The increasing demand from refractory industry is estimated to be the major trend fueling the growth of high alumina aggregate market over the forecast period. Refractory industry is witnessing strong growth especially in Asia Pacific region owing to rapid industrialization. High alumina aggregates find widespread application in basic refractory bricks used in cement production kilns, steelmaking furnaces, non-ferrous metals industry furnaces and incinerators. Thus, the exponential growth of refractory industry is directly boosting the consumption of high alumina aggregates. Additionally, the stringent emission norms worldwide for waste incineration plants have boosted the replacement demand for advanced high alumina refractory materials.

Porter's Analysis

Threat of new entrants: New entrants face high capital requirements in setting up manufacturing plants to produce high alumina aggregate. This raises barriers to entry.

Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitute materials like bauxite and mullite. However, high alumina aggregate has unique properties that attract big buyers.

Bargaining power of suppliers: Suppliers have low to moderate power due to availability of raw materials from different sources globally. However, suppliers may differentiate in quality which impacts buyers.

Threat of new substitutes: Substitute materials like bauxite and mullite provide competition. However, high alumina aggregate has better corrosion and heat resistance making it irreplaceable for specific applications.

Competitive rivalry: The market has few large producers increasing competition.

SWOT Analysis

Strength: High alumina aggregate has high corrosion and heat resistance up to 1760 degree Celsius making it suitable for demanding applications in steel, cement, glass and refractory industries.

Weakness: High capital requirement for setting up manufacturing plants increases fixed costs. Dependency on alumina raw material prices impacts production costs.

Opportunity: Growing steel, cement and glass industries especially in Asia Pacific drives demand. Also finds increased usage as substitute for expensive raw materials.

Threats: Economic slowdowns negatively impact industries using high alumina aggregate reducing demand. Availability of substitutes remains a challenge.

Key Takeaways

The Global High Alumina Aggregate Market Size size is expected to witness high growth, exhibiting CAGR of 4.0% over the forecast period, due to increasing demand from glass, cement and steel industries. The steel industry uses high alumina aggregate as a raw material in electric arc furnaces (EAF) steel production, which is growing rapidly. The Asia Pacific region dominates the global high alumina aggregate market with China being the highest producer and consumer.

Regional analysis: The Asia Pacific region is the fastest growing market for high alumina aggregate. China dominates production as well as consumption owing to presence of huge steel, cement and glass industries. Other major markets include India, Japan and Southeast Asian countries.

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