Acid Phosphates Market Overview
Acid Phosphates Market size is forecast to reach US$40 billion by 2026, after growing at a CAGR of 4% during 2021-2026 due to increasing demand as lubricant additives for drilling fluids and as curing agents for coatings. Acid phosphatase/ phosphomonoesterase is a ubiquitous lysosomal enzyme that catalyzes the hydrolysis of phosphate esters in an acidic environment and exists in several biological domains such as plants, animals, fungi, and even bacteria. Various acid phosphates such as octyl acid, amyl acid, butyl acid, methyl acid, phenyl acid, and others are also used in textile manufacturing and paint & coatings, as additives for lubricants, and other applications. Thus, increasing uses of acid phosphates are estimated to grow the market size during the forecast period.
Impact of COVID-19
During the COVID pandemic 2020, major sectors saw a steady decline in growth owing to the decrease in transportation, production, and supply activities during the lockdown. According to the US Energy Information Administration (EIA), crude oil production fell by 8% in 2020. Additionally, according to the International Organization of Motor Vehicle Manufacturers (OICA), global vehicle production was decreased by 18.03 million in 2020 as compared to 23.24 million in 2019. Thus, the decline in production hindered the consumption of lubricants which is also hampering the acid phosphates market.
The report: “Acid Phosphates Market– Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the Acid Phosphates Industry.
Octyl Acid Phosphate, Isooctyl Acid Phosphate, Amyl Acid
Phosphate, Butyl Acid Phosphate, Ethyl Acid Phosphate, Methyl Acid Phosphate,
Phenyl Acid Phosphate, 2-Ethylhexyl Acid Phosphate, Decyloctyl Acid Phosphate,
By Application: Paint & Coatings, Textile, Lubricant Additives (Industrial Lubricants, Metalworking Oils, Others), and Others.
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, Italy, France, Spain, Netherlands, Russia, Belgium, and Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia & New Zealand, Indonesia, Taiwan, Malaysia, and Rest of Asia Pacific), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), and RoW (Middle East and Africa.
- North America dominates the acid phosphates (a lysosomal enzyme) market owing to increasing oil & gas production in emerging countries such as United States, Mexico, and Canada.
- Growing consumption of amyl acid phosphates is increasing market size as amyl acid phosphate is highly soluble in water and used in textile manufacturing.
- Increasing adoption of acid phosphates in the paint & coating industry due to their wear-resistant properties is likely to aid the market growth during the projected year.
Figure: North America Acid Phosphates Market Revenue, 2021-2026 (US$ Billion)
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Acid Phosphates Market Segment Analysis – By Type
Octyl acid phosphate dominated the global acid phosphates (also known as phosphomonoesterase) market in 2020 due to increasing consumption for textile manufacturing, metalworking oils, industrial lubrication, and others application. Octyl acid works as a lubricant and curing agent in these applications. Additionally, amyl acid phosphate held a significant share in the global acid phosphates market in 2020. Amyl acid phosphate is also used as a lubricant due to its excellent solubility in water. Amyl acid phosphate has excellent transparency thus it is employed in resins and coatings, surfactant, and stabilizer. Hence, increasing demand for octyl acid phosphate is estimated to grow the market size.
Acid Phosphates Market Segment Analysis – By Application
Paint & coatings held the largest share of the acid phosphates market and growing at a CAGR of 4.2% during 2021-2026 owing to corrosion and wear resistance properties of this lysosomal enzyme. Hence, increasing development in paints & coatings is estimated to grow acid phosphates market size. In April 2020, Akzo Nobel NV completed the acquisition of paints & coating firm with Mauvilac. This acquisition completed expanding its presence in Sub-Saharan Africa. Although, growing coating demand from the automotive sector is also estimated to grow the consumption of acid phosphates as curing agents. According to the International Organization of Motor Vehicles Manufacturers (OICA), global vehicle production increased by 21.08 million in January-March 2021 as compared to 18.03 million in January-March 2020. Hence, the growth in all such activities is expected to boost the demand for acid phosphates as a curing agent in paint & coatings.
