The global red phosphorus market size was valued at USD 185.18 billion in 2021. It is projected to reach USD 221.7 billion by 2030, growing at a CAGR of 2.02% during the forecast period (2022-2030).
The most common type of phosphorus is red phosphorus, an allotrope of the element. It was first found in the 1800s and had many uses. Semiconductors, pyrotechnics, fertilizers, safety matches, insecticides, smoke bombs, incendiary shells in organic synthesis reactions, and certain flame retardants use red phosphorus. Electroluminescent coatings also contain red phosphorus. Red phosphorus is harmless, odorless, and chemically active, though not in a significant way. It's a dark red color that isn't phosphorescent like white phosphorus.
Red phosphorus is increasingly being used in fireworks and pyrotechnics. The increased consumption of crackers and pyrotechnics in several countries is driving up the demand for red phosphorus. Crackers and fireworks are used during special occasions such as Diwali, New Year's Eve, sporting events, and weddings. Red phosphorus is used as an explosive in the military, mining, and construction industries.
In military applications, red phosphorus smoke is expelled from grenades and artillery shells. Explosives are primarily employed in the mining, construction, military, and defense industries and the oil and gas industry.
Since the mining industry consumes most of the world's explosives, demand for explosives should rise as the business grows. Due to increasing infrastructure development and mining stirs, especially coal mining, explosives will be utilized more frequently in the global industrial sector's mining and building activities.
Additionally, the rising use of pyrotechnic explosives in the consumer and entertainment industries and increased military spending are driving global expansion. As a result of the extensive use of explosives in the military, construction, and mining industries and the global development of mining activities, the red phosphorus market is likely to grow during the forecast period.
Traditional white LEDs' major flaw is their low luminous effectiveness. It has something to do with the human eye's nature. Green is well-liked, although blue and red are not. Scientists have created a new red phosphor that emits light that can be seen with the naked eye. By enhancing the luminous energy of white LEDs, the phosphor increases the efficiency of lighting systems by around one-sixth. The breakthrough is based on red phosphorus, which has the optical properties of phosphor.
Due to recent developments in red phosphor compounds, warm white LEDs with CCT values ranging from 2700 K to 4000 K and minimum CRI values of 80 have been developed. Due to developments in color point and color rendering qualities, white LEDs are more competitive than older light sources such as incandescent and halogen bulbs.
On the other hand, Warm white LEDs are less effective than cool white LEDs because a significant portion of the red phosphor emission occurs beyond 700 nm, which is beyond the sensitivity of the human eye. Through redder phosphor materials, a minimum CRI of 90 can be reached. However, it comes at the expense of lower emission, i.e., below 700 nm, lowering overall LED efficacy even more.
The matchbox industry is well-known for its use of red phosphorus. The matchbox industry's future is slowly sinking. India is one of the world's leading matchbox producers. In 2019, the Indian matchbox sector was valued at USD 200 million; however, it is slowly diminishing. In the last few years, industrial revenues have dropped by 25%. In addition, almost 8,000 units have been shut down in the last decade.
Innovation and the introduction of various fire-lighting devices have stifled the match market. Many alternatives have developed, such as lighter, and consumers prefer these options. Consumers have become more tech-savvy in recent years, and they prefer to use the most up-to-date products available. The key reasons that reduce match demand are increased disposable income, greater living standards, and urbanization.
When smokers buy cigarettes, they may also get matches as a bonus. However, they have discovered that a lighter is more convenient than a matchstick. The gaslighter is another gadget that is used to light stoves instead of matches. All of these reasons have contributed to the match market's severe decline. The diminishing matchbox business has influenced the red phosphorus market growth.
A superphosphate reaction occurs when red phosphorus is combined with sulphuric acid, yielding phosphoric acid. Phosphoric acid is used to make superphosphate fertilizers. A second superphosphate reaction develops when phosphoric acid is combined with phosphate rock and sulphuric acid. A common fertilizer ingredient is a triple superphosphate.
The Asia-Pacific red phosphorus market share, led by China, India, Japan, and South Korea, is predicted to grow significantly due to increased fertilizer demand. China is the world's largest producer and consumer of fertilizer. According to China Customs Statistics, China shipped 2.82 million tons (MT) of fertilizers in July 2019. China sold 14.96 MT of chemical fertilizers worth USD 4.3 billion from January to July, up 28.2% yearly.
In February 2020, the Chinese government issued instructions to local governments to secure fertilizer supplies and keep fertilizer prices stable during the spring season. Fertilizer sales will be tied to the expansion of agriculture activities in China and India. Increased income for rural farmers will aid the growth of the Asia-Pacific market. Furthermore, rising crop prices have prompted most farmers to invest in fertilizers to increase crop yields, driving global demand for red phosphorus.
| Study Period | 2018-2030 | CAGR | 2.02% |
| Historical Period | 2018-2020 | Forecast Period | 2022-2030 |
| Base Year | 2021 | Base Year Market Size | USD 185.18 Billion |
| Forecast Year | 2030 | Forecast Year Market Size | USD 221.7 Billion |
| Largest Market | Asia Pacific | Fastest Growing Market | Europe |
Geographically, the market is divided into five regions- North America, Europe, Asia-Pacific, Latin America, and MEA. Asia-Pacific and Europe dominated the global red phosphorus market.
