by Ammonium nitrate is a highly explosive chemical compound formed by combining ammonium and nitric acid. It is commonly used as a fertilizer owing to its high nitrogen content and has been widely used in agriculture for many years. It has several agronomic and economic advantages over other nitrogen fertilizers. Ammonium nitrate improves soil quality, enhances crop growth and yield, and reduces fertilizer requirements. It dissolves readily in water, enabling uniform distribution within the soil. Rising population and increasing demand for food have amplified the usage of ammonium nitrate as fertilizer globally.
The global ammonium nitrate market is estimated to be valued at US$ 21.18 Mn in 2024 and is expected to exhibit a CAGR of 4.5% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the ammonium nitrate market are BASF SE, Clariant International Limited, DIC Corporation, Huntsman International LLC, Tronox, Inc, Rockwood Holdings, Inc., Lanxess AG, Atlanta AG, Ferro Corporation. And Merck.
The Ammonium Nitrate Market Trends is expected to witness lucrative growth opportunities owing to rising usage of ammonium nitrate in construction industry applications such as explosive for mining & quarrying. Moreover, increasing demand for nitrogen-rich fertilizers from the agricultural industry will further propel the market growth over the forecast period.
The global ammonium nitrate market is estimated to expand rapidly over the next few years led by rising demand from emerging economies of Asia Pacific such as China and India. Major players are focusing on strategic expansion plans across regions to leverage growth opportunities.
Market Drivers
The construction industry has been a major end-user of ammonium nitrate market where it finds application as an explosive for mining, quarrying and tunneling activities. Rising infrastructure development projects across both developed and developing countries have accelerated the demand for ammonium nitrate substantially. According to the World Bank, the global infrastructure investment needs over the period 2016-2040 amounts to US$ 94 trillion. This rising investment in construction and infrastructure development is projected to drive the ammonium nitrate market growth over the forecast period.
PEST Analysis
Political: Ammonium nitrate is a regulated compound due to its use as an explosive by terrorists. Manufacturers and users have to comply with stringent regulations around its production, transportation, and storage.
Economic: The fertilizer industry is a major end-user of ammonium nitrate due to its importance as a nitrogen-rich fertilizer. Demand from this industry is dependent on global food production and consumption trends.
Social: There is increasing public scrutiny around the safety and security of ammonium nitrate production facilities given its prior misuse. Manufacturers have to focus on community engagement and safety protocols to address these societal concerns.
Technological: Manufacturers are investing in new production technologies to improve the efficiency and yield of ammonium nitrate synthesis from other basic chemical precursors. Some technologies also allow the co-production of other value-added fertilizer products.
Geographical concentration of market in terms of value
The ammonium nitrate market is highly concentrated in key farming regions across the world. Asia Pacific represents the largest market due to large agricultural economies like India and China which are major fertilizer consumers. North America and Western Europe also account for sizeable shares supported by developing demand from their agriculture industries.
Fastest growing region for the market
Latin America is projected to be the fastest growing regional market for ammonium nitrate over the forecast period. This growth will be driven by expanding crop cultivation and fertilizer usage in major countries like Brazil and Argentina as they look to increase food production. Government incentives for agriculture are also supporting the adoption of advanced fertilizers like ammonium nitrate in Latin America.
