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Sodium Hypophosphite Market Size, Industry Share, Growth Trends and Forecasts (2023 - 2030)
ID : CBI_1229 | Updated on : | Author : Pavan C | Category : Materials and Chemicals
Sodium Hypophosphite Market Size :
Consegic Business Intelligence analyzes that the sodium hypophosphite market size is growing with a CAGR of 5.1% during the forecast period (2023-2030), and the market is projected to be valued at 1,168.46 million by 2030 from 790.77 million in 2022.
Sodium Hypophosphite Market Scope & Overview:
Sodium hypophosphite is the sodium salt of hypophosphorous acid. It is a white, odorless, crystalline solid that is soluble in water. It has wide applications scope including catalysts & stabilizers, reducing agents, chemical intermediates, and others. The chemical is also widely used across different industries such as electrical, and pharmaceutical, among others. Sodium hypophosphite has different properties such as corrosive free, strength, and heat resistance which makes the chemical favorable for different end-use industrial applications.
Key Regional Insights
- Asia Pacific
- Held the largest market share of 38.55% in 2022
- Market valued at USD 304.84 million in 2022 and expected to reach USD 452.78 million by 2030
- China dominated the region with 22.15% share in 2022
- Growth driven by presence of major market players in China
- Increasing automotive industry demand boosting sodium hypophosphite usage
- Widely used as a reducing agent in electroplating due to corrosion-free, high-strength, and heat-resistant properties
- North America
- Expected to grow at the fastest CAGR of 6.3% during the forecast period
- Growth driven by increasing demand for chemical derivatives, specialty chemicals, and fire retardants
- Rising industrial and chemical sector applications supporting market growth
Sodium Hypophosphite Market Dynamics - (DRO) :
Key Drivers :
Rise in demand for electroplating applications is accelerating the sodium hypophosphite market growth
Sodium hypophosphite is widely required in electroplating applications due to certain features such as corrosion resistance, abrasion resistance, hardness, and strength. The increase in the usage of sodium hypophosphite in the electroplating application and the rise in the electroplating of metal surfaces is driving the market growth of sodium hypophosphite. Electroplating applications are being demanded largely in aviation components, fabrication of machinery, and others. Thus, growth in certain industries such as the aviation industry, surged the demand for electroplating applications, serving a major driving factor for the sodium hypophosphite market. For instance, according to the report published by the Ministry of Civil Aviation, the Month-over-Month growth rate between April 2022 and April 2023 has increased by around 22.18%. Hence, due to the growth of several end use industries, there is significant demand for electroplating applications, and thus it is contributing to significant growth of the sodium hypophosphite market.
Increasing demand from water treatment is prospering the market growth
Sodium hypophosphite is highly preferred as a reducing agent to minimize the metal ion content from water. Sodium hypophosphite is useful in industrial wastewater treatment. In industrial wastewater treatment sodium hypophosphite is used to remove metals such as copper, nickel, and iron. Sodium hypophosphite is a safe and effective water treatment agent. Increasing industrialisation activities have led to an increase in waste and contaminants discharged into water bodies. This pollutes the water, causes health issues, and destroys aquatic life. Hence, it becomes very essential to use water treatment chemicals. Thus, increasing demand for water treatment activities, arising from industrial and domestic contaminants, has led to increased usage of the chemical, driving the growth of the sodium hypophosphite market. For instance, based on the report by Niti Ayog in 2022, the daily wastewater generated in India is expected to increase by 24% by 2030. Hence, the rising demand for water treatment is driving significant growth in the sodium hypophosphite market.
Key Restraints :
The presence of alternatives is likely to hamper the market
The presence of different alternatives such as sodium phosphate, and non-phosphorus sodium propionate, are likely to deter the market growth of the sodium hypophosphite market. These chemicals have similar effects as sodium hypophosphite and are widely preferred by different industries such as chemical, electrical, and others. Sodium phosphate is highly preferred due to its nature of stabilizing the balance between acidity and alkalinity and improving shell life. Non-phosphorus sodium propionate is demanded as it is a safer preservative than others. Hence, due to the aforementioned advantages of the alternatives of sodium hypophosphate, the sodium hypophosphate market is likely to hamper the market growth.
