Sulfuric Acid Market Trends

Growth Drivers

• Increasing Demand for Sulfuric Acid in the Agriculture Sector – On account of the increasing demand for sulfuric acid from the agriculture sector is expected to expand more in the upcoming years. In 2021 the global capacity to manufacture ammonium nitrate, phosphates, and potash was 319,973 tonnes with an estimated total of 318,652 tonnes by 2022, which is projected to increase sulfuric acid market demand over the forecast period.

• Rising Implementation of Emission Regulations– From 2017 to 2025, the adoption of standards like New Source Performance Standards NAPSs is expected to increase in order to control emissions of sulfur dioxide, sulfuric acid mist, and particulate matter from H2SO4 production facilities. This will lead to an expansion of the market.

• Increasing Number of Sulphuric Acid Manufacturing Plants – India's State Chief Minister of Odisha, who is also responsible for the IFFCO fertilizer factory at its Paradip division, commissioned a sulfuric acid production facility on July 21, 2021. Estimated to start operation in 2023, the project will cost approximately INR 400 crore USD 48.36 million. A reduction in dependency on chemical imports will be achieved through this new production facility. This is the third factory of IFFCO for the production of sulphuric acid with an output of approximately 2,000 MT per day.
• Rising Production of Nutrition Rich Food Crops –. It is anticipated that there would be a significant increase in the demand for fertilizers as a result of the larger expectation of yield increases from farmers and the decreased availability of fertile land for agricultural practices as a result of expanding urbanization.  These additions enrich the soil with elements like potassium, phosphate, and nitrogen.  Fertilizers have a 50 % share of global agricultural production, all over the world. This is estimated to contribute to the market growth in the forecast period.

Challenges

• Restrictions on the use of sulfuric acid due to health and environmental concerns - The increasing concern amongst people about the harmful effects of sulfuric acid is one of the major factors predicted to slow down the sulfuric acid market growth. This release of sulfur dioxide causes sulfur trioxide to be formed in the air, which reacts with water vapor and gives rise to sulfur acid. The formation of acid rain is stimulated by sulfonic acid in the rainfall. The environment, as well as human health, are very negatively affected by acidic rain. It's likely to be very harmful to the forest and wildlife.

• Increase in the cost of sulfuric acid

• Stringent environmental regulations