The hydrochloric acid market is expected to record a CAGR of over 5%, during the forecast period. The major factors driving the market studied are the increasing demand from the oil and gas industry, and the demand for pickling in the steel industry.
- The harmful effects of hydrochloric acid on humans and the environment are expected to hinder the growth of the market studied.
- Increasing demand for synthetic hydrochloric acid is likely to act as an opportunity for market growth, over the forecast period.
- Asia-Pacific dominated the global market, followed by North America.
Key Market Trends
Increasing Demand for Pickling in Steel Industry
- Hydrochloric acid is used in the pickling process in the steel industry. Pickling is a process used for the removal of impurities, such as inorganic contaminants, stains, rust or scale from ferrous metals, copper, precious metals, and aluminum alloys.
- From 1964, hydrochloric acid has replaced sulfuric acid in many steel pickling facilities. Owing to this, the requirement for hydrochloric acid increased from various steel production facilities.
- The major quantity of steel is produced in the Asia-Pacific region, in countries, such as China, Japan, and India.
- China is projected to remain the largest consumer of iron and steel. The country’s production of crude steel is likely to increase during the forecast period, owing to the recovery in consumption.
- In India, in the past decade, the production in the steel industry increased at a CAGR of about 6.4%. This production is estimated to reach 550-600 million metric tons/annum, by 2025.
- Owing to the aforementioned factors, the market for hydrochloric acid is expected to grow during the forecast period. A majority of this demand is likely to be witnessed in the Asia-Pacific region.
Asia-Pacific Dominated the Hydrochloric Acid Market
- Asia-Pacific dominated the hydrochloric acid market globally. With increasing demand in countries, like China and India, oil and gas industries are expanding their manufacturing activities, resulting in the increased consumption of hydrochloric acid.
- With a growing population, developments are taking place in the industries, such as food, chemical, and textile, thereby increasing the market for hydrochloric acid. Owing to the aforementioned applications in the region, the consumption of hydrochloric acid is expected to increase significantly, during the forecast period.
- India is a growing economy, and holds great potential for future market opportunities. Despite demonetization and GST reforms affecting the national production volume, their impact is slowly waning.
- Moreover, the country’s government has been taking initiatives to attract FDI in the manufacturing sector, in order to make India a manufacturing hub. The government is targeting an increase in the GDP share of the manufacturing sector, from 16% to 25%, by 2022.
- India is one of the world’s largest steel producer globally, owing to the increasing investments and government initiatives in the steel industry, the requirement for pickling is increasing, which is expected to increase the demand for hydrochloric acid in the country, during the forecast period.
The hydrochloric acid market is fragmented in nature. The major companies include Solvay, BASF SE, AGC Chemicals, Dow, and Occidental Petroleum Corporation among others.
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