Alumina Trihydrate Market - Boosting Energy Efficiency in the Automobile Sector

Alumina Trihydrate Market - Key Research Findings

1. The global alumina trihydrate market size in 2018 was valued at US$ 3.7 Bn. 
2. The alumina trihydrate market is anticipated to rise at a CAGR of ~8% throughout the forecast period of 2019-2029. 
3. The increasing application of plastic in automotive and transportation industries is rising the demand for flame retardants such as alumina trihydrate in automotive plastics. 
4. Collectively, APEJ and North America are likely to account for half of the revenue shares in the alumina trihydrate market by the end of 2029. 
   • North America is expected to continue to be a prominent regional market for alumina trihydrate manufacturers, attributing to the strong presence of the plastics and chemicals industry. 
5. The plastic and chemicals industry is expected to remain as the prominent application area to invest in for alumina trihydrate market
   • Noteworthy application potential of alumina trihydrate has been identified as a substitute for titanium dioxide pigments.

Key Factors Shaping the Alumina Trihydrate Market

Application of Plastics in Automotive and Transportation Sectors to Hold Significant Growth in the Alumina Trihydrate Market

The chemical industry has been accelerating its shift to the advancement that tend to have multiple uses, such as the use of plastic in automotive and transport plastic composites used in an average automobile account for 10–15% of its total weight. Since, plastics are lightweight as compared to metals, they reduce the overall weight of the automobile, which in turn, makes it more efficient. Heat generation in vehicles is a high-risk factor for fire, due to which, it is essential to have an excellent quality flame retardant properties in almost each part of plastic in the automobile. These factors are driving the demand for alumina trihydrate as a flame retardant in automotive plastics. The rising demand for alumina trihydrate is anticipated to be additionally fuelled by governments across the globe by the implementation of rules and regulations regarding vehicles safety. Some of the other end-use sectors also prefer alumina trihydrate. For example, alumina trihydrate is price effective and supported by manufacturers because it can decrease the total manufacturing costs by around 25%, this is rising its acceptance as a substitute for titanium dioxide.

Increasing Growth of Paper and Paints & Coatings Industries

Paints and coatings are used in various applications such as automotive refinishing, construction, protective coatings, wooden coatings, and for decorative purposes. While functional aspects of alumina trihydrate continues to position them above other industrial chemicals available in the market, a significant amount of alumina trihydrate is added in paints to preserve the shine and increase transparency. However, the additional advantage in terms of sustainability is being flaunted as the most prominent factor pushing prospects of alumina trihydrate in the near future. Very low solubility in water associated with alumina trihydrate manufacturing process continues to account for their amphoteric attributes, which is expected to uplift the prospects in terms of adoption in the forthcoming years. Pigments are very common in paints, coatings, and paper industries and these industries are anticipated to grow approximately 7-8% per year during the forecast period, owing to these factors the global alumina trihydrate market is expected to drive the growth of the over the same period.

Rising Application of Alumina Trihydrate in Engineering Plastics

The growing demand for engineering plastics worldwide owing to the increasing application in electronics, construction, and automobile sectors is increasing the demand for flame retardants. Thus, automobile and electronic manufacturers are using alumina trihydrate as flame retardants in their products due to its cost effectiveness and non-toxicity. While newly developed alumina trihydrates are supposed to replace and overcome limitations, it is likely that the sales of alumina trihydrate will rise.

Increasing Alumina Trihydrate Consumption by Construction Industry in Developing Regions

In addition to the production of aluminium metal, growing in favour of alumina trihydrate sales, the flourishing architecture & infrastructure sector across APEJ and North America regions are boosting the demand for alumina trihydrate. While rising end-use prominently accounts for the growing popularity of alumina trihydrate across developing regional markets, a consistent rise in the number of plastics in automation and transportation, especially engineering plastics, are more likely to contribute to the sales of alumina trihydrate in the near future. However, the vulnerability of alumina trihydrate to the pricing uncertainty of petrochemicals might remain a universal stumbling block to the rapid progress of the alumina trihydrate market over the next decade. 

Alumina Trihydrate Market Structure Analysis

• The global alumina trihydrate market represents a fairly consolidated competition landscape, where a majority of key players maintain their strategic focus on the development of solid distribution partnerships and joint ventures, targeting a firmer global footprint.
• The alumina trihydrate market has been relatively moderate in size, which remains a key factor for its dynamic competitive nature.
• Prominent manufacturers of alumina trihydrate are currently prioritizing R&D and new product launches to resonate with the increasing applications of alumina trihydrate in North America, Europe, and East Asia.
• Portfolio extension is also identified to remain one of the key developmental strategies adopted by manufacturers of alumina trihydrate.
• For a stronger foothold in target markets, alumina trihydrate manufacturers will continue to rely on inorganic strategies, such as mergers and acquisitions.
• Deeper understanding of the market trends and preferential shifts of end-use segments across several regions are likely to create a bottleneck for prominent players, looking forward to untapped opportunities in the alumina trihydrate market.