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High Purity Aluminium Market

High Purity Aluminium Market

High Purity Aluminium Market By Grade (4N, 5N, 6N), By Form (Disks, Pellets, Ingots, Wires & Coils), By End-Use (Semiconductor, Aerospace, Automotive)- Global Market Insights 2020 to 2030

High Purity Aluminium Market
FACT625MR

High Purity Aluminium Market Outlook

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.

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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.

high purity aluminium market region

Country-Wise Analysis

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.

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Category-Wise Insights

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.

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Report Scope

Attribute

Details

Forecast Period

2020-2030

Historical Data Available for

2015-2019

Market Analysis

US$ Mn for Value & Kilo Tons for Volume

Key Countries Covered

  • U.S.
  • Canada
  • Mexico
  • Brazil
  • Germany
  • Italy
  • France
  • U.K.
  • Spain
  • China
  • Japan
  • South Korea
  • India
  • GCC
  • Turkey

Key Segments Covered

  • By Grade
  • By Form
  • By End-Use

Key Companies Profiled

  • Chalco
  • Join World
  • Kyushu Mitsui Aluminium
  • Nature Alu
  • Nippon Light Metal Holding Co.
  • Norsk Hydro
  • RuSAL
  • Showa Denko KK
  • Sumitomo Chemicals Co., Ltd.

Customization & Pricing

Available upon Request

Key Segments Covered of High Purity Aluminium Market

  • Grade

    • 4N
    • 5N
    • 6N
  • End-Use

    • Semiconductor
      • Chip Production
      • Flat Panel Display Production
      • Thin Film Production
      • Electrolytic Capacitor Foils
      • Electronic Storage Systems
      • Others
    • Aerospace
    • Automotive
    • Others
  • Form

    • Disks
    • Pellets
    • Ingots
    • Wires & Coils
    • Others
  • Region

    • North America
    • Latin America
    • Europe
    • East Asia
    • South Asia & Oceania
    • Middle East & Africa

- FAQs -

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 d
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.
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
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.
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.
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

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