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.
Sulfuric acid is a strong acid having diverse industrial applications. It is majorly used in the manufacture of fertilizers such as ammonium sulfate and phosphate fertilizers. It is also used in petroleum refining, chemical industry, and domestic manufacturing such as batteries, detergents, dyes, and pigments among others. Rising global food demand coupled with growing emphasis on sustainability is driving the demand for fertilizers which in turn is propelling the sulfuric acid market.
The global sulfuric acid market is expected to gain high growth owing to rising demand from fertilizer industry and growing applications in chemical industry. The demand for fertilizers is increasing at a robust pace to fulfill the rising global food demand. As sulfuric acid is a key raw material in manufacturing phosphate and ammonium sulfate fertilizers, its demand is directly correlated to fertilizer demand growth. According to FAO, the global demand for fertilizers is estimated to grow at 2% CAGR during 2022-2027 period. This rising fertilizer demand is driving the sulfuric acid consumption. Furthermore, sulfuric acid is used in manufacturing numerous chemicals including dyes, detergents, sulfuric oxide, and sodium carbonate among others. The growing chemical industry especially in Asia Pacific is further propelling the market growth over the forecast period.
Strength: Sulfuric acid has a wide range of industrial applications. It is used as a catalyst and a precursor to several chemicals. The rising industrial activities will drive its demand. It also acts as an absorbent, has bleaching and disinfecting properties. Versatility in applications is a key strength.
Weakness: Sulfuric acid is hazardous in nature and requires special handling during production, transportation, and storage. Exposure can cause severe burns. Stringent safety and environmental regulations increase production costs. Volatility in raw material prices is also a weakness.
Opportunity: Increasing metal processing and fertilizer production offers significant opportunities for sulfuric acid demand. Emerging economies are investing heavily in infrastructure which will drive its use further. Growing automotive industry adoption of lead-acid batteries is another avenue.
Threats: Substitute chemicals pose a threats. Stricter emission norms can affect sulfur dioxide production which is a key raw material. Trade barriers and geopolitical tensions impact sourcing and global supply chains. Fluctuations in crude oil prices affect raw material economics.
The global sulfuric acid market is expected to witness high growth, exhibiting a CAGR of 4.67% over the forecast period, due to increasing industrialization and demand from the fertilizer industry. Asia Pacific dominates the market currently owing to large production bases and consumption centers in China and India.
Regional analysis: The Asia Pacific region dominates the global sulfuric acid market currently, accounting for over 50% of the total demand. China is the world’s largest producer and consumer due to large fertilizer and metal processing industries. India is another major market in the region driven by government initiatives to boost agriculture production. The Middle East & Africa region is expected to be the fastest growing market during the forecast period due to rising oil & gas, petrochemical, and fertilizer industries.
Key players: Key players operating in the sulfuric acid market are 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. The industry is moderately consolidated in nature with the top 5 players accounting for over 30% of the global capacity.