Core Insights - The demand for spherical alumina is rapidly increasing due to its critical role in thermal interface materials, especially in the electric systems of new energy vehicles [1][7] - The market size of China's spherical alumina industry is projected to reach 1.5 billion yuan in 2024 and grow to 2.1 billion yuan by 2025 [1][7] Industry Overview - Spherical alumina, a functional material produced through high-temperature melting and spraying, is widely used in thermal management applications due to its high thermal conductivity and low thermal expansion coefficient [3][7] - The industry chain includes upstream raw materials like aluminum salts and downstream applications in thermal materials, ceramics, and electronic optics [5][6] Market Dynamics - The spherical alumina market is experiencing significant growth driven by the booming new energy vehicle sector, which requires effective thermal management solutions [1][7] - The thermal materials market in China is expanding, with the market size increasing from 13.86 billion yuan in 2019 to an expected 22.23 billion yuan in 2024 [6] Competitive Landscape - China is a major consumer of spherical alumina, with domestic companies like Baidu High-tech Materials, Lianrui New Materials, and others gaining market share from previously dominant foreign firms [8][9] - The competition is intensifying as new entrants are attracted by the growing demand in high-end applications such as electric vehicle battery thermal management and 5G communication [12] Development Trends - The industry is expected to see continuous growth in demand due to advancements in technology and the increasing need for efficient thermal management in various sectors [10][11] - Production processes are being optimized to reduce costs and enhance product stability, which will further improve the competitiveness of spherical alumina in the market [13]