Nitric Acid Market

The Global Nitric Acid Market was valued at USD 28.56 Billion in 2022 and is expected to reach a value of USD 33.46 Billion by 2030. The Global Market is anticipated to grow to exhibit a CAGR (Compound Annual Growth Rate) of 2.00% over the forecast period.

The key drivers of the Nitric Acid Market are as follows

Nitric Acid is used in the production of ammonium nitrate, which is a key ingredient in fertilizers. The demand for fertilizers is increasing globally, due to the growing population and food security concerns. This is resulting in increased demand for Nitric Acid. The fertilizer industry is a major user of Nitric Acid. Nitric Acid is used in the production of nitrogen-based fertilizers, such as ammonium nitrate and urea. The demand for nitrogen-based fertilizers has been increasing in recent years, due to the growing global population and the need to increase food production. This has led to an increase in the demand for Nitric Acid from the fertilizer industry. The use of Nitric Acid in the fertilizer industry is expected to continue to grow in the future. This will be driven by continued population growth and the need to increase food production. Additionally, new methods of using Nitric Acid in fertilizer production, such as solid-state fermentation, are expected to be developed and adopted over time. These factors are expected to lead to increased demand for Nitric Acid from the fertilizer industry in the future.

The electronics industry is a major end-use market for Nitric Acid, accounting for about 30% of the global demand. The rising demand for miniaturized and lightweight electronic devices has been driving the need for smaller and more efficient Nitric Acid-based components. Moreover, the growing trend of electrification in the automotive industry is expected to boost the demand for Nitric Acid in the coming years. The rapid expansion of the semiconductor industry is another key factor driving the growth of the Nitric Acid Market. Nitric Acid is used in a number of processes related to semiconductor manufacturing, including the etching and cleaning of silicon wafers and metallization. The increasing adoption of 3D NAND technology is also fuelling the demand for Nitric Acid as it enables manufacturers to produce smaller and more complex semiconductor devices. Nitric Acid is used in the manufacture of electronic components, such as capacitors and resistors. The rising demand for electronic goods is leading to increased demand for Nitric Acid.

Nitric Acid can be used for pollution control, as it can neutralize harmful gases such as NOx and SOx. This is leading to increased awareness about the environmental benefits of using Nitric Acid, which is driving its market growth. There are a number of key drivers of growth in the Nitric Acid Market, one of the most important of which is the growing awareness of the environmental benefits of using this type of acid. Nitric Acid is a very effective way to remove impurities and pollutants from water, and it can also be used to clean up oil spills and other environmental disasters. This growing awareness of the environmental benefits of Nitric Acid is leading more companies and organizations to use it in their operations. In addition, governments around the world are starting to mandate the use of Nitric Acid in certain applications, such as in the treatment of drinking water. The other key driver of growth in the Nitric Acid Market is the increasing demand for products that contain it. This includes everything from fertilizers and explosives to detergents and cleaning agents. As more companies and industries start to use Nitric Acid, the demand for these products is expected to continue to grow.

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The main Nitric Acid Market restraints are its corrosiveness, handling, and transportation difficulties, as well as environmental and safety concerns. Due to these reasons, the use of alternative chemicals has been on the rise, which is restraining the Nitric Acid Market growth. Nitric Acid is a strong mineral acid with the chemical formula HNO3. It is a colorless liquid at room temperature and has a pungent smell. Nitric Acid is corrosive and can cause severe burns. It is highly toxic and can be fatal if swallowed or inhaled. Handling and transporting Nitric Acid is difficult due to its corrosiveness. It must be kept in special containers made of materials that are resistant to corrosion, such as glass or stainless steel. Nitric Acid must be handled with care to avoid spills and splashes, which can cause serious injuries. Environmental concerns are also a major restraint on the Nitric Acid Market. Nitric Acid is a major component of smog and contributes to air pollution. It is also a major pollutant of water bodies, where it can cause eutrophication (excessive growth of aquatic plants). Safety concerns are another important factor restraining the Nitric Acid Market. Nitric Acid is a highly toxic substance that can cause death if swallowed or inhaled. It can also cause severe burns if it comes into contact with the skin or eyes. Inhaling vapors from concentrated Nitric Acid can lead to lung damage or even death.

Top Market Trends

● The market is anticipated to witness a CAGR of 5.1% over the forecast period. Increasing demand for fertilizers from the agricultural industry is expected to be a key factor driving market growth.

