Red phosphorus is a phosphorus allotrope and a P4 molecule derivative. It is derived from phosphate rock, red in color, has a powdery texture, and available in an amorphous state. Red phosphorus is used in pyrotechnics, semiconductors, safety matches, fertilizers, smoke bombs, pesticides, flame retardant production, and few organic chemical synthesis reactions. Red phosphorus is also used in electroluminescent coatings. The demand for red phosphorus is expected to rise during the forecast period owing to the increasing use in the production of pyrotechnics and safety matches around the world.
Use of Red Phosphorus in Fireworks and Pyrotechnics Industry to Drive the Market
Red phosphorus is increasingly being used in fireworks production and pyrotechnics. The increasing usage of crackers and pyrotechnic products in various nations is growing the demand for red phosphorus. Crackers and pyrotechnics are used during special occasions like Diwali, New Year, sports, and marriage celebrations.
Red phosphorus is also used as an explosive in the army field, construction, and mining industry. Red phosphorus smoke is deployed explosively from grenades and mortar shells in military applications. With the widespread adoption of explosives in the military, construction, and mining industry, coupled with growing mining activities globally, the growth of the red phosphorus market is expected to grow during the forecast period. However, due to increasing concerns about environmental pollution, regulatory bodies have imposed a ban on fireworks, which can reduce red phosphorus consumption in pyrotechnics and explosives.
Diminishing Matchbox Industry to Hinder the Red Phosphorus Market
Red phosphorus has renowned applications in the matchbox industry. The future of the matchbox industry is gradually fading away. India is one of the major producers of the matchbox. Indian matchbox industry was worth USD 200 million in 2019, which is declining gradually. Industrial revenues have reduced by 25% in the past few years. Also, around 8,000 units have shut down in the past decade. The increasing usage of gas lighters at home, increasing urbanization, advanced lighting gadgets, and decrease in the number of smokers lead to a downfall in the matchbox industry. Moreover, increasing awareness regarding the harmful effects of smoking and its ban in public places, and increasing production costs are some factors that are hindering the market growth. The decline matchbox industry has a great impact on the red phosphorus market growth.
The Use of Red Phosphorus in Manufacture Methamphetamine (Meth) to Hamper the Market
Red phosphorus is used to manufacture methamphetamine, which is a recreational drug. According to the U.S. Department of Justice, Methamphetamine abuse is the biggest drug problem in the U.S. The increasing regulations on red phosphorus due to its usage in the manufacturing of methamphetamine are expected to restrict the market growth. The Drug Enforcement Administration (DEA) has issued a notice informing individuals and businesses engaged in red phosphorus manufacturing about its use in the illicit manufacture of methamphetamine (meth).
Increasing Demand for Luminous and Electroluminescent Paints/Coatings to Provide Lucrative Growth Opportunities
The global paints and coatings industry is evolving at a fast pace. Manufacturers are consistently developing new and innovative products using different chemicals such as phosphorus. Luminous and electroluminescent paints and coatings are recent developments that are gaining high traction in the clothing, footwear, and automotive industry. The electroluminescent coating is different from the regular coating in a manner that it emits a bright light not caused by heat. Red phosphorus is used in luminous and electroluminescent paints as it creates a phosphorescent effect, illuminating color in the dark. The company, LumiLor, has developed the first electroluminescent paint, which can be used in automotive aftermarkets, bikes, cars, and home decor.
The incorporation of red phosphorus in the luminous and electroluminescent paints is expected to provide a lucrative opportunity for the new and existing players in the red phosphorous market. Manufacturers can partner with luminous and electroluminescent paints manufacturers, such as LumiLor, to gain high profit as the trend of punchy and floral color is increasing at a high pace in clothing, footwear, automotive, and home decoration.
Based on type, the global red phosphorus market has been segmented into high purity and general. High purity red phosphorus is extensively used in electronics and semiconductors. The demand for high purity red phosphorus is increasing owing to the growing semiconductor industry. According to the Semiconductor Industry Association, the global semiconductor sales valued at USD 35 billion in May 2020, a 5.8% increase from the previous year's sales. The growing electronics and semiconductors market is expected to drive segmental growth.
Based on application, the smoke bombs segment is expected to record substantial growth during the forecast period. It can be attributed to the increasing adoption of red phosphorus in military activities. The growing use of crackers and colored smoke bombs for celebrating occasions can also contribute to segmental growth. Smoke bombs are also used in the video-shoot and photography. The increasing trend of photography and social media drives the demand for smoke bombs, which is expected to increase red phosphorus sales.
The flame retardant segment is expected to account for the highest market share during the forecast period. The demand for flame retardants is in several industries to reduce the hazards occurred by fire and heat. They are used in the electrical and electronics industries and several household products. Red phosphorus is the key chemical in flame retardants.
Asia-Pacific is projected to account for the highest share in the global red phosphorus market during the forecast period. The growth can be attributed to several tailwind factors, such as the presence of a huge matchbox industry and increasing demand from the fireworks and pyrotechnics in countries, such as India and China. According to the Ministry of Commerce, India is the largest exporter of safety matches in the world and one of the major producers and consumers of the phosphate required for manufacturing red phosphorus.
North America is expected to be the second-largest market for the red phosphorus owing to the presence of top chemical producing companies, such as The Dow Chemical Company, and BASF USA. The United States is the top automotive market, the use of red phosphorus as a flame retardant and coating is expected to propel the regional growth.
Red Phosphorus Market: Top Players
Red Phosphorus Market: Segmentation
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