|
Forecast
Period
|
2025-2029
|
|
Market
Size (2023)
|
USD
2.60 Billion
|
|
CAGR
(2024-2029)
|
3.07%
|
|
Fastest
Growing Segment
|
Fertilizer
|
|
Largest
Market
|
West
India
|
Market Overview
India Phosphoric Acid
Market has valued at USD 2.60 Billion in 2023 and is anticipated to project
robust growth in the forecast period with a CAGR of 3.07% through 2029. Phosphoric
acid is classified as a weak acid with the chemical formula H3PO4, commonly
known as orthophosphoric acid or phosphoric(V) acid. In its purest state, this
chemical appears as a colorless solid. It is a non-toxic acid that remains
solid at room temperature and pressure. Primarily utilized in the production of
fertilizers, phosphoric acid also finds application in cleaning products, food
additives, and water treatment. It serves as a versatile compound, serving
purposes such as plant feeding, pH adjustment, and cleaning irrigation
equipment from lime precipitation. As a key component in numerous fertilizers,
phosphoric acid is predominantly employed in the production of phosphate
compounds. Two widely adopted methods for its production are the wet process
and the thermal process. While wet process phosphoric acid is commonly used in
fertilizer manufacturing, the thermal process yields a purer form suitable for
high-grade chemicals, pharmaceuticals, detergents, food, beverages, and other
non-fertilizer applications. Noteworthy applications of phosphoric acid include
rust removal, personal care products, its incorporation in the food and
beverage industry, agricultural practices, pharmaceutical applications, and
various other uses.
Key Market
Drivers
Growing
Demand of Phosphate Fertilizers
With the global population
soaring and agricultural productivity becoming a paramount concern, the demand
for effective and efficient fertilizers is on the rise. Among these, phosphate
fertilizers play a pivotal role in enhancing crop yields and ensuring food
security. This surge in demand for phosphate fertilizers has significantly
impacted the phosphoric acid market in India, propelling its growth and shaping
its future trajectory. Ensuring food security for this burgeoning population
necessitates increased agricultural output. Phosphate fertilizers, with their
ability to promote healthy root development, aid in energy transfer, and
stimulate overall plant growth, are invaluable tools in achieving higher yields
and bridging the gap between food demand and supply. As the Indian agricultural
landscape evolves, there is a growing emphasis on crop diversification and sustainable
farming practices. Crop rotation and diversified cultivation require tailored
nutrient management strategies. Phosphate fertilizers, as a source of essential
phosphorus, are central to maintaining soil fertility and supporting the
nutrient requirements of a wide range of crops. This diversification trend is
expected to drive the demand for phosphate fertilizers and subsequently impact
the phosphoric acid market positively. India's position as a significant player
in the global agricultural market further amplifies the impact of phosphate
fertilizer demand on the phosphoric acid market. As both a consumer and
producer of phosphate fertilizers, India's demand can influence global market
dynamics. The country's increasing requirement for phosphoric acid, a key
ingredient in the production of phosphate fertilizers, has a ripple effect on
the international trade of phosphoric acid and related products. As
agricultural practices continue to evolve with technological advancements and
sustainable initiatives, the phosphoric acid market is set to play an
increasingly crucial role in India's journey towards agricultural
self-sufficiency and prosperity.
