Concentrated Nitric Acid Market Analysis by Type (Strong, Fuming); Application (Ammonium Nitrate, Adipic Acid, Nitrobenzene, Toluene Diisocyanate), End User (Agrochemicals, Explosives, Automotives, Electronics) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 4913 | Published Date: May 02, 2023
Concentrated Nitric Acid Market size is estimated to reach ~USD 53 Billion by the end of 2035 by growing at a CAGR of ~6.10% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of concentrated nitric acid was ~USD 26 Billion. The growth of the market can be attributed to the increasing demand for fertilizers. Further, the growing agrochemical sector is estimated to contribute to the growth of the market in the forecast period. For instance, the agrochemical sector in India is expected to grow by 7.5% annually, with growing domestic demand of 6.5%, according to the Indian Brand Equity Foundation (IBEF) to reach US$ 6.3 billion by 2020.
In addition to these, factors that are believed to fuel the market growth of the concentrated nitric acid market include the rise in demand from the automotive sector. For instance, India produced around 4.42 million vehicles in 2019 and then reached about 3.39 million by 2020, with a small decrease of 25% affecting the demand on the market. Due to its use in the production of a wide range of polymers, including polyurethanes and polyamides, concentrated nitric acids are expected to be strongly used in the chemical industry. This is estimated to contribute to the market growth in the forecast period.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~6.10% |
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Base Year Market Size (2022) |
~ USD 26 Billion |
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Forecast Year Market Size (2035) |
~ USD 53 Billion |
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Regional Scope |
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Growth Drivers
Challenges
The global concentrated nitric acid market is segmented and analyzed for demand and supply by application into ammonium nitrate, adipic acid, nitrobenzene, and toluene diisocyanate. Out of the four types of concentrated nitric acid, the ammonia nitrate segment is estimated to gain the largest market share of about ~38% in the year 2035. The growth of the segment can be attributed to the increasing demand for concentrated nitric acid in the production of ammonium nitrate. The manufacture of ammonium nitrate which is used in fertilizers and also as an explosive, is made from ammonium nitrate. According to the Ministry of Chemicals and Fertilisers of India, the sale of ammonium nitrate during the year 2018-2019 is 12929 tonnes in India alone. As a result, due to its application in the agriculture sector, nitric acid is rapidly increasing in fertilizers. In the manufacture of explosives and agrochemicals ammonium nitrate has also been applied as an intermediate. Ammonium nitrate is used in the manufacture of explosives, which require a large amount of nitric corrosives to be extracted as an antecedent and has legitimate implications for interest in nitric corrosives. Reports cite that the total value of metal mine production in the United States was about USD 26.9 billion in 2019 and reached about USD 27.7 billion in 2020, with a growth rate of about 3%., leading to an increase in demand for explosives. Further, the growing demand for ammonium nitrate as fertilizers and pesticides is also expected to contribute to the growth of the market in the forecast period.
The global concentrated nitric acid market is also segmented and analyzed for demand and supply by end-user into agrochemicals, explosives, automobiles, and electronics. Amongst these four segments, the agrochemicals segment is expected to garner a significant share of around in the year 2035. Increasing awareness of fertilizers used in agricultural practices has led to increased consumption of nitric acid in agriculture, which subsequently leads to higher yields. Increased population, which results in demand for concentrated nitric acid fertilizers, has contributed to an increase in the agricultural sector. Nitrogen fertilizers calcium and urea ammonium nitrate are used to produce more yield whereas nitrobenzene is used for crop production of pesticides. This, as a result, is anticipated to create numerous opportunities for the growth of the segment in the coming years.
Our in-depth analysis of the global concentrated nitric acid market includes the following segments:
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By Type |
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By Application |
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By End User |
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The market share of concentrated nitric acid in Asia Pacific, amongst the market in all the other regions, is projected to be the largest with a share of about ~38% by the end of 2035. The growth of the market can be attributed majorly to the increasing consumption of fertilizers. For instance, in India, fertilizers accounted for about 57.8 million tonnes of primary sales volume and approximately 61.4 million tons with a growth rate of around 6% leading to an increase in the consumption of nitric acid by the fertilizer segment. The key drivers that could contribute to the growth of the concentrated nitric acid market in the Asia Pacific are a variety of industry applications, such as automotive, construction, and agricultural chemicals. In the automotive industry, the trend of replacing metal parts with lightweight and strong materials, such as synthetic rubbers, nylon, and elastomers, drives the demand for nitrobenzene and adipic acid. Demand for these products is expected to rise due to the increasing demand in the automobile sector for synthesis rubbers, elastomers, and polyurethane foams. The OICA reported that China produced approximately 25.75 million vehicles in 2019, reaching about 25.23 million in 2020, a decrease amounting to around 2 %, which negatively affected the demand for concentrated nitric oxides from the automotive sector. These factors are anticipated to boost the market growth during the forecast period.
The North American concentrated nitric acid market is estimated to be the second largest, registering a share of about ~28% by the end of 2035. The growth of the market can be attributed majorly to the increasing demand for concentrated nitric acid in the region for pharmaceuticals and agricultural sectors. Another significant driver of the strong demand for concentrated nitric acid in this region is an increased demand for ammonia nitrate and fuel oil ANFO, which acts as an oxidizer and fuel absorbent during the production of explosives. As of the US Geographical Survey, in North America, United States, approximately 80% of explosives are mixed with ANFO. Further, the presence of a strong healthcare network in the region, along with the availability of supportive policies by the regulatory bodies promotes the market players to manufacture nitric acid. In addition, the region's expanding healthcare industry is also anticipated to boost market growth during the forecast period.
Further, the market in Europe, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the increasing demand for ammonium nitrates in the region. This is anticipated to contribute to the growth of the market in the forecast period.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Smruti Ranjan, Rajrani Baghel
Ans: Increasing demand from agrochemicals and the growing demand from chemical industries are the major factors driving the market growth.
Ans: The market size of concentrated nitric acid is anticipated to attain a CAGR of ~6.10% over the forecast period, i.e., 2023 – 2035.
Ans: Stringent government regulations and environmental concerns are estimated to be the growth-hindering factors for market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Yara, Nutrien Ltd., BASF SE, 3M, Dow, DuPont, Sika AG, C.F. Fertilisers U.K., Innospec Dorf Ketal Chemicals (I) Pvt. Ltd., PMC Specialties Group, Clariant How are the company profiles selected?
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue-generating capacity, and the new products being launched into the market by the company.
Ans: The market is segmented by type, application, end user, and by region.
Ans: The ammonium nitrate segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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