Materials and Chemicals - Boehmite Market

Market Synopsis

The global boehmite market size was USD 186.28 Million in 2021 and is expected to register a revenue CAGR of 16.20% during the forecast period. The major factor driving market revenue growth is rise in utilization of boehmite as a coating in lithium Battery separators to provide high thermal stability, extended life, and chemical stability. Rising demand for electric and hybrid cars, owing to increase in government regulations and initiatives to reduce carbon dioxide (CO2) emissions, is increasing requirement for lithium batteries, which in turn, is driving demand for boehmite. Moreover, versatility of the product and ongoing research & development for its utilization in various end-use applications are expected to drive market revenue growth.

Boehmite is a form of aluminum oxide hydroxide mineral found in abundance in bauxite. It is  found in alumino-silicate bedrocks and is mined and processed for use in a variety of commercial applications. Boehmites have a unique mix of dispersibility, purity, and consistency, as they exist as nano-sized particles in a dispersed phase. The product is accessible in a white powdered form, and it can have green, brown, red, and yellow tinges due to presence of contaminants.

Dispersible boehmites are widely utilized in sol-gel ceramics, catalysis binder, refractory materials, rheology control, surface fictionalizing, and paint detackification, among others, owing to various associated benefits. Surface coating and polymer additives are two newly developed applications for boehmite Alumina powders. The product is also utilized as a refractory material in manufacturing cement and glass, which is expected to increase its demand owing to rising construction activities across the world.

Furthermore, it is used in valve-regulated lead-acid (VRLA) batteries, which are major energy storage devices. VRLA batteries are utilized in a number of industries, including automotive, renewable energy, telecommunications, and others, due to low cost, greater energy efficiency, excellent safety, and dependability of these batteries. Boehmite is also a functional filler employed in printed circuit boards as a carrier material for catalytic converters and flame retardants.

Market Dynamics:
Driver: Potential adsorbent for treatment of oilfield-produced water

Boehmite nano powder having large surface area was recovered from Aluminum can waste. In order to safeguard the environment and human health, proper solid waste recycling has become increasingly important in recent times. Globally, rapid increase in population has resulted in rise in trash creation, which has prompted academics to concentrate their efforts on valuing and recycling of aluminum cans.

The high surface böhmite nanopowder recovered from aluminum cans was found to be a viable option for treatment of oilfield-generated water. Using chemical oxygen requirement as a pollution indicator, the influence of adsorbent dosage, treatment duration, and medium pH on the adsorption effectiveness of both boehmite and activated carbon at room temperature has been examined in various studies, and it has been found that at 40 g/l adsorbent dose, pH 7, and a 24-hour contact duration, the maximum capacity for Chemical Oxygen Demand (COD) reduction was 69.6% for boehmite and 83.5 percent for activated carbon. Therefore, usage of böhmite powder as a possible adsorbent in the oil & gas industry is expected increase in the coming years, which is expected drive revenue growth of the market.

Restraints: High processing and technology costs

Technological changes are disruptive by nature and require challenging transitions. There are various methods and technologies used to analyze boehmite, such as X-ray diffraction (XRD), transmission electron microscopy (TEM), and N2 adsorption-desorption. In addition, thermogravimetry (TG) and differential scanning calorimetry (DSC) methods are used to study the thermal stability of boehmite samples. These methods are expected to increase the overall cost of the product, which may hamper market revenue growth during the forecast period. Moreover, rise in labor cost, and innovation and development of low-cost alternatives may also act as major restraints to market revenue growth.

Key Takeaways
Purity Outlook:

Based on purity, the global boehmite market has been segmented into high-grade purity (above 99%) and below 99% purity. The high-grade purity (above 99%) segment accounted for a significantly large revenue share of 61.42% in 2021 and is expected to register a relatively faster CAGR during the forecast period. The purity of high purity boehmite is greater than 99.0%, such as 99.0%, 99.5%, 99.7%, 99.8%, 99.95%, and 99.99%. High purity boehmite is primarily utilized in Li-ion battery separators, electronic ceramics, flame-retardant fillers, and microcrystalline ceramics alumina, among other applications. Rising product demand can be attributed to the shift towards lithium-ion batteries from traditional energy sources, as well as its utilization in a variety of applications, due to properties such as high purity levels, dispersibility, and uniformity. Rising use of plastics in many end-use sectors is also expected to significantly increase demand for high purity boehmite as a plastic additive.

Application Outlook:

Based on application, the global boehmite market has been segmented into Li-ion batteries, electronic ceramics, flame retardants, plastics, paints & coatings, and others. The Li-ion batteries segment accounted for largest revenue share in the global market in 2021. Boehmite is a significant component in coatings of separator films in lithium batteries, as a thermostabilized material, owing to its higher thermal and chemical stability. It has a longer cycle life, is resistant to heat shrinkage, and provides dendrite growth prevention. It is also a well-established potential material for ceramic-coated separators. Growing adoption of electric cars throughout the world, due to the need to reduce carbon emissions and stringent government regulations in this regard, is expected to increase demand for lithium batteries, thereby driving utilization of boehmite at a higher rate. Furthermore, work and studying from home is increasing demand for electronics, and this is supported by the tendency of adopting newly launched gadgets, which is expected to drive demand for Li-ion batteries further.

Regional Outlook:

Based on regional analysis, North America is expected to register a significantly faster revenue growth rate over the forecast period.  In March 2022, the US Department of Energy (DOE), stated that it would invest USD 32 million in over 30 next-generation building retrofit projects, to improve affordable housing technology. Seven grantees will put their renovation strategies to test to see if they can limit tenant interruption while improving building energy and environmental performance more quickly, inexpensively, and efficiently. Prefabricating walls and drop-in replacements for heating, cooling, and hot water systems are examples of the approaches that have the potential to revolutionize construction and restoration. These grantees can also offer resources needed to decarbonize America's 130 million structures at the rate required to deal with the climate catastrophe and achieve President Biden's objective of a net-zero carbon economy till 2050. This declaration is expected to increase demand for paints and coatings in the region.

Asia-Pacific market registered a faster revenue growth rate in the global market in 2021 and is expected to continue to do so over the forecast period. This can be attributed to rising demand for Light-emitting Diode (LED) illumination, semiconductors, lithium-ion batteries, photovoltaic cells, plasma display screens, phosphor, optical lenses, and smartphone sapphire glass in the region. Moreover, recent automotive advances, rising demand for LED lighting and synthetic sapphire, and new potential uses of Aluminum as an alternative to copper in the power industry, among others, are expected to drive the High Purity Alumina (HPA) market in Asia-Pacific. This is expected to support revenue growth of the Asia-Pacific boehmite market over the forecast period.

In addition, according to India Brand Equity Foundation (IBEF), India is to have the fastest increase in car sales in Asia-Pacific in 2022, rising by 10%, due to strong underlying demand reflecting the global economic recovery and customer preference for personal automobiles over public transit. Moreover, South Korea has identified the digital economy as a key area for bilateral cooperation, particularly in developing technologies, 5G networks, semiconductors, and electric vehicle battery supply chains and technical standards, which is expected to drive product demand in the region.

Europe accounted for a significantly large revenue share in the global market in 2021. More than a third of Europe's natural gas consumption is normally sourced from Russia. Western politicians are rushing to find alternate energy imports, such as liquefied natural gas (LNG) from the US Gulf coast and the Middle East, as they are dealing with high energy prices and limited supply. There is potential for severe energy shortages in Europe if Russia shuts down the pipelines, which is a serious concern in the region. Thus, energy crisis is driving utilization of Li-ion batteries in the region, which is expected to be a major factor in increasing demand for boehmite in Europe.

Competitive Landscape:

The global boehmite market is highly fragmented, and key companies are increasingly investing in research & development activities. Major companies operating in the market include Sasol, Nabaltec AG, Chalco Shandong Advanced Material Co, Ltd., TOR Minerals, Silkem d.o.o., and DEQUENNE ERIC, among others.

Some Key Developments in the Market:

• On 29 December 2021, Nabaltec AG invested in the mid-double-digit million range to extend its boehmite production capacity at the Schwandorf location. The annual output will be more than doubled, from 10,000 to 25,000 tons, due to the expansion in production capacity. The commissioning date is set for the second part of 2023.

Segments Covered in the Report:

This report forecasts revenue growth at a global, regional, and country level, and provides an analysis of market trends in each sub-segment from 2021 to 2030.

For this study, Reports and Data has segmented the global boehmite market based on purity, type, application, and region: