Electronic Grade Nitric Acid Market Size, Share & Trends Analysis Report By Type (EL Grade, VL Grade, UL Grade, SL Grade), By Application (Semiconductor, Solar Energy, LCD Panel), By Region, And Segment Forecasts, 2024 - 2030

Electronic Grade Nitric Acid Market Trends

The global electronic grade nitric acid market size was estimated at USD 83.6 million in 2023 and is expected to grow at a CAGR of 5.4% from 2024 to 2030.The growth of the global market for electronic grade nitric acid is primarily driven by the increasing demand for electronic devices worldwide. This acid is crucial in the cleaning and etching processes during semiconductor manufacturing, which is essential for producing high-performance electronics.

Electronic grade nitric acid is a highly pure form of nitric acid used in the electronics industry for cleaning and etching silicon wafers and other electronic components. It is produced through a multi-stage distillation process to achieve a purity level of 99.999% or higher. Additionally, advancements in technology and the growth of industries such as electronics and semiconductors further propel the demand for high-purity nitric acid. The expansion of the electronics sector, especially in developing countries, coupled with the trend towards miniaturization of electronic components, further fuels market growth.

Drivers, Opportunities & Restraints

As the global emphasis on renewable energy sources intensifies, the demand for photovoltaic cells, which convert sunlight into electricity, has surged. Electronic grade nitric acid is used in the texturization process of silicon wafers to improve the efficiency of photovoltaic cells. This application significantly contributes to the growing demand for electronic grade nitric acid, driven by the expanding solar energy sector.

The ongoing trend towards miniaturization of electronic devices, coupled with advancements in technology, necessitates the use of high-purity chemicals like electronic grade nitric acid. The need for smaller, more complex devices with higher performance standards increases the reliance on materials that can ensure the highest levels of precision and cleanliness in manufacturing processes.

However, nitric acid is a highly corrosive and toxic chemical, posing substantial risks during production, transport, and storage. The handling of nitric acid requires specific safety measures to protect workers and prevent environmental contamination. Regulatory bodies around the world have imposed strict guidelines on the use, storage, and disposal of hazardous chemicals, including nitric acid.

Market Concentration & Characteristics

The electronic grade nitric acid market is moderately consolidated, with a few key players dominating the market share while numerous smaller companies serve niche segments.

The market is dominated by a few major chemical companies with extensive experience and capabilities in producing high-purity chemicals. These companies often have a global presence, with manufacturing plants located close to key electronics manufacturing hubs in Asia, North America, and Europe. BASF, Mitsubishi Chemical Corporation, and UBE Corporation are examples of leading players in this space.

Competition among these players is primarily driven by technological innovations aimed at achieving higher purity levels, environmental and safety compliance, and the ability to provide comprehensive customer support and technical services. Additionally, the strategic positioning of production facilities near key electronics manufacturing hubs and the emphasis on efficient supply chain management are critical for meeting the just-in-time delivery expectations of the industry.

Type Insights & Trends

“VL Grade segment is expected to witness growth at 5.9% CAGR from 2024 to 2030”

The EL Grade segment of the market was valued at USD 42.6 million in 2023 and is projected to reach USD 61.7 million by 2030. The continuous evolution and demand for more sophisticated electronic devices, such as smartphones, tablets, and wearables, drive the need for high-purity chemicals in manufacturing processes. EL grade nitric acid, with its high purity, is essential in the etching and cleaning processes of semiconductor fabrication, directly correlating with the industry's growth.

VL Grade is widely used in manufacturing high-complexity integrated circuits. The demand for VLSI Grade chemicals, including nitric acid, is driven by the continuous push towards further miniaturization of electronic devices and the increasing complexity of semiconductor chips. Additionally, the demand for more energy-efficient and faster computing devices requires the production of more complex chips, directly influencing the demand for VLSI Grade nitric acid.

Application Insights & Trends

“Solar energy segment is expected to witness highest growth at 5.8% CAGR from 2024 to 2030”

The semiconductor segment accounted for the largest revenue share of 58.7% of the market in 2023. Semiconductor manufacturing heavily relies on electronic grade nitric acid for its high-purity properties. This chemical is crucial for etching and cleaning silicon wafers, meeting the stringent requirements of modern semiconductor devices. 

