Global Ammonium Nitrate Market, By Application (Fertilizers and Explosives), Product (Low Density, High Density, and Solution), Form (Dry and Liquid), Application (Fertilizer, Explosives, and Others), End-User (Agriculture, Mining, Defense, and Others) – Industry Trends and Forecast to 2031.
Ammonium Nitrate Market Analysis and Size
The global market for ammonium nitrate is predominantly fueled by its extensive application as a fertilizer in the agriculture sector. As the world's population continues to expand, the demand for food rises correspondingly, necessitating the adoption of high-nitrogen fertilizers such as ammonium nitrate to enhance crop yields. The nutrient-rich composition of ammonium nitrate provides plants with a readily available nitrogen source, crucial for their growth and development. Moreover, the versatility of ammonium nitrate extends beyond agriculture, as it is also a key ingredient in the production of explosives, particularly in the mining and construction industries. In mining, ammonium nitrate-based explosives are vital for tasks such as rock fragmentation and ore extraction, while in construction, they are essential for activities such as demolition and excavation. The dual utility of ammonium nitrate in both agriculture and industrial sectors makes it a vital component in driving global food security and infrastructure development, thus propelling market growth.
Global ammonium nitrate market size was valued at USD 6.04 billion in 2023 and is projected to reach USD 8.79 billion by 2031, with a CAGR of 4.80% during the forecast period of 2024 to 2031. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include depth expert analysis, patient epidemiology, pipeline analysis, pricing analysis, and regulatory framework.
Report Scope and Market Segmentation
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Report Metric
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Details
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Forecast Period
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2024 to 2031
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Base Year
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2023
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Historic Years
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2022 (Customizable to 2016 - 2021)
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Quantitative Units
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Revenue in USD Billion, Volumes in Units, Pricing in USD
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Segments Covered
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Application (Fertilizers and Explosives), Product (Low Density, High Density, and Solution), End-User (Agriculture, Mining, Defense, and Others)
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Countries Covered
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U.S., Canada, Mexico, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Saudi Arabia, U.A.E., South Africa, Egypt, Israel, Rest of Middle East and Africa, Brazil, Argentina, Rest of South America
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Market Players Covered
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Orica Limited (Australia), Incitec Pivot Fertilisers (Australia), Neochim Plc. (Bulgaria), URALCHEM JSC (Russia), CF Industries Holdings, Inc. (U.S.), EuroChem Group (Switzerland), Austin Powder (U.S.), Yara (Norway), ENAEX (Chile), OSTCHEM (Ukraine), Fertiberia (Spain), CSBP Limited (Australia), DFPCL (India)
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Market Opportunities
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Market Definition
Ammonium nitrate is a chemical compound with the formula NH4NO3, commonly used in agriculture as a high-nitrogen fertilizer. It is also a key component in the manufacturing of explosives, particularly in the mining and construction industries. Ammonium nitrate is highly soluble in water and releases nitrogen quickly, making it an efficient fertilizer for promoting plant growth.
Global Ammonium Nitrate Market Dynamics
Drivers
- Growing Agricultural Industry
As the world's population continues to increase, the demand for food rises accordingly. Farmers are under pressure to maximize crop yields to meet this demand, leading to an increased need for fertilizers such as ammonium nitrate fertilizer. Its high nitrogen content provides an essential nutrient for plants, promoting healthy growth and improving yields. Additionally, the use of ammonium nitrate can help farmers achieve better returns on their investments by increasing the productivity of their crops. As a result, the agricultural sector remains a key driver for the growth of the global ammonium nitrate market.
- Expanding Mining and Construction Activities
Ammonium nitrate plays a critical role in the production of explosives utilized across several industries. In mining, explosives are vital for activities like blasting, tunneling, and rock fragmentation, facilitating efficient operations. Similarly, in the construction sector, explosives are essential for tasks such as demolition, excavation, and quarrying, enabling effective project execution. The versatility and high efficacy of ammonium nitrate explosives make them indispensable in these fields. As mining and construction activities expand, especially in developing nations, there is anticipated growth in demand for explosives, thereby driving the market for ammonium nitrate.
Opportunities
- Growth in Infrastructure Projects
Infrastructure development, including the construction of roads, bridges, buildings, and other structures, requires explosives for various applications such as demolition, excavation, and rock blasting. Ammonium nitrate is a key component in the production of explosives used in these activities. As countries invest in improving their infrastructure to support economic growth and urbanization, the demand for explosives and, consequently, ammonium nitrate is expected to increase. This presents a lucrative opportunity for manufacturers and suppliers of ammonium nitrate to cater to the growing needs of the construction and mining industries.
