Activated Alumina Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Key Highlights

• Over the medium term, the market is majorly driven by factors, like increasing concerns related to water pollution by fluorine and gaining significance in the pharmaceutical industry.
• On the flip side, the available substitutes such as activated carbon and zeolites that exhibit relatively the same performance characteristics are hampering the growth of the market.
• Some end-user industries such as healthcare and water treatment sectors witnessed positive growth, due to rising awareness for hygiene and clean water in various regions across the globe. Increasing demand for hydrogen peroxide in the post-COVID situation is likely to offer various opportunities for the growth of the market.
• Asia-Pacific region represents the largest market and is also expected to be the fastest-growing market over the forecast period owing to the consumption from countries such as China, India, and Japan.

Key Market Trends

Increased Demand from Oil & Gas Industry

• The activated alumina market is driven by oil and gas industry demand due to its ability to be used as an adsorbent.
• In the oil and gas industry, activated alumina is used in the adsorption of water from natural gas streams. Natural gas is regarded as the fastest-growing source of domestic energy production. The establishment of new refinery projects is anticipated to be the key driver for segment growth.
• China National Offshore Oil Corporation's (CNOOC) oil and gas production is expected to rise more than 6% each year during the 2022-24 period to play a critical role in China's energy supply security. The cumulative output of over 1 bcm has proved the capability and reliability of China's self-made systems for exploration, exploitation, production, and operation of deep-sea gas and oil reserves.
• The Indian Government has adopted several policies to fulfill the increasing demand for oil and gas. It has allowed 100% Foreign Direct Investment (FDI) in many segments of the sector, including natural gas, petroleum products,,,, and refineries among others. According to the International Energy Agency (IEA), consumption of natural gas in India is expected to grow by 25 billion cubic meters (bcm), registering an average annual growth of 9% during the forecast period.
• Overall, global oil demand is expected to reach 104.1 mb/d(million barrels per day) by 2026, with China and India accounting for about half of growth through 2026. At the same time, the world’s oil production capacity is expected to rise by 5 mb/d. In the absence of stronger policy action, global oil production would need to rise 10.2 mb/d by 2026 to meet the expected rebound in demand. In the absence of stronger policy action, global oil production would need to rise 10.2 mb/d by 2026 to meet the expected rebound in demand.
• Owing to the all above-mentioned factors for activated alumina, its market is expected to grow at a significant rate post recovery over the forecast period.

Asia Pacific Region to Dominate the Market

• The key countries including India and China are anticipated to witness significant growth in their refining capacities, thereby boosting the product demand. Increasing demand for freshwater supply owing to population growth in the region will drive the market.
• Rising expenditure in water treatment infrastructure, combined with the increasing demand for gaseous and liquid drying in the oil and gas industry, will accelerate the activated alumina market in the region.
• As a top priority being accorded by the Government of India, the budgetary allocation of Jal Jeevan Mission has increased significantly to Rs. 50,011 Crore (USD 6.82 billion) in 2021-22. In addition to this, the 15th Finance Commission tied grants of Rs. 26,940 Crore (USD 3.68 billion) will also be available to PRIs for ‘water and sanitation’ services.
• The Council on Energy, Environment, and Water (CEEW), in association with the 2030 Water Resources Group, is planning to improve wastewater management in India, along with increasing private investments to build wastewater treatment plants.
• National Per Capita Consumption Expenditure of Healthcare and Medical Services in 2021 was 8.8% which was 2115 Yuan. Also, the Chinese government promulgated Healthy China 2030, which is a blueprint that outlines its ongoing intents to prioritize health as a precondition for sustained social and economic development.
• The aforementioned factors, coupled with government support, are contributing to the increasing demand for activated alumina during the forecast period.

Competitive Landscape

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