Sulfuric Acid Market

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The Global Sulfuric Acid Market was valued at USD 13.61 Billion in 2022 and is projected to reach a value of USD 19.64 Billion by 2030. The Global Market is anticipated to grow to exhibit a CAGR (Compound Annual Growth Rate) of 4.70% over the forecast period.

The major drivers of the Sulfuric Acid Market are the continuous growth in the demand for fertilizers, increased crude oil production, and expansions in the mining and metals industries. Additionally, the growing demand from the phosphate fertilizer industry and the increased use of Sulfuric Acid in metals and mining applications are also expected to impact the growth of the Sulfuric Acid Market. The world fertilizer industry is experiencing strong and continuous growth due to increasing global demand for food. This increased demand for food is driving up the demand for fertilizers, which in turn is driving up the demand for Sulfuric Acid. Sulfuric Acid is a key ingredient in the production of fertilizers, so the growing demand for fertilizers is translating into increased demand for Sulfuric Acid. The fertilizer market is expected to continue growing in the coming years, fueling the growth of the Sulfuric Acid Market. Key drivers of this continued growth include population growth, urbanization, and increasing incomes. As more people move to cities and have higher incomes, they will have more money to spend on food, which will drive up demand for fertilizers.

The rise in crude oil production is one of the key factors driving the growth of the Sulfuric Acid Market. Sulfuric Acid is used in producing phosphate fertilizers, which are essential for sustaining crop yields. The increased demand for Sulfuric Acid can be attributed to the growing population and the need for food security. In addition, Sulfuric Acid is also used in mining operations and metal processing. Sulfuric Acid is used in various mining and metal processing operations and other industries. The growth of the Sulfuric Acid Market is being driven by several factors, including increased demand from the mining and metals industries, new uses for Sulfuric Acid, and improvements in production methods. Mining is a major user of Sulfuric Acid, accounting for around 30% of global demand. The acid is used in various processes, including leaching copper ores, concentrated copper smelting, and treating wastewater from mines. Sulfuric Acid is also used in precious metal refining and in the production of aluminum oxide. The metals industry is another key driver of demand for Sulfuric Acid. The acid is used in pickling operations to clean steel surfaces before painting or coating. It is also an important component of alkyd resins used in various coatings applications. Sulfuric Acid is also used to produce pigments and other metals industry chemicals. Other industries that use Sulfuric Acid include chemical manufacturing, oil refining, wastewater treatment, and papermaking. In addition to its use as a raw material or reagent in various industrial processes, Sulfuric Acid is also an important environmental pollutant.

The expansion of the automotive industry is another major factor that is contributing to the growth of the Sulfuric Acid Market. The automotive industry is one of the most important industries in the world, and its growth has significantly impacted the global economy. The automotive industry is expected to grow at a compound annual growth rate (CAGR) of 3.8% from 2023 to 2030. One of the factors driving this growth is the increasing demand for vehicles in emerging markets such as Asia-Pacific and Africa. These markets are experiencing rapid economic growth, resulting in increased disposable incomes and higher demand for personal vehicles. Additionally, the growing population in these regions further contributes to the demand for vehicles. Another factor fuelling the growth of the automotive industry is advancements in technology. Automakers continuously innovate and introduce new features and technologies in their vehicles to appeal to consumers. Electric vehicles are one of the latest trends in the automotive industry and are expected to play a major role in its future growth. The automotive industry's expansion is also positively impacting the Sulfuric Acid Market as it is used in Lead-acid batteries, which are widely used in cars and other vehicles. Sulfuric Acid is used in lead-acid batteries, which are extensively used in automobiles. The increasing use of Sulfuric Acid in water treatment applications is another important factor fuelling the market growth. Sulfuric Acid is used to remove impurities from water, making it safe for drinking and other purposes. The growing concerns over water scarcity and contamination are leading to an increased demand for water treatment chemicals, driving the growth of the Sulfuric Acid Market.

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High production costs, stringent environmental regulations, and declining demand from certain end-use industries hinder the growth of the Sulfuric Acid Market.

High production costs: Sulfuric Acid is produced by burning sulfur-containing materials, such as elemental sulfur or sulfide ores. The resulting SO2 gas is combined with water to form Sulfuric Acid. This process is energy intensive and, thus, expensive. Additionally, the raw materials used are often scarce, further heightening costs.

