by Market Overview:
The global Aluminum Fluoride Market is estimated to be valued at US$ 2.3 Bn in 2023 and is expected to exhibit a CAGR of 2.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Aluminum fluoride is an inorganic compound commonly used as a flux in the aluminum industry and in the production of cryolite. It finds major applications as an additive in the production of primary aluminum, particularly in smelting and electrolysis processes. It acts as a useful flux that lowers the melting point of aluminum oxide formed during electrolysis. Aluminum fluoride is also used in the manufacturing of various aluminum products such as foils and sheets. Furthermore, it is used as a key raw material in the production of aluminum phosphate as a food additive.
The global demand for aluminum fluoride is mainly driven by growing aluminum consumption and increasing use in the electronics industry. Electronics grade aluminum fluoride is used in the manufacturing of semiconductor chips and integrated circuits owing to its non-hygroscopic properties. Emerging technologies such as 5G networks, artificial intelligence, and electric vehicles are boosting electronics production, which is projected to augment the demand for aluminum fluoride over the forecast period.
Market key trends:
One of the key trends in the aluminum fluoride market is growing consumption from the electronics industry. Aluminum fluoride plays a crucial role in the manufacturing of LED lights. It helps in enhancing the luminescence and color temperature of LED lights. Thus, increasing demand for energy-efficient LED lights from the residential and commercial sector is favoring market growth. Furthermore, the widespread adoption of electronics such as smartphones, laptops, and tablets has propelled the demand for semiconductors. As aluminum fluoride is extensively used in the production of semiconductors, its market is projected to witness lucrative opportunities over the coming years.
Porter’s Analysis
Threat of new entrants: The aluminum fluoride market requires high capital investment for setting up manufacturing facilities which limits the threat from new entrants. Bargaining power of buyers: The buyers have moderate bargaining power due to the availability of substitutes like cryolite and other fluorine derivatives in the market. Bargaining power of suppliers: The suppliers have moderate bargaining power due to the availability of raw materials like aluminum, fluorite, and hydrofluoric acid from few global players. Threat of new substitutes: Substitutes like cryolite pose moderate threat as they provide properties similar to aluminum fluoride in end-use industries. Competitive rivalry: The aluminum fluoride market is fragmented with the presence of both global and regional players.
Key Takeaways
The Global Aluminum Fluoride Market Size was valued at US$ 2.3 Bn in 2023 and is expected to witness high growth, exhibiting a CAGR of 2.7% over the forecast period due to increasing adoption in aluminum production and growing aluminum downstream industries. Regionally, Asia Pacific dominated the aluminum fluoride market in 2023 accounting for around 45% of the overall market share owing to rapid industrialization and presence of key manufacturers in the region.
Key players operating in the aluminum fluoride market are Alufluoride Ltd., Rio Tinto Plc, Tanfac Industries Ltd., Fluorsid S.p.A, Mexichem S.A.B. de C.V., Industries Chimiques du Fluor (ICF), PhosAgro PJSC, Do-Fluoride Chemicals Co., Ltd, Pingquan Greatwall Chemical Co., Ltd., Gulf Fluor, AB Lifosa, Alufluor AB, Derivados del Fluor.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
