July 24, 2024
Sulfuric Acid Market

Growing Demand From Fertilizers Industry To Boost Agricultural Productivity Is Anticipated To Open Up New Avenues For The Sulfuric Acid Market

The Sulfuric Acid Market is estimated to be valued at US$ 25.69 Bn in 2023 and is expected to exhibit a CAGR of 4.67% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Sulfuric acid, also known as oil of vitriol, is a colorless oily liquid widely used in chemical industry. It is a strong acid having significant industrial applications in manufacturing of fertilizers such as ammonium sulfate and phosphate fertilizers. It is also used in petroleum refining, waste water treatment, and metal processing. Sulfuric acid acts as a catalyst for nitration of toluene to produce trinitrotoluene (TNT) which is an important explosive. Moreover, sulfuric acid is employed in lead acid batteries to produce electolyte which further enhances battery performance.

Market Dynamics:

The growth of the sulfuric acid market is majorly driven by increasing demand from fertilizer industry. As per FAO, global demand for food is projected to grow by 60% by 2050 with increasing population. In order to ensure food security, use of fertilizers is expected to rise significantly which will foster the consumption of sulfuric acid in fertilizer manufacturing. Additionally, expanding automotive industry is another key factor augmenting the demand for sulfuric acid in lead–acid batteries used in vehicles. Lead–acid batteries are major components and find wide usage in automotive starter motors, lighting and ignition systems. Further, rapid industrialization and urbanization in developing countries have increased the production of chemicals, petroleum products and metals which utilize sulfuric acid on large scale thereby driving the market growth.

Segment Analysis

The sulfuric acid market can be segmented into industrial and pharmaceutical grade sulfuric acid. The industrial sulfuric acid segment dominates the market and accounts for over 80% share of the overall market. This is because industrial grade sulfuric acid finds wide application in chemical manufacturing, petroleum refining, wastewater processing, and metal processing industries.

PEST Analysis

Political: Government regulations regarding emission control and environmental protection have positively impacted the demand for sulfuric acid which is used as scrubbing agent to remove particulate and gaseous pollutants from industrial flue gases.
Economic: Continued growth in end-use sectors such as chemicals, fertilizers and petroleum refining has boosted the consumption of sulfuric acid over the years. Recovery in global oil prices have further aided market expansion.
Social: Increasing awareness regarding energy conservation and waste treatment has augmented the usage of sulfuric acid in wastewater processing, metal extraction and fertilizer production.
Technological: Advancements in sulfuric acid production technologies have improved process efficiencies and reduced environmental footprint of manufacturing facilities. Membrane and hybrid technologies offer sustainable production routes.

Key Takeaways

The global sulfuric acid market is expected to witness high growth, exhibiting CAGR of 4.67% over the forecast period, due to increasing demand from fertilizer production. The Asia Pacific region dominates the market owing to large fertilizer manufacturing capacities and base metal processing industries in China and India. China accounts for over 40% of global sulfuric acid demand led by robust fertilizer output and strong chemicals sector. Key players operating in the sulfuric acid market include PVS Chemicals, BASF SE, Akzo Nobel N.V., DowDuPont Inc., Unigel Group, Boliden Group, Ineos Enterprises Limited, Trident Chemicals, Aurubis AG, Climax Molybdenum B.V., and Amal Ltd. These players are focusing on capacity expansions and investments in membrane and hybrid sulfuric acid manufacturing technologies.

Regional analysis:

The Asia Pacific is the fastest growing as well as the largest regional market for sulfuric acid. Rapid economic development and positive outlook of end-use industries have augmented the demand for sulfuric acid over the years. China dominates Asia Pacific sulfuric acid consumption with large fertilizer and metals sectors. Rising agricultural production and consumption in India is further propelling the regional market growth.

Key players:

Key players operating in the sulfuric acid market include PVS Chemicals, BASF SE, Akzo Nobel N.V., DowDuPont Inc., Unigel Group, Boliden Group, Ineos Enterprises Limited, Trident Chemicals, Aurubis AG, Climax Molybdenum B.V., and Amal Ltd. These players are focusing on capacity expansions and investments in membrane and hybrid sulfuric acid manufacturing technologies.

*Note:
1.            Source: Coherent Market Insights, Public sources, Desk research
2.            We have leveraged AI tools to mine information and compile it