Key Market Overview:
Ammonium Nitrate Market size was valued at USD 18.58 Billion in 2022, registering a CAGR of 6.2% during the forecast period (2023-2030), and the market is projected to be worth USD 32.28 Billion by 2030.
Ammonium nitrate (NH4NO3) is a chemical compound made up of ammonium ions (NH4+) and nitrate ions (NO3-). It is a white crystalline solid that is commonly used in the production of fertilizers, as well as in the manufacture of explosives. One of the major factors driving the growth of the ammonium nitrate market is the increasing global population, which has led to an increase in demand for food. Ammonium nitrate is widely used as a fertilizer, as it provides essential nutrients to plants and helps to increase crop yields.
Additionally, the market for ammonium nitrate is highly consolidated, with a few major players accounting for a significant portion of the global market share. Some of the key players operating in the market include Yara International ASA, CF Industries Holdings, Inc., EuroChem Group AG, and Orica Limited. These companies are focusing on product innovation and expanding their production capacities to meet the growing demand for ammonium nitrate.
The increasing global population and rising demand for food are driving the demand for ammonium nitrate owing to the fact that ammonium nitrate is widely used as a fertilizer. In addition, ammonium nitrate is a key ingredient in explosives used in the mining industry, particularly in the blasting and fragmentation of rock. The growth of the mining industry is propelling the ammonium nitrate market. For instance, Yara International ASA offers UltrAN 70 a type of high-quality ammonium nitrate porous prills that have excellent oil absorption and retention properties, making them suitable for the production of ANFO (Ammonium Nitrate Fuel Oil). The high porosity and low density of UltrAN 70 make it more sensitive, particularly in drill holes with a diameter of less than 100 mm.
The increasing concerns over the use of ammonium nitrate in terrorist activities have led to the implementation of stricter regulations on the storage, transportation, and use of the product. This has added to the existing health and safety concerns associated with ammonium nitrate, creating further restraints on the market.
With increasing concerns over the environmental impact of traditional ammonium nitrate fertilizers, there is an opportunity for the development of “green” ammonium nitrate products that have reduced environmental impacts. This could involve the use of renewable energy in the production process or the development of ammonium nitrate products that are more efficient and have reduced greenhouse gas emissions.
Ammonium Nitrate Report Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||32.28 billion|
|CAGR (2023-2030)||6.3 %|
|By Form||Prills, Grains, Granules, and Crystals|
|By Application||Explosives, Fertilizers, Herbicides, Insecticides, Nitrous Oxide Production, Food Preservation, Others|
|By End Use||Agriculture, Mining, Construction, Pharmaceutical, Food, Defense, and Others|
|By Geography||North America, Europe, Asia Pacific, Latin America, and Middle East & Africa|
|Key Players||Euro chem Group, Orica Limited, CF Industries Holdings Inc., Yara International ASA, Neochim PLC, San Corporation, Austin Powder Company, Merck KGaA, Deepak Fertilizers, Borealis AG|
Based on the form segment, the market is categorized into prills, grains, granules, and crystals. The prills segment held the highest market share, due to its extensive use as a fertilizer. Prills are commonly used as a fertilizer in both agricultural and horticultural applications. They are preferred by farmers and growers due to their ease of application and handling, as well as their ability to provide a quick release of nitrogen to plants. Additionally, prills can be blended with other fertilizers to create custom nutrient formulations based on the specific needs of different crops and soil types. Hence, increasing the demand for prills in the agriculture sector.
However, the granules segment is expected to witness a significant growth rate in terms of fastest CAGR over the forecast period due to their higher nutrient content and slower release rate, which makes them more suitable for use in modern farming practices. Additionally, the use of granules is gaining popularity due to their ease of application and handling compared to other forms of ammonium nitrate.
Based on the application segment, the market is divided into explosives, fertilizers, herbicides, insecticides, nitrous oxide production, food preservation, and others. The fertilizer segment dominated the ammonium nitrate market in terms of revenue in 2022. This is due to the increasing global demand for agricultural products, rising food consumption, and the need to increase crop yields and productivity.
Moreover, the explosives segment is anticipated to witness significant growth in the ammonium nitrate market over the forecast period. This is attributed to the fact that ammonium nitrate finds a wide range of applications as an explosive in the construction and mining industry. For instance, in the mining industry, ammonium nitrate is used as a blasting agent to break up rock formations and extract minerals from the earth. Ammonium nitrate is mixed with fuel oil, typically diesel, to create an explosive mixture known as ANFO (ammonium nitrate/fuel oil). ANFO is a cost-effective, easy-to-use explosive that is widely used in the mining industry.
By End Use
On the basis of end-user industries, the market is segmented into agriculture, mining, construction, pharmaceutical, food, defense, and others. The agriculture industry held the largest share of the ammonium nitrate market in terms of value. This is attributed to the growing demand for agricultural products, coupled with increasing global food consumption which has created a need to enhance crop yields and improve productivity.
The construction industry is expected to show a steady growth rate in terms of CAGR over the forecast period due to the use of ammonium nitrate as a component in the manufacture of explosive compounds used in demolition and excavation purposes. The construction industry is a key driver of economic growth in many countries, and as such, the demand for explosives used in construction activities is expected to increase. This, in turn, could drive the growth of the ammonium nitrate market in the construction segment.
Based on the region, the ammonium nitrate market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. Asia-Pacific dominated the market with the highest market share in 2022 owing to increasing demand for agricultural products, growing construction and mining industries, and the need for more sustainable agricultural practices. Additionally, the rising population in the region is also accelerated the ammonium nitrate market. Furthermore, Europe is expected to witness significant growth over the forecast period due to the presence of major agricultural markets, such as France and Germany. The use of ammonium nitrate as a fertilizer is a major application of the product, particularly in these countries. Additionally, the region has a significant mining and construction industry, which also drives demand for ammonium nitrate.
Ammonium Nitrate Market Competitive Landscape:
The ammonium nitrate market is highly competitive comprising numerous players operating in the industry. The players are focusing on strategic initiatives, such as mergers and acquisitions, partnerships, collaborations, new product launches, and capacity expansions to strengthen their market position and expand their global presence.
The following are the major key players operating in the ammonium nitrate market:
- Euro chem Group
- Orica Limited
- CF Industries Holdings Inc.
- Yara International ASA
- Neochim PLC
- San Corporation
- Austin Powder Company
- Merck KGaA
- Deepak Fertilizers
- Borealis AG
- In May 2022, Orica has developed a new range of bulk explosives called Fortis Protect, which is designed to minimize the risk of nitrate leaching that can result from blasting operations. This development is considered a success by Orica, as it addresses an important environmental concern associated with the use of bulk explosives.
- Incitec Pivot Limited (IPL) has entered into a joint venture agreement with Modern Chemicals Company (MCC) to collaborate on the development of a Technical Ammonium Nitrate (TAN) Plant in the Middle East.
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