Nitric Acid Market Analysis

Global Nitric Acid Market Overview

The Nitric Acid Market Size was valued at USD 31.77 Billion in 2023. The Nitric Acid Market is projected to grow from USD 32.94 Billion in 2024 to USD 44.09 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 3.71% during the forecast period (2024 - 2032). Nitric acid (HNO3) is a strong mineral acid with the chemical formula HNO3. It is also commonly known as aqua fortis. In its pure form, nitric acid is a colorless, highly corrosive liquid with a sharp and pungent odor. It is a powerful oxidizing agent and can react violently with certain substances. Nitric acid is a vital chemical in various industrial processes, laboratories, and manufacturing applications.

Growing demand for fertilizers is driving the Nitric Acid Market growth. Nitric acid is a vital component in the production of ammonium nitrate and other nitrogen-based fertilizers, which are essential for enhancing agricultural productivity and meeting the rising food demands of a growing global population. As farmers seek to improve crop yields and boost agricultural output, there is an increasing reliance on nitrogen-based fertilizers that require nitric acid in their manufacturing process. This escalating demand for fertilizers, especially in emerging economies with expanding agricultural sectors, has led to a parallel surge in the consumption of nitric acid worldwide.

Nitric Acid Market Trends

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  DEMAND FOR EXPLOSIVES IN MILITARY AND DEFENSE INDUSTRIES

  
  

Nitric acid is a crucial raw material in the production of various explosives used in defense applications, including ammunition, missiles, propellants, and military-grade pyrotechnics. In an increasingly volatile global geopolitical landscape, countries worldwide are focusing on strengthening their defense capabilities. This has led to a surge in defense spending and modernization efforts, resulting in higher consumption of explosives and, in turn, driving the demand for nitric acid.

The military requires a constant supply of explosives for various operations, ranging from training exercises to combat scenarios. Additionally, explosives are vital for counterterrorism measures and homeland security efforts, creating a consistent demand for nitric acid. Geopolitical tensions and the competitive arms race among nations have further fueled the demand for explosives and military-grade pyrotechnics. As countries seek to maintain strategic advantages and deter potential threats, the need for explosives and, subsequently, nitric acid continues to grow.

Advancements in weapons technology often require specialized and high-performance explosives. Nitric acid plays a critical role in formulating these advanced explosives, meeting the demands of modern warfare and defense applications. Military forces engage in extensive training exercises and testing to ensure operational readiness and validate weapon systems' effectiveness. These activities require a substantial supply of explosives, contributing to the demand for nitric acid.

The defense industry's growth and global supply chains have increased the requirement for nitric acid in different regions. Nitric acid manufacturers are leveraging the opportunity to serve defense contractors and governments worldwide.

The production of explosives for military and defense applications demands adherence to strict quality and safety standards. Nitric acid's reliability and purity are crucial factors in meeting these stringent requirements. Ongoing research and development efforts in the defense sector led to the creation of new explosives and pyrotechnics. Nitric acid is an essential ingredient in these innovative formulations, stimulating market growth.

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  INCREASING CONSUMPTION IN CHEMICALS INCLUDING TOLUENE DI-ISOCYANATE (TDI) AND ADIPIC ACID

  
  

Nitric acid serves as a vital raw material in the production of both TDI and adipic acid, which find extensive applications in various industries. TDI is a key component in the production of flexible polyurethane foams, which are widely used in industries such as bedding, furniture, automotive interiors, and insulation. As urbanization and consumer demand for comfortable and versatile foam products increase, there is a rising need for TDI and, consequently, nitric acid.

For instance, in April 2022, according to data published by the International Energy Agency, a Paris-based autonomous intergovernmental organization, the global demand for adipic acid is expected to growth 3-5% globally. Its Industrial applications include production of Nylon 66, polyurethanes, plasticizers, and polyethylene terephthalate. Additionally, the United States is the leading producer (net exporter) and consumer of the compound.

