Ammonium Nitrate Market Size By Product (High Density, Low Density, Solution), By End-user (Agriculture, Mining & Quarrying, Civil Construction) Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2020 – 2026

Published Date: Dec 2020  |  Report ID: GMI818  |  Authors: Kiran Pulidindi, Akshay Prakash

Report Format: PDF   |   Pages: 255   |   Base Year: 2019

Summary Table of Contents Industry Coverage Methodology

Industry Trends

Ammonium Nitrate Market size was USD 17.04 billion in 2019 and will grow at a CAGR of 3.8% between 2020 to 2026. Limited availability of arable land across the globe will positively influence its demand in the form of high-nitrogen fertilizer for high-quality crop yield.

Ammonium nitrate is an explosive chemical compound that decomposes above 210°C (410 °F). The compound is made from ammonium and nitric acid, the nitrate salt of white crystalline solid and ammonium cation is extremely soluble in water and alcohol. The product is largely used to make fertilizers, explosives, antibiotics and yeast. The chemical compound is hygroscopic in nature that readily absorbs moisture from air, which makes it suitable for food preservation.

Ammonium Nitrate Market Statistics

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Escalating global population and rising concerns towards food safety has increased widespread adoption of various inorganic fertilizers across the agriculture landscape over the recent years. Use of ammonium nitrate in agricultural fields and gardens enhances plant growth by providing a complete supply of nitrogen that improves fruit & seed production, resulting in a better yield.

Further, reduction in total arable land per person around the globe will enhance the use of fertilizers in the in the market, which will significantly drive the ammonium nitrate market share.

Apart from growth in agricultural output from emerging economies, the growing mining and construction industry is also considered to be a major catalyst manifesting business growth. The metal mining sector is a major ammonium nitrate-based explosive product consumer.

The advent of self-reliance and the focus of economies to integrate and incubate the domestic resources extraction industry is expected to boost the product demand from the end-user industry. Further, rapid infrastructure development in emerging nations, connecting remote areas to the mainstream economy is also expected to play a huge role in propelling ammonium nitrate market.

Volatile natural gas prices directly affect the prices of nitric acid – thus, fluctuation in the prices of nitric acid may hamper the ammonium nitrate market value over the forecast period. Further, several environment compliances toward its proper storage packaging, and transportation may also restrain product demand in the near term. Nevertheless, positive outlook of the agriculture and mining & quarrying sectors will support the industry expansion.

Favorable technical specification will drive high density segment penetration

Ammonium Nitrate Market by Product

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High density segment will account for around 50% share owing to their wide usage as a fertilizer in the agriculture industry. High-density product can also be converted into the melt form, which is used as a raw material for manufacturing water gel or emulsion explosives. This grade is preferred in the manufacturing of explosives as it can easily be mixed with water to form an oxidizer solution. In Australia, CSBP Ltd. provides high-density ammonium nitrate to produce mayonnaise like explosives. These explosives are more water-resistant compared to ANFO.

High density product is effective in wet climatic conditions owing to highly dense prills, non-porous, and purified state and this grade also maintains the technical specification under such conditions; thus, HDAN is a highly preferred product in the agriculture industry over other products. Hence, the increasing usage of fertilizers in the agriculture industry will positively influence product penetration in the ammonium nitrate market outlook.

Growing demand for fertilizers in agricultural field will surge product demand

Ammonium Nitrate Market by End User

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The agriculture segment generated over USD 11.5 million in 2019. This is attributed to the rising usage of fertilizers in the sector. The product is majorly used as a fertilizer to improve the growth & quality of crops as well as manufacture other nitrogen fertilizers. Global population has more than doubled over the last 50 years, which has resulted in the reduction in arable land per person across the world.

Increasing population is creating excessive food demands across the globe, enhancing the use of fertilizers in the agriculture sector. Further, various government initiatives to promote the use of fertilizers in the agriculture industry will propel product penetration in the ammonium nitrate market sales.

Rising agriculture & construction activities to drive growth across Asia Pacific

Ammonium Nitrate Market by Region

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Asia Pacific may dominate the ammonium nitrate market and hold over 50% share throughout the study timeframe. This is attributed to the rising agriculture & construction activities in the region. China and India are the largest producers of a wide range of agriculture products in the region. In 2019, China agriculture production value amounted to approximately USD 1 trillion.

India in the region is also likely to see a significant growth in the agriculture sector due to increased investments in agriculture infrastructure such as irrigation facilities, warehousing, and storage. Government initiatives to increase the agriculture output will enhance the use of fertilizers in the agriculture sector over the upcoming years.

The Asia Pacific construction sector is also witnessing growth due to rising investments in large infrastructure projects across the South East Asia region. Major upcoming projects, such as Silk road in China, Kunming-Singapore Railway, Sea Toll road in Indonesia, etc., are driving the growth of construction activities in the region; thus, increasing construction & infrastructure activities along with agriculture expansion across the region will further supporting the ammonium nitrate market trends in the Asia Pacific.

Merger & acquisition to drive competition in the industry

Ammonium nitrate market manufacturers are continuously investing in geographic expansion through merger, acquisition and production expansion to attain a competitive edge in the market. In May 2019, Enaex S.A. announced the expansion by acquiring 70% stake in Industrias Cachimayo S.A., a major ammonium nitrate manufacturer in Latin America. The acquisition will expand company’s consumer base across various Latin American countries.

The key ammonium nitrate industry participants include Orica Limited, Yara International, Enaex S.A, Incitec Pivot Limited Inc, CF Industries Holdings, Neochim Ad, EuroChem Group AG, Austin Powder International, OSTCHEM Holding Company, Borealis, Fertiberia SA, San Corporation, DFPCL, Abu Qir Fertilizers Co, CSBP Limited and, Uralchem.

The ammonium nitrate market report includes in-depth coverage of the industry with estimates & forecast in terms of volume in Kilo tons and revenue in USD Million from 2016 to 2026, for the following segments:

By Product

  • High density
  • Low density
  • Solution

By End-User

  • Agriculture
  • Mining & quarrying
  • Civil construction
  • Others

The above information is provided on a regional and country basis for the following:

By Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Russia
    • Romania
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Australia
    • Malaysia
    • Indonesia
  • Latin America
    • Brazil
    • Mexico
  • Middle East & Africa
    • South Africa
    • Saudi Arabia
    • UAE
    • Qatar

Frequently Asked Questions (FAQ) :

In 2019, ammonium nitrate business was valued at USD 17.04 billion, and is likely to depict a CAGR of 3.8% through 2026, mainly driven by the reduced availability of arable land.
High density segment is likely to hold 50% of the business share by 2026, owing to the product’s rising deployment as a fertilizer in the agriculture industry.
In terms of the application landscape, the agriculture segment held over USD 11.5 million in 2019 and may push the global business substantially, on account of the rising product usage as a fertilizer.
Asia Pacific is likely to lead the global market, accounting for a 50% revenue share by 2026. This can be credited to the expanding construction and agriculture sectors in the region.

Premium Report Details

  • Published Date: Dec 2020
  • Pages: 255
  • Tables: 288
  • Charts / Figures: 39
  • Companies covered: 16
  • Countries covered: 22

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