Ammonium nitrate is an inorganic salt widely used as fertilizer and explosive for civilian uses such as mining, quarrying and construction. As a fertilizer, ammonium nitrate provides nitrogen, a vital nutrient required for healthy plant growth. Its extensive use in agriculture sector has substantially increased the crop yields globally. In construction industry, ammonium nitrate is commonly used for controlled blasting activities such as quarrying of rocks, minerals and clay. The growing construction sector around the world owing to rapid urbanization and industrialization has augmented the demand for ammonium nitrate over the years.

The global ammonium nitrate market is estimated to be valued at US$ 21.18 Mn in 2024 and is expected to exhibit a CAGR of 4.5% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
One of the key drivers for the market growth is the rising uptake of ammonium nitrate in construction industry. Ammonium nitrate is extensively employed as an explosive material for controlled blasting activities in construction like excavation, mining and quarrying. The rapid expansion of construction sector around the world especially in developing economies has significantly boosted the consumption of ammonium nitrate. According to data by World Bank, the global construction sector grew by 3.5% in 2020 and is anticipated to thrive further in coming years driven by rising infrastructure development projects. Growing construction activities will necessitate controlled blasting operations thereby propelling the demand for ammonium nitrate.

Another factor fueling the ammonium nitrate market expansion is increasing application in agricultural sector. Ammonium nitrate is a major nitrogen-based fertilizer widely used by farmers to maximize crop yields. With the rising global population, there is surge in demand for food which is augmenting the fertilizer consumption, including ammonium nitrate. Supportive government policies and initiatives in developing nations to enhance farm productivity using will further stimulate the market growth over the forecast period.

Segment Analysis

The ammonium nitrate market is dominated by the mining sub-segment. Ammonium nitrate is extensively used as an explosive for mining applications owing to its properties such as high bulk energy, low cost, and ease of detonation. Around 70% of the total ammonium nitrate produced globally is utilized for mining purposes. The mining sub-segment experiences high demand from coal mining and quarrying industries.

PEST Analysis

Political: Governments across countries are focusing on increasing investments in infrastructure and mining sectors. This is positively impacting the demand for ammonium nitrate. However, stringent regulations related to the transportation and storage of ammonium nitrate can hamper market growth.
Economic: Growth in industries such as mining, infrastructure, and construction indicating a strong global economic outlook augurs well for ammonium nitrate producers. Emerging economies especially in Asia Pacific are expected to drive demand due to heavy investments in mining.
Social: Rising population and rapid urbanization are propelling growth in construction sector. This increasing demand for construction materials like cement, requires ammonium nitrate for mining activities of raw materials.
Technological: Many producers are investing in R&D to develop innovative grades that can enhance the efficiency of ammonium nitrate as an explosive. New techniques for transportation and storage are also being developed to ensure safety.

Key Takeaways

The global ammonium nitrate market share is expected to witness high growth over the forecast period of 2024 to 2031 supported by robust demand from end-use industries. The mining sub-segment dominates and is expected to continue its dominance through 2031 driven by rising coal and metal ore mining activities. The global ammonium nitrate market is estimated to be valued at US$ 21.18 Mn in 2024 and is expected to exhibit a CAGR of 4.5% over the forecast period 2024 to 2031.

Regional analysis: Asia Pacific region dominated the global ammonium nitrate market and is estimated to grow at the fastest CAGR during the forecast period with China and India being the major markets. Ever-rising population and urbanization are leading to increasing construction activities thereby mining activities.

Key players: 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. BASF SE is the global leader with their production facilities located across key regions to cater rising demand for ammonium nitrate from end-use markets.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it