Nitric acid market will witness significant growth during the period 2021 to 2027 on account of higher usage in plastic and automotive sectors. The rising number of government policies and presence of cultivational land have resulted in the expansion of the agricultural vertical.
Nitric acid is increasingly used in chemical industries and the production of various insulation materials. Burgeoning product demand to meet the rising vehicular weight reduction requirements on account of the escalating environmental concerns is another ideal determinant leading to the market growth.
However, the adverse health effects and the dearth of raw materials may negatively influence the consumption of nitric acid to some extent.
Based on type, the concentrated nitric acid market is anticipated to show substantial gains from 2021 to 2027 owing to its rising penetration in the production, handling, as well as storage of stainless steel. Concentrated nitric acid is extensively utilized as a powerful oxidizing acid as well as a nitrating agent. The increasing need to stabilize austenitic stainless steel will drive the product demand spurt in the coming years.
In terms of application, the nitric acid market size from fertilizers is expected to grow at a notable pace. This is due to increasing product adoption in large-scale manufacturing of various fertilizers, such as ammonium nitrate and nitrophosphates. The growing consumer household incomes have led to the rising food demand and agricultural activities. The rising utility of fertilizers for improving crop yield and to cater to the increasing organic and quality food requirements will substantially contribute to the market size proliferation.
Demand for nitric acid across the adipic acid application segment is poised to record lucrative growth owing to higher penetration in the textiles, automotive, and tire sectors. The product is marking a broad presence in the production of vehicle components and lighter automobiles. Increasing application scope in the generation of nylon and resins will also positively bolster the market expansion.
Regionally, the North America nitric acid industry is likely to gain major traction driven by the higher adoption of lightweight and fuel-efficient vehicles. The increasing need for ammonium nitrate across the mining industry and the presence of numerous overseas chemical producers will add to the regional market progression.
Renowned players in the nitric acid industry are constantly indulging in inorganic strategic moves, including acquisitions, novel product launches, partnerships, investments, and production expansions to sustain the increasing competition whilst strengthening their geographical presence.
For instance, in March 2019, Acron Group launched a new nitric acid unit worth 135,000-tpa at its Veliky Novgorod site. The company had adopted an investment program in 2017 for the construction of two nitric acid units that have a total capacity of 270,000 tonnes per year in the region.
Similarly, in October 2020, LSB Industries, Inc. entered a new long-term nitric acid supply contract with a customer to supply around 70,000 to 100,000 tons of nitric acid per year.
LSB Industries, Sasol, Wesfarmers Chemicals (Wesfarmers), Apache Nitrogen Products, EuroChem, CF Industries, Rashtriya Chemicals & Fertilizers, PotashCorp, Rentech (Renaissance Technologies Holdings Corporation), Deepak Fertilizer, PVS Chemicals, Dyno Nobel (Incitec Pivot Limited), Energy & Fertilizers, DuPont, LyondellBasell, Incitec Pivot, Koch, Simplot, Agrium (AWB), AkzoNobel, Orica, Ixom (CityLink Investments Pte. Ltd.), and Yara are some nitric acid suppliers in the business space.
Influence of COVID-19 crisis on the nitric acid market trends
The global economic downstream caused by the COVID-19 pandemic led to trade disruptions, whilst laying tremendous barricades for a gamut of industrial and commercial verticals across the world. Its effects were also majorly perceived by the nitric acid industry on account of the rise in unfavorable conditions, such as a widened gap in the supply-demand chains. The gradual shutting down of the production activities in the automobile sector also flattened the product demand. However, the considerable adoption of nitric acid in plastics for medical use is expected to add some positive edge to the market surge.