Acid Phosphates Market Segment Analysis – By Geography
North America held the largest share in the global acid phosphates market in 2020 with 32% due to growing oil & gas exploration and production activities in the region. These activities are boosting the demand for lubricant additives in the United States which, in turn, is fueling the acid phosphates/ phosphomonoesterase market size. Butyl and ethyl acid phosphates are widely used in lubricant additives. According to the Canadian Association of Petroleum Producers (CAPP), investments in oil sands operations and conventional oil & gas production are expected to rise nearly from US$19 billion (C$24 billion) in 2020 to US$21 billion (C$27 billion) in 2021. Additionally, according to U.S. Energy Information Administration (EIA), crude oil production is expected to rise on average 11.1 million b/d in 2021 and 12.0 million b/d in 2022. Furthermore, according to the Canadian Association of Petroleum Producers (CAPP), oil and gas companies will invest US$21.8 billion (C$27.3 billion) in 2021. Although, lubricants are widely used in the automotive sector which is also estimated to grow the market size. According to the International Trade Administration (ITA), the Chinese government expects the production of automobiles to reach 35 million units by 2025. Therefore, growing consumption and projects are supporting the demand for lubricant additives which, in turn, is influencing the acid phosphates market scenario in the region.
Acid Phosphates Market Drivers
Growing Consumption of Paints & Coatings in the Building & Construction Sector
Due to polymerization properties, acid phosphates (known as phosphomonoesterase) are used as curing agents in paints & coatings applications, which is estimated to grow market size during the projected period. According to the Central Bureau of Statistics in Israel, a total of 49,810 new apartments were built from October 2019 to September 2020. Additionally, according to the U.S. Census Bureau, building permits were increased by 18.8 million in 2021 from 17.6 million in 2019. Moreover, according to Central Sanctioning and Monitoring Committee (CSMC), 1,68,606 new homes were approved to construct in urban areas under Pradhan Mantri Awas Yojana in 2021. Hence, all such factors will influence the demand for curing agents for paint & coatings in the buildings & construction sector which, in turn, is expected to grow the market for acid phosphates.
Increasing Automotive Production is estimated to grow the Demand for Acid Phosphate
Acid phosphates (phosphomonoesterase is a ubiquitous lysosomal enzyme) such as octyl acid phosphate is used as lubricant additives in automotive, as they have corrosion inhibitor and wear-resistant properties. Thus, the increasing automotive industry is projected to create lucrative opportunities for the global acid phosphate market. According to the Federation of Automobile Dealers Associations (FADA), in India sales of passenger vehicles were at 2,91,001 units in November 2020, compared with 2,79,365 units in November 2019. Furthermore, according to the International Organization of Motor Vehicle Manufacturers (OICA), the production of light commercial vehicles has increased in the APAC region by 10.2 % in 2018 and 0.2 % in Europe during 2018-2019. The increasing automotive industry is expected to increase the requirement for lubricant oils, which will act as a driver for acid phosphates market growth.
Acid Phosphates Market Challenges
Increasing Awareness Regarding Health and Environment
Ocyl acid phosphate and amyl acid phosphates are released toxic fume. Octyl acid phosphate does not burn itself and is insoluble in water, which irritates workers' skin and eyes. Due to producing toxic gases, it may cause injury and death. It runoff from fire control or dilution water due to toxicity and causes pollution. Hence, such factors are limiting consumption of octyl acid phosphates as lubricant additives which, in turn, hampering the acid phosphates market growth.
Acid Phosphates Market Landscape
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the acid phosphates market. Major players in the Acid Phosphates Market are:
- Solvey S.A.
- Lubrizol Corporation
- IsleChem LLC
- Kao Corporation
- Alfa Aesar
- Tokyo Chemical Industry Co., Ltd.
- Italmatch Chemicals S.p.A
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