Phosphorus Trichloride Market size was over USD 1.63 billion in 2024 and is anticipated to reach USD 2.65 billion by the end of 2037, growing at around 3.8% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of phosphorus trichloride is estimated at USD 1.69 billion.
A major driver of the phosphorus trichloride market is the compound’s position as a key intermediate in the production of herbicides and organophosphorus pesticides. For instance, in October 2024, the U.S. Department of Agriculture reported that the quality of modern pesticides, including herbicides, has improved and estimated an increase in pesticide use over time owing to a relative fall in its prices. With a surge in the global population leading to rising requirements for food production, advancements in phosphorus-based pesticides are poised to assist the growth of the sector.
In addition to its expanding role in agrochemicals, phosphorus trichloride is positioned as a critical component in the production of flame retardants. For instance, in October 2022, research published in Progress in Organic Coatings analyzed the recent developments in the preparation of phosphorus-based flame-retardant compounds and estimated that the majority of the phosphorus-based treatments were developed for cotton in protective textiles. Additionally, the increasing need for safer and more sustainable materials has solidified the compound’s position in end use sectors such as agrochemicals, construction, automotive, electronics, etc.
An indication of the profitability of the phosphorus trichloride sector is the expanding revenue shares of key market players. For instance, in October 2024, Merck announced the FY24 third-quarter results highlighting worldwide sales worth USD 16.7 billion and a 4% growth for the third quarter of FY23. The growth underscores the sustained market expansion within the phosphorus trichloride industry and strengthens the global supply chain, with Merck being one of the major suppliers of the compound.
Growth Drivers
Challenges
Base Year |
2024 |
Forecast Year |
2025-2037 |
CAGR |
3.8% |
Base Year Market Size (2024) |
USD 1.63 billion |
Forecast Year Market Size (2037) |
USD 2.65 billion |
Regional Scope |
|
Application (Agrochemicals, Chemical Intermediates, Gasoline Additives, Plasticizers, Pharmaceuticals, Others)
Agrochemicals segment is likely to dominate phosphorus trichloride market share of over 46.03% by 2037. A key driver of the segment is the increasing application of phosphorus trichloride in the agrochemicals industry as an intermediate in the production of organophosphorus pesticides and herbicides.
The increasing demand for effective crop protection solutions drives demand for pesticides. Additionally, the rise in global food demand is positioned to drive demand for pesticide production to be used in precision farming practices. For instance, as per a September 2023 report by the U.S. Department of Agriculture indicated that the production of world crop calories increased by 47% from 2011 to 2050. The increased demand can benefit the application of phosphorus trichloride in agrochemicals, as a key intermediate in the synthesis of various organophosphorus compounds.
The chemical intermediates segment of the phosphorus trichloride market is positioned to hold a significant revenue share during the forecast period. The segment’s growth is due to the rising demand for versatile intermediates that support advancements in polymers, and high-performance materials. The applications span from producing plasticizers and solvents to manufacturing surfactants and specialty chemicals.
Additionally, the rising demand for flexible packaging is poised to drive demand for an increase in the production of plasticizers, which in turn boosts demand for phosphorus trichloride as a chemical intermediate. For instance, in December 2024, Dow completed a USD 150 million sale of flexible packaging adhesives business to Arkema. The market developments can lead to an increase in demand for raw materials and intermediates, including phosphorus trichloride-based compounds.
Gasoline additives are an emerging segment of the phosphorus trichloride market. Gasoline additives serve as a precursor in manufacturing additives that improve combustion efficiency expanding the scope of application. Additionally, advancements in additive formulations can continue to create steady opportunities for phosphorus trichloride application. Companies are investing in the fuel additives segment and the increasing production is expected to drive demand for phosphorus trichloride as an intermediate for synthesis of antioxidants that can improve gasoline performance.
For instance, in May 2024, Braskem expanded its fuel additive business portfolio to serve the premium automotive fuels phosphorus trichloride market worldwide. The expansion holds the potential to trigger demand for raw materials and intermediates to support its growth benefiting the phosphorus trichloride sector.
Our in-depth analysis of the global phosphorus trichloride market includes the following segments:
Application |
|
North America Market Forecast
North America phosphorus trichloride market is expected to account for revenue share of more than 44.1% by the end of 2037. The well-established agrochemical industry in the region drives demand for phosphorus trichloride as an intermediate in the production of herbicides and pesticides. The regional market benefits from the position of the U.S. as a major player in the import and export of phosphorus trichloride. For instance, the U.N. Comtrade Data estimated the U.S. as the third-largest importer and the fourth-largest exporter of the compound in global trade data compiled from 2017 to 2021.