● Nitrogenous fertilizers are widely used in the agricultural industry to improve crop yield and quality. They are applied either directly to the soil or through irrigation systems. Urea and ammonium nitrate are the most commonly used nitrogenous fertilizers globally. However, Nitric Acid is gaining popularity as it is more efficient in terms of cost and application.

● The automotive industry is also a major consumer of Nitric Acid as it is used in the manufacture of catalytic converters. The tightening of emission norms worldwide is expected to drive demand for these converters over the forecast period. In addition, Nitric Acid is also used in the production of explosives and rocket propellants.

● The Asia Pacific region is expected to be the largest market for Nitric Acid over the forecast period owing to the growing agricultural and automotive industries in countries such as India, China, and Japan. North America and Europe are also expected to be significant markets due to their mature agricultural and automotive industries respectively.

● Rising demand for ammonium nitrate: Ammonium nitrate is one of the most important nitrogenous fertilizers and is used in a wide range of agricultural applications. The rising demand for this fertilizer is driven by the increasing need for food security globally. In addition, ammonium nitrate is also used in a number of industrial applications, such as in explosives manufacturing.

● Increasing use of Nitric Acid as a feedstock: Nitric Acid is an important feedstock for the production of amines, nitrates, and other chemicals. The growing demand for these chemicals is driven by their wide range of applications in various industries, such as agriculture, pharmaceuticals, and construction.

● Growing demand for urea: Urea is another important nitrogenous fertilizer that is used in agriculture. The rising demand for urea is driven by the need to improve crop yields globally.

Market Segmentation

The market is segmented based on Application and Region. On the basis of Application, the market is segmented into Fertilizers, Nitrobenzene, Adipic acid, Toluene diisocyanate (TDI), Nitrochlorobenzene, and others. On the basis of Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Application

Fertilizer manufacturing companies have been the biggest consumers of Nitric Acid over the past few years. This is due to the increasing demand for fertilizer, which in turn has led to an increase in production. As a result, these companies have been able to dominate the Nitric Acid Market. There are a number of reasons why fertilizer manufacturing companies have been able to dominate the Nitric Acid Market. One of the most important factors is that they have access to the raw materials needed to produce Nitric Acid. These raw materials are often found in abundance in countries where fertilizer production is high. Additionally, these companies usually have well-established distribution channels, which allows them to reach their customers more effectively than other types of businesses. Another reason why fertilizer manufacturing companies have been successful in dominating the Nitric Acid Market is that they have typically been able to generate higher profits than other types of businesses. This is due to the fact that they are usually able to sell their products at a higher price point than other businesses. Additionally, they often have lower costs associated with their operations, which allows them to keep more of their profits.

Adipic acid is the second largest application segment for Nitric Acid and accounted for over 22% of the global market in 2015. The major end-use industries for adipic acid are polyurethane, nylon 66 (PA66), and adhesives. It is also used as an intermediate in the production of other chemicals such as caprolactam, hexamethylenediamine, and dicyclohexylmethane diisocyanate. The growing demand from the end-use industries is expected to drive the growth of this market segment during the forecast period. The use of Nitric Acid in the manufacture of adipic acid has been declining due to environmental regulations and the availability of alternative feedstocks such as cyclohexane. However, Nitric Acid is still considered one of the key ingredients in the production of adipic acid due to its superior performance in terms of cost and yield.

Nitrobenzene is one of the key applications of Nitric Acid. It is used in the production of synthetic fibers, plastics, and dyes. It is also used as a solvent in the tanning industry. In the construction industry, nitrobenzene is used as an ingredient in concrete sealants, adhesives, and coatings. It provides strength and durability to these products. It is also used in the production of asphalt. Toluene di-isocyanate (TDI) is widely used in the production of soft foam. The main applications of TDI are in the production of flexible and semi-rigid foams for furniture, bedding, automotive seating, and carpet underlay. TDI is also used in the production of elastomers and coatings. In the elastomer industry, TDI is used in the production of polyurethane tires, seals, and hoses. In the coating industry, TDI is used in two-component polyurethane coatings for automobiles, appliances, and general industrial use.

