Phosphoric Acid Market: Overview
The market size for phosphoric acid was USD 48.2 billion in 2021, and it is projected to grow at a CAGR of 4.5 percent during the forecast period. Over the forecast period, the market is anticipated to be driven by the high utilization of phosphoric acid in the production of phosphate fertilizers such Mono-Ammonium Phosphate (MAP) and Diammonium Phosphate (DAP). After sulfuric acid, phosphoric acid is the inorganic acid that is consumed the most globally. According to its intended function, it is produced industrially in three grades with varying concentration levels. Food grade, agricultural grade, and industrial grade are the three grades. Due to its extensive use in the production of fertilizers, agricultural-grade phosphoric acid dominates the global market in terms of volume and value.
Phosphoric acid is the second-most developed inorganic acid in terms of volume, behind sulfuric acid. A crucial phosphoric oxygen acid needed to create phosphate salts for fertilizers is phosphoric acid (H3PO4), also known as orthophosphoric acid. Additionally, it is utilized in the production of albumin derivatives, dental cement, sugar, and textiles. It functions as an acidic, fruit-like flavor in food goods. The continual discussion of crop production and effective crop cultivation in relation to food safety also benefits the market. But issues brought on by the overuse of phosphate- and nitrogen-based synthetic products have prompted the creation of environmentally friendly alternatives like micronutrients and organic compounds. The creation of these bio-based solutions has ushered in a greater focus on their ability to compete with conventional fertilizers currently on the market. This will consequently have a detrimental effect on the market expansion.
Furthermore, the anticipated average rate of global economic growth-3.52% annually-would probably result in a major decline in poverty and its eradication in developing nations by the year 2050, while per capita incomes will also likely increase. The agricultural sector is currently dominated by the Asia Pacific, which also uses the most fertilizers. This is mostly due to the presence of fertile land, a sizable population, hospitable weather, and significant exports from developing nations. A need for fast-growing chemicals exists because of the loss of arable land caused by the increasing population. This is one of the main factors favoring synthetic compounds over those derived from plants or animals. Numerous fertilizer production companies are based in the United States, which is one of the leading nations in North America for the agrochemical industry.
Phosphoric Acid Market: COVID-19 Impact
The COVID-19 pandemic has had an impact on the global economy. Numerous actions are taken to combat the pandemic in a number of countries, such as lockdowns, the reversal of trade restrictions, and the closure of numerous companies and workplaces that could save lives. However, they have far-reaching economic repercussions. The International Monetary Fund (IMF) predicted a 3% decline in global economic activity for 2020 in April 2020, which is greater than the slowdown in 2009. The COVID-19 pandemic's influence on world health is anticipated to have two effects on the usage of fertilizers: a primary impact on labor and logistics, and a secondary impact on the demand for agricultural products. The regions expected to experience the greatest drop are East Asia, South Asia, and West Asia. In 2020, it is anticipated that fertilizer use would slightly decline in North America, Latin America, and Europe. Africa currently has a stable situation. Eastern European, Central Asian, and Oceania markets are anticipated to boost their fertilizer demand despite the COVID-19 situation.
Phosphoric Acid Market: Drivers
Increasing Demand in Fuel Cells to Drive Market Growth
Liquid phosphoric acid is used as an electrolyte in phosphoric acid fuel cells (PAFC). The first commercial fuel cell in the world is the PAFC. The performance, price, and stability of the PAFCs have all increased. Because of these characteristics, PAFCs are ideal for the first stationary power production applications. Large vehicles like trucks and municipal buses can also be powered by PAFCs. The PAFCs are created in silicon carbide (SiC) matrix with a very concentrated or pure saturated liquid phosphoric acid. About 150°C to 210°C is the temperature's operational range. The electrodes with carbon paper coatings have a platinum catalyst that is finely distributed.
Growth in Agricultural Output Driving Market Growth
The need for phosphate fertilizers has increased due to China's rapid growth in agricultural output and its economic development. This has led to an increase in the product's domestic production and consumption across the country. However, it is projected that production would rise at a moderate rate over the forecast period due to strict government regulations. The chemical, however, is expected to experience tremendous expansion in India, both in terms of production and consumption. Additionally, it is anticipated that increased agricultural activity and rising fertilizer exports will benefit productivity.