The North America phosphorus trichloride market is dominated by the U.S. owing to decreasing energy prices that reduce the production expenses of manufacturers. For instance, in April 2023, the U.S. Bureau of Labor Statistics reported that energy prices decreased by 6.4% from March 2022 to March 2023, creating opportunities to scale up phosphorus trichloride production. Reduced production costs lead to lower selling prices, making the compound more affordable for downstream industries. Additionally, the U.S. has established itself as a significant player in the global supply chain of phosphorus trichloride leading to emerging opportunities for investments in the domestic market.
Furthermore, the increase in herbicide-resistant crops boosts the application of herbicides in the thriving agricultural sector in the country, creating potential opportunities to scale up phosphorus trichloride production and increase profit margins. For instance, the U.S. Department of Agriculture reported that herbicide-tolerant (HT) soybean acreage reached its highest adoption of 96% and HT cotton acreage was at 93% adoption in 2024. The trends are beneficial for an increase in the use of glyphosate-based herbicides which in turn assists growth of the phosphorus trichloride market in the U.S.
Canada is expanding its revenue share in the North America phosphorus trichloride market due to its robust agricultural sector. The domestic market is susceptible to supply chain disruptions owing to reliance on imports for raw materials such as elemental phosphorus, but government-backed plans encourage businesses to invest to increase domestic manufacturing capabilities. For instance, Canada provides incentives such as the Accelerated Investment Incentive that allows businesses to write off a large share of manufacturing and processing equipment purchases that can assist chemical companies seeking to expand to the market.
Furthermore, the growing chlorine exports from Canada hold the potential to boost phosphorus trichloride production in the country. For instance, the Observatory of Economic Complexity estimated Canada to be the largest exporter of Chlorine in 2022 with exports worth USD 128 million. The increased chlorine production can lead to a stable and reliable supply line, reducing production costs for phosphorus trichloride.
Europe Market Forecast
The Europe phosphorus trichloride market is set to register the fastest growth during the forecast period. A key driver of the market in Europe is increasing production of phosphorus trichloride and rising demand from various end-use industries. The push to develop a circular economy for lubricants in Europe can assist the sector’s growth.
For instance, in June 2024, TotalEnergies announces the acquisition of Tecoil in a bid to develop the circular economy for lubricants in Europe and accelerate the use of Re-Refined Base Oils (RRBOs) in the production of high-end lubricants. Phosphorus trichloride is used as an intermediate in the production of additives in lubricants, and businesses are expanding lubricant portfolios in Europe through acquisitions creating opportunities for phosphorus trichloride suppliers.
Germany is a dominant sector in the phosphorus trichloride market of Europe. The increasing production capabilities in Germany boost the market’s growth. Italmatch Deutschland GmbH leads the production in the country providing phosphorus-based solutions to various end-use industries ranging from agriculture to pharmaceuticals.
Furthermore, the sector can benefit from an increase in demand for lubricant additives. For instance, in September 2024, BRB Lube Oil Additives & Chemicals launched Petrolad 133LS (limited slip) globally at the lubricant expo organized in Germany indicating the expansion of the gear additive product portfolio. Numerous gear additives rely on organophosphorus compounds, creating profitable opportunities to scale up the production of phosphorus trichloride with a looming expansion of end-use industries.
France is an emerging sector in the phosphorus trichloride market. Rising demand for specialty chemicals creates opportunities for the sector’s growth in the country. The use of glyphosate-based herbicides is debated in the country but the extensive use drives demand for phosphorus trichloride in the production process. Furthermore, advancements in sustainable flame retardants are expected to increase the application of the PC13 compound as an intermediate in the production of flame-retardant additives.
The phosphorus trichloride market is poised to exhibit steady growth during the forecast period. Key market players are leveraging strategic expansions and strengthening supply chains to mitigate disruptions caused by geopolitical tensions. Furthermore, companies are investing in expanding distribution networks and building sustainable manufacturing processes amidst rising scrutiny for eco-friendly practices.
Here are some key players in the phosphorus trichloride market:
Author Credits: Rajrani Baghel
Copyright © 2024 Research Nester. All Rights Reserved
FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.
Have questions before ordering this report?