asia & Oceania
- Middle East & Africa
High Purity Aluminium Market - Scope of Report
A recent study by Fact.MR on the high purity aluminium market offers a 10-year forecast for 2020 to 2030. The study analyzes crucial trends that are currently determining the growth of market across regions. This report explicates on vital dynamics, such as the drivers, restraints, and opportunities for key market players along with key stakeholders as well as emerging players associated with the manufacturing of high purity aluminium. The study also provides the dynamics that are responsible for influencing the future status of the market over the forecast period.
A detailed assessment of high purity aluminium value chain analysis, business execution, and supply chain analysis across regional markets has been covered in the report. A list of prominent companies operating in the high purity aluminium market, along with their product portfolios, enhances the reliability of this comprehensive research study.
The study offers comprehensive analysis on diverse features, including production capacities, demand, product developments, revenue generation, and sales in high purity aluminium across the globe.
A comprehensive estimate on the market has been provided through an optimistic scenario as well as a conservative scenario, taking into account the sales of high purity aluminium during the forecast period. Price point comparison by region with global average price is also considered in the study.
Fact.MR has studied the high purity aluminium market with detailed segmentation on the basis of grade, form, end use, and key regions.
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Analysis on Market Size Evaluation
The high purity aluminium market has been analyzed for each market segment in terms of volume (Kilo Tons) and value (US$ Mn).
Market estimates at global and regional levels for high purity aluminium are available in terms of “US$ Mn” for value and in “Kilo Tons” for volume. A Y-o-Y growth contrast on prominent market segments, along with market attractiveness evaluation, has been incorporated in the report. Furthermore, absolute dollar opportunity analysis of all the segments adds prominence to the report. Absolute dollar opportunity plays a crucial role in assessing the level of opportunity that a manufacturer/distributor can look to achieve, along with identifying potential resources, considering the sales and distribution perspective in the global high purity aluminium market.
Inspected Assessment on Regional Segments
Key sections have been elaborated in the report, which have helped deliver projections on regional markets. These chapters include regional macros (political, economic, and business environment outlook), which are expected to have a momentous influence on the growth of the high purity aluminium market during the forecast period.
Country-specific valuation on demand for high purity aluminium has been offered for each regional market, along with market scope estimates and forecasts, price index, and impact analysis of the dynamics of prominence in regions and countries. For all regional markets, Y-o-Y growth estimates have also been incorporated in the report.
Detailed breakup in terms of value & volume for emerging countries has also been included in the report.
In-depth Analysis on Competitive Landscape
The report sheds light on the leading manufacturers of high purity aluminium, along with their detailed profiles. Essential and up-to-date data related to market performers who are principally engaged in the production of high purity aluminium has been brought with the help of a detailed dashboard view. Market share analysis and comparison of prominent players provided in the report permits report readers to take preemptive steps in advancing their businesses.
Company profiles have been included in the report, which include essentials such as product portfolio and key strategies, along with all-inclusive SWOT analysis on each player. Company presence is mapped and presented through a matrix for all the prominent players, thus providing readers with actionable insights, which helps in thoughtfully presenting the market status, and predicting the competition level in the high purity aluminium market. Prominent companies operating in the market include Chalco, Join World, Kyushu Mitsui Aluminum, Nature Alu, Nippon Light Metal Holdings Co., Norsk Hydro, RusAL, SHOWA DENKO K.K, Sumitomo Chemicals Co., Ltd, and others.
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