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Aluminum Nitride Market 2026 by Strategy Analysis, Upstream Raw Materials Sourcing

Aluminum nitride (AlN) is a synthetic, non-toxic ceramic material with hexagonal lattice structure majorly used in electronic devices. Various methods are available to synthesize AlN, however, direct nitridation, carbothermal reduction, and nitridation are commonly applied. Increasing demand for AlN is attributed to its unique combination of properties such as electrical resistance and good thermal conductivity, which allows electronic components to maintain lower operating temperatures while offering electrical insulation.

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Market Dynamics:

Among applications, electronics & electrical segment is expected to witness significant growth in the global AlN market. AlN is a high-band gap semiconductor and is majorly used as a substrate for insulated-gate bipolar transistors that are used in various electronic devices. According to a report published by Semiconductor Industry Association (SIA), in December 2018, worldwide sales of semiconductors reached US$ 41.8 billion in October 2018 from US$ 37.1 billion in October 2017, representing an increase of 12.7%.

Therefore, advantages offered by AlN such as high durability and performance in semiconductors is expected to propel its demand from electronics industry, which in turn is expected to boost the market growth.

However, according to the article, ‘Aluminum Nitride-Based Ceramic Material Fits Power Semiconductor Applications’, published by power electronics in September 2013, the cost of AlN is about 8 times higher than its commonly used alternative such as alumina. Therefore high cost of AlN may hamper AlN market growth.

Market Outlook: 

Among regions, Asia Pacific is expected to witness rapid growth in the market due to growing electronics market in economies such as India. According to India Brand Equity Foundation report on Electronics, June 2017, the electronics market in India is expected to witness a CAGR of 41.4% to reach US$ 400 billion by 2020 from US$ 100 billion in 2016.

Moreover, the report also states that the semiconductor design market in India is expected to witness a CAGR of 29.4% to reach US$ 52.58 billion by 2020 from US$ 14.5 billion in 2015. Therefore, growth of electronics and semiconductor market is expected to propel the AlN market growth in Asia Pacific.

 Key players:

Key players operating in the global aluminum nitride market include, Toyo Aluminium K.K, Surmet Corporation, MARUWA Co. Ltd, H.C. Starck GmbH, TOSHIBA, Adtech Ceramics Company, CeramTec, Goodfellow, American Elements, KYOCERA Corporation, and Tokuyama Corporation.

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