SULFURIC ACID MARKET ANALYSIS

Sulfuric Acid Market Size and Trends

The sulfuric acid market is estimated to be valued at USD 26.89 Bn in 2024 and is expected to reach USD 37.01 Bn by 2031, growing at a compound annual growth rate (CAGR) of 4.7% from 2024 to 2031.

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The demand for sulfuric acid is expected to grow steadily due to its increasing applications in chemical manufacturing industries. It is primarily driven by the growing demand from the fertilizer industry as the world's population is rising. Also, recovery in manufacturing and construction sectors will further contribute to the growth of the sulfuric acid market during the forecast period. For instance, according to the U.S. Census Bureau, the current population of the U.S. is expected to increase by 0.7-0.9%, driven by a high level of immigration. With the increasing per capita income and growing population, the demand for food and cash crops is also estimated to increase. For instance, as per the FAO, food demand in the U.S. is expected to increase by 50-90% by 2050.

Industrial production boosting demand

The global sulfuric acid market is closely tied to industrial production levels around the world. Being a bulk chemical with widespread applications, sulfuric acid acts as an important intermediate in the production of numerous chemicals, fertilizers, and other materials. When industrial activities are high, the manufacturing of these downstream products increases rapidly, in turn, driving up demand from sectors such as fertilizers, chemical processing, oil refining, wastewater treatment, and metal processing among others. In recent years, the recovery in global industrial production after the recessionary phase has stimulated significant growth in consumption of sulfuric acid. Particularly, robust capital expenditures in developing economies on expanding domestic manufacturing capabilities has translated to greater sulfuric acid intake. The construction sector has also improved gradually, benefitting the fertilizer industry where sulfuric acid is a core ingredient. Notable too is the rebound in global oil prices which has made oil refining more profitable - sulfuric acid has vital refining applications. Geopolitical concerns such as trade conflicts continue to fuel on-shoring trends and import substitution in many regions, further bolstering indigenous industrial capacity.

Growing environmental awareness as well as technological progress are compelling industries towards lowering their carbon footprint and turning greener. Sulfuric acid especially finds increased applicability in meeting emission standards getting stricter by the year. Desulfurization of fuel represents one of its primary application areas presently. Sulfur presents in crude oil and needs removal to manufacture ultra-low sulfur gasoline and diesel mandated under legislation. Sulfuric acid aided hydrodesulfurization allows refiners to reduce sulfur content in transport fuels to extremely low permissible limits. With emission norms being tightened further, including recent IMO regulation capping marine fuel sulfur, the demand for desulfurization is anticipated to rise sharply in the coming years.