The global nitric acid market is set to experience significant growth in the coming years, with projections indicating a market value of US$ 19.8 billion in 2023. This figure is anticipated to rise further, reaching US$ 31 billion by 2034, representing a 4.2% compound annual growth rate (CAGR).
Several factors are fueling this positive trajectory. The production of adipic acid, a key ingredient in nylon, relies heavily on nitric acid for organic oxidation. Similarly, nitric acid plays a vital role in the production of terephthalic acid and other organic molecules through the same process.
The use of nitric acid in the production of explosives, particularly in the synthesis of organic nitrations, further underscores its importance. Popular explosives like nitroglycerin and trinitrotoluene are primarily manufactured through the nitration of organic compounds using nitric acid.
Moreover, the production of chemical intermediates, such as dinitrotoluenes and nitrobenzene, also relies on nitric acid-driven nitration processes.
The role of nitric acid in the fertilizer industry is perhaps the most significant driver of market growth. Ammonium nitrate and calcium ammonium nitrate, both crucial fertilizer components, are produced with the assistance of nitric acid. The increasing emphasis on enhancing agricultural productivity to meet the demands of a growing global population has led to a surge in the use of nitrogen-based fertilizers. Ammonia and nitric acid form the cornerstone of nearly all nitrogen-based fertilizer production. The escalating need for food, coupled with the burgeoning global population, further intensifies the demand for nitric acid. According to the Food and Agriculture Organization, to adequately feed the projected 9.1 billion people inhabiting the planet by 2050, a 70% increase in total food production between 2005 and 2007 is necessary.
The production of ammonium nitrate (CAN), a key fertilizer ingredient, is a significant driver of the nitric acid market. CAN is also used in the explosives industry. Leading nitric acid suppliers are increasing their CAN production capacity. For instance, Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC), an Indian chemical company, initiated construction of a fourth CAN facility in 2022, with an annual capacity of 50,000 MT. By the end of 2022, GNFC’s total CAN production was projected to reach 165,000 MT. This expansion in CAN manufacturing directly translates to increased revenue for the nitric acid market.
The Asia Pacific region is leading the nitric acid market in terms of market share. The region’s robust economic growth and increased fertilizer usage are key factors driving this dominance. South Korea, after Europe, stands as the second-largest nitric acid exporter globally. South Korea and Europe collectively account for over 80% of global nitric acid exports.
The rising demand for fertilizers and a decline in manufacturing activities in Europe are leading to higher nitric acid prices across major regions. Europe’s supply constraints have propelled businesses to rely more heavily on the Indian market, further bolstering the nitric acid market share in the Asia Pacific region. The cost-effectiveness of India’s energy sector, its readily available workforce, and its improved business environment are attracting large European corporations to shift their manufacturing operations to India.
Companies operating in the global nitric acid industry are increasingly adopting sustainable solutions to achieve their Environmental, Social, and Governance (ESG) goals. KBR, Inc., and Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (GNFC) successfully commissioned their second facility in Gujarat, India, in November 2023, employing KBR’s MAGNAC CNA technology. This facility embodies environmentally friendly practices, such as recycling process water without treatment, enhancing energy efficiency, and reducing emissions.
Key players in the global nitric acid market include:
* BASF SE
* The Chemours Company
* Eurochem Group
* Dyno Nobel
* Nutrien Ltd.
* Sumitomo Chemical Co., Ltd.
* Yara
* CF Industries
* Deepak Fertilisers and Petrochemicals Corporation Limited
* OCI
In January 2024, Dyno Nobel and Saudi Chemical Co. Holding (SCCH), a producer of explosives and detonators, signed a non-binding memorandum of understanding (MoU) for the construction of a nitric acid and ammonium nitrate plant near Ras Al Khair. This plant will have an annual production capacity of 440,000 tons of nitric acid and 300,000 tons of ammonium nitrate.
Deepak Fertilizers and Petrochemicals Corporation Ltd. (DFPCL) announced in August 2023 that it will increase nitric acid production capacity in Dahej, Gujarat, India. The company plans to establish two CNA facilities with a combined capacity of 150 KTPA and a Weak Nitric Acid (WNA) facility with a 300 KTPA capacity.
The nitric acid market is segmented based on application:
* Fertilizers
* Nitrobenzene
* Toluene Diisocyanate (TDI)
* Adipic Acid
* Metal Processing
* Others
The market is further divided geographically:
* North America
* Latin America
* Europe
* Asia Pacific
* Middle East & Africa
