Phosphonate Market

Market Overview

The global phosphonate market size was valued at USD 901.84 million in 2022. It is estimated to reach USD 1,326.43 million by 2031, growing at a CAGR of 4.38% during the forecast period (2023–2031). The phenomenon of industrialization results in the generation of a substantial volume of wastewater, necessitating the implementation of effective wastewater treatment methods. In this regard, phosphonates have gained significant prominence as they are extensively employed in the wastewater treatment process. Therefore, the utilization of phosphonates has played a pivotal role in driving the expansion of the worldwide phosphonate market.

Phosphonates are a structurally related family of chelating compounds and scale inhibitors that share a phosphonic acid group. Phosphonates are organometallic derivatives of phosphonic acid that contain CPO(OH)2 or CPO(OR)2, where R is an alkyl or aryl group. Phosphonic acids, commonly managed in the form of salts, exhibit limited solubility in organic solvents while demonstrating solubility in water and commonly used alcohols.

Phosphonates are effective agents for chelating divalent and trivalent metal ions. In addition, they are stable under harsh chemical conditions and inhibit crystal growth and scale formation. Several commercially significant compounds, such as phosphonates, glyphosate, and ethephon, a widely utilized plant growth regulator, are derived from phosphonic acids. They are utilized in a variety of household and industrial cleaning products, personal care products, and water treatment additives.

Market Dynamics

Market Drivers

Wide Applications of Phosphonates in the Water Treatment Industry 

HEDP phosphonate is commonly utilized as a chemical additive in various industrial water treatment processes, as it is a type of scale inhibitor that prevents the formation of scale and dirt. Moreover, organic phosphonate scale inhibitors are like HEDP and DTPMP, and phosphonic acid products like ATMP are also used in the water treatment industry, as phosphonic acid products have a low scale and a corrosion-inhibiting effect on the steel.

In recent years, the demand for water treatment has increased due to the industrial sector's growing demand for water and the government's evolving regulations for preventing water pollution and implementing a control action plan. According to a report issued by the Planning Commission of India, the average annual per capita water availability in 2001 and 2011 was estimated to be 1816 cubic meters and 1545 cubic meters, respectively, and is expected to fall to 1486 cubic meters and 1367 cubic meters in 2021 and 2031, respectively. Thus, with rising water scarcity and fewer resources, the demand for water treatment is surging globally, providing a massive phosphonate market in the forecast period.

Rapid Growth of the Cleaners and Detergents Industry

Phosphonates are a group of chemicals used in laundry detergent products as functional agents, providing beneficial effects such as complexing, anti-redeposition, etc. A surge in per capita spending on household cleaning products, such as laundry detergents, can be attributed to the growing significance of healthier lifestyles and rising concerns about health and hygienic living, free of germs, bacteria, dust, and dirt.

In addition, factors such as an increase in household expenditures and growth in the real estate sector due to an increase in residential units have increased the global demand for laundry detergent products, thereby bolstering the market. Asia-Pacific is the largest market for the laundry detergent industry. The laundry detergent market in the region and its consumption are expected to reach USD 75.9 billion by 2026. Therefore, owing to the abovementioned factors, the demand for phosphonates from detergents and industrial cleansers will likely increase during the forecast period.

Market Restraint

Environmental Impact Due to Non-Degradable Nature

Phosphonate chemicals are adsorbed onto solid particles and subsequently build in sediment when wastewater treatment plants release them into the environment. Phosphonate compounds contain a direct C–P bond instead of the more usual C–O–P ester linkage, which generally occurs in the environment. Therefore, the wastewater released by plants can have a negative effect on the environment.

Phosphonates have a very powerful interaction with surfaces, substantially removing both technical and natural systems. Due to this strong adsorption capacity of the phosphonates, metals cannot be remobilized. Phosphonates can be degradable through the natural elimination processes, but those processes are not industry-viable or available, which is expected to restrain the market.

