Nitric Acid Market by Application, Grade Type, and Geography - Forecast and Analysis 2023-2027

Nitric Acid Market Forecast 2023-2027

The  Nitric Acid Market size is estimated to grow by 6.66 million T between 2022 and 2027, exhibiting a CAGR of 1.98%. Market growth hinges on multiple factors, such as the expansion of the automotive sector, rising utilization of polyurethane foam, and the heightened demand for TNT explosives. Challenges entail health concerns linked to fertilizers, NOx emissions during adipic acid production, and dwindling demand for ammonium nitrate. Our report examines historic data from 2017 to 2021 besides analyzing the current market scenario. This sector heavily relies on materials such as nylon 66 and polyurethanes, both of which are derived from nitric acid, for their lightweight yet durable properties. With the increasing sales of passenger and commercial vehicles, there is a parallel surge in demand for nitric acid to meet the production needs of these essential automotive components. As automotive manufacturers strive to meet consumer demands for lighter, more fuel-efficient vehicles without compromising on durability and safety, the demand for materials derived from nitric acid continues to rise, driving growth in both the automotive and nitric acid industries.

What will be the Nitric Acid Market Size During the Forecast Period?

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Market Segmentation

This report extensively covers market segmentation by Application (fertilizers and others) and Geography (Europe, APAC, North America, South America, and Middle East and Africa).

Application Analysis

The market share growth by the fertilizers segment will be significant during the forecast period. Fertilizers provide essential nutrients for the healthy growth of plants and crops. It acts as an oxidizer and increases the nitrogen content of the soil by providing essential nutrients required for the growth of plants.

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The fertilizers segment was valued at USD 50.62 million t in 2017 and continued to grow by 2021. It is produced from ammonia, which is the main chemical used for manufacturing fertilizers. Ammonium nitrate is the most important chemical produced from this chemical, the majority of which is used for manufacturing fertilizers. Ammonium nitrate is also used in alloy fertilizer blends, including UAN. The rising use of fertilizers is leading to groundwater contamination, which is increasing its adoption. Urea is becoming the main nitrogen fertilizer as it has no safety-related issues, is economical, and contains more nitrogen. The demand for nitrates in the preparation of explosives is also increasing. The rising demand in the preparation of fertilizers used extensively in APAC is anticipated to drive market growth.

Region Analysis

APAC is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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Europe is another key region in the global market. The demand in this region is mainly fueled by its increasing use of fertilizers and explosives. There is a high demand for lightweight vehicles in Europe from major manufacturers such as Volkswagen, Mercedes, Ferrari, BMW, and Audi. Nylon 66, which is produced from adipic acid, is increasingly being used in car parts for fuel efficiency.

Market Definition 

It is a colorless, strong, and corrosive mineral acid. It is used for manufacturing fertilizers. Apart from fertilizers, it is also used in dairy processing for the removal of calcium and magnesium deposits.

Market Dynamics and Customer Landscape

The market is witnessing robust growth driven by several key factors. Firstly, the increasing demand from the fertilizer industry, spurred by the need for enhanced crop yields to meet the rising global food demand, is a significant driver. Nitric acid plays a crucial role in the production of nitrogen-based fertilizers like ammonium nitrate and calcium ammonium nitrate, thereby propelling its market growth. Additionally, the expansion of manufacturing activities across diverse sectors such as automotive, textile, and construction further fuels the demand for nitric acid. Its usage in processes like dye manufacturing, resin production, and insulation materials underscores its importance in various manufacturing processes, contributing to market expansion.

Furthermore, technological developments in nitric acid production processes are driving market growth. Companies like BASF SE and Dow Chemicals are spearheading innovations to enhance efficiency and reduce environmental impact, thereby bolstering market prospects. Despite these positive trends, challenges such as health-related hazards associated with nitric acid production and supply chain disruptions due to production halts pose potential obstacles to market growth. Nonetheless, with a focus on environmental sustainability and diversification of applications beyond traditional industries, the market is poised for continued expansion in the coming years.

Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage. 

Key Market Driver

The growth of the automotive industry serves as a significant catalyst for the market. This sector heavily relies on materials like nylon 66 and polyurethanes, both derived from nitric acid, for their lightweight yet durable properties. With increasing sales of passenger and commercial vehicles, there's a parallel surge in demand for nitric acid to meet the production needs of these essential automotive components.

Nylon 66, prized for its corrosion resistance and high-temperature stability, plays a pivotal role in reducing vehicle weight without compromising on strength or performance. This trend towards lighter yet resilient vehicles aligns with market preferences for efficiency and safety, further driving the demand for nitric acid-based materials. As automotive manufacturers continue to prioritize technological advancements and sustainability, the reliance on nitric acid for innovative materials underscores its enduring importance in the automotive sector and its pivotal role in shaping market growth dynamics.

