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MA20117971 |
Pages: 285 |
Oct 2023 |
Phosphoric Acid Overview
With the chemical formula H3PO4, phosphoric acid is a colorless, odorless mineral acid that finds use in a variety of industries. The wet technique, which involves treating phosphate rocks with sulfuric acid, is primarily used to create it. The manufacturing of fertilizers like diammonium phosphate (DAP) and mono ammonium phosphate (MAP), which are essential for increasing agricultural output, makes extensive use of phosphoric acid. Additionally, it is an essential acidulant, preservative, and flavor enhancer in the food and beverage sector. Phosphoric acid is frequently found in soft drinks, processed foods, and several pharmaceutical goods. Phosphoric acid is also used in the chemical industry to make detergents, chemicals for water treatment, and treatments for metal surfaces.
Global Phosphoric Acid Market Analysis
The global phosphoric acid market size was $42.3 billion in 2022 and is predicted to grow with a CAGR of 4.4%, by generating a revenue of $64.7 billion by 2032.
COVID-19 Impact on Global Phosphoric Acid Market
The COVID-19 pandemic had a substantial effect on the phosphoric acid market. Phosphoric acid manufacturing and consumption were slowed down during the early phases of the pandemic as a result of widespread lockdowns and travel restrictions. Due to supply chain disruptions and lower consumer spending, demand for phosphoric acid in key industries like agriculture, food & beverage manufacturing, and medicines fell. The transportation of raw materials and completed goods was further hampered by border closures and logistical difficulties, which contributed to supply shortages and price swings in the phosphoric acid market. The capability for the manufacture of essential phosphoric acid was further impacted by the shutdown of manufacturing facilities and restrictions on foreign trade.
But as time went on and society adjusted to the new normal, phosphoric acid consumption started to increase again. The use of phosphate-based cleaning and sanitization products expanded along with the general awareness of health and hygiene. In addition, the agriculture sector recovered because of increased demand for phosphate-based fertilizers brought on by farmers' efforts to increase crop yields to counteract impending food shortages. Additionally, the pandemic expedited some structural changes in the market for phosphoric acid.
Rising Use in Various End Use Industries to Drive the Market Growth
Significant growth factors are influencing the phosphoric acid market, which is causing it to expand and find extensive use in numerous sectors. The rising need for fertilizers in agriculture is a major motivator. A key component of phosphate fertilizers, such as phosphoric acid, is their ability to increase agricultural yield and provide food security for a population that is expanding worldwide. The demand for phosphoric acid as a component of fertilizers is anticipated to rise as agricultural practices become more intensive and the demand for high-yield crops increases. The growing food & beverage sector is another key factor. The manufacture of soft drinks makes substantial use of phosphoric acid since it serves as an acidulant and flavor enhancer. The consumption of carbonated drinks and other processed meals is steadily increasing, especially in emerging economies, leading to a higher demand for phosphoric acid. Additionally, phosphoric acid is a crucial ingredient in the manufacturing of numerous chemicals and industrial goods. It works as a precursor to create phosphates, which are utilized in a variety of products like detergents, water purification, and metal finishing. As industrialization advances, the market for phosphoric acid is expected to be driven by an increase in demand for these downstream goods. The demand for phosphoric acid is also significantly influenced by the construction sector. It is used to make cement based on phosphoric acid, which is used in construction applications including fusing refractory materials and making ceramics.
Dearth of Availability of Raw Materials to Restrain the Market Growth
Numerous restraints on the market for phosphoric acid impacted its expansion and advancement. The dearth of availability of raw materials is one of the major problems. Production of phosphoric acid primarily depends on phosphate rock, a limited natural resource. A stable supply of high-quality phosphate rock becomes harder to find as demand rises, potentially resulting in price swings and output limitations. Environmental issues related to the manufacture of phosphoric acid are another important constraint. Sulfuric acid is used to treat phosphate rock in the process, which releases greenhouse gases and other pollutants. Companies in the phosphoric acid industry are under pressure to adopt more sustainable and environmentally friendly practices as environmental restrictions get harsher globally. Additionally, the market's constraints are greatly influenced by the competitive environment. There are several well-established businesses in the phosphoric acid market, which can make it difficult for new competitors to enter. Long-term contracts with clients may have been made by established businesses with a strong market presence, making it difficult for newcomers to successfully enter the market. Because replacement products are easily available, the phosphoric acid market is affected. Other chemicals or substitutes that perform similar functions but are less expensive or more environmentally friendly may be researched or used in some sectors. This trend may limit market growth and increase the need for innovation and distinction to stay competitive.
