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Ammonium Nitrate Market size worth USD 20 bn by 2027
- Published Date: October 13, 2021
According to a new research report by Global Market Insights Inc., the Ammonium Nitrate Market size is expected to reach USD 20 billion by 2027 owing to the rising mining and quarrying activities in the emerging economies. Furthermore, the increasing use of fertilizers across the globe for higher crop yield will significantly contribute to the market share.
Ammonium nitrate is commonly produced as small porous pellets, which are widely used in fertilizers, explosives, and other industrial applications. At an elevated temperature, ammonium nitrate can be decomposed vigorously and can cause an explosion if it comes in contact with other combustible liquids or materials. It is mainly used in mining explosives, where it can be charged in combination with fuel oil.
As mining production increases, the demand for industrial grade ammonium nitrate will also increase. Additionally, large-scale applications of ammonium nitrate in agricultural production as a fertilizer to improve crop yield by supplying a ready source of nitrogen will sustain the business growth. According to the Food and Agriculture Organization of the U.S., 8.9% of the world population is suffering from severe food insecurity. Quality fertilizers (nitrogenous) can improve crop yields significantly, further reducing severe levels of food insecurity over the assessment period.
The recent COVID-19 pandemic has adversely impacted the construction and mining sectors owing to a shortage of labor forces, disruption of logistics, and liquidity crisis across the globe. Government and regulatory bodies have imposed lockdowns and social distancing norms to contain the spread of the virus, which further restricted revenue generation. Moreover, the product is treated as a moderately hazardous material in several countries. However, the lifting of lockdowns, rapid vaccination policies, and steady economic recoveries are positively contributing to the ammonium nitrate market growth.
Browse key industry insights spread across 250 pages with 279 market data tables & 24 figures & charts from the report, “Ammonium Nitrate Market Size By Product (High Density, Low Density, Solution), By End-user (Agriculture, Mining & Quarrying, Civil Construction), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trend, Competitive Landscape & Forecast, 2021 - 2027” in detail along with the table of contents:
The Low Density Ammonium Nitrate (LDAM) segment will foster the industry growth
Based on product, the low-density ammonium nitrate segment held over 23% revenue share in the ammonium nitrate market in 2020 and will showcase significant growth up to 2027. Low Density Ammonium Nitrate (LDAN) is more porous as compared to high-density ammonium nitrate, which offers excellent absorption of fuel oils. Moreover, good stability, longevity, and free flowing capacity of the product elevate the performance of explosives in the mining and quarrying operations.
Low-density ammonium nitrate is also used as porosity control agents and caking control coatings. Owing to the rising mining activities across the globe, the demand for industrial grade ammonium nitrate will also increase, which will eventually drive the ammonium nitrate market share in the coming years.
Ammonium nitrate is gaining popularity in civil construction applications
The ammonium nitrate market revenue for the civil construction segment will exceed USD 1.1 billion in 2020 and is likely to witness considerable growth in the near future. In the civil construction industry, the product is widely used as an explosive for many applications like road construction, secondary blasting, railways excavation, underground development, delay detonators, and tunneling. Rising infrastructure activities across the world are likely to drive the ammonium nitrate market growth in the segment. China, India, and the U.S. are the major countries that will drive the construction market demand during the upcoming years.
Asia Pacific to obtain sustainable growth throughout forecast timeframe
Asia Pacific is projected grow at a fastest rate of 3.8% up to 2027 due to the growing agriculture and civil construction sectors in China and India. Rising investments in large infrastructure projects across the South East Asia region will augment the product demand. Major upcoming projects, such as Silk road in China, Kunming-Singapore Railway, and Sea Toll road in Indonesia, are driving the growth of construction activities in the region, which will create a demand for industrial grade explosives over the coming years.
Research & innovation and Long- Term Agreement (LTA) will strengthen the market positioning
The ammonium nitrate industry is highly competitive and the leading market players are continuously investing in several business strategies to gain competitive advantages. For instance, in February 2014, Orica entered into a long-term agreement with CF Industries to supply Industrial Grade AN (IGAN) and AN Solutions (ANS), which expanded their presence in the North America market. Key industry participants in the market are Yara International, Orica Ltd., Enaex S.A, Incitec Pivot Limited, Inc., Neochim Ad, Austin Powder International, CF Industries Holdings, OSTCHEM Holding Company, CSBP Limited, Fertiberia SA, Abu Qir Fertilizers Co., EuroChem Group AG, Borealis, San Corporation, DFPCL, and URALCHEM Holding P.L.C.