The market for sulfuric acid is projected to grow at a steady 4% CAGR during the forecast period of 2023 to 2030. Strong sulfuric acid, also known as oil of vitriol, is a solid acid formed from the elements sulphur, oxygen, and hydrogen. It is also known as the oil of vitriol. In addition to its employment in the production of other chemicals, explosives, and glue, it is also put to use in the curing of metal and the refining of petroleum. The growth can be ascribed to the presence of strong environmental regulations to control emissions, which is likely to lead to the increased usage of smelters in order to capture sulphur dioxide products. Parallelly the growth is also driven by the increasing adoption of sulfuric acid in a wide range of applications, including the manufacturing of fertilisers and chemical products. The demand for sulfuric acid is being fuelled in part by an increase in demand for high purity sulfuric acid from the electronics industry. It is anticipated that East Asia will continue to play a significant role in the global market for sulfuric acid, which currently accounts for approximately one-third of the total consumption of acid. It is estimated that somewhere between 35% and 40% of the total market for acids is comprised of sulfuric acid use over the world.
Demand for Nutrient-Rich Crops is Compelling the Market Growth for Sulfuric Acid
The global market for sulfuric acid is being driven by an increase in the production of crops rich in nutrients. It is anticipated that there would be a significant increase in the demand for fertilisers as a result of the larger expectation of yield increases from farmers and the decreased availability of fertile land for agricultural practises as a result of expanding urbanisation. The addition of fertilisers to agricultural practices has become commonplace. These additions enrich the soil with elements like potassium, phosphate, and nitrogen. They are responsible for fifty per cent of the total crop production that is produced across the globe. The demand for sulfuric acid, which is the most important raw material in the production of commercial phosphate fertilisers, is expected to rise as a result of the expansion of the fertiliser industry overall and particularly in the phosphate sector. It is anticipated that the world's population will reach approximately 7.9 billion in the year 2023, and it is also anticipated that this population will continue to grow over the course of the subsequent years, which will push the need for crops, vegetables, and other food products. It is anticipated that rising concern about high crop yield and great food quality from the agricultural sector would accelerate the growth of the fertiliser industry, which is expected to stimulate the market for sulfuric acid, which will likely be triggered by the fertiliser market.
Regulation in Emission to Boost the Sulfuric Acid Market
It is anticipated that factors such as fluctuations in the prices of raw materials as a result of rising consumption from phosphate fertiliser producers during periods of tight supply and the implementation of various regulations for the production of environmentally friendly products will have a negative impact on the growth of the industry. It is anticipated that during the period from 2017 to 2025, there will be an increase in the implementation of standards such as New Source Performance Standards (NSPS) to regulate the emissions of sulphur dioxide, sulfuric acid mist, particulate matter, and nitrogen oxides from H2SO4 production facilities. This will lead to an expansion of the market.
High Cost Associated with Pollution Control Systems Barricading the Market Revenue
In the electrical and pharmaceutical industries, ultra-pure sulfuric acid can be used for a wide number of purposes. However, increasing the production of ultra-pure sulfuric acid is still a difficult aspect for the top competitors in the industry. The production of ultra-pure sulfuric acid involves heating raw ingredients, such as sulfuric acid, to their boiling point and then distilling the resulting mixture.
Through the process of direct distillation, industrial sulfuric acid is purified; nevertheless, this process also results in the development of mist, which poses a threat to the surrounding environment. To comply with the myriad of environmental rules that have been imposed on the subject of industrial emissions, producers have been forced to implement a wide variety of pollution control technologies.
The high expenditures that are connected with these pollution control systems, which may include the cost of installation, the cost of purchasing the device, the cost of maintenance, and other factors, contribute to an increase in the overall cost of producing sulfuric acid in its ultra-pure form. It is anticipated that this would have a detrimental effect on the expansion of the worldwide sulfuric acid market over the course of the projected year.