Adipic acid is a critical building block in the production of nylon, a synthetic fiber with diverse applications in textiles, carpets, automotive components, and consumer goods. As the textile and automotive industries expand globally, the demand for nylon and adipic acid grows, creating a corresponding demand for nitric acid. The automotive and textile industries are experiencing significant growth, particularly in emerging economies. As the standard of living rises and disposable incomes increase, there is a higher demand for automobiles, textiles, and related products, subsequently driving the demand for nitric acid-based chemicals.

Nitric acid is a crucial ingredient in the production of various pharmaceuticals and specialized chemicals used in industries such as electronics, plastics, and coatings. The expansion of these sectors contributes to the growing consumption of nitric acid. Nitric acid plays a role in the production of materials used in construction, such as specialty coatings and plastics. With rapid infrastructure development and urbanization in many regions, the demand for construction-related products is on the rise, positively impacting the Nitric Acid Market.

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  GROWTH OF END USE INDUSTRY

  
  

Nitric acid is a crucial chemical with diverse applications across various sectors, and the expansion of these industries directly influences the demand for nitric acid-based products. Several key industries heavily rely on nitric acid, presenting numerous growth opportunities for manufacturers and suppliers in the global market. The agriculture sector is one of the largest consumers of nitric acid, primarily in the form of ammonium nitrate and urea. As the global population continues to rise, there is an increasing need to enhance agricultural productivity to meet the growing demand for food. Nitric acid-based fertilizers play a vital role in providing essential nutrients to crops, improving yields, and maximizing agricultural output. The ongoing push for sustainable agriculture practices and precision farming also drives the demand for efficient and environment-friendly fertilizers, presenting opportunities for innovative nitric acid formulations.

The military and defense industries require a constant supply of explosives for various applications, including ammunition, missiles, propellants, and pyrotechnics. As countries invest in defense modernization and homeland security, the demand for explosives and, consequently, nitric acid is expected to grow. Nitric acid manufacturers can seize opportunities by catering to the defense sector's stringent quality and safety standards.

Nitric Acid Market Segment Insights

Nitric Acid Market by Type Insights

The Nitric Acid Market has been categorized based on type into Dilute Nitric Acid and Concentrated Nitric Acid. In 2022, the Dilute Nitric Acid segment drove the Nitric Acid Market by holding a substantial market share of 77.6% with a market value of USD 30.562 Billion. It is projected to register a CAGR of 3.71% during the projected timeframe.

Nitric Acid Market by Application Insights

Based on application, the nitric acid market has been segmented into Fertilizers, Nitrobenzene, Toluene Di-Isocyanate, Adipic Acid, Nitro Chlorobenzene and Others. In 2022, the Fertilizers segment drove the Nitric Acid Market by holding a substantial market share of 76.0% with a market value of USD 23,215.2 million. It is projected to register a CAGR of 3.75% during the projected timeframe.

Nitric Acid Market by End Use Insights

Based on end use, the Nitric Acid Market has been segmented into Agrochemicals, explosives, chemical and others. In 2022, the agrochemicals segment drove the Nitric Acid Market by holding a substantial market share of 76.5% with a market value of USD 23,384.4 million. It is projected to register a CAGR of 3.79 % during the projected timeframe.

Nitric Acid Market Regional Insights

By region, the global market is segmented into North America, Europe, Latin America, Africa, and Rest of the World. Among these, the rest of the world emerged as the leading and the fastest-growing segment with a CAGR of 3.88%. The segment is projected to reach a value of USD 15,463.8 million by the end of the forecast period. The North America region accounted for the second-largest growing segment with a healthy CAGR of 3.35 %.

Nitric Acid Key Market Players & Competitive Insights

The nitric acid market is characterized by the presence of many regional and local vendors. The market is highly competitive, with all the players continually competing to gain a larger market share. Increasing environmental concerns and government support and infrastructure development are some of the pivotal factors that drive the market. The vendors compete in terms of cost, product quality, reliability, and aftermarket services. It is crucial for vendors to provide cost-effective and efficient products to survive and succeed in a competitive market environment.

