The ammonium nitrate market is predicted to reach USD 6.49 billion in 2024 and USD 7.86 billion by 2029, growing at a CAGR of 3.9% during the forecast period.
The increasing demand for ammonium nitrate by the agriculture industry and the rapid increase in the need for ammonium nitrate fuel oil are the essential features that boost the global ammonium market growth in the upcoming years. Ammonium nitrate is a chemical compound and is derived from NH4NO3. It comprises ammonium and nitrate ions. Ammonium nitrate is defined as a white crystalline solid that is highly soluble in water and hygroscopic as a solid. Therefore, it does not form any hydrates and is significantly used in the agricultural sector. These are some of the characteristics that drive the global ammonium nitrate market growth during the forecast period.
In recent years, the rising global population and growing concerns about food safety have uplifted the widespread adoption of several inorganic fertilizers across the agriculture landscape. Ammonium nitrate is a chemical compound produced from ammonium and nitric acid. It decomposes above 210 degrees Celsius, in other words, 410 degrees Fahrenheit. It is especially soluble in water and alcohol. Ammonium nitrate is widely utilized in explosives, antibiotics, fertilizers, and yeast due to these features. Furthermore, it is hygroscopic, which absorbs moisture from the air and makes it suitable for preserving food. In addition, the usage of ammonium nitrate in agricultural fields and gardens strengthens plant growth by offering an overall supply of nitrogen which helps in improving fruit & seed production and provides better yield.
The reduction in the overall arable land per person worldwide will further build up the usage of fertilizers in the market which steadily fuels the global ammonium market share. On the other hand, the increasing growth in the agricultural sector from developing nations and the rising mining and construction sector are also responsible for the considerable growth of the global ammonium market. In addition, the focus of developing countries and the advent of self-reliance to incubate and integrate the domestic resources sector is anticipated to fuel the product demand from several end-user industries. Moreover, the rapid infrastructure development in emerging economies also significantly boosts the ammonium nitrate market growth. Furthermore, in the past few years, various terrorist acts indulged the use of ammonium nitrate and made the government revamp rules and regulations regarding the usage of the product.
Moreover, the increasing demand for high-quality crops is steadily escalating the need for fertilizers in recent years. Therefore, manufacturers were constructing a new ammonium nitrate plant to satisfy the rising demand. Thus, fuels the global ammonium market growth during the forecast period.
Ammonium nitrate is proven to be safe and accessible for fertilizer. But still, in various emerging economies, including India and the United States, ammonium nitrate is restricted to consumers owing to the manufacture of fertilizer bombs using ammonium nitrate is projected to hamper the global ammonium nitrate market growth. In addition, fluctuations in the prices of ammonium and nitric acid may further hinder the market growth. Moreover, using high concentrations of ammonium nitrate may cause salts to form soil. On the other hand, inhalation of high concentrations of ammonium nitrate may irritate the respiratory tract and also experiences coughing, sore throat, and shortness of breath.
Furthermore, when combined with combustible material, ammonium nitrate increases the burning stage of the material and forms toxic acids. When ammonium nitrate is inhaled in high concentrations, it may cause dizziness, vomiting, abdominal pain, headache, diarrhea, weakness, and suffocation. Apart from this, the most crucial restraint is the high price of nitrogen per pound, which further slows down the global ammonium nitrate market growth during the forecast period.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2022-2028 |
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Base Year |
2022 |
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Forecast Period |
2023-2028 |
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CAGR |
3.9% |
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Segments Covered |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
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Regions Covered |
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Market Leaders Profiled |
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High-density ammonium nitrate
Low-density ammonium nitrate
Based on the product, high-density ammonium nitrate held the most prominent global ammonium market share, almost 50% of the overall market share. It is due to their increasing utilization in the agricultural industry as a fertilizer. High-density ammonium nitrate possesses various characteristics. It can be easily converted into a melting state and can be broadly used to produce emulsion explosives and water gel. Therefore, high-density ammonium nitrate boosts market growth in the upcoming years.
Granular
Powder
Granular form plays the dominant role in the global ammonium nitrate market owing to its increasing demand from the manufacturing sectors as it is being used as a blasting agent and possesses heat absorption characteristics. Therefore, it is anticipated to have the largest global ammonium market share during 2022 - 2027.
Agriculture
Civil construction
Mining & Quarrying
Others
The agriculture sector predominantly secures the highest global ammonium market share owing to the increasing utilization of fertilizers. On the other hand, the civil construction end-user tends to have the maximum CAGR since it is used as an explosive for several applications, including tunneling, underground development, excavation for railways, delay detonators, etc. Therefore, this sector further fuels the global ammonium nitrate market growth in the near future.
The Ammonium Nitrate Market Report includes the segmentation of Regions:
The Asia Pacific region held the largest share in the global allantoin market owing to the increasing agriculture sector and construction sector. Moreover, India and China are the largest producers of agricultural products, which further drives the market growth.
North America is anticipated to have the highest global ammonium nitrate volume owing to the rapid increase in the agriculture sector, mainly in the U.S.
The presence of manufacturers from the agriculture sector in the U.K. and Germany led the global ammonium nitrate market to have significant growth in the European region.
Middle East & Africa is witnessed to have steady growth in the global ammonium nitrate market.
The COVID-19 virus was discovered in 2020, which has made several people’s lives miserable. On the other hand, industries were demanded to close down due to rapidly spreading the virus across the globe. To curb the virus, the government has imposed a lockdown that has devastated many families and industries. The production of ammonium nitrate is decreased at a certain level owing to the sectors under lockdown and lack of workforce. The global ammonium nitrate market is estimated to increase the demand for ammonium nitrate since the lockdown has been lifted across the globe, and everything seems to be expected.
Croda International announced the new emulsifiers for the low-quality ammonium nitrate explosives. It further added that emulsion stability is necessary for the explosives sector, and lowered strength often results in fewer alternative materials including recycled oil and ammonium nitrate.
Enaex declares that ammonium nitrate is a high-quality blasting agent which is specially manufactured for explosive blends. Moreover, it is of high capacity for the absorption of oil.
The companies covered in the report include:
CF Industries
Croda International
Elementis
Euro chem
Enaex
Johnson Matthey
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