Phosphonium Sulfate (THPS) Market - Forecast(2023 - 2028)

Phosphonium Sulfate (THPS) Market Overview

Phosphonium Sulfate (THPS) market size is forecast to reach US$283.3 million by 2027 after growing at a CAGR of 5.8% during 2022-2027. The market application includes oilfield operation, water, and wastewater treatment systems, pulp and paper industry, and others. Furthermore, phosphonium sulfate (THPS) is used in the textile and leather industry as an antimicrobial agent, and as a fire-retardant substance. Additionally, Phosphonium sulfate is a good tanning agent used in the textile and leather industry for tanning and softening. THPS has a number of technical properties and benefits compared to the usual ordinary biocides combined with less hazardous and dangerous to other non-target species, showing its efficiency at lower doses, and is biodegradable and healthy to nature. Phosphonium Sulfate (THPS) is an important chemical biocide that is used in hydraulic fracturing as well as water and wastewater treatment systems. Biocides in general are used for killing and controlling bacteria and unnecessary pests, as they will cause instability in viscosity and pose high threats and damage to the systems. With the rapid advancements within the industry and therefore the production of innovative goods, the utilization of a solid phosphonium sulfate as an antimicrobial agent has become one of the foremost important requirements. Due to this, the phosphonium sulfate market's development has been boosted. The growth of the oil and gas, textile and leather, and various other relative industries is driving the phosphonium sulfate market demand and therefore the density of its use has been significantly increased. With an outsized number of plants and industries are incorporating Phosphonium sulfate (THPS) as an anti-microbial agent, the necessity for this chemical is predicted to rise during the forecast period. 

COVID-19 Impact

The global market and demand for Phosphonium Sulfate (THPS) are severely affected by the outbreak of the COVID-19 pandemic. The decline in industrial activities of textile, paper, dyes, pigments, and others due to pandemics hampered the growth of the Phosphonium Sulfate (THPS) market. Owing to the lockdown implemented across all countries, both national and international transport has been hampered, which has significantly affected the supply chain of numerous industries across the globe, hence increasing the supply-demand gap. It has exposed various challenges for several industries like oil and gas, textile, paints, and others. According to OECD Organisation, “the International Energy Agency projects that oil and gas revenues for a number of key producers will fall by between 50 to 85% in 2020, compared with 2019” due to covid-19, yet the losses could be larger depending on future market developments. The covid-19 pandemic crisis has negatively impacted almost all end-use industries of Phosphonium Sulfate (THPS), except for the pharmaceuticals industry. However, as the pandemic is now slowly brought under control, the market will regain its normal growth pace across all regions. 

Report Coverage

The report: “Phosphonium Sulfate (THPS) Market – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Phosphonium Sulfate (THPS) Industry. 

Key Takeaways

• North America mainly dominates the Phosphonium Sulfate (THPS) market, owing to the growing oil and gas field operation, the demand for Phosphonium Sulfate (THPS) especially in the U.S. and Canada has increased faster.
• The majority portion of the Phosphonium Sulfate (THPS) produced worldwide is used for the oilfield operation as a biocide and a flame retardant. 
• The discovery and demand for new oil and gas fields and legalizing them are likely to provide opportunities for the phosphonium sulfate market during the forecast period.
• The solid segment accounted for a majority share in the global Phosphonium Sulfate (THPS) market and is expected to dominate the segment over the forecast period.
• The use of Phosphonium Sulfate (THPS) in the textile and leather industrial segment has increased and is expected to grow at a higher rate as compared to other applications during the forecast period.