Growing
Demand of Water Treatment
With the rise of
industrialization and urbanization, water bodies in India are facing
unprecedented pollution levels. Agricultural runoff, industrial effluents, and
improper waste disposal have resulted in the contamination of rivers, lakes,
and groundwater sources. Phosphoric acid, known for its efficacy in removing
heavy metals and other pollutants from water, plays a crucial role in water
treatment systems. Its ability to bind with contaminants and facilitate their
removal through precipitation or filtration makes it a valuable asset in
restoring water quality. The need to provide safe and potable water to growing
urban populations necessitates robust treatment processes. Phosphoric acid is
utilized in various treatment methods, including coagulation and flocculation,
to facilitate the removal of suspended particles and impurities from water. Its
role in enhancing the efficiency of these processes is driving its demand in
municipal water treatment plants across the country. Industries, ranging from
power generation and mining to chemical manufacturing, heavily rely on water
for their operations. However, the discharge of industrial wastewater often
contains harmful contaminants that can have detrimental effects on the
environment. Phosphoric acid-based treatments aid in reducing the levels of
pollutants in industrial effluents, enabling companies to meet stringent
environmental regulations. Its use in neutralizing acidic effluents and
controlling pH levels further highlights its significance in industrial water
treatment. As freshwater sources become scarcer, desalination is gaining
prominence as an alternative source of potable water. However, the desalination
process requires effective treatment to ensure the removal of salts and other
impurities from seawater. Phosphoric acid helps control scaling and fouling in
desalination systems, thereby enhancing their efficiency and longevity. The
water treatment industry is witnessing a surge in technological advancements
aimed at improving treatment processes and efficiency. These innovations also
impact the demand for phosphoric acid. New formulations and methods utilizing
phosphoric acid are continuously being developed to address evolving water
treatment challenges. This innovation-driven demand is likely to further shape
the phosphoric acid market in India.
Growing
Demand of Phosphoric Acid from Pharmaceutical Industry
Phosphoric acid is an
inorganic acid widely utilized across various industries due to its colorless
and odorless properties. In the pharmaceutical sector, it plays multiple
crucial roles, contributing significantly to the development of essential
medicines and treatments. One of its primary applications is as a pH adjuster
in drug formulations. Precise pH levels are essential for optimal stability, solubility,
and efficacy of many pharmaceutical compounds. Therefore, phosphoric acid's
ability to fine-tune pH is invaluable in a variety of pharmaceutical
formulations, including oral medications and injectables. The buffering
capacity of phosphoric acid is vital for maintaining drug stability and
bioavailability. It helps prevent rapid changes in pH that could potentially
degrade active pharmaceutical ingredients (APIs). This is particularly crucial
for oral medications, which need to survive the acidic environment of the
stomach before being absorbed in the intestines. Many APIs exhibit poor
solubility in water, which can hinder their absorption and effectiveness.
Phosphoric acid's solubilizing properties assist in enhancing the solubility of
these compounds, facilitating their incorporation into formulations, and
improving therapeutic outcomes. Furthermore, phosphoric acid's ability to form
stable complexes with metal ions finds applications in drug development.
Chelation and complexation processes involving phosphoric acid can enhance the
stability, safety, and bioavailability of pharmaceutical compounds, enabling
targeted and controlled drug delivery. In pharmaceutical formulations,
phosphoric acid derivatives, such as sodium phosphate salts, are widely used as
excipients. These salts contribute to the stabilization of emulsions, act as
electrolytes, and assist in controlling osmotic pressure in intravenous
solutions. Additionally, phosphoric acid plays a role in the production of
nutraceuticals and dietary supplements. It promotes bone health and aids in calcium
absorption. The increasing prevalence of chronic diseases and the rising need
for affordable healthcare solutions further stimulate the demand for innovative
pharmaceutical formulations, thus driving the demand for phosphoric acid.
Download Free Sample Report
Key Market Challenges
Growth
in Environmental Concerns
One of the key
environmental challenges posed by the phosphoric acid industry is the potential
for water pollution and contamination. Phosphoric acid production involves the
extraction of phosphate rock, generating significant amounts of waste called
phosphogypsum. This waste may contain harmful pollutants, including heavy
metals, radionuclides, and fluoride compounds. Improper management of these
pollutants can result in their entry into water bodies, impacting aquatic
ecosystems and potentially endangering human health through contaminated water
supplies. Moreover, the manufacturing process of phosphoric acid is
energy-intensive and often relies on fossil fuel combustion, leading to the
emission of greenhouse gases such as carbon dioxide, thereby contributing to
global climate change. Additionally, the processing of phosphate rock can
release sulfur dioxide and particulate matter into the air, causing air
pollution and respiratory health issues for nearby communities. As India
strives to achieve its climate goals and reduce air pollution, addressing the
emissions from the phosphoric acid industry becomes a significant challenge.