Based on Region

In 2021, Europe is estimated to have dominated the Nitric Acid Market with a share of 65.5%. The high demand for Nitric Acid in the region can be attributed to the growing agricultural sector and the increasing use of nitrogen-based fertilizers. Additionally, the European Union has been investing heavily in the development of new technologies that use Nitric Acid as a raw material, such as fuel cells and solar energy systems. This has created new opportunities for growth in the European Nitric Acid Market. Some of the major players operating in Europe are Evonik Industries AG (Germany), BASF SE (Germany), Yara International ASA (Norway), Akzo Nobel N.V. (Netherlands), and Arkema S.A. (France). These companies have strong manufacturing capabilities and wide product portfolios, which have enabled them to maintain their leading position in this region over the years.

The Asia-Pacific region is expected to be the second-largest market for Nitric Acid in 2021, with a share of 24.3%. The region's strong economic growth and rising population are key factors driving the demand for Nitric Acid. In China and India, agriculture is a major contributor to the economy, and nitrogen-based fertilizers are essential for crop production. Additionally, the rapidly growing automotive industry in the Asia Pacific is another major consumer of Nitric Acid, as it is used in car paint formulations. The Asia-Pacific region is home to some of the world’s fastest-growing economies, such as China and India. This region has witnessed significant growth in the fertilizer and explosives industry in recent years. The demand for Nitric Acid from these industries is expected to remain high in the coming years. Additionally, the expanding chemicals industry in this region is another major factor driving the growth of the Nitric Acid Market. The Asia-Pacific Nitric Acid Market is segmented on the basis of the country into China, India, Japan, South Korea, and Australia & New Zealand. Among these countries, China is expected to be the largest market for Nitric Acid, followed by India. The large share of China can be attributed to the growing demand from end-use industries such as fertilizer and explosives. India is projected to be the fastest-growing market for Nitric Acid in this region due to factors such as government support for agricultural development and expanding end-use industries.

The demand for Nitric Acid in North America is driven by the increasing use of fertilizers in agriculture and the growing automotive industry. Canada and the United States are the major consumers of Nitric Acid in North America. Nitrogenous fertilizers are the largest application segment of Nitric Acid in North America, followed by explosives & propellants. The high demand for nitrogenous fertilizers can be attributed to the increasing agricultural activities in the region. Moreover, government initiatives to encourage farmers to increase crop yield are expected to drive the demand for nitrogenous fertilizers, which, in turn, will boost the growth of the Nitric Acid Market in North America during the forecast period. The automotive industry is one of the key end-use industries of Nitric Acid in North America due to the rising demand for automobiles equipped with airbags and seat belts. The use of steel wool as a corrosion inhibitor in pipelines and vessels used in oil & gas production is another important application segment of Nitric Acid in North America.

Competitive Landscape

The key players in the Global Nitric Acid Market include- BASF SE (Germany), DuPont de Nemours Inc. (US), Nutrien Ltd. (Canada), Omnia Holdings Limited (South Africa), Apache Nitrogen Products Inc. (US), CF Industries Holdings Inc. (US), Rashtriya Chemicals & Fertilizers Ltd. (India), Dyno Nobel (US), Sasol (South Africa), Angus Chemical Company (US), Enaex S.A. (Chile), LSB Industries (US), Thyssenkrupp AG (Germany), Yara International ASA (Norway), J.R. Simplet Company (US), Ixom (Australia) and others.

Some of the key advancements in the market include

● The Hanwha Corporation made the announcement in April 2021 that it intended to construct a Nitric Acid production plant in the Yeosu Industrial Complex in the south of Seoul, South Korea, by the year 2024. The plant would have an annual production capacity of 400 kilotons and would require an investment of KRW 190 billion (approximately USD 170 million). As a consequence of this, the corporation's yearly production capacity of Nitric Acid is projected to expand from the value of 120 kilotons that it currently possesses to 520 kilotons by the year 2024.

● HUCHEMS made the announcement in March 2021 that the business had finished the layout design and the selection of technology partners for its new nitric plant that was going to be built by the year 2024 in Yeosu city, which is located in Seoul, South Korea. In addition, the company has committed a total of KRW 150 billion (approximately USD 132 million) toward the construction of a new Nitric Acid plant with an annual production capacity of 0.4 million tonnes. Once finished, this plant has the potential to bring the company's total Nitric Acid production capacity up to 1.5 million tonnes.

Segmentation of the Global Nitric Acid Market