Future Opportunities :
Increasing industrialization and urbanization in various regions serves as opportunities for market growth
Sodium hypophosphite is a chemical compound that has been used in a variety of industrial and commercial applications. Growing industrialization activities are leading to an increase in demand for water treatment applications. Uncontrolled discharge of industrial and domestic toxins into the water bodies is leading to rising demand for sodium hypophosphite chemicals. Hence rising industrialization activities, coupled with urbanization specifically in developing nations is expected to boost the market growth of sodium hypophosphate. The rising production of electronic and automotive components acts as a catalyst for the growth of the sodium hypophosphite market. Moreover, Sodium hypophosphite is widely demanded in pharmaceuticals and ceramic industries. Thus, increasing the growth of end-use industries would lead to a significant growth opportunity for the sodium hypophosphite market.
Global Sodium Hypophosphite Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2017-2030 |
| Market Size in 2030 | USD 1,168.46 Million |
| CAGR (2023-2030) | 5.1% |
| By Grade | Electrical and Industrial |
| By Application | Catalysts & Stabilizers, Reducing Agents, Chemical Intermediates, and Others |
| By End-use Industry | Chemical, Electrical, Pharmaceuticals, Water Treatment, and Others |
| By Region | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
| Key Players | Solvay S.A., Nippon Chemical Industries Co Ltd, Sigma-Aldrich, Huanggang Quanwang Chemical Co., Ltd, Hubei Sky Lake Chemical Co., Ltd., Jiangsu Danai Chemical Co., Ltd, Hubei Xingfa Chemicals Group Co., Ltd., Jiangxi Fuerxin Pharmaceutical & Chemical Co., Ltd, Jiangsu Kangxiang Industrial Group Co., Ltd. |
| Geographies Covered | |
| North America | U.S. Canada Mexico |
| Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
| APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
| Middle East and Africa | GCC Turkey South Africa Rest of MEA |
| LATAM | Brazil Argentina Chile Rest of LATAM |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, Restraint or Challenges, Opportunities, Environment & Regulatory Landscape, PESTLE Analysis, PORTER Analysis, Key Technology Landscape, Value Chain Analysis, Cost Analysis, and Regional Trends & Forecast |
Sodium Hypophosphite Market Segmental Analysis :
By Grade :
The grade segment is categorized into electrical and industrial. In 2022, the electrical segment accounted for the highest market share and is expected to grow at the fastest CAGR in the overall sodium hypophosphite market. The electrical grade is used during electroless nickel plating. Sodium hypophosphite is widely used in the automotive and electronics industry for the major purpose of electroless nickel plating. Thus, the growing automotive and electronics industry across the globe is leading to a rise in greater demand for this chemical. For instance, according to International Trade Association, the United States is experiencing significant sales in automotive parts and vehicles and is the world's second-largest market. The association also states that total foreign direct investment in the U.S. automotive industry reached around USD 143.3 billion in 2019 and the growth of the automotive industry is expected to rise significantly as automotive industry is at the forefront of innovation and new R&D initiatives are ongoing to transform the industry. Thus, the growing automotive industry is leading to significant growth of the electrical grade segment in the sodium hypophosphite market.
By Application :
The application segment is categorized into catalysts & stabilizers, reducing agents, chemical intermediates, and others. In 2022, the reducing agent segment accounted for the highest market share and is expected to grow at the fastest CAGR in the overall sodium hypophosphite market. Sodium hypophosphite is widely used as a reducing agent across different industrial applications such as the automotive, chemical, and electronics industries. The chemical compound is preferred due to its application as a reducing agent in electroless nickel plating in these industries. Also, sodium hypophosphite acts as a reducing agent for mitigating metal ion content in industrial waste before it is discharged into water. Thus, due to the multifunctional properties of sodium hypophosphite as a reducing agent, the reducing agent segment is experiencing significant growth in the overall sodium hypophosphite market.