The energy and resource-intensive nature of the phosphoric acid manufacturing
process, primarily relying on non-renewable sources, further exacerbates carbon
emissions and strains already stressed energy systems. Additionally, concerns
arise regarding the extraction of phosphate rock, a finite resource, raising
questions about resource depletion and long-term industry sustainability. While
the primary application of phosphoric acid is in fertilizers, which play a
crucial role in enhancing agricultural productivity, improper usage and
management of these fertilizers can lead to soil degradation and nutrient
imbalances. Overuse or inefficient application of phosphorus-rich fertilizers
can result in phosphorus runoff, contaminating water bodies and causing
eutrophication. This phenomenon can harm aquatic ecosystems by promoting excessive
algae growth, leading to oxygen depletion and die-offs of aquatic life.
Disruption
in Supply of Phosphate
Phosphate reserves are
concentrated in a limited number of countries, and geopolitical tensions in
these regions can result in supply uncertainties. Political instability, trade
restrictions, and export bans can affect the availability of phosphate resources
for importing countries such as India. Furthermore, the mining and processing
of phosphate rock can have significant environmental consequences, including
habitat destruction, water pollution, and carbon emissions. Stricter
environmental regulations in phosphate-producing countries may impact
production levels and exports. The depletion of high-quality phosphate reserves
is a major concern as the remaining reserves often have lower phosphate content
and necessitate more energy-intensive processing methods. This leads to higher
production costs and potential supply constraints. The global demand for
phosphate-based fertilizers is increasing due to the growing global population
and agricultural needs. This heightened demand, along with supply disruptions,
can strain the availability of phosphoric acid and related products. Moreover,
the global supply chain for phosphate involves intricate transportation and
logistics networks. Disruptions in shipping, port closures, and other
transportation-related challenges can affect the timely delivery of phosphate
resources to India.
Key Market Trends
Growth
in Technological Advancements
Technological advancements
have brought about a revolution in quality control and testing within the
phosphoric acid industry. The utilization of automation, data analytics, and
sensor technologies has enabled the monitoring and assurance of product
quality, resulting in improved efficiency and reduced variability. Real-time
monitoring allows manufacturers to quickly identify deviations from desired
parameters and make timely adjustments, thereby enhancing overall product
quality. The integration of digital technologies is reshaping the entire value
chain of the phosphoric acid market. Internet of Things (IoT) devices, sensors,
and data analytics are being deployed to optimize production processes, monitor
equipment health, and track supply chain operations. AI-driven predictive
maintenance ensures minimal downtime and increased productivity. Furthermore,
data-driven insights facilitate informed decision-making, aiding in identifying
market trends and adapting to changing consumer preferences. Advancements in
technology enable the customization of phosphoric acid products to meet
specific application needs. Companies are leveraging advanced chemical
engineering techniques to develop phosphoric acid with varying concentrations,
purities, and characteristics tailored for different industries. This
customization enhances product efficacy and expands application possibilities
in agriculture, food processing, and industrial sectors.
Segmental Insights
Grade Insights
In 2022, the Phosphoric Acid market was dominated by
the Fertilizer and is predicted to continue expanding over the coming years. India's economy heavily relies on agriculture,
with a significant portion of the population engaged in farming and related
activities. Agriculture plays a vital role in the country's GDP and provides
livelihoods for millions of people. Phosphate fertilizers, derived from
phosphoric acid, are crucial for replenishing soil nutrients and enhancing crop
yields. Phosphoric acid serves as a primary component in the production of
phosphate fertilizers such as diammonium phosphate (DAP) and single
superphosphate (SSP). These fertilizers supply essential nutrients like
phosphorus to the soil, which is necessary for proper plant growth, root
development, and overall improvement in crop yield.
