Aluminium Fluoride Market: Aluminium Consumption in Aerospace and Automotive industry Is Expected to Boost the Demand for Aluminium Fluoride

Aluminium Fluoride Market was valued at USD 1.73 Bn in 2023 and is expected to reach USD 2.03 Bn by 2030, at a CAGR of 2.51 % during the forecast period.

Definition:

Aluminium Fluoride is colourless solid inorganic compounds with the formula AlF3•xH2O. It is also known as Aluminium Trifluoride, Aluminium Fluoride Anhydrous, Aluminium Fluoride LBD, Aluminium Fluoride HBD. It is an important additive for the production of aluminium by electrolysis. It lowers the melting point to below 1000 °C and increases the conductivity of the solution. Aluminium fluoride is used as a flux in reducing the melting point of Alumina during the electrolytic process of producing Aluminium. It is also used as an additive to Aluminium Metal before entering into the cast house furnaces to reduce alkali metals like Sodium and/or Lithium. Aluminium fluoride is used as a low-index optical thin film, mainly when far UV transparency is required.
Aluminium Fluoride Market Overview:
Aluminium fluoride is the chemical compound, which has the consistency of a white powder. It is used in alcohol production as an inhibitor of by-fermentation. In Metal Welding, it is used for welding fluids and optical lenses. It is used as catalyst for organic synthesis and raw material for artificial cryolite. It is used as flux for ceramic glaze and enamel glaze, and a component of glaze powder in the ceramic industry. In the non-ferrous industry, it is used as a flux in the aluminium electrolysis industry. It helps to reduce the melting temperature of the electrolyte and increase the conductivity of the electrolyte and an inhibitor for side-fermentation in essential oil production.

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Aluminium producers are the main users of aluminium fluoride. There are two methods of producing aluminum fluoride. The first method (80 percent of world production), requires processing natural raw material resources like Fluorspar and Sulphur. In the other method, it is sourced from the fertilizer complex by reacting alumina hydrate with hydro-fluosilicic acid, generated from the fluorine recovery unit. More than 22 million tons of aluminium is produced world-wide in each year. Depending on the type and efficiency of the production process, around 20 kg of aluminium fluoride are used in producing one ton of aluminium. Aluminium fluoride is normally transported in bulk, in big bags or in smaller paper bags. Aluminium fluoride is used in turning alumina into aluminium.

Global Aluminium Fluoride Market Size in USD MN (2023-2025)



Region
2023
2024
2025


North America
461.59
471.83
482.53


Europe
397.56
405.05
412.93


Asia Pacific
601.11
620.14
640.15


Middle East and Africa
142.26
146.41
150.78


South America
93.32
94.80
96.35



The Asia-Pacific region held the dominant position in the global aluminium fluoride market with the largest market share of 35% in 2023. The Asia Pacific region is expected to grow at a CAGR of 3.18% and projected to maintain its dominance by 2030. The rising disposable income and GDP growth are expected to increase the end-user industries in APAC countries. As a result, the high demand for aluminium fluoride increases the regional revenue share. The increasssssing demand for consumer appliances, automotive, increasing food & beverages sectors, rapidly developing pharmaceutical industry, and increased infrastructure projects in developing countries like China, India, Indonesia, and others has increased the demand for aluminium, ceramic, fluorocarbons, chemical intermediate, optical fiber, glass, and others materials.

Developing new and improved production processes that are more efficient and environmentally friendly is a key focus for key players operating in the aluminium fluoride market. Manufacturers are adopting strategies like local production to reduce operating costs and remain competitive. The Tanfac Industries Ltd is a Joint Sector Company of Tami Nadu Industrial Development Corporation (TIDCO) and Aditya Birla Group. It is engaged in the manufacture of fluorine chemicals, such as, aluminium fluoride, anhydrous hydrofluoric acid, sodium silicofluoride, ammonium bifluoride, potassium fluoride, and various other fluorine-based chemicals. The Tanfac Industries Ltd has an annual installed capacity of 15,600 tonnes each of aluminium fluoride and anhydrous hydrogen fluoride. Southern Petrochemical Industries Corporation Ltd is producing aluminium fluoride in Tamil Nadu, with an installed capacity of 2,560 tpy.
Aluminium Fluoride Market Dynamics
High demand for aluminium is expected to increase the aluminium fluoride market growth during the forecast period.