Stringent environmental regulations: Sulfuric Acid production results in emissions of SO2 gas, which is a major contributor to acid rain. As a result, stringent environmental regulations are in place limiting emissions of SO2 from Sulfuric Acid plants. These regulations add to the already high cost of production and make it difficult for new entrants to enter the market.

Declining demand from certain end-use industries: Sulfuric Acid is used in various industries, including chemical manufacturing, oil refining, and metal processing. However, demand from these industries has been declining in recent years due to substitution by other chemicals and technological advancements that have reduced the need for Sulfuric Acid.

Top Market Trends

1. Increasing Demand from Mining Industry: Sulfuric Acid is extensively used in mineral processing activities such as leaching, flotation, and tailing disposal. The growing global mining activities are expected to drive the demand for Sulfuric Acid over the next five years.

2. Growing Oil & Gas Industry: Sulfuric Acid is used in various oil and gas applications such as enhanced oil recovery, pipeline corrosion control, and wastewater treatment. The growing oil & gas industry is expected to fuel the demand for Sulfuric Acid over the forecast period.

3. Expansion of Fertilizer Capacity: Sulfuric Acid is an important raw material for manufacturing fertilizers such as ammonium sulfate, calcium sulfate, and potassium sulfate. The expansion of fertilizer capacity in Asia, the Middle East & Africa is expected to drive the demand for Sulfuric Acid over the next five years.

4. Growing use of Sulfuric Acid in the chemical industry: Sulfuric Acid is widely used in the chemical industry for various applications such as the production of nylon, detergents, and fertilizers. The growing demand for these chemicals is expected to boost the growth of this market.

5. Stringent environmental regulations: Stringent environmental regulations are being implemented in several countries across the globe which, includes China, India, and the United States. These regulations are aimed at reducing emissions of sulfur dioxide (SO2), a key component of Sulfuric Acid. This is expected to restrain the growth of this market to some extent.

6. Increasing demand from the manufacturing industry: The largest end-use sector for Sulfuric Acid is the manufacturing industry, where it is used in various processes, including as a catalyst, drying agent, and etching agent. The demand from this sector is expected to continue to grow in line with the overall expansion of the global economy.

Market Segmentation

The market is segmented based on Raw Materials, Forms, Manufacturing Processes, Distribution Channels, Applications, Purity Type, and Region. Based on Raw Materials, the market is segmented into Base Metal Smelters, Elemental Sulfur, Pyrite Ore, and Other Raw Materials. In addition, based on Forms, the market is segmented into Concentrated, Tower/Glover Acid, Chamber/ Fertilizer Acid, Battery Acid, 66 Degree Baume Sulfuric Acid, and Dilute Sulfuric Acid. Moreover, based on the Manufacturing Process, the market is further divided into Contact Process, Lead Chamber Process, Wet Sulfuric Acid Process, Metabisulfite Process, and Other Manufacturing Processes. Additionally, based on the Distribution Channels, the market is further bifurcated into Online and Offline. Additionally, based on Applications, the market is further segregated into Fertilizers, Chemical Industries, Petroleum Refining, Metal Processing- Steel Picking, Copper Production, Metals Surface Cleaning, Automotive, Textile, Drug Manufacturing, Pulp & Paper, Industrial, Semiconductor Electronics- Battery Electrolyte, Integrated Circuit Components, Fabrication, Photovoltaic Cells, Wastewater Treatment, and Other Applications. Likewise, based on the Purity Type, the market is segmented into Standard and Ultra-Pure.

Based on Raw Materials

Elemental sulfur will gain the largest market in Sulfuric Acid with the increased utilization of sulfur in producing Sulfuric Acid having fewer pollution characteristics than that of pyrite ores, oil and petroleum refining industries, and base metal smelters. This is because sulfur in Sulfuric Acid is produced from increased sulfur utilization. The expansion of the Sulfuric Acid Market is being driven by the increased quick acceptance of Sulfuric Acid in a variety of industries. Elemental Sulfuric Acid will be the processing material involved in chemical synthesis. The extensive properties of Sulfuric Acid, together with an increase in the manufacture of medications in pharmaceutical sectors, will promote market development. In 2021, the elemental sulfur raw material segment captured a substantial portion of the market, and it is anticipated to make the most rapid progress over the forecast year. The raw material contributes significantly less to environmental damage than pyrite ore or base metal smelters and is widely accessible within the sector. Many businesses have implemented stringent treatment procedures for the sulfur gas discharged into the atmosphere before releasing it. This is being done to limit or reduce environmental pollution. It is anticipated that increasing developmental activities, such as boosting the production capacity of enterprises to improve the manufacturing of Sulfuric Acid products derived from elemental sulfur, will cause the market to expand. Pyrite is produced in the largest quantities in China, the world's leading raw material producer. Most pyrites are used in manufacturing Sulfuric Acid. Compared to elemental sulfur, the mining of pyrites to produce acid products is likely subject to more stringent regulations. This is because pyrites are considered to be less environmentally benign than elemental sulfur. The growth of the pyrite ore raw material segment will probably be slowed down due to these causes.