By End-Use-Industry :
The end-use industry segment is categorized into chemical, electrical, pharmaceuticals, water treatment, and others. In 2022, the water treatment segment accounted for the highest market share of 41.30% and is expected to grow at the fastest CAGR in the overall sodium hypophosphite market. Sodium hypophosphite is majorly used in industrial water treatment. Also, the uncontrolled discharge of industrial and domestic toxins into water bodies has led to major human health issues and the extinction of aquatic species. Sodium hypophosphite is a strong reducing agent, and it can be used to remove metal ions from water. Thus it has been very important to employ water treatment chemicals, and thus water treatment segment is showcasing a major growth trend in the sodium hypophosphite market.
By Region :
The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
In 2022, Asia Pacific accounted for the highest market share of 38.55% and was valued at USD 304.84 million and is expected to reach USD 452.78 million in 2030. In Asia Pacific region, China accounted for the highest market share of 22.15% during the base year 2022 owing to large key players in the sodium hypophosphite market located in this country. Asia Pacific is experiencing a huge demand for sodium hypophosphate due to the huge growth of the automotive industry in this region. This chemical compound is widely employed as a reducing agent in electroplating and has corrosive-free high-strength, and heat-resistant properties. Thus, due to the specific characteristics of sodium hypophosphite, it is widely preferred across the automotive industry. For instance, according to IBEF, in March 2023, the total production of passenger vehicles, three-wheelers, two-wheelers, and quadricycles was around 20,04,592 units. This demand has been resulting from increasing middle-class disposable income and a huge youth population across the region. Hence, Asia Pacific has been dominant globally in the sodium hypophosphite market.
However, North America is expected to grow at the fastest CAGR of 6.3% during the forecast period. The demand for derivatives, certain chemical compounds, and fire retardants, among others, is expected to increase the consumption and demand for the sodium hypophosphite market in this region.
Top Key Players & Market Share Insights:
The Sodium Hypophosphite market is highly competitive, with several large players and numerous small and medium-sized enterprises. These companies have strong research and development capabilities and a strong presence in the market through their extensive product portfolios and distribution networks. The market is characterized by intense competition, with companies focusing on expanding their product offerings and increasing their market share through mergers, acquisitions, and partnerships. The key players in the market include-
- Arkema
- Solvay S.A.
- Jiangxi Fuerxin Pharmaceutical & Chemical Co., Ltd
- Jiangsu Kangxiang Industrial Group Co., Ltd.
- Sigma-Aldrich
- Huanggang Quanwang Chemical Co., Ltd
- Nippon Chemical Industries Co Ltd
- Hubei Sky Lake Chemical Co., Ltd.
- Jiangsu Danai Chemical Co., Ltd
- Hubei Xingfa Chemicals Group Co., Ltd.
Recent Industry Developments :
- In February 2022, Arkema, a global manufacturer of specialty materials, completed the acquisition of Ashland's performance adhesives business. This operation marked a prominent stop for Arkema to strengthen its segment of adhesive solutions, and the company has aim of becoming a pure specialty material player by 2024.
- In April 2023, Solvay, a multinational chemical company, announced its strategic collaboration with Ginkgo Bioworks for the development of new sustainable biopolymers. This collaboration would strengthen Solvay's position in biotechnology, and this marks an important growth trajectory for Solvay's business module.
Key Questions Answered in the Report
What was the market size of the sodium hypophosphite market in 2022? +
In 2022, the market size of sodium hypophosphite market was USD 790.77 million
What will be the potential market valuation for the sodium hypophosphite market by 2030? +
In 2030, the market size of sodium hypophosphite market will be expected to reach USD 1,168.46 million.
What are the key factors driving the growth of the sodium hypophosphite market? +
Rise in demand for electroplating applications is the key factor driving the growth of the sodium hypophosphite market.
What is the dominating segment in the sodium hypophosphite market by end-use industry? +
In 2022, the water treatment segment accounted for the highest market share of 41.30% in the overall sodium hypophosphite market.
Based on current market trends and future predictions, which geographical region will have the fastest impact on the sodium hypophosphite market's growth in the coming years? +
North America is expected to be the fastest-growing region in the market during the forecast period.