Global Statistics Representing Ammonium Nitrate Market Scenario
Ammonium nitrate is a chemical compound that remains solid at standard pressure and room temperature. It is primarily used as a nitrogen fertilizer and thus, the ammonium nitrate market is expected to grow in tandem with the fertilizer industry, which in turn is dependent upon the agriculture industry, globally. Additionally, ammonium nitrate registers high demand in explosive manufacturing as an oxidizing agent, which is projected to further foster market growth in the future.
The ammonium nitrate market has been witnessing considerable growth and is expected to retain this growth momentum during the forecast period, 2019–2026, owing to growing construction activities, increasing consumption of explosives, and growing defense sector. Additionally, population growth alongside the increasing demand for quality food produce in limited arable land are compelling farmers to increase crop yield, which in turn has been accelerating the demand for fertilizers and subsequently, ammonium nitrate.
The global ammonium nitrate market was valued at USD 17 billion in 2018 and is expected to reach a value of USD 25 billion by 2026, with a CAGR of 4.94% during the forecast period, 2019–2026.
The global ammonium nitrate market can be segmented by application, and end user.
By application, explosive segment witness high growth in the ammonium nitrate market owing to rising mining, and querying activities which has led to a rise in the demand for civil explosive. According to the Queensland government, around 99% of ammonium nitrate is used as an explosive for mining operation. Additionally, Ammonium nitrate is also used in military applications as an explosive in combination with nitro compounds. Growing use of ammonium nitrate in the mining industry and in military applications as an explosive is expected to contribute to market growth during the forecast period, 2016–2026.
By end user, the ammonium nitrate market can be segmented into mining, construction, quarry and agriculture. The agriculture segment is expected to hold a prominent share of the global ammonium nitrate market during the forecast period, 2016–2026, as agriculture is a major user of ammonium nitrate in the form of fertilizers, which are used to add essential nutrients such as nitrogen, potassium, calcium and others to the soil to maximize crop yield. Growing use of fertilizers in agriculture, owing to decreasing soil fertility, increasing food demand and uncertain climate change is expected to upsurge the demand for fertilizers and in turn, augment market growth in years to come. According to the International Fertilizer Association, the global fertilizer demand was pegged at 186 Mt in 2016/17 and it is projected to reach 200 Mt by 2019/20, which indicates the potential demand for ammonium nitrate.
Geographically, the global ammonium nitrate market can be segmented into Asia Pacific, North America, Europe, and Latin America and Middle East & Africa.
Europe is expected to hold the largest share in the ammonium nitrate market during the forecast period, 2019–2026, owing to the region’s strong consumer base for various end-use industries, coupled with strong investments towards revitalizing its construction sector. Additionally, European countries including Russia, France, and Germany have emerged as major contributors to the region’s market, further strengthening the region’s foothold. Moreover, the widespread utilization of ammonium nitrate in explosive and fertilizer applications has also been contributing to market growth.
Asia Pacific is expected to witness the fastest growth during the forecast period, 2019–2026, owing to the expansion of various end-use industries such as mining industry, agriculture, and construction in the region. The demand for ammonium nitrate is expected to gain traction in various countries such as China, India, Japan, and South Korea on account of the growing consumer base along with the favorable regulatory scenario. Additionally, increasing construction activities, and availability of affordable labor and land are some of the other factors expected to drive the region’s market growth.
North America is expected to witness noteworthy growth in the global ammonium nitrate market, owing to the growing demand from quarry, mining, and construction sectors. Additionally, the presence of developed countries such as the U.S. and Canada is a key driver for the region’s market growth on account of the strong demand from defense sectors in these countries. According to the Aerospace Industries Association, the US aerospace and defense industry, valued at USD 865 billion in 2016, maintained its title as the world's largest exporter in the aerospace and defense sector.
The Latin America and Middle East & Africa region is expected to witness steady growth, owing to the increasing demand for ammonium nitrate-based fertilizers from the region’s agriculture sector. Countries such as Oman, Saudi Arabia, Qatar, and the UAE in the region are projected to witness strong demand on account of the accelerated demand from the mining sector.
Some of the leading players in the global ammonium acetate market include Enaex (Chile), San Corporation (China), OSTCHEM (Austria), Incitec Pivot Limited (Australia), EuroChem Group AG (Switzerland), Yara International ASA (Norway), Neochim Plc (Bulgaria), Abu Qir Fertilizers and Chemicals Company (Egypt), URALCHEM JSC (Russia), Vijay Gas Industry P Ltd (India), Austin Powder (U.S.), Orica Limited (Australia), CF Industries Holdings, Inc. (U.S.), and Fertiberia SA (Spain).
Ammonium Nitrate Market Segmentation
By End User