The growth of the vendors is dependent on market conditions, government support, and industrial development. Thus, the vendors should focus on expanding their presence and improving their services. BASF SE, Yara International ASA, Grupa Azoty S.A., OCI Nitrogen, INEOS Enterprises, Fertiberia S.A., Duslo, a.s, SKW Stickstoffwerke Piesteritz GmbH, Chemische Fabrik Kalk GmbH, EuroChem are some of the key players operating in the global market. These companies compete in terms of availability, quality, price, and technology. They consider product development as their key strategy in the nitric acid market. Additionally, the companies are following both organic and inorganic strategies to strengthen their presence in the global market. They are focusing on product development and expansion to expand their product portfolio and enhance their customer relationship. Additionally, companies are also investing in the development of new and advanced systems with more safety measurements.

BASF SE: is one of the largest chemical producers in the world. The company operates it business through five segments—chemicals, performance products, functional materials and solutions, agricultural solutions, and others. However, as of January 2019, the company has divided its business segments into six divisions, namely, materials, industrial solutions, chemicals, surface technologies, agricultural solutions, and nutrition & care. The company operates through 12 divisions that manage 54 global and regional business units, BASF marks its presence in 80 countries and operates through six Verbund sites, which interlink the working of production plants, energy flows, and infrastructure in different regions. BASF primarily operates in Europe and has an active presence in the Americas, Asia-Pacific, and the Middle East & Africa.

Yara International ASA: is a multinational agricultural solutions provider committed to sustainable crop nutrition and food production. With headquarters in Oslo, Norway, the company operates in over 60 countries, serving farmers, distributors, and industrial customers worldwide. Yara's core focus lies in the production and distribution of nitrogen-based fertilizers, such as ammonia, urea, and nitrate fertilizers, which play a crucial role in enhancing crop productivity and ensuring food security. The company also provides a wide range of crop-specific fertilizers, micronutrients, and digital farming solutions tailored to optimize yields and improve the quality of various agricultural products.

Key Companies in the Nitric Acid Market includes

• BASF SE,


• Yara International ASA,


• Grupa Azoty S.A.,


• OCI Nitrogen,


• INEOS Enterprises,


• Fertiberia S.A.,


• Duslo, a.s ,


• SKW Stickstoffwerke Piesteritz GmbH,


• Chemische Fabrik Kalk GmbH,


• EuroChem

Nitric Acid Industry Developments

Feb 2023: BASF SE has announced plans to invest 1.2 billion Euro in nitric acid production at its Ludwigshafen site in Germany. The investment will be used to build a new nitric acid plant and to expand an existing plant.

Jan-2023: Grupa Azoty has launched a new facility to produce concentrated nitric acid with a design output of 40,000 tonnes per year, doubling its existing capacity. This is a second production line for above 98 per cent concentrated nitric acid now operating in Tarnów..

Jan-2022: Yara International ASA invest 1 billion Euro in nitric acid production at its Porsgrunn site in Norway.

Nitric Acid Segmentation

Nitric Acid Type Outlook

• Dilute Nitric Acid


• Concentrated Nitric Acid

Nitric Acid Application Outlook

• Fertilizers


• Nitrobenzene


• Toluene Di-Isocyanate


• Adipic Acid


• Nitro Chlorobenzene


• Others

Nitric Acid End Use Industry Outlook

• Agrochemicals


• Explosives


• Chemical


• Others

Nitric Acid Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Middle East & Africa
  
  
  
  • Saudi Arabia
  
  
  • UAE
  
  
  • South Africa
  
  
  • Rest of Middle East & Africa
  
  
  
  


• Latin America
  
  
  
  • Brazil
  
  
  • Argentina
  
  
  • Rest of Latin America