The ammonium nitrate market has witnessed significant growth over the past few years owing to increasing utilization of ammonium nitrate in construction activities. Ammonium nitrate is one of the most common high nitrogen content fertilizers used for fertilizing a variety of crops including corn, wheat and rice. As a fertilizer, ammonium nitrate provides plants with a crucial source of nitrogen – plays a vital role in plant growth. It also finds usage as an oxidizing agent in explosives for mining and quarrying applications due to its high nitrogen content.
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 2024 to 2030.
Key Takeaways
Key players operating in the Global 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. The growing demand for ammonium nitrate from construction industry has opened lucrative growth opportunities for players in the market. With increasing construction of roads, buildings and other infrastructure, the consumption of ammonium nitrate is expected to rise significantly in the coming years. Emerging technologies like nano-fertilizers are enabling more efficient use of ammonium nitrate which will further fuel the market growth.
Technological advancements in fertilizer industry have significantly improved plant nutrition and boosted agricultural productivity. Nano-technology based fertilizers are enabling slow and controlled release of nutrients to plants. This helps reduce leaching and avoids over-fertilization. Development of advanced oxidation technologies are also improving safety and efficiency of ammonium nitrate when used as an explosive for mining and quarrying activities.
Market drivers:
Strong growth of construction industry in developing economies like China, India is a key driver for ammonium nitrate market. Construction activities like new residential and commercial constructions, roadworks, tunneling and mining require large quantities of ammonium nitrate explosives. Rising population and rapid urbanization is continuing to fuel demand from construction sector in developing regions, which in turn is expected to boost ammonium nitrate consumption over the forecast period.
Current challenges in Ammonium Nitrate Market
The Ammonium Nitrate market has been facing many challenges in recent years including oversupply, volatile prices, safety hazards and environmental regulations. The oversupply situation has kept prices low globally, impacting the profitability of manufacturers. Moreover, the mining industry which is a key end-use sector has also been facing challenges affecting demand. Safety is a major issue due to Chemical’s hazardous nature requiring compliance to stringent transport and storage guidelines. Emerging environment policies around the world also bring compliance complexities for players.
SWOT Analysis
Strength: Wide applications in fertilizers, explosives and other areas driving steady demand; Global presence of top manufacturers
Weakness: Hazardous nature requires compliance to strict safety norms increasing costs; Price volatility due to oversupply situation
Opportunity: Growing infrastructure projects and mining activity in Asia Pacific & Africa presenting opportunities; Development of alternate fertilizers with lower nitrate content
Threats: Stringent environmental regulations around the world increasing compliance costs; Substitution threat from alternate explosive materials
Geographical Regions
The North American region currently accounts for the largest share of the global ammonium nitrate market in terms of value mainly due to large scale mining activity in the region. Additionally, well established fertilizer and explosive industries also contribute to regional dominance.
The Asia Pacific region is projected to be the fastest growing market for ammonium nitrate during the forecast period. This can be attributed to mounting infrastructure projects and expanding mining industry across countries like China, India, Indonesia and Australia. Increasing crop cultivation in Asia’s developing nations will further fuel fertilizer demand.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it