Ammonium nitrate is an industrially important compound with a wide range of applications ranging from fertilizers to explosives. It is a highly concentrated nitrogen fertilizer used primarily in agriculture to improve yield capabilities in crops. Ammonium nitrate offers nitrogen to plants for healthy growth and possesses excellent solubility. It provides a steady release of nutrients and works well in a variety of soil conditions without any danger of quickly leaching away. The global ammonium nitrate market is estimated to be valued at US$ 21.18 Bn in 2024 and is expected to exhibit a CAGR of 4.5% over the forecast period of 2024 to 2030.
Key Takeaways
Key players operating in the ammonium nitrate market are BASF SE, Clariant International Limited, DIC Corporation, Huntsman International LLC, Tronox, Inc, Rockwood Holdings, Inc., Lanxess AG, Atlanta AG, Ferro Corporation. And Merck. Key players are focusing on expanding their production capacities and geographical footprint to cater to the growing demand for ammonium nitrate.
The demand for Global Ammonium Nitrate Market is expected to significantly rise owing to its widespread application as a nitrogen-rich fertilizer. Population growth and the rising need to boost agricultural productivity are fueling fertilizer consumption globally. Ammonium nitrate assists farmers in increasing crop yields per unit area.
Technological advancements are enabling manufacturers to improve the efficiency and stability of ammonium nitrate. Companies are engaged in R&D activities to develop methods for incorporating ammonium nitrate with other nutrients to provide balanced nutrition to crops. The use of stabilizers and inhibitors helps prevent ammonium nitrate from decomposing and delivers controlled nutrient release over an extended period.
Market Trends
Growing preference for crystalline variants - Crystalline variants of ammonium nitrate are gaining traction owing to their stability and uniform nitrogen content. They enable precision farming and deliver nutrients precisely as per the crop requirements.
Increasing demand from non-agriculture applications - Ammonium nitrate finds applications beyond fertilizers in construction, mining, and explosives. It is being increasingly used as an oxidizing agent in the manufacturing of ammonium nitrate fuel oil (ANFO) explosive mixtures. The rising infrastructure development is propelling the demand from non-agricultural sectors.
Market Opportunities
Application in hydroponics - Controlled-release ammonium nitrate variants are well-suited for hydroponics systems which do not use soil. Their stability makes them ideal for delivering nutrients to plants through nutrient solutions.
Rising organic farming - With the growth in organic and sustainable farming practices, there exists potential for developing organic fertilizers based on ammonium nitrate. Companies are exploring the opportunities for formulating organic nitrogen fertilizer products.
Impact of COVID-19 on Ammonium Nitrate Market
The COVID-19 pandemic has significantly impacted the growth of the ammonium nitrate market. In 2020, amid strict nationwide lockdowns, demand from major end-use industries such as mining and construction significantly declined. With projects halted and activities reduced, demand for ammonium nitrate notably reduced. Supply chain disruptions further aggravated the situation resulting in shortages.
However, as lockdowns eased in late 2020 and 2021, economic activities resumed gradually. Major governments announced stimulus packages to boost infrastructure development and revive growth. This benefited end-use industries and consequently increased demand for ammonium nitrate which is extensively used in mining and construction applications. While demand remains below pre-pandemic levels, it is recovering steadily.
Looking ahead, continued government support for infrastructure projects is expected to drive the mining and construction industries. This will propel ammonium nitrate demand. Meanwhile, manufacturers are focusing on expanding production capacities and capabilities to cater to rising demand. Sustainable and efficient production practices are being adopted to overcome supply challenges. Widespread vaccination programs will further aid complete recovery. While short-term impacts were substantial, long-term industry prospects appear positive with demand forecast to surpass pre-COVID levels by 2024.
Geographic Concentration of Ammonium Nitrate Market
In terms of value, North America accounted for the largest share of the global ammonium nitrate market in 2020. This was mainly attributed to extensive mining activities in countries such as the US and Canada which are among the leading consumers of ammonium nitrate globally. Abundant natural resources and their widespread mining have resulted in high demand. The region is home to various large miners which import ammonium nitrate in bulk quantities for widespread use in mining and quarrying applications.
The Asia Pacific region is projected to be the fastest growing market for ammonium nitrate during the forecast period. Countries such as China, India, Indonesia and Australia are witnessing increasing mining and construction activities to fuel their economic growth. Meanwhile, expansion of domestic ammonium nitrate production capacities by Chinese manufacturers is strengthening the regional market.
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Further, this report also highlights smart strategy adopted by major players and also their market share.
Basically, this report is designed to give a proper understanding of industry structure and competition intensity attractiveness.The research report also covers the comprehensive profiles of the key players in the market and an in-depth view of the competitive landscape worldwide.
The major players in the ammonium nitrate market include Yara International ASA, Orica Limited, Enaex S.A, CF Industries Holdings, Inc, Incitec Pivot Limited, Neochim Ad, Austin Powder International, EuroChem Group AG, OSTCHEM Holding Company, Fertiberia SA, Borealis.S.
This section includes a holistic view of the competitive landscape that includes various strategic developments such as key mergers & acquisitions, future capacities, partnerships, financial overviews, collaborations, new product developments, new product launches, and other developments.Get more information on "Global Ammonium Nitrate Market Research Report" by requesting FREE Sample Copy at https://www.valuemarketresearch.com/contact/ammonium-nitrate-market/download-sampleMarket DynamicsAcquiring popularity and utilization of ammonium nitrate as a fertilizer and blasting agent is likely to significantly drive the revenue growth of ammonium nitrate market.
Rising demand from agriculture industry for improving soil’s nitrogen content, thus profiting in farming economy is expected to drive the demand and supply of ammonium nitrate.
Ammonium nitrate has been gaining noteworthy traction across the sports industry for treating first aid injuries as the products contains heat absorption and pain alleviation properties.
