[Research Report] The ammonium nitrate market size was valued at US$ 21.77 billion in 2022 and is projected to reach US$ 30.40 billion by 2030; it is anticipated to record a CAGR of 4.3% from 2022 to 2030.
Ammonium nitrate is produced by a chemical reaction of nitric acid and ammonia. It is used predominantly in the mining and agriculture sectors. It is available in solid (granules & prills) and liquid form. Ammonium nitrate's ease of production and cost-effectiveness have stimulated its demand in the past few decades. Many manufacturers also offer medical-grade ammonium nitrate, a significant ingredient for gas used in surgery and dentistry. However, utilization and trade of ammonium nitrate are regulated worldwide due to the potential for misuse. Growing construction activities and a high emphasis on enhancing crop yield are creating potential opportunities in the ammonium nitrate market.
GROWTH DRIVERS AND CHALLENGES
Growing mining operations and the adoption of ammonium nitrate in fertilizer production are the factors driving the ammonium nitrate market. Ammonium nitrate is a widely used chemical for the formulation of explosives and blasting agents. Utilization of high energy explosives results in efficient fragmentation of rocks. According to the World Mining Data 2022 report, the US is among the major mining countries in the world, accounting for 12.2% of the global share. In 2023, the US Department of Energy announced an investment of US$ 16 million for critical mineral supply chains in the US and to reduce dependency on competitors such as China. The investment aimed to support development projects of rare earth elements and critical minerals extraction in the US. The mineral and metal reserves in Asia Pacific are high, thus indicating broad potential for mining exploration activities. The lucrative mining exploration opportunities in several regions across the globe are expected to boost the demand for ammonium nitrate during the forecast period. The stringent government regulations pose a challenge to the ammonium nitrate market. The global mining industry operates in a complex web of national, regional, and local regulatory frameworks. Several countries have their own set of laws, regulations, and guidelines related to mining operations, utilization of ammonium nitrate, safety standards, environmental protection, and community engagement. Navigating these regulatory requirements can be time-consuming and resource-intensive for manufacturers, restraining the ammonium nitrates market growth.
REPORT SEGMENTATION AND SCOPE
The "Global Ammonium Nitrate Market Analysis to 2030" is a specialized and in-depth study with a significant focus on global market trends and growth opportunities. The report aims to provide an overview of the global market with detailed market segmentation on the basis of form, application, end use, and geography. The report provides key statistics on the consumption of ammonium nitrate worldwide, along with their demand in major regions and countries. In addition, the report provides a qualitative assessment of various factors affecting the ammonium nitrate market performance in major regions and countries. It also includes a comprehensive analysis of the leading players in the ammonium nitrate market and their key strategic developments. Analysis of the market dynamics is also included to help identify the key driving factors, market trends, and lucrative opportunities that would, in turn, aid in identifying the major revenue pockets.
The ecosystem analysis and Porter’s five forces analysis provide a 360-degree view of the global ammonium nitrates market, which helps understand the entire supply chain and various factors affecting the market growth.
The global ammonium nitrate market is segmented on the basis of form, application, and end use. Based on form, the ammonium nitrate market is segmented into solid and liquid. Based on application, the ammonium nitrate market is segmented into fertilizer, explosives, and others. Based on end use, the market is segmented into agriculture, mining, construction, pharmaceuticals, etc. Based on application, the fertilizer segment accounted for a significant share of the ammonium nitrate market in 2022. Ammonium nitrate is a major source of nitrogen, a vital nutrient for plant growth. Liquid fertilizer is used in direct application with spray atomization as a fast-release fertilizer. Ammonium nitrate and hot ammonium nitrate liquor are widely used in the mining industry. Ammonium nitrate is used to produce nitrous oxide, which has wide applications in pharmaceuticals and the semiconductor industry.
Ammonium Nitrate Market - by Application, 2022 and 2030
The report provides a detailed overview of the global ammonium nitrate market with respect to five major regions—North America, Europe, Asia-Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. Asia Pacific accounted for a significant share of the ammonium nitrate market in 2022. According to the Food and Agriculture Organization of the United Nations, Asia Pacific is the largest producer of agricultural commodities, wherein crop production represents 60% of total agricultural production value. Further, Asia Pacific is a significant contributor to global grain production. Fertilizers are a primary ingredient required for boosting crop yield, thereby aiding in meeting the rising food demand. Asia Pacific marks the presence of ten major surface mining projects, namely, Green Mine (China), Sangatta Mine (Indonesia), Heidaigou Mine (China), Oyu Tolgoi Copper-Gold Mine (Mongolia), Gevra OC Mine (India), Letpadaung Copper Mine (Myanmar), Li Mine (Thailand), FTB Project (Thailand), and Pasir Mine (Indonesia). Thus, the prevalence of agriculture and mining sectors in the region is projected to drive the ammonium nitrate market. North America marks the presence of a strong mining industry coupled with the presence of several associations, namely, The American Exploration & Mining Association and the International Society of Explosives Engineers, among others. Therefore, North America is also expected to offer lucrative opportunities for ammonium nitrate manufacturers during the forecast period.
INDUSTRY DEVELOPMENTS AND FUTURE OPPORTUNITIES
The report provides a detailed overview of the global ammonium nitrates market with respect to five major regions—North America, Europe, Asia-Pacific (APAC), the Middle East & Africa (MEA), and South & Central America.
In August 2023, Azoty Group signed an agreement with ThyssenKrupp Uhde, for the supply of process equipment required for the production of concentrated ammonium nitrate. The construction of concentrated ammonium nitrate in Tarnów, Poland, is expected to be completed by 2025.
In December 2021, Deepak Fertilizers & Petrochemicals Corporation launched ~US$ 264.5 million ammonium nitrate plant in India, scheduled for commissioning by 2024.
IMPACT OF COVID-19 PANDEMIC/IMPACT OF GEOPOLITICAL SCENARIO/IMPACT OF RECESSION
Agriculture and mining sectors have been the significant consumers of ammonium nitrate. In 2020, these sectors had to slow down their operations due to disruptions in the value chain caused by government regulations and trade restrictions. Moreover, lockdowns imposed by different countries hampered the inventory levels of many manufacturers in the same year. The shortage of workforce resulted in a reduction in ammonium nitrate production and distribution operations. Additionally, government restrictions and other COVID-19-related precautions reduced the operational capacities of stakeholders in the ammonium nitrate value chain.
In late 2021, the global ammonium nitrate market began recovering from the losses incurred in 2020, with the revival of mining operations, construction activities, and pharmaceutical production. Expansion in production capacities in the chemicals & materials industry post-COVID-19 pandemic in many regions, such as Asia Pacific and North America, is expected to create lucrative opportunities for the ammonium nitrate market in the coming years.
COMPETITIVE LANDSCAPE AND KEY COMPANIES
CSBP Limited, TradeMark Nitrogen, CF Industries Holdings Inc, Orica Limited, Yara International ASA, Uralchem, Acron Group, Enaex SA, Maxam Corp Holding SL, Sasol Limited are a few of the key players operating in the ammonium nitrate market.
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
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to segments covered.
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
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3.CF Industries Holdings Inc
5.Yara International ASA
9.Maxam Corp Holding SL
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- Data Analysis:
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