by Ammonium nitrate is an inorganic salt composed of ammonium cations (NH4+) and nitrate anions (NO3−). It is highly water-soluble and has a wide array of industrial uses. It is primarily used as a high nitrogen fertilizer. Ammonium nitrate is also frequently used as an oxidizing component for mining and construction explosives due to its high explosive power and lower cost compared to dynamite.
The global ammonium nitrate market is estimated to be valued at US$ 21.18 Mn in 2024 and is expected to exhibit a CAGR of 4.5% over the forecast period 2024 to 2031.
Key Takeaways
Key players: Key players operating in the ammonium nitrate market include BASF SE, Clariant International Limited, DIC Corporation, Huntsman International LLC, Tronox, Inc, Rockwood Holdings, Inc., Lanxess AG, Atlanta AG, Ferro Corporation and Merck.
Growing demand: Rising global population and urbanization is propelling the need for Ammonium Nitrate Market Trends as fertilizer. Its oxidizing properties also make it indispensable for explosives used in mining, quarrying, construction and other industries.
Growing demand for energy from renewable sources is a key driver for ammonium nitrate. Ammonium nitrate finds use in manufacturing wind turbine blades using carbon fiber composites. It is also useful for tunnel boring and strip mining activities required for infrastructure development to support renewable energy projects.
Global expansion: Leading manufacturers are expanding their production capacities and distribution networks across major developing economies to cater to rising local demand. For example, mining giants have increased ammonium nitrate procurement from Middle Eastern and Asian markets.
Market key trends
One of the key trends observed in the ammonium nitrate market is the increasing demand from the renewable energy industry. Ammonium nitrate composites provide high strength to weight ratio and durability required for wind turbine blades and other composite applications. Manufacturers are developing specialized grades of ammonium nitrate to enable production of larger wind turbine blades for offshore projects. This is expected to significantly contribute to the projected growth of the global ammonium nitrate market during the forecast period.
Porter’s Analysis
Threat of new entrants: High capital requirement and presence of major players pose threat of new entrants in the Ammonium Nitrate Market.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitute products like calcium ammonium nitrate.
Bargaining power of suppliers: Suppliers have high bargaining power due to limited number of raw material suppliers and dependency of buyers.
Threat of new substitutes: Products like calcium ammonium nitrate pose threat of substitution due to its burn rate properties.
Competitive rivalry: Intense competition exists among major players due to their global presence and product differentiation.
Geographical Regions
North America accounts for the largest share in terms of value in the Ammonium Nitrate Market due to presence of major mining and construction industries. The ammonium nitrate consumption is high for mining and construction applications in countries like United States and Canada.
Asia Pacific is expected to witness fastest growth during the forecast period in the Ammonium Nitrate Market. The growth can be attributed to increasing infrastructure development and mining activities in emerging economies like China and India. Also, government initiatives to boost agricultural production will contribute to the regional market growth.