In the solar energy sector, electronic grade nitric acid is increasingly used in the cleaning and etching processes of photovoltaic cells, essential for producing high-efficiency solar panels. The demand in this sector is propelled by the global shift towards renewable energy sources, requiring high-purity chemical solutions to optimize the performance and durability of solar panels.

Regional Insights

“North America is expected to witness market growth at a CAGR 6.9% from 2024 to 2030”

Asia Pacific accounted for the largest revenue share of 40.1% in 2023. The regional growth is driven by expanding electronics and solar energy industries, particularly in countries like China, Japan, South Korea, and Taiwan. These nations are at the forefront of semiconductor manufacturing and solar panel production, driving significant demand for high-purity chemicals.

China electronic grade nitric acid market is expected to grow over the forecast period. As a global leader in semiconductor production and solar panel manufacturing, China's demand for high-purity chemicals, including electronic grade nitric acid, is substantial. This demand is supported by the country's strategic initiatives towards technological advancement and renewable energy, making China a crucial market in the global landscape for electronic grade nitric acid.

North America Electronic Grade Nitric Acid Market Trends

The regional growth is mainly propelled by advanced semiconductor manufacturing and growing solar energy sectors. Also, emphasis on renewable energy and technological advancements further enhances the product demand, establishing it as a crucial component in the manufacturing and utilization of high-tech and clean energy solutions.

U.S. Electronic Grade Nitric Acid Market Trends

In the U.S., electronic grade nitric acid is crucial for producing semiconductors and electronics due to its high purity. As the U.S. invests in renewable energy and high-tech industries, electronic grade nitric acid remains vital for ensuring the production of high-quality electronic devices.

Europe Electronic Grade Nitric Acid Market Trends

Europe's commitment to environmental sustainability and innovation fuels its need for electronic grade nitric acid, which is integral to the sophisticated processes of etching and cleaning semiconductor materials. This demand is further amplified by Europe's strategic initiatives to bolster its technological infrastructure and reduce its carbon footprint through the adoption of clean energy technologies.

Key Electronic Grade Nitric Acid Company Insights:

Some of the key players operating in the market include EuroChem, Everest Kanto Cylinder, and BASF SE.

• EuroChem is a leading global fertilizer company, primarily engaged in the production and marketing of nitrogen, phosphate, and potash fertilizers. Headquartered in Zug, Switzerland, the company operates on a global scale, providing a wide range of agricultural products to help increase crop yield and food production. EuroChem has grown to become one of the largest fertilizer producers worldwide, with significant operations and distribution networks across Europe, Asia, the Americas, and other key markets.

• BASF SE is one of the largest and most diversified chemical companies in the world, headquartered in Ludwigshafen, Germany. Established in 1865, BASF has a rich history of innovation and development in the chemical industry, holding a prominent position globally across various sectors, including chemicals, materials, industrial solutions, surface technologies, nutrition & care, and agricultural solutions. The company’s portfolio includes plastics, performance products, chemicals, and crop protection products, and oil and gas.

Recent Developments

• In August 2024, the Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) approved an investment proposal to establish a production capacity of 600 MTPD (200,000 MTPA) of weak nitric acid, which will increase its capacity by around 57%.

• In August 2023, Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) approved a substantial investment proposal to establish a weak nitric acid production facility with a capacity of 2,00,000 MTPA.

Electronic Grade Nitric Acid Market Report Scope

Global Electronic Grade Nitric Acid Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global electronic grade nitric acid market report based on type, application, and region:

• Type Outlook (Volume, Kilo Tons; Revenue, USD Million, 2018 - 2030)

  • EL Grade

  • VL Grade

  • UL Grade

  • SL Grade

• Application Outlook (Volume, Kilo Tons; Revenue, USD Million, 2018 - 2030)

  • Semiconductor

  • Solar Energy

  • LCD Panel

  • Others

• Regional Outlook (Volume, Kilo Tons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • Italy

    • France

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Thailand

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa