February 21, 2024

Ultra Pure Sulfuric Acid Market Driven By Increasing Demand For Battery Manufacturing

Ultra pure sulfuric acid is a strong acid that is highly corrosive and is essential for industrial applications. Used for battery manufacturing, it helps in improving the battery lifespan and ensuring better conductivity. With rapid penetration of electric vehicles, demand for lithium-ion batteries is surging significantly. As ultra pure sulfuric acid acts as an electrolyte in lithium-ion batteries, its consumption is directly associated with battery production volumes. Growing electric vehicle sales along with establishment of battery gigafactories in different parts of the world is anticipated to propel the demand for ultra pure sulfuric acid over the coming years.

The global Ultra Pure Sulfuric Acid Market is estimated to be valued at Us$ 16.65 Bn in 2024 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 key trends:

 

One of the major trends in the ultra pure sulfuric acid market is increasing investments in battery manufacturing facilities. Various automakers and battery manufacturers have announced plans to set up battery gigafactories across key regions to cater to the growing demand for lithium-ion batteries from electric vehicles. For instance, in July 2022, Contemporary Amperex Technology Co. Limited (CATL) announced plans to invest $5 billion to set up a lithium-ion battery gigafactory in Indonesia. Similarly, in May 2022, Tesla revealed plans to set up its largest battery production facility in Texas. Rising establishment of such battery manufacturing facilities will augment the consumption of ultra pure sulfuric acid as a critical raw material over the coming years.

 

 

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the ultra pure sulfuric acid market is low as high initial capital investments are required to set up an ultra pure sulfuric acid production unit. Established players already have supply chain and distribution networks in place.

Bargaining power of buyers: The bargaining power of buyers in the ultra pure sulfuric acid market is moderate as the market is dominated by a few large buyers from the electronics industry. However, the availability of substitutes provides buyers with some bargaining power.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as well-established chemical companies supply crucial raw materials like sulfur, oxygen and water. However, switching costs are relatively low.

Threat of new substitutes: The threat of new substitutes is moderate as alternative purification technologies can potentially replace ultra pure sulfuric acid in Select applications. However, ultra pure sulfuric acid remains the most widely used option.

Competitive rivalry: The competitive rivalry in the ultra pure sulfuric acid market is high among the prominent global players owing to their large production capacities and integrated supply chains.

Key Takeaways

The Global Ultra Pure Sulfuric Acid Market Demand is expected to witness high growth. The market is projected to reach a valuation of US$ 16.65 Bn by 2024 from US$ 12.5 Bn in 2019, expanding at a CAGR of 1.7% during the forecast period.

Regional analysis: Asia Pacific dominates the ultra pure sulfuric acid market and is expected to continue its lead during the forecast period. This can be attributed to large scale manufacturing units of semi-conductor devices in countries like China, South Korea, Taiwan and Japan.

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.

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