Nitric Acid Market Forecasts to 2028 – Global Analysis By Application (Ammonium Nitrate, Adipic Acid, Nitrobenzene, Toluene Diisocyanate and Other Applications), End User (Fertilizers, Explosives, Electronics, Automotive, Inks, Pigments, and Dyes, Aerospa

Nitric Acid Market Forecasts to 2028 – Global Analysis By Application (Ammonium Nitrate, Adipic Acid, Nitrobenzene, Toluene Diisocyanate and Other Applications), End User (Fertilizers, Explosives, Electronics, Automotive, Inks, Pigments, and Dyes, Aerospace and Other End Users), and By Geography

According to Stratistics MRC, the Global Nitric Acid Market is accounted for $23.41 billion in 2022 and is expected to reach $32.46 billion by 2028 growing at a CAGR of 5.6% during the forecast period. Nitric acid (HNO3), commonly known as aqua fortis, is a colourless chemical that turns yellow over time as a result of nitrogen and water breakdown into oxides. The compound is highly corrosive in nature and is widely used in the manufacturing of ammonium nitrate and other compounds used in the formulation of fertilisers. These compounds are then employed in a variety of sectors, including plastics, automotive, and construction.

According to the Fertilizers Europe, the annual nitrogen fertilizer consumption in the European Union is expected to reach 10.6 million tons by the 2029/2030 season, compared to the current average consumption of 11.2 million tons.

Market Dynamics:

Driver:

Lightweight automobiles are in high demand

Consumer demand for lightweight automobiles has prompted manufacturers to focus on innovation and improvement in the automotive industry, resulting in increased consumption potential for HNO3, which has a favourable impact on the market. The substance is used to create adipic acid, which is then utilised to make nylon. Product manufacturers are transitioning to polymer composites such as nylon to reduce vehicle weight and improve fuel capacity. Furthermore, increased consumer demand for private automobiles, as well as an ever-increasing population, has contributed considerably to the creation of lightweight vehicles. This rising trend for lightweight automobiles is boosting the market.

Restraint:

Strict governmental regulations

Nitric acid is emitted by chemical production plants, car exhaust fumes, and polluted wastewater from farming areas. When inhaled, this environmental pollution causes respiratory issues. Government laws aimed at environmental protection and reducing industrial waste are stifling market expansion. Furthermore, growing concerns about CO2 emissions from vehicles are putting a damper on the market.

Opportunity:

Increasing demand from agriculture industries

Nitric acid is widely utilised in agriculture, where it is used to produce fertilisers such as ammonium nitrate, potassium nitrate, calcium ammonium nitrate, and nitro phosphate. Fertilisers are used to boost agricultural output in order to meet the rising food demand of the world's population. Furthermore, rising consumer disposable income has increased demand for organic and high-quality foods, resulting in the use of bio-based fertilisers and market expansion.

Threat:

Health-related hazards caused by nitric acid

Nitric acid is a very corrosive acid that can cause severe chemical burns very quickly. Inhaling nitric acid mists poses health dangers such as mucous membrane degradation, delayed pulmonary edoema, and even death. Contact with the eyes might result in irreversible corneal damage. Furthermore, if swallowed, nitric acid can cause severe, quick corrosive burns to the lips, throat, and gastrointestinal tract. This chemical can also react violently with specific compounds like metallic powders and turpentine, and it is a strong oxidant that can cause flames if it comes into touch with organic material which hinders the growth of the market.

Covid-19 Impact

The corona virus pandemic had a severe impact on several end-use industries, prompting a temporary halt in manufacture and commerce. The pandemic has also caused an economic downturn due to decreased demand and decreased manufacturing, which is causing supply chain disruption. The global lockdown also had a substantial influence on trading activity, resulting in a further decrease in raw material supply and a rise in the price of completed goods. Product demand was lowered as a result of the temporary shutdown of manufacturing units in end-use industries such as autos. This decreased demand hampered industry expansion overall.

The adipic acid segment is expected to be the largest during the forecast period

The adipic acid segment is estimated to have a lucrative growth, due to the increased need for lightweight automobiles. Adipic acid, which is made from nitric acid, is used to make nylons and other resins. Nylons polymer composites are utilised in the production of automobile components to reduce total vehicle weight and improve fuel efficiency. Increasing demand for autos from developing regions is propelling market expansion.

The fertilizers segment is expected to have the highest CAGR during the forecast period

The fertilizers segment is anticipated to witness the highest CAGR growth during the forecast period, due to the increased agricultural activities to meet rising population demand, the fertilisers category accounted for the largest nitric acid market share. Nitric acid is used to make fertilisers like ammonium nitrate and calcium ammonium nitrate, which offer large and high-quality crop yields. The increasing need for nitrogen-based fertilisers has driven market growth throughout the years.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to rising product demand from a variety of end-use industries, including automobile, agricultural, and construction. Economic development and population growth in countries such as demand for agricultural products is high in India, China, and Japan. Due to rapid population expansion, expanding infrastructure projects, and an increase in middle-class affluence, China dominated the Asia Pacific region, resulting in high nitric acid use.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to consumers increasing demand for fuel-efficient and environmentally friendly lightweight automobiles. Growing environmental awareness is driving an increase in fuel-efficient features and lightweight materials used in automotive manufacturing, such as polymer composites, providing new market prospects. Germany is a key automotive manufacturing country, owing to great economic growth and technological advancement in delivering fuel-efficient solutions for lightweight automobiles thus propelling the market in this region.

Key players in the market

Some of the key players profiled in the Nitric Acid Market include Dupont, Nutrien Ltd, Apache Nitrogen Products Inc, Rashtriya Chemicals & Fertilizers Ltd, Angus Chemical Company, Thyssenkrupp AG, Ixom, Yara International ASA, Dyno Nobel, CF Industry Holdings, Inc, Omnia Holding Limited, BASF SE, Sasol, Enaex S.A., Hanwha Corporation, Mitsubishi Chemical Corporation, Sumitomo Chemical Co. Ltd, INEOS, LSB Industries and Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC)

Key Developments:

In July 2022, Nutrien Ag Solutions entered into an agreement to acquire a Brazilian company Casa do Adubo S.A. This acquisition includes 39 retail locations under the brand Casa do Adubo, and 10 distribution centers, under the brand Agrodistribuidor Casal.

In June 2022, Omnia Holdings Limited is eyeing further expansion of its international mining and agriculture portfolio in Canada, Indonesia, and Australia, where demand for greener inputs and mining solutions is climbing.

In Feb 2022, ANGUS Chemical Company announced the expansion of its Sterlington, Louisiana manufacturing facility to include commercial production of TRIS AMINO™ Hydrochloride (HCl) products.

Applications Covered:
• Ammonium Nitrate
• Adipic Acid
• Nitrobenzene
• Toluene Diisocyanate
• Other Applications

End Users Covered:
• Fertilizers
• Explosives
• Electronics
• Automotive
• Inks, Pigments, and Dyes
• Aerospace
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements