Ammonium Nitrate Market size to exceed $19 billion by 2026
Published Date: December 8, 2020 Authors: Kiran Pulidindi, Akshay Prakash
According to a new research report by Global Market Insights, Inc., the Ammonium Nitrate Market size to exceed USD 19 Billion by 2026. Government initiatives to promote the use of fertilizers in the agriculture industry will primarily surge the product demand.
The government of India launched Neem Coated Urea (NCU) scheme to control the usage of urea, reduce the cost of fertilizer application, and increase the availability of nitrogen supplied to the crop. Under this scheme, farmers can reduce the cost of cultivation and improve the soil health through the usage of various fertilizers for higher crop yield, that will drive the ammonium nitrate market growth in the sector over the forecast period.
Browse key industry insights spread across 255 pages with 288 market data tables & 39 figures & charts from the report, “Ammonium Nitrate Market share 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” in detail along with the table of contents:
Low Density segment is likely to grow at a significant rate of over 3.5% CAGR in ammonium nitrate market share from 2020 to 2026. The segment growth is primarily driven by its application to produce civil explosives, such as Ammonium Nitrate Fuel Oils (ANFO), which are used in the mining industry. The porous form of LDAN allows rapid absorption of fuel oils, which improves the performance of explosives in the mining operations. Excellent stability, flexibility of usage, longevity, rapid absorption of oil, homogeneity, and free flowing properties of the product makes it a suitable for industrial applications.
Ease-of-use and cost-effective nature to support product growth in mining & quarrying industry
The ammonium nitrate market from mining & quarrying segment will witness over 2% CAGR in terms of volume through 2026. This is owing to the extensive use of product as an explosive in the industry attributable to its ease-of-use and inexpensive nature. Ammonium nitrate is considered to be a weak explosive substance, and, in many classifications, it is not considered as an explosive.
The addition of combustible material, such as liquid hydrocarbons, nitro compounds, metal powders or solid hydrocarbons, etc., in the product can significantly increase its explosibility and energy. ANFO is one of the most cost-effective blasting agents that is used for dry hole blasting operations, that consists of 94% of porous ammonium nitrate and 6% of high-speed diesel (fuel oil).
Proliferating demand in North America will surge product penetration
North America will witness around 3% CAGR over the forecast time period. The key factors responsible for driving the product demand in the region are rising oil & gas exploration and production, increasing construction activities, and rising fertilizer production. Explosives are used in seismography to create shock waves within the soil, which are propagated, generating echoes.
These echoes are further measured at the ground level to start drilling operations. Thus, increasing use of explosives for oil & gas exploration as well as mining & construction activities will enhance the ammonium nitrate market demand over the coming years.
Geographic expansion to enhance competition in the industry
Industry players are focusing on geographic expansion through merger & acquisition to attain a competitive edge in the ammonium nitrate market. For instance, In February 2020, Fertiberia SA was acquired from its parent company Grupo Villar Mirr (GMV) by funds advisory firm, Triton, which will expand its operation and consumer base across the region.
Prominent manufacturers in the ammonium nitrate industry include Orica Limited, Yara International, Enaex S.A, CF Industries Holdings, EuroChem Group AG, Austin Powder International, OSTCHEM Holding Company, Fertiberia SA, San Corporation, and CSBP Limited.
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