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The market is witnessing significant growth, driven by various factors. Base metal smelters are increasingly reliant on sulfuric acid for ore processing, contributing substantially to market expansion. Additionally, the contact process, which involves converting sulfur dioxide gas into sulfur trioxide, remains a crucial method for sulfuric acid production. Furthermore, the fertilizer industry's growing demand for phosphate fertilizers, which heavily rely on sulfuric acid production, further fuels market growth. Environmental regulations addressing acid rains have also underscored the importance of sulfuric acid in mitigating environmental impacts, boosting market demand. Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rise in demand for this acid in the electronics industry is a growing driver in the market. An important chemical reagent for microelectronics is electronic-grade sulfuric acid, also known as ultra-pure acid or high-purity acid. The ability of high-purity acid to clean and etch the wafer, a thin, flat slice of semiconductor material, effectively removes impurity particles, inorganic residue, and carbon deposits. Additionally, this grade of this acid is primarily produced for use in silicon wafer manufacturing to meet the high-quality requirements of the semiconductor industry.
However, it is also used for the production of Printed Circuit Boards and PCBs. Given the growing worldwide use of appliances, as well as rapid economic growth in emerging countries like India, it is anticipated that chips will grow at a steady rate over the forecast period. The semiconductor industry is a rapidly growing end-user industry. Therefore, the increasing adoption of semiconductors in data processing, communications, consumer electronics, automotive, and industrial applications is expected to foster the growth of the market during the forecast period.
Capacity expansions and new plant additions is a primary trend in the market. Over the past five to ten years, production facilities have been expanding, which has led to an increase in the global market. Additionally, capacity expansions in China, South America, and the Middle East are anticipated to be driven by the fertilizer industry's demand for this acid. Producers are also forced to increase their production capacities as a result of the growing demand for this acid from various end-user industries. Global consumption and supply of this acid are expected to continue growing over the next ten years.
For instance, In December 2021, Boliden entered into an agreement with Metso Outotec regarding the expansion investment in Odda zinc smelter. This agreement includes a roasting plant, sulfuric acid plant, and leaching technology and engineering services. After the expansion, the production capacity of the Boliden Odda zinc smelter will increase from 200,000 tons to 350,000 tons per year. The deadline for the expansion has been decided to be Q4 2024. Similarly, in November 2021, PhosAgro announced a new acid production unit with 3,300 tons per day (SK-3300) capacity at its Cherepovets production site. Therefore, the development of new production facilities and capacity expansion of the existing production facilities will present major opportunities for the growth of the market during the forecast period.
The adoption of organic farming is a major challenge in the market. Concerns about the negative effects of various chemical products are causing a steady rise in the demand for organic fertilizers. This scenario is likely to have a negative impact on the global market for sulphuric acid because organic farming uses fertilizer from green manure rather than inorganic fertilizers like phosphates. Cancer, obesity, and birth defects are all caused by the widespread use of synthetic chemical pesticides and fertilizers in non-organic products. Pesticide and fertilizer use has a global impact on health and mortality.
Moreover, in developing countries, where two-thirds of these deaths occur, such poisonings are associated strongly with excessive exposure to and inappropriate use of toxic chemicals. This is contributing to an increase in the worldwide sale of organic products and it is expected that, over the forecast period, there will be significant growth for the organic food sector in large countries like the US, Germany, China, and France. The demand for organically produced products and agricultural practices has increased due to increasing awareness about the toxic effects of inorganic chemicals, which leads to a reduction in phosphate fertilizer demand. Therefore, the high adoption of organic farming is reducing the share of chemical fertilizers for crop cultivation, in turn, restraining the growth of the global market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
BASF SE - The company offers acid such as Aurubis sulfuric acid.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The raw material segment of the market primarily revolves around sulfur, a key component utilized in various industries such as chemical manufacturing, fertilizers, textiles, pulp and paper, and automobile manufacturing. Sulfur, obtained from sources like elemental sulfur, pyrite ore, and base metal smelters, serves as the primary raw material for sulfuric acid production. Within the chemical manufacturing industry, sulfuric acid finds extensive use in processes like steel pickling and petroleum refinery applications. Additionally, it plays a crucial role in the production of phosphate fertilizers, contributing significantly to agricultural activities worldwide. As such, the availability and sourcing of sulfur remain pivotal factors influencing the dynamics of the global market.
