The global market for electronic grade phosphoric acid, which is used in cleaning and etching components, is expected to double in the next decade, according to Persistence Market Research.
The acid is made from crushed phosphate rocks, which are mined in several U.S. states and several other countries. In some regions, however, environmental concerns and an irregular water supply could restrain the market, Persistence said in a report on Thursday.
Rising demand from end-user industries such as consumer electronics will help drive the market from $827 million in early 2019 to $1.76 billion by the end of 2028. Phosphoric acid that is less than 80% pure is used in the production of LCD panels for smartphones, TVs, computers and laptops, while higher purity acid is used in manufacturing large-scale integrated circuits.
LCD production is on a “tremendous growth track,” the research firm said.
East Asia will produce 35% of the revenue share in coming years. The annual growth rate of 7.8% will be exceeded by East Asia, South and North America.
Major players in the market include Merck, Cabot Microelectronics, Taiwan Maxwave, Solvay SA, Arkema SA, OCI Company, Israel Chemicals, Asian Union Electronic Chemical, Avantor and SEMIAC Electronic Chemicals.
U.S. phosphate reserves make up only 2% of the world’s reserves, but the U.S. is the third-largest producer of phosphate globally. There are 10 active phosphate mines in the US, mainly in Florida, Idaho, North Carolina and Utah.