Market Opportunities

Increasing Demand from the Pharmaceutical Industry

The increasing severity of diseases has contributed to expanding the pharmaceutical industry, one of the principal phosphonate consumers. Phosphonate is commonly used to treat anticancer targets, disorders of bone resorption, and other therapeutic applications. In addition, phosphonate nucleotides, such as adefovir, tenofovir, and cidofovir, are indispensable antiviral drugs increasingly used to treat hepatitis B and HIV. Therefore, it is anticipated that these factors will propel the sales of phosphonates in the rapidly expanding pharmaceutical industry and create lucrative opportunities for market participants.

Regional Analysis

Based on region, the global phosphonate market is bifurcated into North America, Europe, Asia-Pacific, South America, and the Middle East and Africa.

North America is the most significant global phosphonate market shareholder and is anticipated to exhibit a CAGR of 4.56% during the forecast period. North America is expected to show significant growth due to the existence of the world's largest economy, the U.S. Multiple heavy-scale, medium-scale, and small-scale industries are located in the United States, a major industrialized nation. The nation is recognized for its thriving commercial activities. In addition, the United States is one of the largest water consumers in the world. About 80% of the water and wastewater treatment industry in the United States is publicly owned and managed. In contrast to urban areas, rural areas have considerably less access to water treatment infrastructure and facilities. Since 2003, the United States Department of Agriculture (USDA) has allocated approximately 10 billion dollars to construct and maintain 7,500 rural water and wastewater systems. It is planning to increase its investment over the coming years further. This growing investment into water treatment in the country will likely boost demand for the market.

Europe is estimated to exhibit a CAGR of 3.98% over the forecast period. Germany, France, Italy, the United Kingdom, and Spain are the leading revenue contributors to the region. Some upcoming construction projects in the region may increase demand for concrete retarders such as phosphonate. For instance, The Link Tower project entails the construction of two mixed-use skyscrapers in Paris La Défense, in the Michelet neighborhood of the Île-de-France region of France. Construction began in Q3 2021 and is projected to be completed in Q2 2025. The project aims to resolve the region's expanding need for office space and recreational activities. The project is projected to cost around USD 1,120 million. Such projects are likely to drive the phosphonate market in the region.

Furthermore, the French consider laundry a significant part of their daily lives. Between January 2021 and January 2022, French supermarkets sold more than EUR 5.7 billion worth of cleaning products. Therefore, increased demand for phosphonate in building materials and detergent applications is predicted to drive phosphonate consumption in the region over the forecast period.

Asia-Pacific's consumption of phosphonate rises in line with rising water demand in nations like China, India, and Japan. China's phosphonate market is expected to expand because of rising product demand in industries such as detergents and cleaning agents, water treatment, oil field chemicals, cosmetics, and construction materials. India is amongst the world's leading manufacturers and suppliers of detergent. Moreover, the increasing penetration of washing machines in India is the primary factor driving the demand for fabric detergents in India. The textile industry in India is experiencing significant growth as people become increasingly fashion-conscious.

In addition, phosphonates are stabilizers for textile dyeing and peroxide bleaching in the textile industry. For instance, in May of 2022, the Indian Brands Equity Foundation published a report. In 2021, India's exports of home textiles grew at a healthy CAGR of 9%, according to this report. This has consequently increased the demand for the phosphonate market in India.

Saudi Arabia contributed a significant share of the Middle East and Africa market. Saudi Arabia is one of the most important markets in the Middle East for cosmetics and fragrances. Consumers in the country tend to spend a substantial amount on their appearance, contributing to the expansion of the cosmetics and fragrances market. Several factors contributed to the growth of the studied market, including the increasing number of self-conscious users, the expansion of organized retail channels, the aging of the population, and the demand for male grooming products.

Additionally, the country's cosmetics industry expansion is projected to fuel the phosphonate market. The country employs water treatment technologies due to the scarcity of natural water resources. For instance, Marafiq's industrial wastewater system treats wastewater disposal from the Jubail and Yanbu Industrial Cities as a part of its biological water treatment process. The expansion of water treatment facilities in the country is projected to benefit the market for phosphonate.

Segmental Analysis

The global phosphonate market is segmented by type and end-user industry.

Based on type, the global phosphonate market is divided into ATMP, HEDP, DTPMP, and other types. 