- Efficient Nutrient Delivery of Ammonium Nitrate
Nitrogen is an essential nutrient for plant growth, and ammonium nitrate provides plants with a readily available source of nitrogen. This enhances crop growth, increases yields, and improves the overall quality of the produce. With the global population increasing and arable land becoming scarcer, there is a growing need to maximize agricultural productivity. Ammonium nitrate plays a crucial role in meeting this demand by providing farmers with an effective fertilizer that helps them achieve higher yields. As farmers look for ways to improve efficiency and sustainability in agriculture, the demand for ammonium nitrate as a fertilizer is expected to rise, presenting a significant market opportunity for manufacturers.
Restraints/Challenges
- Safety and Security Concerns
The explosive nature of ammonium nitrate raises significant safety and security concerns, leading to stringent regulations governing its production, storage, and transportation. Accidental detonations of ammonium nitrate have resulted in catastrophic incidents, highlighting the need for strict safety measures. These concerns have led to increased scrutiny and regulation of the handling and storage of ammonium nitrate, particularly in high-risk industries such as mining and construction.
- Regulatory Compliance of Production of Ammonium Nitrate
Meeting regulatory requirements for the production, storage, and transportation of ammonium nitrate adds complexity and costs to businesses operating in the market. Regulations governing the handling of ammonium nitrate vary by country and region but typically include strict requirements for storage facilities, transportation methods, and employee training. Compliance with these regulations requires significant investments in infrastructure, technology, and personnel training. Non-compliance can result in fines, penalties, and reputational damage. Therefore, regulatory compliance is a critical challenge for businesses in the market.
This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays
Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions.
Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.
Expected Impact of Economic Slowdown on the Pricing and Availability of Products
When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.
Recent Developments
- In July 2023, Yara Clean Ammonia and Bunker Holding entered into a Memorandum of Understanding (MOU) to advance the ammonia market as a shipping fuel, as ammonia is increasingly utilized for environmentally sustainable maritime transportation
- In April 2023, Chambal Fertilisers revealed plans to construct a new 240,000 tonne/year technical ammonium nitrate (TAN) plant at its Gadepan complex in Rajasthan, India. The plant is scheduled to start operating by October 2025
Global Ammonium Nitrate Market Scope
The market is segmented on the basis of application, product, form, application, and end-user. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Application
- Fertilizers
- Explosives
Product
- Low Density
- High Density
- Solution
Form
- Dry
- Liquid
Application
- Fertilizer
- Explosives
- Others
End-User
- Agriculture
- Mining
- Defense
- Others
Global Ammonium Nitrate Market Regional Analysis/Insights
The market is analyzed and market size insights and trends are provided by country, application, product, form, application, and end-user as referenced above.
The countries covered in the market are U.S., Canada, Mexico, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, rest of Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, rest of Asia-Pacific, Saudi Arabia, U.A.E., South Africa, Egypt, Israel, rest of Middle East and Africa, Brazil, Argentina, and rest of South America.
Europe is expected to dominate the market due to the region's increasing construction activities are driving the demand for explosives used in various construction projects, including infrastructure development, residential, and commercial construction. Secondly, the quarrying industry in Europe relies heavily on explosives, with ammonium nitrate being a key component in explosive formulations used for rock blasting and extraction.
North America is expected to witness significant growth during the forecast period due to increased demand from the mining, quarrying, and construction sectors. The U.S. and Canada are key contributors to this regional market growth, fueled by strong demand from the defense sector.
The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Competitive Landscape and Global Ammonium Nitrate Market Share Analysis
The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.
Some of the major players operating in the market are:
- Orica Limited (Australia)
- Incitec Pivot Fertilisers (Australia)
- Neochim Plc. (Bulgaria)
- URALCHEM JSC (Russia)
- CF Industries Holdings, Inc. (U.S.)
- EuroChem Group (Switzerland)
- Austin Powder (U.S.)
- Abu Qir Fertilizers and Chemicals Company (Egypt)
- Yara (Norway)
- ENAEX (Chile)
- OSTCHEM (Ukraine)
- Fertiberia (Spain)
- CSBP Limited (Australia)
- DFPCL (India)
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