Phosphoric Acid Market: Restraints
Growing Regulatory Pressure and Environmental Concerns to Hamper Market Growth
Water systems are impacted by phosphates and phosphoric acid, which also pollute the water globally. The water system becomes unbalanced when industrial phosphoric acid is used or disposed of more frequently in water bodies. Plants in the body of water, like floating algae, receive nutrition from the phosphorates in the phosphoric acid. This causes these unwelcome plants to sprout suddenly inside the body of water. As a result, the marine species' access to oxygen in the water system is decreasing. Human existence is also harmed by the imbalance that the entire water cycle creates because we depend on bodies of water to survive.
Phosphoric Acid Market: Segment Overview
Fertiliser Segment to Dominate Market due to its Requirement of Phosphoric acid
Phosphoric acid is essentially a step in the process of making fertilizers. Phosphoric acid is used to make fertilizers like Monoammonium Phosphate (MAP), Diammonium Phosphate (DAP), and Trisodium Phosphate (TSP). Phosphoric acid is a crucial component of many fertilizers because it serves multiple purposes, including supplying nutrients to plants, adjusting pH levels, and cleaning irrigation equipment of lime precipitation. For plants, it provides a rich source of phosphorus. During the forecast period, the worldwide fertilizer industry is anticipated to expand at a CAGR of 5%. Demand for fertilizers is rising as a result of the growing global population, which is now growing at a pace of about 1.05% each year (1.08% in 2019, 1.10% in 2018, and 1.12% in 2017). This population growth is necessary to fulfil the growing food demands for the world's growing population. Over the course of the forecast, the phosphoric acid market will likely be dominated by the fertilizer sector. The application of phosphoric acid from the fertilizer sector is projected to predominate during the projection period as a result of the aforementioned factors.
Wet Process Category Dominated Market Due to its Properties
The market is divided into the wet process, thermal process, and other categories, such as dry kiln process, furnace process, etc., based on the kind of process used. The manufacturing of fertilizer uses impure phosphoric acid, which is produced by the wet process and has a concentration of around 56%. As an alternative, pure phosphoric acid can be obtained by further evaporating it to about 70%, which is then used right away as a liquid fertilizer. The product created during the thermal process has about 85% concentration and is very corrosive in nature.
Phosphoric Acid Market: Regional Landscape
North America to Dominate Market due to Growing Preference for Online Grocery Shopping
The production of phosphoric acid is predicted to be dominated by the Asia-Pacific area. This comes as a result of China being both the greatest producer and consumer of fertilizer. The demand for phosphoric acid has been steadily rising in nations like China, India, and South-East Asian countries. With rising demand from end-users such as fertilizers, food & drinks, chemicals, medicine, etc., Asia-Pacific is also anticipated to be the market with the quickest growth throughout the projection period. In the Asia-Pacific region, the demand for phosphoric acid to be used in the production of fertilizers like Monoammonium Phosphate (MAP), Diammonium Phosphate (DAP), and Trisodium Phosphate (TSP), which are used to grow crops, is anticipated to increase at a CAGR of more than 6% during the forecast period. In the food and beverage business, phosphoric acid is also employed to acidify jams and various colas to give them a tart or tangy flavor. Due to the region's higher consumer spending power, the food and beverage industry in Asia is predicted to expand at a strong CAGR of more than 7% during the projection period. This will guarantee the segment's demand for phosphoric acid. Thus, it is anticipated that the phosphoric acid market in the Asia-Pacific region will increase due to rising demand from the aforementioned end-user industries.
Global Phosphoric Acid Market: Competitive Landscape
Paradeep Phosphates Ltd. raised around INR 1,255 crore in the capital in October 2021 to pay for the projected development of its Goa operation. The company's capacity to produce fertilizers including Di-ammonium Phosphate (DAP) and Nitrogen, Phosphorous, Potassium (NPK), and Phosphoric Acid would rise to a combined 2.22 million tonnes annually. The company is planning to establish a new phosphoric acid production plant, which will increase yearly production by 120 kilotons, as well as a new evaporator, which would increase the annual production of strong phosphoric acid by 116 kilotons. Moreover, Desmet Ballestra and Buss ChemTech AG have a contract in place that will take effect in May 2021. Phosphoric acid is produced by Buss ChemTech AG for a range of end uses. As a result, the acquisition will improve Desmet Ballestra Group's business and product line.
Few of the players in the Phosphoric Acid Market include ICL Group Ltd. (Israel), OCP Group S.A. (Morocco), The Mosaic Company (US), Nutrien Ltd. (Canada), Eurochem Group AG (Switzerland), Phosagro Group of Companies (Russia), and IFFCO (India) among others.
Regional Classification of the Global Phosphoric Acid Market is Described Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability
Key Elements Included In The Study: Global Phosphoric Acid Market
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