The global nitric acid market was surpassed at USD 29.23 billion in 2021 and is expected to hit around USD 35.99 billion by 2030, growing at a CAGR of 2.34% from 2022 to 2030.
The growth is attributed to the rising demand for fertilizers by the agrarian economies of the world. The surge in the demand for fertilizers is witnessed by the excessive rise in demand for food. Fertilizer is the major application of nitric acid which caters to the maximum share across the global market. Farmers are adopting new technologies to speed up their crop yield to satisfy their excessive need. The product is also consumed in the manufacturing of adipic acid which is an important raw material in the development of Nylon 6, 6. Nylon 6, 6 is used extensively in the manufacturing of plastics and industrial carpets.
Nitric acid is produced by the reaction of nitrogen dioxide with water wherein the diluted nitric acid has distilled concentration of over 68%. There are majorly two types of the production process of the product which include weak nitric acid production and high-strength production. The high strength is produced under high-temperature conditions by first oxidizing ammonia, then is oxidation followed by absorption.
The global product market has become highly competitive due to the presence of big players in the industry. Big companies are constantly innovating the process through their extensive research and development. Also, the use of technology like mono-medium pressure process, mono-high pressure process, and dual pressure process are playing a major part in the making of the product overall.
A substantial amount of the product is consumed in the manufacturing of chemical fertilizers. However, these chemical fertilizers have an adverse effect on the environment. Fertilizer production utilizes various additives and preservatives to enhance their property and to give the optimum result. However, these additives can cause a significant soil nutrient loss and degradation of underground water reserves which are consumed by the general population.
Scope of The Report
|Market Size in 2021||USD 29.23 billion|
|Revenue Forecast by 2030||USD 35.99 billion|
|Growth rate from 2022 to 2030||CAGR of 2.34%|
|Forecast Period||2022 to 2030|
|Companies Covered||BASF SE; Dupont; Nutrien Ltd.; Omnia Holdings Limited; Apache Nitrogen Products Inc.; CF Industries Holdings, Inc.; Rashtriya Chemicals & Fertilizers Ltd.; Dyno Nobel; Sasol; Angus Chemical Company; Enaex S.A.; LSB Industries; Thyssenkrupp AG; Yara International ASA; J.R. Simplet Company; Ixom|
Fertilizer manufacturing companies dominated the nitric acid application with a share of 80.07% in 2021. Its high share is attributable to the increasing demand for food which has led to the development of fertilizers units globally. Farmers are adopting techniques that maximize the crop yield in minimum time with the help of fertilizers.
Adipic acid is produced by the use of the product as an important raw material. It is considered one of the key components for the production of Nylon 6, 6 which is used widely in the development of plastics and industrial carpets. Nylon 6, 6 is expected to stagnate over the forecast period resulting in a reduced margin in Adipic acid manufacturing owing to which the consumption of nitric acid for the production of Adipic is anticipated to be on the lower side.
Nitrobenzene is one of the key applications of nitric acid and is used in the construction industry. The future scenario of nitrobenzene totally depends on how the construction industry grows after the industry was slowed down in emerging economies due to an unexpected strike of coronavirus which has affected the demand for nitrobenzene. However, the demand is expected to pick up over the forecast period.
Toluene di-isocyanate is widely used in the production of soft foam that is used in mattresses, and automotive seats. The demand for TDI was disrupted due to the unforeseeable situation of pandemics. The margin in TDI is also facing a downfall and is expected to grow at a slower rate which is putting pressure on the TDI value chain.
Other applications of the product include its use as a rocket propellant, analytical reagent in metalworking, cleaning agent, and woodworking applications. Among these aforementioned application sectors of the product, its utility in cleaning products is substantial. However, as per the assessments made in the cleaning & hygiene sector, the use of nitric acid in cleaning products is deemed harmful to humans. Multiple household cleaning products used across various Latin American countries contain nitric acid in their formulations, excessive use of which can lead to serious consequences on the health of humans.
Europe dominated the nitric acid market with a share of 65.5% in 2021. This is attributed to the presence of a robust value chain and significant domestic consumption in the region. The growth in Central Europe is steady and moderate. However, the majority of the demand comes from Eastern Europe which shows huge potential for expansion. The automotive and chemical industries are the major pillars and driving forces for the product in the region.
France which has a highly specialized chemical industry provides adequate opportunities for market growth of nitric acid. Nitric acid consumption is expected to take a leap due to the presence of specialty chemical manufacturers such as Arkema, Air Liquide, Solvay, SEQUINS, L’Oréal, BASF, DowDuPont, Henkel, and Bayer. With government initiation in developing a sustainable economy for the chemical industry, the demand is expected to witness steady growth.
The Asia Pacific accounted for second-largest revenue contributor globally in 2021. This is attributed to the extensive use of fertilizers in agrarian countries including Thailand, Japan, India, Indonesia, the Philippines, and other agricultural-based economies. The growing population and rising income are expected to continue accelerating the demand for agricultural commodities. Fertilizer is a majorly used application of nitric acid in APAC due to the rising production of wheat, maize, cotton, and potatoes in countries such as India, China, and Pakistan. These factors are driving the demand for nitric acid in the region over the forecast period.
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