According to a report published by Grand View Research, Inc.; the ammonium nitrate market is likely to reach a valuation of around USD 6.18 billion by 2025.
Growing product demand in fertilizers as a nitrogen source, and usage in protection chemicals due to its better stability and low nitrogen emission can propel the market over the forecast period (2014 to 2025). Additionally, high demand in explosive production as an oxidizing agent is likely to boost the market growth.
High availability of the vital raw materials such as nitric acid and sodium carbonate simplifies the production of the product. Increasing demand for high-quality crop is growing, which has increased the utilization of the fertilizers. This has encouraged the expansion and renovation of older facilities and construct a new manufacturing facility for ammonium nitrate, thereby boosting the market growth in the coming years.
However, growing adoption of urea in the production of fertilizers is likely to hinder the market growth. still, low carbon footprints as compared to urea is expected to support the market growth.
Browse Research Report on Ammonium Nitrate Market:
Worldwide ammonium nitrate market can be segmented on the basis of application and region. Based on application, the market can be categorized into fertilizers, explosives, and others. In 2016, fertilizers segment estimated for 60% of the overall volume. It is likely to grow a CAGR of 3.5% from 2016 to 2025. The segment is likely to grow due to rapid growth of agricultural activities in emerging economies including China, India, and Brazil. Explosive segment is likely to grow at a CAGR of 2.8% during 2017 to 2025 due to its escalating demand from military sector for producing smart explosive.
Geographically, the market can be divided into North America, Europe, Asia Pacific, Central & South America, and Middle East and Africa.
In 2016, Europe, China, and the U.S. conquered the market in terms of consumption and production. These regions together estimated for 74% of the consumption, 77% of the capacity, and 81% of the total production. Expansion of end-use markets in these regions is likely to create positive outlook for the market.
However, the usage of the product in countries including India and the U.S. is restricted due to possible use of the product production of fertilizer bombs. This is expected to hamper the market growth. In addition, increasing adoption of urea in fertilizer applications in countries including Spain and Portugal has decreased the product demand in the Europe.
Ukraine was estimated as one of the major consumer markets for the product in the globe and is likely to grow at a CAGR of 3.1% from 2017 to 2025 due to rising demand in fertilizers.
Asia Pacific is likely to grow at the high CAGR of 3.9% during 2017 to 2025 on account of increasing coal and mineral mining events in countries including India and China in the region. China’s export of the product improved by over 25% to many countries including Thailand, Malaysia, and Oman in 2015. In 2016, China estimated as the highest nitrogen fertilizer consuming countries in the world and expected to continue this trend over the forecast period due to continues growth of agricultural sector
Prominent players operating in the market include CF Industries Holdings, Inc.; Yara International ASA; URALCHEM Holding P.L.C.; Enaex S.A.; and Yara International ASA.
The market is moderately competitive owing to existence of several manufacturers as well as buyers. Strong position of the existing companies and requirement of high capital for equipment is expected to act as a barrier for new entry. The market comprises various participants, which are linked across the value chain for manufacturing raw material. The competition among the established players is also expected to increase due to little product differentiation. Rising use of urea as a substitute is also expected to act as a barrier to new participants, which is expected to create negative impact on the market. Moreover, strict regulatory framework regarding use, storage, handling, and transportation of the product is also discouraging manufacturers to run out of the market.
View press release of this research report by Grand View Research:
About Grand View Research
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials, and healthcare.
For more information: www.grandviewresearch.com