Sulphur among Other Raw Materials Dominated the Market in 2021
In 2021, the elemental sulphur raw material segment captured a substantial portion of the market, and it is anticipated to make the most rapid progress over the course of the forecast year. The raw material contributes significantly less to environmental damage than pyrite ore does or what base metal smelters do, and it is widely accessible within the sector. A significant number of businesses have implemented stringent treatment procedures for the sulphur gas that is discharged into the atmosphere before releasing it. This is being done in an effort to limit or reduce environmental pollution. It is anticipated that increasing developmental activities, such as boosting the production capacity of enterprises in order to improve the manufacturing of sulfuric acid products derived from elemental sulphur, will cause the market to expand.
Fertilizers Contributed Over Half of the Global Revenues, Electronics to Grow Fastest
In 2021, fertilizer was the most dominating application segment that contributed over 50% of market revenues. The market is likely going to experience growth in the near future as a result of increasing demand for increased crop quality as well as rising population levels around the world. Rapid industrialization and urbanisation are having the effect of reducing the amount of land that is suitable for food production, which in turn is prompting farmers to turn to the usage of fertilisers in order to boost crop yields. Growth in the market is anticipated to be driven by an increase in the utilisation of H2SO4 in the manufacturing of high-quality fertilisers for agricultural usage, with the aim of increasing agricultural output capacity.
Refineries that process petroleum and chemical products are major contributors to the development of polluted sulfuric acid, which therefore necessitates the generation of H2SO4 products that are both pure and highly concentrated. The regeneration process results in low emissions from the acids, which in turn leads to lower production costs, making the process both ecologically benign and sustainable. It is anticipated that increasing investments in the development activities connected to chemical synthesis in the chemical manufacturing industry in China will fuel the market expansion over the forecast period. The electronic segment is expected to grow at the fastest pace during the forecast period of 2023 to 2030.
APAC to Remain as a Global Leader
In 2021, the Asia Pacific was the key region in terms of revenue, accounting for around 45% of the overall revenue. It is anticipated that an increase in the output of sulphur from China and Japan will drive an increase in the product offers of sulfuric acid in this region. The increasing demand for sulfuric acid in Asia and the Pacific Rim is contributing to a rise in the price of the product. In the coming years, the market is likely to experience growth as a result of an increasing need to increase the production of phosphate fertiliser. This need is being driven by an expanding fertiliser sector as well as stringent environmental regulations concerning the production of environmentally friendly products.
On the international market for sulfuric acid, it is projected that China will be in first place among all countries in terms of consumption. During the period under consideration, it is anticipated that China's overall consumption of sulfuric acid will grow at a compound annual growth rate of 4.1% during the forecast period. Because of the country's high population, there is a significant and growing demand for food and other products derived from agriculture. Farmers all throughout China make significant use of fertilisers and other goods that fall under the category of agrochemicals in order to meet the enormous demand that exists. Therefore, the rapid growth of the fertiliser industry is anticipated to offer a substantial amount of chances for makers of sulfuric acid in the country.
It is anticipated that the expanding supply of H2SO4 items coming from Saudi Arabia and Morocco would give the industry a boost within the foreseeable future. From 2023 to 2030, it is anticipated that an expansion in the number of acid plants to fulfil the expanding consumer demand as well as the rising supply of sulfur-burnt acids in the Middle East will fuel the market. This is expected to occur in tandem.
Market Consolidation Intensifying Competition During the Forecast Period
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 just a few of the companies that are dominating the market. The majority of the firms are engaged in the production of sulphur and its by-products, which are then put to use in a wide variety of applications, including the production of fertilisers and chemicals, the refining of petroleum, and other industries that are connected. Due to the rapidly growing demand for sulfuric acid, there has been a noticeable increase in the number of expansion operations that have taken place over the course of the previous few years. In addition, because of the significant growth in the electronic industry, they are focusing on producing high-purity mineral acid. The global market for sulfuric acid is highly competitive and divided, with most competitors only controlling a small portion of the industry. Other key companies in this market include Nouryon, KMG Chemicals, the PhosAgro Group of Companies, Aurubis AG, and WeylChem International GmbH, among others.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Sulfuric Acid market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
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| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
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Region Segment (2022-2032; US$ Million)
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Key questions answered in this report