The base metal smelter segments are estimated to witness significant growth during the forecast period. As a major supplier of raw materials for the global market, base metal smelters accounted for a majority share as a raw material in the market in focus in 2022. The demand for base metals and smelting processes that produce sulfur acid has a direct impact on the availability of sulfur dioxide gas in the manufacture of sulphuric acid.
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The base metal smelters segment was the largest segment and was valued at USD 12.27 billion in 2017. Changes in the prices of base metals, global demand, and supply dynamics, as well as economic conditions, have a major impact on plant capacity and production at Base Metal Smelters. Advances in emission standards and environmental regulations also have a significant impact on the growth of the segment. The use of advanced gas treatment technologies, such as sulfur recovery units and acid facilities, is prompted by stricter limitations on sulfur dioxide emissions from smelters in order to meet environmental standards.
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APAC is estimated to contribute 44% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The high demand for this acid in the region can be attributed to its increased consumption in the agricultural and chemical industries. APAC is among the largest manufacturers and consumers of this acid. China, India, Indonesia, Vietnam, and Japan are the key revenue-generating countries in the region due to the high demand for phosphate fertilizers.
The market is intricately tied to various industries such as the Chemical manufacturing industry, Fertilizers industry, Textile production industry, Metal processing industry and Pulp and paper industry, where it serves as a crucial component. Its usage extends to diverse applications including the Automobile manufacturing industry and Steel pickling in the Metal processing sector. Furthermore, it plays a vital role in Petroleum refinery processes and is integral to the Contact process for its production. With its significance in facilitating reactions like the production of Hydrogen and Oxygen, the market focuses on enhancing the Efficiency and Effectiveness of production processes across plant facilities. The U.S. sulfuric acid market stands as a key player in the global sulfuric acid trade, particularly supporting the Phosphate fertilizer industry.
The market is pivotal in various industries, including Aluminum production, Petroleum refinery applications, and Metal processing, where it serves as a critical component. It finds utility in mitigating Acid rains through chemical neutralization, while its application in Cement and Limestone production underscores its role in diverse sectors. Additionally, it contributes to enhancing Soil nutrients vital for agriculture and supports the Fertilizers segment by aiding in the production of Ammonia. However, challenges such as Acid mine drainage (AMD) pose environmental concerns, emphasizing the need for sustainable practices in the market. Efforts to address these issues aim to safeguard ecosystems while maintaining a significant Revenue share in the global market.
The market plays a crucial role in various sectors, including the Textile industry, where it's commonly known as Oil of vitriol. It is instrumental in textile manufacturing processes, supporting Textile exports and ensuring the efficient operation of Textile plants and equipment. However, its production, particularly from Sulfur trioxide, can result in Toxic emissions if not managed properly. Additionally, byproduct management and minimizing Solid sulfur and Waste are essential to mitigate adverse impacts on the Ecosystem. Despite challenges such as Rust formation, the market continues to evolve, driven by advancements in Reaction process technologies and a commitment to sustainability.
The market report forecasts market growth by revenue at global, regional & country levels and provides market trends and analysis of the market forecast and growth opportunities from 2017 to 2027.
Market Scope |
|
Report Coverage |
Details |
Page number |
181 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.06% |
Market growth 2023-2027 |
USD 6.88 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.1 |
Regional analysis |
APAC, Middle East and Africa, North America, Europe, and South America |
Performing market contribution |
APAC at 44% |
Key countries |
US, Morocco, China, India, and Russia |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
BASF SE, Boliden AB, China National Chemical Corp., Cornerstone Chemical Co., DuPont de Nemours Inc., Ecovyst Inc., Glencore Plc, Gulf Fluor, Hindustan Zinc Ltd., Honeywell International Inc., Korea Zinc Co. Ltd., Lanxess AG, Nouryon Chemicals Holding BV, Sumitomo Chemical Co. Ltd., Thermo Fisher Scientific Inc., Trident Ltd., WeylChem International GmbH, Aurubis AG, Chemtrade Logistics Income Fund, and Jubilant Industries Ltd. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research and growth report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Raw Material
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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