by The global ammonium nitrate market enjoys widespread usage in agriculture as a fertilizer to increase crop yield. Ammonium nitrate is one of the most effective and balanced nitrogen fertilizers that helps improve the quality and quantity of various crops including grains, fruits, and vegetables. It provides readily available nitrogen to plants for healthy growth. The compound is soluble in water and thus easily absorbed by plant roots. With the rising global population and declining arable land, agricultural production needs to increase substantially to meet food demand, driving greater consumption of ammonium nitrate.
The Global ammonium nitrate market is estimated to be valued at US$ 25.86 Bn in 2024 and is expected to exhibit a CAGR of 4.4% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the ammonium nitrate market are Orica, Enaex, Austin Powder Company, Incitec Pivot, CSBP, Yara International, San Corporation, Fertiberia, Neochim, URALCHEM Holding, Dyno Nobel, Vijay Gas Industry, Solar Industries, Maxam, AEL Mining Services, EPC Groupe, Gulf Oil Corporation, IDEAL Industrial Explosives, Sichuan Meifeng Chemical Industry, and Jiaocheng Jinxin Chemical.
Rising needs of infrastructure development as well as mining and quarrying activities across major world economies have opened new growth avenues for Ammonium Nitrate Market Value Key opportunities lying for ammonium nitrate manufacturers include developing efficient application technologies and introducing product innovations to improve the effectiveness and enhance yield for farmers. Global expansion strategy is also being adopted by major manufacturers through collaborations, mergers, and acquisitions to strengthen their geographic footprint.
Market drivers
The demand for ammonium nitrate is anticipated to be driven extensively by the growth in the infrastructure and construction industries. Mega infrastructure projects planned across many developing nations will require massive use of ammonium nitrate in blasting and mining applications over the forecast period. The rising global energy needs will also fuel expansion of oil and gas exploration activities utilizing ammonium nitrate explosive emulsions.
PEST Analysis
Political: Ammonium nitrate market is regulated by various norms and regulations set by governments across the globe for its production, storage, transportation and usage. Regulations regarding the permitted quantity, safety standards are governed by environmental organizations in various regions which impact the market.
Economic: The market is highly dependent on economic growth of industries like construction, mining where ammonium nitrate is used as explosive. Lower economic activities in these end-use sectors directly impacts the demand. Fertilizer industry forms a major application area and fluctuations in commodity prices influence the fertilizer production and hence ammonium nitrate consumption.
Social: Growing population and rapid urbanization are driving the demand for infrastructure and real estate development which boosts the mining and construction activities requiring ammonium nitrate. However, safety concerns arise due to its explosive nature which the producers address through development of safer production and handling practices.
Technological: Producers focus on developing safer and more stable formulations of ammonium nitrate using techniques like coating, addition of other compounds without compromising on its explosive strength. Emergence of applications in niche areas like melting of snow also spurs innovations. Advancements in mining methods help optimize ammonium nitrate usage.
The Asia Pacific region holds the major share of the global Ammonium Nitrate Market Regional Analysis in terms of value owing to large fertilizer production and heavy presence of mining industry especially in China and India. Being the most populated region with rising infrastructural development, the demand remains concentrated in Asia Pacific.
Europe stands as the second fastest growing regional market for ammonium nitrate driven by recovering construction sector in Western European nations and flourishing mining activities across Central and Eastern European countries. Government emphasis on agricultural production and national food security in European countries also support fertilizer consumption and in turn ammonium nitrate demand.
About Author - Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc. LinkedIn Profile
