The Ammonium nitrate market is estimated to be valued at US$ 18.38 Bn in 2023 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Ammonium nitrate is a white crystalline solid which has a wide range of applications across various end-use industries such as agriculture, mining, construction, and others. It is majorly used as a fertilizer in agriculture due to its high nitrogen content. In mining and construction, it is employed as an explosive material due to its oxygen-balancing and energy-producing capabilities. The compound provides efficient, cost-effective and safe blasting when used alone or in combination with other substances.
Market Dynamics:
The agriculture industry is expected to be a major driver for the ammonium nitrate market over the forecast period. Ammonium nitrate is massively used as a nitrogen-based fertilizer across farms globally to increase crop yields. According to data by the Food and Agriculture Organization (FAO), global fertilizer consumption is projected to reach over 270 million tons by 2030, demonstrating immense scope for ammonium nitrate demand. Furthermore, recovery in the mining and construction sectors after COVID-19 is also anticipated to fuel consumption of ammonium nitrate for explosives usage. However, the risk of accidental explosions if not handled properly remains a major challenge. Stringent regulations regarding its storage, transportation, and usage may also hamper market growth to some extent over the forecast timeframe.
SWOT Analysis
Strength: Ammonium nitrate has wide applications in construction and mining industries which drives its demand. It is widely used as an oxidizing material for explosives. It is cost effective and has a high nitrogen content which enriches the soil.
Weakness: Improper storage and handling of ammonium nitrate can lead to safety issues due to its explosive nature. It is toxic in nature if ingested and can cause environmental pollution.
Opportunity: Rising construction and infrastructure development activities are expected to boost the demand for ammonium nitrate. Increasing demand from the agricultural industry for fertilizers will also provide new opportunities.
Threats: Stringent regulations regarding the transportation and storage of ammonium nitrate poses a major threat. Availability of substitute products can also threaten the growth of this market.
Key Takeaways
The Global Ammonium Nitrate Market Demand is expected to witness high growth, exhibiting CAGR of 5.0% over the forecast period, due to increasing construction activities. Wide applications of ammonium nitrate in construction materials and explosives drive the market growth. Rapid urbanization and increasing infrastructure development projects across both developed and developing nations require large amount of ammonium nitrate and boost the market expansion.
Regional analysis: Asia Pacific dominates the global ammonium nitrate market and is expected to continue its dominance over the forecast period. This is attributed to increasing food demand owing to rising population in countries such as China and India which increased the demand for ammonium nitrate as fertilizer. Additionally, flourishing construction industry in China, India significantly contributes to the large consumption of ammonium nitrate in this region.
Key players operating in the ammonium nitrate market are Orica, Enaex, Austin Powder Company, Incitec Pivot, CSBP, Yara International, San Corporation, Fertiberia, Neochim, URALCHEM Holding, Dyno Nobel, Vijay Gas Industry, Solar Industries, Maxam, AEL Mining Services, EPC Groupe, Gulf Oil Corporation, IDEAL Industrial Explosives, Sichuan Meifeng Chemical Industry, Jiaocheng Jinxin Chemical. Key players are focused on capacity expansion strategies to strengthen their position in the global market.
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