Boric Acid Market Trends

Growth Drivers

• Adoption of sustainable energy systems & EVs: The rising adoption of renewable sources such as solar panels and photovoltaic cells coupled with the advancements in energy storage systems particularly in electric vehicles (EVs) is augmenting the sales of boric acid. The global energy policies shift towards the adoption of sustainable energy systems is playing a vital role in promoting the use of boric acid in the production of energy-efficient technologies.
  For instance, the International Energy Agency (IEA) revealed that around 1 in 5 cars sold were EVs, in 2023. The rise in EV sales directly boosts the consumption of boric acid in battery production. The same source also estimated that the EV battery demand increased by over 750 GWh in 2023. The U.S. and Europe are mainly contributing to this growth by accounting for over 40.0% YoY, followed by China at 35.0%.
  Furthermore, a study by Solar Power Europe estimates that around 17.2 GWh of new battery energy storage systems were installed in Europe, a rise of 92% compared to the previous year. The residential sector accounted for a major 63% of capacity followed by large-scale battery systems for 21% and commercial and industrial systems for around 9%.
• Enhancing electronic glass displays: Boric acid is finding high applications in electronic devices as a thermal protection layer. It enhances the heat resistance quality of the glass used in flat panel displays, leading to high-quality product production. The rise in the demand for high-tech electronics and flat-screen displays is set to fuel the consumption of boric acid.

Challenges

• Regulatory challenges: The use of boric acid is generally regarded as safe in various applications including ceramics, tiles, and agriculture. Still, some regulatory pressure in their use in cosmetic and pharma products can limit their adoption rates in these particular industries. Also, the regulations vary from region to region leading to strict bans or limited use of boric acid, hindering the revenue growth of key manufacturers.
• Competition from alternatives: The availability of alternative chemicals often hampers the sales of boric acid to some extent. In applications such as pesticides or flame retardants, boric acid faces strong competition from alternative chemicals such as antimony oxide and dichlorophenoxyacetic acid. Thus, competition from substitutes is expected to lower the use of boric acid in the coming years.
• Environmental effects: Even if boric acid is less harmful than many other chemicals, its production and disposal can have environmental impacts such as the release of toxic by-products or pollution from mining operations. This drives attention to adopt sustainable production methods, pressuring high capital investments.