The bauxite market is expected to witness a CAGR of over 6%, during the forecast period. Major factors driving the market studied are accelerating usage in the cement industries and growing demand for aluminum in light-weight, fuel-efficient vehicles. Moreover, environmental concerns related to bauxite mining and unfavorable conditions arising due to the COVID-19 outbreak are the major restraints that will hinder the market growth.
- Increasing demand from commercial applications, such as refractories and abrasives, is expected to offer various lucrative opportunities for market growth. By application, the alumina for metallurgical purposes segment is expected to dominate the market studied, owing to the increase in the demand for, and adoption of, aluminum products.
- Furthermore, Asia-Pacific dominated the market across the world, with the largest consumption from countries, such as China, Australia, and India.
Key Market Trends
Increasing Demand of Alumina for Metallurgical Purposes
- Bauxite is a sedimentary rock having high content of aluminium. It is the main source of aluminium & gallium and consists mostly of aluminium minerals namely gibbsite, boehmite and diaspore.
- The increasing demand for aluminum, owing to its lightweight and other properties in the various end-user industries, like automobile, packaging, and construction, is propelling the demand of alumina for producing aluminum, and thus, stimulating the bauxite market.
- Alumina is used for key industrial purposes other than producing aluminum. It is used for the production of spark plug insulators and metallic paints, and it is used as a fuel component for solid rocket boosters.
- Furthermore, alumina is used for the fabrication of superconducting devices, such as quantum interference devices and electron transistors. Aluminum oxide or alumina is also used as a dosimeter for radiation protection.
- The global aluminum market is projected to witness a CAGR of over 3%, during the forecast period, and it is expected to reach a market value of USD 185 billion by 2025, which may increase the demand of alumina for producing aluminium and consequently propel the bauxite market.
- Threfore, owing to all the above-mentioned factors, the market studied is expected to grow rapidly, over the forecast period.
Asia-Pacific to Dominate the Market
- Asia-Pacific is expected to dominate the market for bauxite, during the forecast period. In countries, like China, Australia, and India, owing to rapid industrialization and an increase in usage of aluminum in various industries, such as building and construction and foil and packaging, the demand for bauxite has been increasing in the region.
- Superior properties of aluminum, like corrosion resistance, high ductility, high strength, and lightweight, have led to increase in the adoption of aluminum for producing light vehicle parts, which is propelling the bauxite market in the region.
- Additionally, demand for bauxite is rising due to its usage as a raw material in making refractory products, since it has a high melting point. Refractory grade bauxite is used to manufacture bricks to line the roof of electric arc steel making furnaces and blast furnaces.
- Bauxite is also used for manufacturing cement by mixing with limestone. The cement produced has high alumina content and known for its rapid settling time and strength, leading to an increasing demand for bauxite in the region.
- The increasing trend of electric vehicles may further propel the demand for aluminum alloys. China is expected to produce more than 10 million electric vehicles by 2022, which may surge the demand of aluminum for producing light weight vehicle body parts, thus, stimulating the bauxite market in the region.
- Furthermore, pure aluminum is used in the aviation industry, for oil and fuel pipes and foil and honeycomb structures. The Asia-Pacific aviation market is expected to register a CAGR of over 3%, during the forecast period, which may increase the demand for aluminum, thereby, increasing the demand for the bauxite market in the region.
- Some of the major companies operating in Asia-Pacific are Alumina Limited, Australian Bauxite Limited, and Rio Tinto.
- Therefore, the aforementioned factors, coupled with government support, are likely to contribute to the increasing demand for bauxite, during the forecast period.
The bauxite market is fragmented, with top players accounting for a marginal share of the market studied. Some of the major companies in the market include Rio Tinto, RUSAL, Alcoa Corporation, Alumina Limited, and Australian Bauxite Limited.
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