Based on Forms

Chamber/fertilizer acid, also known as oleum, is a highly corrosive and hygroscopic liquid used as a precursor in the manufacture of fertilizers. It is produced by the oxidation of sulfur dioxide in the air. Chamber/fertilizer acid is a colorless to dark brown liquid with a pungent odor. It is soluble in water and insoluble in organic solvents. Chamber/fertilizer acid accounts for the largest share of the Global Sulfuric Acid Market due to its widespread use in the fertilizer industry. The chamber process is widely used to produce Sulfuric Acid for fertilizer manufacturing. In this process, sulfur dioxide gas is passed through an absorption chamber, which reacts with oxygen to form sulfur trioxide gas. This gas is then absorbed in water to form Sulfuric Acid. The main application of chamber/fertilizer acid is as a feedstock for producing phosphate fertilizers such as ammonium phosphate and triple superphosphate. Other applications include its use as a drying agent, Pickling Agent, dehydrating agent, and oxidizing agent.

Based on Manufacturing Process

The Contact Process accounts for the largest share of the Global Sulfuric Acid Market. The Contact process is a major production route for Sulfuric Acid, with over 80% of the world’s Sulfuric Acid being produced. The main feedstock for the contact process is elemental sulfur, which is reacted with oxygen to produce SO2. This SO2 is then further oxidized to form SO3, which is then absorbed in water to produce H2SO4. There are several reasons why the Contact Process dominates the Global Sulfuric Acid Market. Firstly, it is a very versatile process, able to be adapted to different raw materials and operating conditions. Secondly, it is a highly efficient process with a very low environmental impact. Finally, the Contact Process is well-established and has been commercially used for over 100 years.

Based on Distribution Channels

The Global Sulfuric Acid Market is divided into three major segments based on distribution channels: Online, Offline, and Specialty Stores. The Online segment currently dominates the market with a share of over 65%. This is attributed to the growing popularity of e-commerce platforms and consumers' rising preference for online shopping. Moreover, the increased availability of Sulfuric Acid products on online retail platforms has also been driving the growth of this segment. The offline segment comprises supermarkets/hypermarkets, convenience stores, and drug stores. This segment is witnessing moderate growth due to many Offline retailers. Moreover, the easy availability of Sulfuric Acid products at these outlets is also boosting the growth of this segment. The specialty store segment includes retailer outlets selling chemicals and other industrial products. This segment is expected to grow significantly in the coming years due to the increasing number of such specialist stores globally.

Based on Applications

Sulfuric Acid is one of the most important inorganic acids; it is a colorless, oily liquid that is corrosive to metals and tissue. The majority of Sulfuric Acid produced is a precursor to other chemicals, such as phosphate fertilizers, explosives, and dyes. It is also used in the paper industry and water treatment. The increasing demand for fertilizers is the primary driver of growth in the Sulfuric Acid Market. Phosphate fertilizers are the largest application segment for Sulfuric Acid, accounting for over 60% of total demand. The growing demand for food crops due to population growth and the need for increased agricultural productivity are key drivers of fertilizer demand. Additionally, the depleting phosphate rock reserves are leading to higher prices for phosphate fertilizers, further driving up demand for Sulfuric Acid. Other applications of Sulfuric Acid include explosives, dyes, detergents, and inks. The munitions industry is a major user of explosive-grade Sulfuric Acid. Sulfuric Acid is also used in producing synthetic gypsum, which is used in plasterboard and cement manufacture.

