Global Nitric Acid Market is Segmented By Application (Fertilizers, Nitrobenzene, Adipic Acid, Toluene Di-Isocyanate, Others), By End- User (Agrochemicals, Explosives, Mining, Chemical, Others), By Concentration (Dilute Nitric Acid (68%), Concentrated Nitric Acid (69%-71%), By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2022-2029
Market Overview
The Global Nitric Acid Market is expected to grow at a CAGR 2.9% during the forecasting period (2022 - 2029).
Nitric acid, having the chemical formula HNO3, is a colorless, corrosive mineral acid. It's made in a two-step process that starts with ammonia oxidation and ends with the absorption of the nitrogen oxides created. The fertilizer sector is where nitric acid is most useful. Nitric acid has wide application in the fertilizers industry because it is used in the formation of ammonium nitrate. These compounds are utilized in a variety of industries, including plastics, automotive, and construction. The burgeoning automotive sector in emerging countries has resulted in significant HNO3 use, which can be linked to population growth and rising consumer demand, resulting in market expansion. Furthermore, the growing demand for plastics in industrial and consumer applications is boosting the market's growth.
Source: DataM Intelligence Analysis (2022)
Market Dynamics
Increasing demand for HNO3 from various end-use industries shall aid in the growth of market
Nitric acid is widely utilized in agriculture, where it is used to make fertilizers such as ammonium nitrate, calcium ammonium nitrate, and nitro phosphate. Fertilizers are used to increase agricultural output to meet the rising food demand of the world's population. Furthermore, when consumer disposable income rises, there is a greater desire for organic and high-quality food, which leads to bio-based fertilizers, which drives market expansion. In addition, improving consumer lifestyles, growing renovation activities, and new governmental infrastructure projects all contribute to the growth of the nitric acid market. Furthermore, nitric acid for dyeing is a key driver of market growth.
Additionally, the rising demand from consumers for lightweight automobiles has led to producers turning towards invention and development in the automotive industry, therefore creating high consumptions prospects for HNO3 that positively cause the market growth. The high consumer demand for individual automobiles coupled with the ever-increasing populace has backed ominously to the production of lighter vehicles. This is sustained by government regulations to curb CO2 emissions has pushed the chemical manufacturers to utilize advanced expertise in the production of fuel-efficient and cost-effective automotive solutions. This growing trend for lightweight vehicles is boosting the market.
On the other hand, strict governmental regulation for HNO3 hinders the market growth. HNO3 is released from chemical manufacturing plants, vehicles' exhaust fumes, and polluted wastewater from farming areas. When this pollution is inhaled, it causes respiratory issues. Government laws governing environmental protection and the reduction of industrial waste are hindering the market's expansion. Rising concerns over CO2 emissions are also putting a damper on the market.
Market Segmentation
Fertilizers segment to hold the major share in the market during the forecast period
The fertilizers segment is expected to be the fastest-growing market during the projected period, with a CAGR of XX%. On a global scale, nitric acid makes ammonium nitrate, calcium ammonium nitrate, potassium nitrate, and triphosphates. Additionally, ammonium nitrate is used to make urea-based ammonium nitrate and other related fertilizers. Another important use of nitric acid is adipic acid. It's widely utilized in the manufacture of nylon fibres and resins. Automakers worldwide are clamouring for this polymer composite to replace heavy metal components in automotive components. Adipic acid use is predicted to rise as composites in automobiles expand, affecting the nitric acid market's growth. Over the last few years, there has been a great demand for nitrogen fertilizers made from ammonium nitrate, driving the whole market.
The agrochemicals industry has a greater market share and is expected to remain a larger segment in the market when segmented by the end-use industry. The rising demand for fertilizers in developing countries such as India, China, and Brazil has boosted ammonium nitrate made from nitric acid. Furthermore, growth in demand for fertilizers due to increased awareness will enhance market share in the anticipated period.
Geographical Penetration
Asia-Pacific is expected to dominate the global nitric acid market in the year 2020
In terms of value, Asia Pacific dominated the market, which can be attributed to rising demand for HNO3 from various end-use sectors, including automobiles, agriculture, and construction. Due to rapid population expansion, expanding infrastructure projects, and a rise in middle-class income, nations like India and China lead the Asia Pacific area in terms of financial development and rising population, inducing significant consumption of HNO3. According to the Department of Fertilizers of India, the retail sale of fertilizers in India reached 2.89 million tons in April 2020, up 45.1 percent from the same month the previous year. This increased demand for nitric acid, which is used to make fertilizers like ammonium nitrate and others.
North America is expected to have a significant nitric acid market share worldwide, attributed to the region's rapid development and high disposable income. Growing demand for lighter, more fuel-efficient vehicles and increased new construction and renovation activities are driving market expansion.
Source: DataM Intelligence Analysis (2022)
Competitive Landscape
The global nitric acid market is fragmented, and the global players are competing intensely with local and regional players and private labels. Some of the key players operating in the global market are Nutrien, Yara, BASF is investing in product innovation. LSB Industries inked a new long-term nitric acid supply deal with a customer in October 2020, which will see the firm deliver between 70 to 100 kilotons of nitric acid per year, boosting the company's nitric acid business. Joint ventures and capacity expansions are the key strategic initiatives implemented by the companies. Major players that are operating in the industry are investing in product innovation, capacity improvement, mergers, and competitive acquisition edge in the global market. For instance, in 2018, Trammo Inc. acquired Agrium" s North Bend, HNO3 production and distribution facility. The company specializes in the manufacturing and distribution of nitrogen–based industrial and agricultural products.
COVID-19 Impact: Negative impact on the global nitric acid market
The coronavirus pandemic had a significant impact on several end-use industries, causing a temporary halt in manufacturing and trade actions. The pandemic has also contributed to the economy's downturn as a result of decreased demand and production, which has disrupted supply and demand. The global trade ban had a significant influence on trading activities, resulting in a further decline in raw material availability and an increase in the price of finished goods. The temporary shutdown of end-use industry manufacturing units, such as automobiles, resulted in lower demand for HNO3. The market's overall growth was hampered by this decreased demand. However, due to the growing use of plastic in the medical industry, the market is likely to gradually stabilise. The rising demand for PPE kits has resulted in increased plastic manufacturing, which is propelling the nitric acid market forward.
Why Purchase the Report?
- Understand the current market scenario and viability of global nitric acid market over the forecast period
- Visualize the composition of the global nitric acid market in terms of concentration, application and end-use industry identify major players, growth potential, and market strategies
- Identify the key regulations prevailing in the market and understand their impact on the market over the forecast period
- Understand the key business factors such as market competition, product pricing, new product developments, and patent filings pertaining in the market
What we offer?
- PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study
- Excel data sheet with valuable data points of the global nitric acid market – Regional and Country level segmentation
- Product mapping in excel for the key products of all major market players
- Market share analysis covering business revenues ($) and revenue share (%) of key market players
The global nitric acid market report would provide access to approximately 45 market data tables, 45 figures and 180 pages
Target Audience
- Agrochemical Companies
- Farming Communities
- Industry Investors
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