Aluminium is a versatile metal used extensively in various sectors like construction, transportation (automotive and aerospace), packaging, and electrical applications. Growing infrastructure projects and urbanization will require more aluminium for building materials like wires, sheets, and frames. It is expected to lead to increased AlF3 consumption by aluminium smelters supplying the construction sector. Aluminium is the second most manufactured metal after steel, with more non-ferrous metals produced each year than all other non-ferrous metals combined. Aluminium is replacing steel components, particularly in the aerospace and automotive sectors. According to studies, substituting mild steel, high-strength steel, and cast iron with aluminium reduces GHG emissions by 13-20 kg per kilogram. It is one of the most recycled commodities due to its widespread use in the building, packaging, automotive, aerospace, and electrical distribution industries, as well as its relative value. According to the Aluminium Association, 90% of the aluminium used in building and automotive parts is recycled at the end of its useful life. Also, 75% of the aluminium produced in the past is still in use today. The rise of electric vehicles and lightweighting trends in the automotive industry is expected to drive demand for aluminium. the use of aluminium for aircraft structures in the Aerospace sector is expected to contribute to aluminium fluoride consumption.

High adoption of metallurgical grade across the automotive industry is expected to drive the Aluminium Fluoride market growth.

The high adoption of metallurgical grade aluminum fluoride in the automotive industry is a significant driver of market growth. The automotive industry is constantly striving to manufacture lighter vehicles to improve fuel efficiency and reduce emissions. Aluminum is a key material because of its lightweight nature. Aluminum fluoride plays a crucial role in aluminum production. Aluminum fluoride acts as a fluxing agent in aluminum casting processes. It helps remove impurities and oxides, leading to smoother and cleaner metal castings for automotive components like engine blocks and wheels. aluminum alloys used in car parts benefit from the presence of aluminum fluoride during production. It also helps to achieve a desirable balance between strength and weight, crucial for car performance and safety. The strong link between aluminum fluoride and aluminum production, coupled with the rising demand for aluminum in the automotive sector are some of the prominent driving factors behind the demand of aluminium fluoride in automotive sector.

The growing popularity of EVs is driving the demand for aluminum and Aluminium Fluoride.

The growing EV market creates a ripple effect, boosting the demand for aluminum and aluminum fluoride. It translates to growth for aluminum fluoride industry. The growing popularity of EVs is driving the demand for aluminum. Electric vehicles utilize more aluminum compared to traditional gasoline cars because of the need for lightweight and durable chassis components. As the demand for EVs rises, the need for lightweight materials like aluminum also increases. It subsequently drives up the demand for aluminum fluoride, which is essential for aluminum production. The growing popularity of EVs presents a significant growth opportunity for aluminum fluoride. Automakers strive for lighter vehicles to extend driving range and improve energy efficiency in EVs. Aluminium’s ability to dissipate heat makes it an ideal material for safeguarding sensitive EV batteries. The demand for aluminium in the EV industry is projected to grow at a rapid rate. The demand expected to increase from 3.7 million tonnes in 2023 to 13.25 million tonnes in 2030.

Environment Concern is expected to limit the Aluminium Fluoride Market Growth.

Environmental concerns is a significant limiting factor for the aluminum fluoride market. Aluminum smelting, a major user of aluminum fluoride, is a highly energy-intensive process, which can contribute to greenhouse gas emissions and environmental pollution. Governments around the world are implementing stricter regulations to control fluoride emissions from aluminum fluoride production and aluminum smelters. Research is ongoing to develop cleaner and more sustainable methods for aluminum fluoride production to capture and minimize fluoride emissions. Compliance with stricter regulations is expected to lead to increase production costs for aluminum fluoride manufacturers. Increased focus on aluminium recycling reduces the need for primary aluminum production using aluminum fluoride is leading to a lower environmental footprint. The aluminum fluoride market is facing pressure to adapt due to environmental concerns. However, advancements in cleaner production methods, increased recycling, and the exploration of alternative processes are expected to offer opportunities for key players operating in the aluminum fluoride market.
Aluminium Fluoride Market Segment Analysis
By Grade, aluminium fluoride market is segmented into metallurgical grade and other industrial grade. Metallurgical grade aluminium fluoride held the dominant position in 2023 and is projected to continue its dominance during the forecast period. Metallurgical grade aluminium fluoride is essential in aluminium production. Aluminium producers are the main consumers of AlF3, and its role in lowering the melting point and improving conductivity in the electrolytic process for aluminium smelting makes it irreplaceable. Metallurgical grade AlF3 is typically produced from fluorspar (calcium fluoride) through a series of chemical reactions. Hall-Héroult process is the dominant method for aluminium production, and metallurgical grade AlF3 is a key component in the electrolyte bath. fluoride emissions during production and aluminium smelting need to be carefully managed to comply with environmental regulations. Technological advancements in AlF3 production and fluoride emission control are areas of ongoing research and development.

By Type, the Wet Aluminium Fluoride segment held the dominant position in the global aluminium fluoride market with the largest market share of 44.34% in 2023. The Wet aluminium fluoride is expected to grow at a CAGR of 1.93% and maintain its dominance in terms of value by 2030. Wet aluminium fluoride is commonly utilized in the pharmaceutical industry. As a result, the increasing demand for wet aluminium fluoride from medicinal applications is expected to drive the segment during the forecast period. The Dry Aluminium Flouride segment held a market share of 18.70% in 2023 and is expected to grow at a moderate CAGR during the forecast period. Dry aluminium fluoride demand is increasing moderately during the forecast period because it is significantly used in the production of Aluminum, as a flux in welding applications, and in ceramic glazes and enamels. The Anhydrous Aluminium Fluoride segment held a market share of 36.9% in 2023 and is expected to grow at a CAGR of 3.57% during the forecast period. The segment is expected to offer lucrative growth opportunities for the aluminium fluoride market during the forecast period. Anhydrous aluminium fluoride provides the benefit of advantageous properties of reducing the melting point and increasing the conductivity of an aluminium solution. As a result, demand for anhydrous aluminium fluoride is expected to increase rapidly across a variety of industries, including automotive, construction, and other industrial sectors, contributing to segment growth throughout the forecast period.



By Application, the Aluminium industry segment dominated the global aluminium fluoride market with the largest market share of 24% in 2023. The segment is expected to grow at a CAGR of 2.71% and maintain its dominance in terms of revenue by 2030. Aluminum producers (smelters) are the main users of aluminum fluoride. Aluminium fluoride is critical for aluminium smelting and is also used in ceramic glazes and enamels. Global Aluminium Fluoride demand is expected to grow as the demand for the aluminium industry is manifold as it forms a cornerstone of ‘green’ technology, be it car manufacturers using more aluminium to make lighter cars, to be more fuel-efficient, or building offshore wind power stations that will need more aluminium wires. The Chemical Intermediates Industry segment held a market share of 19% in 2023 and is expected to grow at a CAGR of 3.55% during the forecast period. aluminium fluoride is commonly used as an intermediate, additive, and catalyst in multiple chemical processes. As a result, the demand across the chemical intermediates industry is expected to offer market potential growth during the forecast period. the construction industry is also expected to offer lucrative growth opportunities for the global aluminium fluoride market during the forecast period. the construction industry segment held a market share of 17% in 2023. Aluminium is an inorganic component that is frequently utilized in the interior and exterior decors of building constructions such as fences, partitions, and ceilings, among other things. Thus, the demand for the aluminium-based product is increased rapidly.


Aluminium Fluoride Market Regional Insight
China Held the Dominant Position in the Asia Pacific Aluminium Fluoride Market.

China holds a significant share of the total global aluminum fluoride production capacity, estimated to be around 2 million metric tons per year (MT/yr). The substantial capacity allows China to be a major supplier of aluminum fluoride to various countries worldwide. China has a well-established aluminum industry, and aluminum fluoride production is intricately linked to it. The presence of domestic aluminum industry provides a strong foundation for aluminum fluoride production. China possesses abundant resources of fluorite, a key raw material for aluminum fluoride production. The Chinese government has historically supported the development of its aluminum industry, which indirectly benefits aluminum fluoride production across the country. The most popular method used by Chinese producers due to its mature technology and high product quality. Stringent environmental regulations regarding production processes are expected to pose challenges for Chinese manufacturers. They need to adapt and invest in cleaner technologies to comply with regulations. China is expected to maintain its leading position in aluminum fluoride production during the forecast period.

Aluminium Smelter Production in 2023 by Country:

China is the world's dominant aluminum producer, accounting for over 50% of global output in 2023. The aluminum smelting industry is constantly evolving with focusing on lowering energy consumption and exploring alternative bath compositions with potentially reduced environmental impact.



Australia is the largest producer of primary aluminium metal without its own domestic aluminium fluoride production. The Australian aluminium smelters are relying entirely on imported aluminium fluoride, which is typically more than 80% from China. The median aluminium fluoride price (FOB China) for the aluminium fluoride is over US$1,400/t.



India Aluminium Fluoride Market Overview:

India is net importer of Aluminium fluoride. Aluminium industry is importing 100% of its requirement of Aluminium fluoride. In the cost of production of aluminium metal, contribution of aluminium fluoride is around 1.5%. The demand for Aluminium fluoride is expected to increase with the operationalization of expansion projects. Duty correction on AlF3 will not have any impact on any other industry. Indian government has reduced the import duty on Aluminium Fluoride from 7.5% to 2.5%. In 2022, India produced 8,910 metric tons of aluminum fluoride and exported $645,000 worth of aluminum fluoride to the United Arab Emirates, Japan, the United States, Turkey, and Germany.

Aluminium Fluoride Industry Recommendations:

The aluminum fluoride industry growth is driven by the continued demand for aluminum in the construction and automotive sectors.
Focus on sustainability: Aluminium fluoride production can generate air and water pollution. The industry can invest in cleaner production technologies and processes to reduce its environmental impact. It includes usages of recycled aluminum fluoride or developing new methods for capturing emissions.

Establish A Secure Supply of Aluminium fluoride Materials: The countries have to be strategically invested in the aluminium fluoride value chain and become world leader in the circular economy of aluminium fluoride. Invest in domestic mining and processing of aluminum fluoride's raw materials, like fluorspar, which reduces reliance on external suppliers and potential geopolitical issues. Develop a comprehensive map of the global aluminum fluoride value chain, including resource extraction, processing, and end-use applications that helps to improve strategic planning.

Ensure safety and regulations compliance: An aluminum fluoride dust and fumes can irritate the skin, eyes, and respiratory system. Chronic exposure can lead to more severe health problems. Companies must have comprehensive safety protocols for handling, storing, and transporting aluminum fluoride to minimize worker exposure. Companies must comply with regulations set by national and international bodies. It includes permits, reporting requirements, and specific handling procedures. The detailed analysis about aluminium fluoride industry recommendations have been covered in the aluminum fluoride market report.
Aluminium Fluoride Market Scope: Inquiry Before Buying



Global Aluminium Fluoride Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
US $ 1.73 Bn.


Forecast Period 2024 to 2030 CAGR:
2.51%
Market Size in 2030:
US $ 2.02 Bn.


 Segments Covered:
by Grade
Metallurgical Grade
Other Industrial Grade


by Type
Wet Aluminium Fluoride
Anhydrous Aluminium Fluoride
Dry Aluminium Fluoride


by Application
Aluminium Industry
Ceramic Industry
Chemical Intermediates Industry
Glass Industry
Construction Industry
Pharmaceuticals Industry
Optical Fiber Industry
Other



Aluminium Fluoride Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Leading Aluminium Fluoride Key Players include:
1. AB Lifosa (Lithuania, Europe)
2. Alufluor (Helsingborg, Sweden)
3. Alufluoride (Visakhapatnam, India)
4. Belfert (Belarus, UK)
5. Do-Fluoride Chemicals Co., Ltd. (Henan, China)
6. Fluorsid (MI, Italy)
7. Gulf Fluor (Abu Dhabi, UAE)
8. Henan Weilai Aluminum (Group) (Henan, China)
9. Hubei Xiangfu Chemical (Hubei, China)
10. PhosAgro (Moscow, Russia)
11. PT Petrokimia Gresik (Gresik, Indonesia)
12. Rio Tinto (London, United Kingdom)
13. SPIC (Tamil Nadu, India)
14. Tanfac Industries (Tamil Nadu, India)
15. Yizhang Hongyuan Chemical (Hunan, China)
16. Yunnan Yuntianhua (Zhaotong, China)

Frequently asked Questions:
1. What is Aluminium Fluoride?
Ans: Aluminum fluoride (AlF3) is an inorganic compound, which is manufactured by reacting hydrogen fluoride (HF) with alumina (aluminum oxide, Al2O3) at high temperatures (around 700°C).

2. What segments are covered in the Aluminium Fluoride Market report?
Ans. The segments covered in the Aluminium Fluoride Market report are Grade, Type and Application.

3. Which regions is leading in the consumption of Aluminium Fluoride?
Ans: The Asia-Pacific held the dominant position in the aluminium fluoride market and is projected to continue its dominant position during the forecast period.

4. What Factors are shaping the future of the Aluminium Fluoride market Growth?
Ans. Rising Demand from Key Industries, Focus on Sustainability are some of the prominent factors behind the market growth.

5. What is the projected growth rate for Aluminium Fluoride Market during the forecast period?
Ans: The Aluminium Fluoride Market growth is expected to grow at a 2.51% rate of CAGR during the forecast period.