Asia-Pacific is expected to grow at a CAGR of 1.84% and is valued at USD 76,222.56 million in 2030. Several tailwind factors, such as a massive matchbox industry and rising demand from the fireworks and pyrotechnics industries in countries like India and China, have contributed to the expansion. According to India's Ministry of Commerce, the country is the world's top supplier of safety matches and a major producer and consumer of the phosphate needed to make red phosphorus.
The red phosphorus series of products are in high demand in Asia for electrification and power distribution applications. Industrial uses include switchgear, contactors, relays, and embedded poles. When used in the transportation market, the grade is a cost-competitive material for electric car battery modules that require flame retardancy.
In addition, the booming consumer electronics industry in Asia is driving up demand for red phosphorus. Asia's electronic sector has risen rapidly in recent years. Asia has risen to the top of the global electronic industry growth rankings, with a number of Asian economies having the fastest consumer technology development rates.
Europe is the second-largest region in the global red phosphorus market share and is expected to grow at a CAGR of 2.26% and is valued at USD 62,521.89 million in 2030. Due to its use in LED systems, red phosphorus is in high demand throughout Europe.
The use of LED lighting systems in developed countries in the region is projected to expand during the forecasted period, owing to the growing trend toward more sustainable energy. With the move to LED sources and solid-state lighting, Europe is one of the most revolutionary lighting marketplaces in the world.
The legislative rules of the European Union limiting the sale of inefficient lighting technologies have been a major driver of LED product demand in Europe. Incandescent bulbs were phased out in Europe in 2009, while the use of directed halogen lamps was phased out in 2016. Non-directional halogen lamps were also outlawed in September 2018. As a result of these policy changes, consumers have begun to replace traditional lights with LED-based products.
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The global red phosphorus market share is divided into two types: ordinary purity and high purity. On the basis of red phosphorus type, the high purity segment holds the largest share and is expected to grow at a CAGR of 2.09% and generate a revenue USD of 1,49,875 million by 2030. Electronics and semiconductors utilize high purity red phosphorus. The rising semiconductor sector is driving up demand for high purity red phosphorus. Segmental growth is likely fueled by the growing electronics and semiconductors markets.
The global red phosphorus market share is divided into five categories based on application: safety matches, flame retardants, fertilizers, pyrotechnics, and others. Safety matches to outperform other applications, growing at a CAGR of 1.79% and generating revenue of USD 84,544.17 million by 2030. Making safety matches is one of the most important uses of red phosphorus. As the popularity of these safety matches grows, so does the demand for red phosphorus. Match sticks are commonly used to light lamps, candles, and gas stoves in Asian, African, and other developing countries.
Due to rising ingredient costs, stagnant demand and output, and rising domestic and international freight costs, manufacturers of safety matches have been forced to raise their prices. Despite these factors, demand for safety matches is high, increasing red phosphorus consumption in developing countries.
Red phosphorus is commonly found in non-halogenated flame retardants. Due to the increased use of polymers in the automotive industry, there was a significant increase in demand for non-halogenated flame retardants prior to the COVID-19. The increased usage of polymers for electronic purposes in the automobile sector has supported this breakthrough. Prior to the pandemic, growing demand for red phosphorus in the mining, military, and construction industries drove the market.
The COVID-19 disaster wreaked havoc on a wide range of chemical industries, including the red phosphorus market. The COVID-19 pandemic and subsequent restrictions have impeded raw material imports, transit and freight movement, and supply chains. The absence of sufficient raw materials has produced a major supply-demand mismatch for medium and small-scale businesses.
Red phosphorus is utilized in various products, including fireworks, LEDs, explosives, fertilizer, and feed, among others. The closure of manufacturing operations, on the other hand, has resulted in a dramatic decline in demand for chemicals used in these plants. The advent of this life-threatening illness has harmed the overall expansion of the red phosphorus market growth.
Many items are seeing a demand reduction, and some businesses are barely making ends meet, particularly those with significant exposure to industries like automotive, oil and gas, and aerospace. Supply chains and other company activities are also experiencing significant delays due to border restrictions and travel bans.
Another concern is a lack of financial flow, with many customers delaying purchases or falling behind on payments, and commodities are tangled in disrupted supply networks. Meanwhile, massive healthcare reforms compel many companies to restructure their workforces, reorganize on-site employment, expand remote work, and reconsider customer service approaches and other practices.
Due to rising industrial demand, the red phosphorus market growth has recovered from the effects of the coronavirus. In response to the pandemic, government-imposed restrictions and lockdowns slowed industrial activity and reduced demand for red phosphorus in important end-use fields like automotive, construction, and electronics until the first half of 2020. Many of these industries have begun to revive in the first half of 2021; therefore, the red phosphorus market is predicted to expand in the following years. By 2023-2024, the red phosphorus market is predicted to rebound alongside these end-user industries.