Advancements in Technology to Drive Excellent Opportunities
Significant technological breakthroughs have revolutionized the manufacture, use, and overall effectiveness of the phosphoric acid market. The production process has seen one of the most noticeable advancements. Phosphoric acid was traditionally made by extracting it from phosphate rock through a chemical reaction with sulfuric acid. However, new processes that are ecologically benign and sustainable have been introduced. One such invention is the creation of electrothermal phosphoric acid manufacturing, which uses electric arc furnaces to directly transform phosphate ore into phosphoric acid, decreasing the need for sulfuric acid and lowering emissions. Furthermore, the phosphoric acid sector has become much more efficient overall thanks to automation and digitization. The automation of production lines and procedures has increased output, decreased error rates, and improved worker safety. Digital technology has also made it easier to monitor and manage the several phases of the manufacture of phosphoric acid, enabling real-time modifications and process optimization, maximizing yields and reducing waste. Improvements in purifying methods have also helped to raise the caliber of phosphoric acid. New extraction techniques have been developed, allowing the removal of contaminants and heavy metals from the finished product. Examples include solvent extraction and ion exchange. This led to the creation of highly pure phosphoric acid, which is widely used in the semiconductor and electronics sectors.
Global Phosphoric Acid Market Share, by Application Type, 2022
The diammonium hydrogenphosphate (DAP) sub-segment accounted for the highest market share in 2022. Diammonium Hydrogenphosphate (DAP), one of the important phosphoric acid derivatives, has a considerable impact on the phosphoric acid industry. In the fertilizer industry, where it is widely employed as a source of nitrogen and phosphorus, DAP is a crucial substance. DAP, a salt that dissolves in water, is prized for its adaptability and potency in enhancing plant growth and crop harvests. DAP is primarily used as a fertilizer by farmers and agricultural businesses, who are the main consumers of the product. Its popularity is due to its balanced nitrogen and phosphorus makeup, which makes it a great option for a variety of crops and soil types. Additionally, the water solubility of DAP guarantees that the nutrients are easily accessible to the plants, ensuring their optimum growth and development. The success of the global agricultural sector and the timing of crop planting have a direct impact on the demand for DAP in the phosphoric acid market. There is a spike in demand for DAP during times of heightened planting and agricultural activity as farmers try to raise their yields. On the other hand, temporary drops in DAP demand could be brought either by economic downturns or unfavorable weather. The industrial sector also has an impact on the growth of the phosphoric acid market since it uses phosphoric acid and its derivatives, such as DAP, to make a variety of chemicals, detergents, and water treatment methods. The overall demand for phosphoric acid and its derivatives, including DAP, is increased by these industrial applications.
Global Phosphoric Acid Market Share, by Region, 2022
The Asia-Pacific phosphoric acid market generated the highest revenue in 2022. The Asia Pacific region is crucial to the growth of the phosphoric acid industry worldwide. The need for phosphoric acid in the area has been constantly rising as a result of the area's quickly expanding population, expanding agricultural operations, and developing industrialization. Agriculture is one of the main factors influencing the consumption of phosphoric acid in the region. Due to the region's population density, which includes some of the world's most populous nations, agricultural productivity has increased. Phosphoric acid is an important ingredient in the synthesis of fertilizers, especially phosphate fertilizers, which are essential for increasing crop yields. The thriving industrial sector in the Asia Pacific area also contributes to an increase in phosphoric acid demand. Phosphoric acid is used by many different businesses for a variety of purposes, such as the creation of detergents, food additives, animal feed additions, and metal surface treatment, among others. Given that it is the region's largest producer and consumer of phosphoric acid, China stands out as a prominent player. A considerable demand for acid is generated by its extensive industrial base and vast agricultural lands. Due to their expanding economies and agricultural activities, other nations in the Asia Pacific, like Vietnam, India, and Indonesia, are also experiencing a surge in the demand for phosphoric acid.
Competitive Scenario in the Global Phosphoric Acid Market
Investment and agreement are common strategies followed by major market players. Some of the leading phosphoric acid market players are The Mosaic Company, PJSC PhosAgro, Nutrien, IFFCO, EuroChem Group AG, Prayon Group, Israel Chemical Ltd., Yara International, OCP S.A., and Aditya Birla Group.Aditya Birla Group.
| Aspect | Particulars |
| Historical Market Estimations | 2020-2022 |
| Base Year for Market Estimation | 2022 |
| Forecast Timeline for Market Projection | 2023-2032 |
| Geographical Scope | North America, Europe, Asia-Pacific, and LAMEA |
| Segmentation by Application |
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| Key Companies Profiled |
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