Significant Market Trends

The economic growth in APAC is a key trend shaping the market. This growth has improved the standard of living of people. The region has progressed from macroeconomic policies that include efforts to accelerate revenues in commodity-exporting countries. The Philippines, Vietnam, and Indonesia will experience a moderate growth rate during the forecast period. Expanding population and economic development in APAC are leading to the growth of major end-user industries such as automotive, aerospace and defense, building and construction, and electrical and electronics.

TDI is used in manufacturing polyurethane foam, which is used as a lightweight material in the automotive industry. Polyurethane products are made to enhance the aesthetic design of homes and buildings. Thus, the rapid growth of the automotive industry, the increasing demand for premium lightweight vehicles, and the electric and electronics industries fuel the demand for adipic acid, TDI, polyurethane, and other products made from nitric acid. These factors will accelerate the global HNO₃ market during the forecast period.

Major Market Challenge

Health issues associated with fertilizers may impede market growth. Fertilizers are toxic to humans and animals if inhaled or consumed. Contact with manure can cause skin irritation, and its ingestion can be toxic. Many commercially available synthetic or chemical-based fertilizers contain ammonium nitrate. Plants absorb these toxic chemicals in fertilizers and enter the food chain through fruits and vegetables. In addition, these chemicals can leak and contaminate groundwater. The high levels of nitrates and nitrites in contaminated water can cause hemoglobin failure.

Ammonium nitrate is an important component of fertilizer mixtures. It is an odorless, colorless, or white crystalline salt formed by the reaction of ammonia and HNO₃. it is used in the production of explosives but is harmful to the environment and human health. Thus, the rising concern about health issues due to fertilizers may hinder market growth during the forecast period. 

Key Nitric Acid Market Companies

Companies are implementing various strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches to enhance their presence in the market.

LSB Industries Inc - The company offers nitric acid under the brand El Dorado Chemical Co. It also manufactures and markets chemical products for the agricultural, industrial, and mining markets.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including: 

ANPI, BASF SE, CF Industries Holdings Inc., Dyno Nobel, ENAEX S.A., Hanwha Solutions Corp., IXOM Ltd., J.R. Simplot Co., Koch Industries Inc., LSB Industries Inc, Nutrien Ltd., OCI N.V., Qingdao Hisea Chem Co. Ltd., Rashtriya Chemicals and Fertilizers Ltd., Sasol Ltd., Shandong Fengyuan Chemical Co. Ltd., Sumitomo Chemical Co. Ltd., thyssenkrupp AG, Ube Corp., and Yara International ASA

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Application Outlook 
  • Fertilizers 
  • Others 

• Grade Type Outlook 

  • Commercial 
  • Noncommercial 
• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Argentina
    • Brazil
    • Chile

Market Analyst Overview

The market is influenced by various sectors like agriculture, automotive, and construction, as well as end-use industries such as textiles and the medical industry. Key players like Dow Chemicals and Nitric Acid Manufacturers drive innovation in production methods. However, challenges persist, including health-related hazards from industrial waste and CO2 emissions. Governmental regulations on environmental protection affect manufacturing activities, particularly in explosives production and mining applications. Technological developments enable the production of nitrogen-based fertilizers and polyurethane foams, meeting global food demand and insulation needs. The supply chain faces disruptions due to production halts, impacting sectors like the fashion industry and governmental infrastructure projects.

Furthermore, the market plays a pivotal role in various sectors, including agriculture, automobiles, construction, and the textile industry. Demand is driven by factors like crop yield, Arable land availability, construction activities, and the need for lightweight automobiles. Government bodies like the Ministry of Industry and Information Technology regulate production and ensure quality standards. Nitric acid is essential for fertilizer production, supporting grain production and organic food growth. Its usage extends to manufacturing finished goods, insulation materials, resins, and wood coatings. However, concerns exist regarding respiratory problems, necessitating the use of PPE kits. Supply chains are crucial for distributing nitric acid to industries like dye manufacturing, agriculture industry, and polymer composites.

Nitric Acid Market Scope
Report Coverage	Details
Page number	157
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 1.98%
Market growth 2023-2027	6.66 mn t
Market structure	Fragmented
YoY growth 2022-2023(%)	1.55
Regional analysis	Europe, APAC, North America, South America, and Middle East and Africa
Performing market contribution	APAC at 40%
Key countries	US, China, India, Germany, and France
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	ANPI, BASF SE, CF Industries Holdings Inc., Dyno Nobel, ENAEX S.A., Hanwha Solutions Corp., IXOM Ltd., J.R. Simplot Co., Koch Industries Inc., LSB Industries Inc, Nutrien Ltd., OCI N.V., Qingdao Hisea Chem Co. Ltd., Rashtriya Chemicals and Fertilizers Ltd., Sasol Ltd., Shandong Fengyuan Chemical Co. Ltd., Sumitomo Chemical Co. Ltd., thyssenkrupp AG, Ube Corp., and Yara International ASA
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our market research report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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