The HEDP segment is the largest revenue contributor to the market and is expected to exhibit a CAGR of 4.42% throughout the forecast period. The phosphonate HEDP (etidronic acid) is an effective water hardness stabilizer and chelating agent used in residential and industrial settings. These qualities enable the chemical to achieve outstanding results in the manufacture of detergent and the treatment of cooling water. HEDP is a clear, colorless liquid with a distinct odor. The HEDP is also available as dust-free solid granules upon request, in addition to the liquid version. In addition, HEDP (short for 1-Hydroxyethylidene-1,1-diphosphonic acid) has long been utilized as a detergent component in industrial production. The key reason is that HEDP has great hydrolytic and thermal stability and can be used as a chelating agent, scale inhibitor, and dispersion. As a result, phosphonate is a necessary component of many detergents.

Additionally, the chemical may erase stains and has antibacterial and bleaching characteristics, stabilizing water hardness and facilitating dirt particle dispersion. Therefore, HEDP can fulfill various detergent tasks, displacing the extremely problematic EDTA, a chemical with a bad reputation due to its negative environmental impact.

ATMP is an organophosphonate with good metal ion sequestration at stoichiometric concentrations and inhibits metal salt precipitation at sub-stoichiometric concentrations. ATMP's solid state is crystal powder, which is soluble in water and quickly deliquescence, making it ideal for use in winter and freezing areas. Its great purity makes it useful as a metal surface treatment agent and in the weaving and dyeing industries. In addition, ATMP is a scale inhibitor and a complexing agent in various chemical formulations for industrial water treatment, oilfield, industrial cleansers, paper and pulp, textile sector, metal treatment, electroplating, inks, and construction chemicals. The growing development in water treatment applications and the increasing utilization of organo-phosphate materials leads to an increase in the demand for aminotris (methylene phosphonic acid) (ATMP), which increases the market's growth.

Based on the end-user industry, the global phosphonate market is segmented into detergent and cleaning agents, water treatment, oil field chemicals, cosmetics, building materials, and other end-user industries. 

The water treatment segment owns the highest market share and is estimated to exhibit a CAGR of 4.25% during the forecast period. In several industrial water treatment processes, phosphonates are used as chemical additives to act as threshold antiscalants, corrosion inhibitors, chelants, sludge conditioners, deflocculants, dispersants, and crystal growth modifiers. They are mostly utilized to keep boiler and cooling tower waters free of scale and corrosion. According to the Natural Resources Forum, the total wastewater volume in Asia accounted for about 170 billion cubic meters in 2020, and it is expected to reach about 200 billion cubic meters by 2030, which is expected to account for about 44% of the total global wastewater.

Furthermore, it is projected that North America will generate a total of 67 billion cubic meters of wastewater, while Europe is expected to produce approximately 68 million cubic meters of wastewater by the conclusion of the year 2030. These increasing volumes of wastewater from different sectors, such as nuclear, will likely enhance the investment for treating the contaminated water, thereby enhancing the demand for the phosphonate market in the coming years.

Phosphonate is used as a stabilizing agent in hair colors and bleaches in the cosmetics sector. The component also impacts the cleansing properties of soap, shampoo, and body wash. It increases the dispersion of white pigments in sunscreens. Cosmetic and personal care is a growing market owing to progress in online beauty spending, expanding usage of social networks, increasing consumer interest in new and premium products, accelerating urbanization, and growth of the upper-middle-class population. The personal care industry is also expected to observe a surge in the number of young and independent brands, as e-commerce sales are surging and providing stiff competition to some of the major companies in the personal care industry, including the Procter & Gamble Company, Revlon Inc. Oriflame Holding AG, Avon Products Inc., the Estee Lauder Companies Inc., and Unilever. This will increase the demand for phosphonate in cosmetics, propelling the market growth.

Recent Developments

• July 2023- Jordan Phosphate Mines Company (JPMC) announced its intentions to establish a phosphoric acid plant in the Al Shidiyah neighborhood of Maan in collaboration with a Turkish company, JPMC Chairman of the Board of Directors for Muhammad Thneibat disclosed at a panel discussion.
• August 2023- LiqTech International, Inc., a manufacturer and marketer of highly specialized filtration products and systems, announced the receipt and delivery of a pilot unit order to supply LiqTech's advanced filtration system for phosphoric acid purification in China to Silicon Filter, the company's recently announced distribution partner in the region.