 Figure: North America Phosphonium Sulfate (THPS) Market Revenue, 2021-2027 (US$ Million)

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Phosphonium Sulfate (THPS) Market Segment Analysis – By Form

The Powder segment held the largest share of 54% in the Phosphonium Sulfate (THPS) market in 2021. Solid Phosphonium Sulfate (THPS) is used mainly for water and wastewater treatment, in oil and gas field pipelines, fish farming in aquaculture, and others as a bactericidal algaecide or simply called biocide. Solid Phosphonium Sulfate is a substance that can be quickly degraded into completely harmless substances after use. It is also used in textile and leather as a fabric flame retardant treatment, leather softening, and papermaking industries. Furthermore, Solid Phosphonium sulfate (THPS) is used in the textile industry as an antimicrobial agent. With the rapid advancements and developments within the industry and therefore the production of innovative goods, the utilization of a solid antimicrobial agent has become one of the most foremost requirements. Phosphonium Sulfate (THPS) in liquid form is also used as an industrial biocide in cooling systems, that do not contain volatile organic compounds. The demand for solid Phosphonium Sulfate (THPS) can be seen in the majority industry and will increase significantly, which contributes to increased business growth. 

Phosphonium Sulfate (THPS) Market Segment Analysis – By Application

The Oil field operation segment held the largest share of 28% in the Phosphonium Sulfate (THPS) market in 2021. Phosphonium sulfate (THPS) has become the most widely used biocide in oilfields. It is also incorporated with preservative properties and can provide high-temperature stability with prolonged downhole protection in oilfields, therefore making it a preferred choice in the oil & gas industry. It is a very effective chemical for general oil field bacteria, maintains activity downhole, and can recirculate with the production fluid. The main advantage is that Phosphonium Sulfate (THPS) chemical has the capacity to rapidly degrade into a completely harmless substance after its use, and is thus widely used in water treatment, oil fields, papermaking, and various other industries, greatly reducing the environmental impact of such industries. It is also applied as a fabric flame retardant in the textile industry and for leather softening, and papermaking industries. Thus, these multiple advantages and uses associated with Phosphonium Sulfate (THPS) are expected to boost the growth of the global Phosphonium Sulfate (THPS) market. But hence, Phosphonium Sulfate (THPS) majorly finds its application in Oil field operations, which alone is driving the growth of the market massively. 

Phosphonium Sulfate (THPS) Market Segment Analysis – By End-Use Industry

The Oil and Gas segment held the largest share of 32% in the Phosphonium Sulfate (THPS) market in 2021. The majority of Phosphonium Sulfate (THPS) produced in the global market is used in Oil and Gas industry, as it is an effective broad-spectrum microbicide, and is also compatible with other general biocides and oxidizers. Globally oil and gas industry has been a multi-trillion-dollar project for the past 3 decades. Though the oil and gas industry underwent huge crises during a covid-19 pandemic, the market started regaining attention after a few months, where the price went up by 20% approximately after it fell within a few weeks. Phosphonium sulfate prevents microbial and bacterial growth in oilfields, water, and wastewater plants, in oil & gas storage reservoirs, drilling muds, completion fluids, workover fluids, and hydraulic fracturing operations. Phosphonium Sulfate (THPS) is also applied in the textile industry as a softening agent and is incorporated to supply crease-resistant and flame retardant finishes on cotton textiles and cellulosic fabrics. Phosphonium Sulfate is one of the best organic textile tanning agents for the production of chrome and metal-free leathers. Phosphonium Sulfate (THPS) is also used for the control of bacteria, algae, and fungi in residential and industrial recirculating water and wastewater treatment systems. Phosphonium Sulfate (THPS) has preservative properties to kill bacteria and fungi in water-based paints and coatings, adhesives, inks and pigments, starch pigment, extender slurries, and antifoam emulsion systems. But the impact of the Covid-19 pandemic, along with the restrictions imposed by various governments across the world, supply shortages, and a lack of transportation, have increased the costs at certain operations and reduced gold-mine supply at some places. However, with the lifting of restrictions in 2021, the market is estimated to recover and grow substantially. As a result of such a growing focus on the oil and gas industry, it is projected to fuel the growth of the global Phosphonium Sulfate (THPS) market over the forecast period. 