Based on the Purity Type

The demand for ultra-pure Sulfuric Acid is slated to outpace standard purity type over the forecast period of 2022-2028. This can be attributed to the increasing use of ultra-pure Sulfuric Acid in the electronics industry for cleaning and etching purposes. Sulfuric Acid is also used as an electrolyte in lead-acid batteries widely used in automobiles. The growth of the automotive industry is thus expected to drive the demand for Sulfuric Acid over the forecast period. Sulfuric Acid is used as a dopant in semiconductor manufacturing, and its demand from this application is expected to increase significantly in the coming years, owing to the growing semiconductor industry. Ultra-pure Sulfuric Acid is also an etchant in FPD production. The rising demand for large and high-resolution displays is expected to boost the demand for this product from this application segment. The Asia Pacific region is expected to be the largest market for ultra-pure Sulfuric Acid, due to the presence of many electronics manufacturers in countries such as China, Japan, and South Korea. North America and Europe are also significant markets for this product due to the many FPD manufacturers in these regions.

Based on Region

The Asia Pacific region is projected to have the highest market share in the Global Sulfuric Acid Market during the forecast period. The increase in demand for Sulfuric Acid from the fertilizers, chemicals, and metals & mining industries is expected to drive market growth in this region. China is estimated to be the largest market for Sulfuric Acid in the Asia-Pacific region. The country has a large population and rapid economic development, which has led to an increased demand for Sulfuric Acid from various industries. India is another major market for Sulfuric Acid in the Asia Pacific region, owing to the growing population and rapid economic development. The Asia Pacific region is expected to witness significant growth in the demand for Sulfuric Acid from emerging economies such as Vietnam, Indonesia, and Thailand. The increasing population and rapid economic development in these countries are expected to drive the growth of this region’s Sulfuric Acid Market.

Competitive Landscape

The key players in the Global Sulfuric Acid Market include- UBE Industries Ltd. (Japan), Boliden Group (Sweden), Trident Group (India), Tata Chemicals (India), Asia Union Electronic Chemical Corporation (Taiwan), Hubei Xingfa Chemicals Group Co. Ltd. (China), Canada Colors & Chemicals Limited (Canada), Maaden - Saudi Arabian Mining Company (Saudi Arabia), Nouryon (Netherlands), Cornerstone Chemical Company (US), Linde Group (Ireland), Qingdao Hisea Chem Co. Ltd. (China), KMG Chemicals Inc. (US), Seastar Chemicals (Canada), PVS Chemicals Inc. (US), Avantor Performance Materials LLC (US), Aurubis (Germany), Knato Corporation (US), INEOS Group Ltd. (UK), BASF SE (Germany), The Mosaic Company (US), Yunnan Copper Co. Ltd. (China), Jiangxi Copper Group Co. Ltd. (China), Honeywell International Inc. (US), Dupont (US), Cytec Industries (US), Chevron Philips Chemical (US), Akzo Nobel (Netherlands), Bayer (Germany) and others.

Recent Market Developments

● In June of the year 2019, the Veolia firm will introduce Sulfuric Acid in the state of Louisiana with an improved quality conversion of Sulfuric Acid into commercial Sulfuric Acid. This will take place in the month of June. A rise in the number of goods manufactured using Sulfuric Acid as the primary component. Refining and cleaning agent applications within the metals industry. greater production of Sulfuric Acid alongside improved regeneration of the acid.

● November of 2021 will see the launch of a new plant at Coromandel International Limited that will produce Sulfuric Acid for use in the fertilization industry.

● In August of 2021, the Sumitomo Chemical Corporation launched a new type of Sulfuric Acid that included greater output and increased purity. This was done in response to increased demand from the semiconductor and automobile industries.

● The market is rather consolidated, and the nature of the competition is intense. DuPont, AkzoNobel N.V., BASF SE, Agrium Inc., PVS Chemical Solution, and Chemtrade Logistics are a few of the companies involved in this industry. Most of the firms are engaged in the production of sulfur and its byproducts, which are then put to use in a wide variety of applications, including producing fertilizers and chemicals, refining petroleum, and other industries that are connected.

● A substantial number of businesses nowadays are largely engaged in mergers, acquisitions, and joint ventures to broaden their product offerings and establish a significant presence in their respective markets. For example, in June of 2016, Veolia acquired the sulfur products division of Chemour to strengthen the company's services in the oil and gas industry for the recycling and treating of industrial waste in the United States. This strengthened Veolia's competitive position in the oil and gas industry.

● In December 2014, BASF entered into a partnership with Zhejiang Jiahua Energy Chemical Industry Co. Ltd., a Huafang Textile Co. Ltd. subsidiary, to construct an electronics-grade Sulfuric Acid plant in China. The plant's purpose is to supply H2SO4 products to the expanding semiconductor industry in this region. Jacobs completed the acquisition of Bayer's Sulfuric Acid converter technology in September 2016.

Segmentation of the Global Sulfuric Acid Market