Market Overview:
Global Nitric Acid Market size is expected to grow from USD 29.8 billion in 2022 to USD 36.31 billion by 2030, at a CAGR of 2.5% during the forecast period (2023-2030).
Introduction to Nitric Acid Market:
Nitric Acid (HN03), also known as aqua fortis, is a colorless solution that over time turns yellow as a result of nitrogen and water breaking down into oxides. Aqua fortis is another name for nitric acid (HN03). The very caustic substance is essential for the production of other compounds, including ammonium nitrate, which is a key ingredient in fertilizer formulation. The manufacture of substances like nitrobenzene, adipic acid, and chloronitrobenzene is one of the molecule's other uses. Following that, these chemicals are used in numerous end-use industries, such as the building industry, the automotive business, and the plastics industry. HNO3 use has increased as a result of the developing automotive industry in emerging markets. This consumption is likely linked to population growth and rising consumer demand, which has a positive impact on the market's growth. Additionally, the market's growth is being supported by an increase in the demand for plastics in a range of applications, including those in the industrial and consumer sectors.
Major Key Players:
- DuPont (US)
- CF Industries Holdings Inc. (US)
- The Chemours Company (US)
- LSB Industries, Inc. (US)
- Koch Fertilizer, LLC (US)
- PotashCorp (Canada)
- Nutrien (Canada)
- Yara International ASA (Norway)
- EuroChem Group AG (Switzerland)
- OCI Nitrogen (Netherlands)
- CF Fertilisers UK Ltd. (United Kingdom)
- Group DF (Ukraine)
- Uralchem Jsc (Russia)
- BASF (Germany)
- Sumitomo Chemical Co., Ltd. (Japan)
- Hanwha Corporation (South Korea)
- Fertiberia S.A. (Spain)
- National Chemical Group (China)
Market Dynamics and Factors Influencing Growth:
Drivers:
The nitric acid market is growing as a result of the product's rising demand in end-use industries. Due to its rising use in the synthesis of numerous agrochemicals, such as ammonium nitrate, urea ammonium nitrate, and calcium ammonium nitrate, nitric acid demand is expected to rise. The increased demand for fertilizers brought on by the increased necessity for high crop yields to reflect the expanding demand for crops is predicted to play a major role in boosting the nitric acid market during the anticipated period.
Growing construction activity boosts the market because Toluene di-isocyanate (TDI) and HNO3 are used as intermediates in the production of polyurethane foams, floor and wood coatings, and insulation goods. The development of consumer lifestyles, increased remodeling activity, and new infrastructure projects by the government are further factors boosting the demand for HNO3.
Restraints:
HN03 is emitted as a result of the manufacturing of chemicals, driving automobiles, and releasing contaminated effluent from agricultural lands. Breathing in environmental pollutants might make it difficult for the respiratory system to function. Government regulations aimed at limiting environmental harm and reducing the amount of waste created by industry are preventing the market from expanding. Growing concerns over the quantity of carbon dioxide that cars emit are further stifling the market.
Opportunities:
The use of adequate volumes of fertilizers in the optimum NPK ratio to improve soil health is associated with an increase in agricultural production. This has positively impacted the growth of the nitric acid market. Nitric acid will also benefit from the development of the textile, defense, construction, and packaging industries. As an illustration, consider the introduction of helpful programs and increased funding for the expansion of the textile industry by governments of developing nations. The increase in infrastructure spending by the government and private companies will be favorable for the building and construction industry. The positive expansion in these categories would support the growth and development of the global nitric acid market over the forecast period. Nitric acid is being employed as an oxidizer in rocket propellants, which is expanding the range of business opportunities available to industry participants on the global market.
Nitric Acid Market Segmentation:
Market Segmentation:
By Type
- Concentrated Nitric Acid
- Dilute Nitric Acid
By Application
- Fertilizers
- Nitrobenzene
- Adipic Acid
- Toluene Di-isocyanate
- Nitrochlorobenzene
- Other
By End-Use Industry
- Agriculture and Agrochemicals
- Chemicals and Petrochemicals
- Mining and Explosives
- Other
Type: The concentrated nitric acid segment in the nitric acid market is anticipated to exhibit strong growth due to its widespread use in various industrial applications, including the production of explosives, fertilizers, and chemicals. This growth can be attributed to the increasing demand for explosives in mining and construction activities, as well as the expanding chemical manufacturing sector.
Application: The nitric acid market's anticipated growth in the fertilizers segment can be attributed to its crucial role in the production of nitrogen-based fertilizers like ammonium nitrate and urea. Nitric acid is utilized as a primary raw material for these fertilizers, where it reacts with ammonia to form ammonium nitrate and is also employed in the production of nitrophosphate fertilizers.
End-Use Industry: The chemicals and petrochemicals segment is anticipated to exhibit significant growth in the end-use industry. This growth can be attributed to the crucial role nitric acid plays in various chemical processes, including the production of fertilizers, explosives, and specialty chemicals. Additionally, in the petrochemical industry, nitric acid is used for purifying and processing petroleum products. As these sectors continue to expand and innovate, the demand for nitric acid in chemicals and petrochemicals is expected to remain robust.
Key Industry Developments in the Nitric Acid Market
- In January 2023, Grupa Azoty SA (Tarnów, Poland) launched a new facility for the production of concentrated nitric acid with a design output of 40,000 metric tons per year (m.t./yr), doubling its existing capacity. This is a second production line for above 98 percent concentrated nitric acid now operating in Tarnów. It has brought the Tarnów plant’s total annual capacity for that product to 80,000 tons.
- In January 2023, Dorogobuzh launched a new 135-ktpa UKL nitric acid unit at its production facility in the Smolensk region. Acron Engineering Research and Design Centre is the general designer of this project, which cost USD17 million.
