by Market Overview:
Ammonium nitrate is a salt made of ammonia and nitric acid. It is a oxidizing material commonly used in agriculture as a high-nitrogen fertilizer. It is also used as a component of improvised explosive devices by terror groups around the world. However, when used safely and legally, ammonium nitrate has important industrial uses such as manufacturing of explosives for mining and construction industries. Its expanding use in construction activities such as quarrying, coal mining and road construction is driving its demand across major countries. It has advantages of being cost-effective and delivering high energy and detonation power, making it suitable for blasting in large infrastructure projects.
Market key trends:
Growing urbanization and industrialization has boosted infrastructure development projects globally. This has increased the demand for ammonium nitrate in construction and mining industries for explosives manufacturing. For instance, according to the International Energy Agency, global energy demand is projected to grow by nearly 50% by 2050, driven primarily by developing economies. This will significantly increase mining activities to meet the rising demand for coal, metals and minerals. Moreover, government initiatives to develop roads, railways and real estate will further augment the consumption of ammonium nitrate in construction industry. Additionally, rising mechanization in agriculture is propelling its demand as fertilizer. Manufacturers are focusing on developing innovative emulsion and slurry products to increase the efficiency in underground blasting activities.
Porter’s Analysis
Threat of new entrants: The ammonium nitrate market requires high capital investment for setting up manufacturing facilities and distribution networks, limiting threat from new entrants.
Bargaining power of buyers: The presence of numerous buyers and suppliers in the market place keeps buyer power in check. Additionally, the applications of ammonium nitrate across diverse industries increase dependency on the product.
Bargaining power of suppliers: Large numbers of suppliers for raw materials like nitrogen, limestone and natural gas used in ammonium nitrate production ensure competitive pricing and reliable supply chains.
Threat of new substitutes: Ammonium nitrate competes with alternatives like urea and calcium ammonium nitrate as fertilizers. However, its versatile applications in explosives and industrial use pose limited threat from substitutes.
Competitive rivalry: The ammonium nitrate market features global presence of key manufacturers. Pricing pressure and competition over market share intensify rivalry in the industry.
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 demand from fertilizer and explosive applications. The market size for 2023 is US$ 18.38 Bn.
Regional analysis: Asia Pacific dominates the global ammonium nitrate market and is expected to continue its lead over the forecast period owing to growth in the agriculture sector in countries like India and China. North America and Europe follow Asia Pacific in terms of demand and production.
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 focusing on capacity expansion plans and strategic partnerships to strengthen their presence in both developing and developed markets.
Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