Application Insights
In 2022, the Phosphoric Acid market was dominated by water
treatment segment and is predicted to continue expanding over the coming years. Phosphoric acid is renowned for its exceptional
corrosion inhibition properties. In the realm of water treatment, it finds
widespread use in controlling corrosion in pipelines, tanks, and other
equipment exposed to water. As India's water infrastructure undergoes expansion
and modernization, the importance of effective corrosion control cannot be
overstated. The capacity of phosphoric acid to mitigate corrosion significantly
contributes to the longevity of water treatment infrastructure, leading to
reduced maintenance costs and ensuring the safety of the water supply.
Moreover, phosphoric acid plays a pivotal role in water treatment by aiding in
the removal of impurities such as metals and other contaminants. It forms
complexes with metal ions, facilitating their elimination through precipitation
or filtration. This aspect holds particular significance in industries where
effluents must comply with stringent discharge standards to prevent environmental
pollution.
Download Free Sample Report
Regional Insights
The West
Indian region has established itself as the leader in the India Phosphoric Acid
Market. Phosphoric acid is primarily derived from phosphate
rock, a crucial resource in its production. If the West Indian regions possess
substantial phosphate rock reserves or access to phosphate mines, it could
facilitate local phosphoric acid production, potentially leading to market
dominance. The presence of a well-established infrastructure and a supportive
industry ecosystem can significantly contribute to the dominance of companies
in a particular region. This ecosystem encompasses factors such as research and
development facilities, a skilled workforce, transportation networks, and manufacturing
facilities.
Recent
Developments
- In October 2021, Paradeep Phosphates Ltd. successfully
raised approximately INR 1,255 crore to finance the planned expansion of its
facility in Goa. This capital infusion will enable the company to increase its
production capacity to a combined 2.22 million tons per annum for fertilizers
such as Di-ammonium Phosphate (DAP), Nitrogen, Phosphorous, Potassium (NPK),
and Phosphoric acid. Specifically, the company aims to establish a new
Phosphoric Acid production plant, enhancing production by 120 kilotons per annum.
Additionally, plans are underway to install a new evaporator to raise the
annual production of strong Phosphoric Acid by 116 kilotons.
Key Market
Players
- Budenheim India Pvt. Ltd.
- Grasim Industries Limited
- Gujarat Alkalies and
Chemicals Ltd.
- Indo Maroc Phosphore S.A
(IMACID)
- Jordan India Fertilizer
Company (JIFCO)
- Punjab Chemicals &
Crop Protection Limited
- United Phosphorus Limited
|
By Grade
|
By Application
|
By Region
|
|
•
Technical
•
Fertilizer
|
•
Fertilizers
•
Pharmaceutical
•
Food & Beverage
•
Detergent
•
Metal Treatment
•
Water Treatment
•
Others
|
•
North India
•
East India
•
West India
• South India
|
Report
Scope:
In this report, the India
Phosphoric Acid Market has been segmented into the following categories, in
addition to the industry trends which have also been detailed below:
- India
Phosphoric Acid Market,
By Grade:
- India
Phosphoric Acid Market,
By Application:
- Fertilizers
- Pharmaceutical
- Food & Beverage
- Detergent
- Metal Treatment
- Water Treatment
- Others
- India
Phosphoric Acid Market, By Region:
- North
India
- East
India
- West
India
- South
India
Competitive
Landscape
Company
Profiles: Detailed analysis of the major companies present in
the India Phosphoric Acid Market.
Available
Customizations:
India Phosphoric Acid
Market report with the given market data, Tech Sci Research offers
customizations according to a company's specific needs. The following
customization options are available for the report:
Company
Information
- Detailed
analysis and profiling of additional market players (up to five).
India Phosphoric Acid Market is an upcoming report to
be released soon. If you wish an early delivery of this report or want to
confirm the date of release, please contact us at [email protected]