Phosphonium Sulfate (THPS) Market Segment Analysis – By Geography

North America region held the largest share in the Phosphonium Sulfate (THPS) market in 2021 up to 43%, owing to the increasing demand from the numerous oil and gas fields that has increased at a rapid rate. For instance, the United States exports around 8.5 million barrels of fuel oil per day. The volume of fuel oil that has been exported from North America has been notably increased and started peaking in 2020 and struck prices like never before, due to its demand. Due to this, the demand for Phosphonium Sulfate in this region is also rising. Since, there is increasing demand from several applications of phosphonium sulfate like the wastewater and water treatment systems, leather, textile, oil & gas, and others, so it plays an important role in increasing the high demand in developed countries of North America, such as the U.S. and Canada, due to the increasing consumption of leather and leather products. North America is anticipated to be the most important player for industrial wastewater treatment, due to the presence of giant infrastructure for oil and gas and mining, and strict regulations against wastewater treatment, which successively, help in growing the demand for THPS in industrial wastewater applications within the region.

Secondly, Asia-pacific exhibited moderate growth over the forecast period after North America. Asia-Pacific is the second major consuming region for Phosphonium Sulfate (THPS) due to its abundant capacity. Hence, with all such applications and robust demand within the region, the Phosphonium Sulfate (THPS) market is predicted to witness healthy growth during the forecast period. 

Phosphonium Sulfate (THPS) Market Drivers 

Expansion of Oil and Gas Industry

Phosphonium Sulfate (THPS) as mentioned earlier is used as an important biocide and flame retardant in the oil and gas industry for extraction and that accounts for almost one-third of the Phosphonium Sulfate (THPS) application. With that being said, extraction activities are increasing globally, the main reason being the hunger of every government to accumulate more fuel oil for their country and export to other countries in need, which is also to increase their GDP, per capita. The United States Oil and gas industry accounts for nearly 8% of the total national GDP. To comply with the increasing need and demand for energy, oil and gas, and petrochemicals, and to uplift the regional economic growth, the developing countries in the Asia Pacific region are very much keen on stirring up the productivity of new and established oil & gas reserves within their territories, helping the growth of phosphonium sulfate market. Hence, with all such expansion and increasing demand for Phosphonium Sulfate (THPS) globally for the oil and gas industry, the market is predicted to witness healthy growth during the forecast period. 

Growing Leather Industry

Leather Industry is expected to grow at a higher rate amongst all other applications. Phosphonium Sulfate (THPS) in a small amount contains various applications in the Leather industry for the tanning effect it has. The accelerating advancements in the urbanization of developed and developing countries have been one of the major factors that have stimulated the growth of this sector, where the US, Canada, China, and other European countries are the largest Consumer of leather and leather products in the world. Further, the high rate of urbanization is projected to generate huge demand for leather and textile, adding to the growth of the Phosphonium sulfate (THPS) market globally, as it increases the chrome strength and properties in the tanning of hides, which is a process where rawhides or skins are converted into leather.

Phosphonium Sulfate (THPS) Market Challenges

Comparatively high cost of Phosphonium sulfate

Conventional biocides are highly toxic to humans, aquatic life and hazardous to the environment, leading to long-term damage to nature. This is why Phosphonium sulfate (THPS), has been discovered and is highly recommended by the governments and environmentalists to use instead. Phosphonium sulfate is more advantageous over conventional biocides mainly due to its low toxicity level, low recommended treatment level, rapid breakdown in the environment leading to no bioaccumulation. But to compare the cost difference between both the biocides, conventional biocide’s price ranges from $2.50 - $3.50 per KG, whereas phosphonium sulfate (THPS) biocide’s price ranges from $3.00- $10.00 per KG. This might discourage the investments made within the Phosphonium Sulfate (THPS) consuming industries and buyers, thereby hampering the market expansion at places where it is not strictly regulated. 

Phosphonium Sulfate (THPS) Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Phosphonium Sulfate (THPS) market. Phosphonium Sulfate (THPS) market top companies are: 

1. Arkema S.A. (France)
2. Solvay (Belgium)
3. DuPont (US)
4. Hubei Xingfa Chemicals Group Co., Ltd (China)
5. Changshu New-Tech Chemicals Co., Ltd. (China)
6. Prasol Chemicals Pvt. Ltd. (India)
7. Hubei Lianxing Chemical Co., Ltd. (China)
8. Jiangsu Danai Chemical Co., Ltd.(China)
9. Finoric LLC (US)
10. Compass Chemical (US

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