Ultra pure sulfuric acid is an effective electrolytic solution that is primarily used in lead-acid batteries. These batteries have applications ranging from automotive, industrial, and military to telecommunication and household. They are the least expensive rechargeable batteries used for energy storage applications and are most commonly used as starting, lighting, and ignition batteries in conventional gasoline-powered vehicles. Growing adoption of electric vehicles across the globe is augmenting the demand for ultra pure sulfuric acid to produce batteries for such vehicles. Lithium-ion batteries and similar high-powered rechargeable batteries used in electric vehicles require sulfuric acid in their assembly.

The global Ultra Pure Sulfuric Acid Market is estimated to be valued at Us$ 16.65 Bn in 2023 and is expected to exhibit a CAGR Of 1.7% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

One of the major drivers fueling the ultra pure sulfuric acid Market growth is rising adoption of electric vehicles globally due to stringent emission norms and inclination towards zero-emission transportation. As mentioned earlier, production of lithium-ion batteries and other advanced battery technologies for electric vehicles utilizes ultra pure sulfuric acid. According to the International Energy Agency (IEA), the global electric car stock passed 10 million in 2020 and electric cars accounted for 4.6% of global car sales and 0.5% of the global car stock. IEA also projects that electric cars could account for 60% of new car sales by 2030 and 27% of the global car stock. This rising penetration of electric vehicles is augmenting the consumption of ultra pure sulfuric acid for battery manufacturing across major automotive hubs worldwide.

Segment Analysis

The ultra pure sulfuric acid market can be segmented into electronics, pharmaceutical, and semiconductor. The semiconductor segment holds the largest share and is expected to be the dominating segment during the forecast period. This is due to wide application of ultra pure sulfuric acid in the semiconductor industry in various processes like wafer cleaning, removal of organic and inorganic impurities from substrates. The electronics segment is the fastest growing segment due to increasing use of ultra pure sulfuric acid in manufacturing new generation electronic devices.

PEST Analysis

Political: There are stringent regulations regarding the handling and disposal of hazardous chemicals like sulfuric acid which impacts the market. However, government support for semiconductor industries positively influences the demand.

Economic: Growing electronics and semiconductor industries in emerging nations provide growth opportunities. Fluctuations in crude oil prices affect the production cost.

Social: Increasing consumer electronics spending and rising demand for electronic devices drive the market. However, negative environmental impact of sulfuric acid production restrains growth.

Technological: Advancements in semiconductor fabrication processes have increased the consumption of ultra pure sulfuric acid. R&D for developing cost-effective and environment-friendly production methods act as an opportunity.

Key Takeaways

The Global Ultra Pure Sulfuric Acid Market Demand is expected to witness high growth due to increasing application in semiconductor industry and rapid expansion of electronics industry. The global ultra pure sulfuric acid Market is estimated to be valued at US$ 16.65 Bn in 2023 and is expected to exhibit a CAGR of 1.7% over the forecast period 2023 to 2030.

Regional analysis

Asia Pacific accounts for largest share in ultra pure sulfuric acid market and is expected to continue its dominance during forecast period. This is due to presence of leading semiconductor producers concentrated in countries such as China, South Korea, Taiwan and Japan. China alone accounts for more than 50% share of global semiconductor production that drives high consumption of ultra pure sulfuric acid in the region.

Key players

Key players operating in the ultra pure sulfuric acid market are ACME Printing, Cenveo Corporation, R.R. Donnelley & Sons, Vistaprint (CIM PRESS PLC), Toppan Co Limited, Transcontinental Inc., and LSC Communications US LLC. These players focus on expanding production capacities and developing cost-effective and environment-friendly production techniques to cater to growing demand and strengthen their market position.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it