Nitric Acid Market Size, Share & Trends Analysis Report By Type (Dilute Nitric Acid, Concentrated Nitric Acid), By Application (Fertilizers, Nitrobenzene, Toluene diisocynate (TDI), Adipic Acid, Others), By End User (Agriculture, Automotive, Chemicals, Others (Laboratories, etc.)) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global nitric acid market was valued at USD 31.65 billion in 2023. It is expected to reach USD 38.97 billion in 2032, growing at a CAGR of 2.34% over the forecast period (2024-32). Nitric acid is a crucial raw material for various chemical processes, including the production of nitroaromatics, adipic acid, and toluene diisocyanate (TDI). Growth in chemical manufacturing drives demand for nitric acid.

Nitric acid is a mineral acid that is odourless, tasteless, and very corrosive. Its chemical formula is HNO3. It is possible to manufacture it by a process that consists of two steps, the first of which is the oxidation of ammonia, and the second of which is the absorption of nitrogen oxides that have been formed. The production of fertiliser is one of the most important applications for nitric acid.

Nitric Acid (HN03), often referred to as aqua fortis, is a colourless substance that, over a period of time, becomes yellow as a result of the breakdown of nitrogen and water into oxides. Nitric Acid (HN03) is also known as aqua fortis. The compound is extremely caustic and has a significant role to play in the manufacturing of ammonium nitrate as well as other compounds that are used in the formulation of fertilisers. Other applications for the molecule include the synthesis of compounds like nitrobenzene, adipic acid, and chloronitrobenzene. These chemicals are then put to use in a variety of end-use sectors, including the construction industry, the automobile industry, and the plastics industry. The expanding automotive sector in emerging areas has resulted in a high consumption of HNO3, which can be related with population growth and increased consumer demand, hence boosting the expansion of the market size. In addition, the expansion of the market is being further bolstered by the growing demand for plastics in a variety of applications, including those in the industrial and consumer sectors.

Market Dynamics

Market Drivers

Demand for lightweight vehicles will drive market expansion

Because of the increasing demand for lightweight automobiles from end users, manufacturers have begun to focus on innovation and development within the automotive industry. This has resulted in the creation of high consumption prospects for HN03, which has positively contributed to the expansion of the market. HN03 is an essential component in the production of adipic acid, which is then put to use in the manufacturing of nylon. Nitric acid producers are moving away from metal-based composites and toward polymer-based ones, such as nylon, in order to reduce the weight of vehicles and boost their fuel capacity. In addition, rising consumer demand for individual autos combined with an ever-increasing population has backed ominously towards the manufacture of lighter vehicles. This has backed ominously to the production of lighter vehicles. This is a result of government restrictions aimed at reducing emissions of carbon dioxide, which have encouraged chemical firms to make use of their more advanced knowledge in the manufacturing of automobile solutions that are both fuel-efficient and affordable. This market is benefiting from the rising trend for lighter automobiles, which is driving this trend.

The market will expand as a result of rising demand for HNO3 from various end-use industries

In the agricultural sector, where it is employed in the production of fertilisers such ammonium nitrate, potassium nitrate, calcium ammonium nitrate, and nitro phosphate, HN03 has a significant application. This sector is home to one of the largest markets for chemical. To meet the ever-increasing need for food brought on by an ever-increasing population, fertilisers are employed to increase crop output. In addition, the rise in the amount of discretionary cash that consumers have led to an increase in the demand for organic and high-quality food, which in turn is leading to the utilisation of bio-based fertilisers and further propelling the expansion of the market. Toluene di-isocyanate (TDI) is used, together with HNO3 as an intermediary, in the production of polyurethane foams, wood and floor coatings, and insulating materials. The increasing building activities further enhance the market for these products. In addition to this, the changing lifestyles of consumers, the expanding number of rehabilitation projects, and the newly implemented government infrastructure projects all function as driving factors for the expansion of the HN03 market. In addition, the production of dyes using nitric acid is another reason that is propelling the expansion of the market. There is a connection between the rising need for dye in the textile sector and the expansion of the fashion industry.

Market Restraints

Government restrictions on HNO3 that limit market expansion

The production of chemicals, the operation of motor vehicles, and the discharge of dirty wastewater from agricultural lands all contribute to the emission of HN03. When environmental pollution is breathed in, it can cause difficulties in the respiratory system. The expansion of the market is being hampered by rules imposed by governments aimed at minimizing environmental damage and cutting down on waste produced by industry. The market is being further restrained by growing worries over the amount of carbon dioxide that is emitted by automobiles.

Market Opportunity

As a result of the increase in mining operations throughout the world, the global nitric acid market is providing increasingly attractive prospects for nitric acid manufacturers on a daily basis. As a result of this, nitric acids are utilized in the mining industry on a significant scale as blasting and explosive agents. In addition to this, the growing application of nitric acid as an oxidizer in rocket propellants is bringing about an increase in the number of possibilities available for industry participants in the worldwide market.

Regional Analysis

Europe Dominates the Global Market

Based on region the market is divided into North America, Asia Pacific, Europe, Latin America and Middle East.

In 2021, Europe held a market share of 65.5% of the nitric acid industry, making it the region's clear leader. This may be explained by the existence of a strong value chain as well as a considerable amount of domestic consumption in the area. The rate of economic expansion in Central Europe is consistent and moderate. Whereas the vast majority of demand originates in Eastern Europe, which indicates a significant untapped market for growth. The automotive and chemical sectors are the primary pillars upon which the product is built and the primary driving reasons for its growth in the region.

The expansion of the nitric acid market share is helped along by France's highly specialised chemical sector, which offers sufficient prospects for expansion. Because of the existence of speciality chemical producers like Arkema, Air Liquide, Solvay, SEQUINS, L'Oréal, BASF, DowDuPont, Henkel, and Bayer, it is anticipated that the demand of nitric acid would increase dramatically in the near future. It is anticipated that there would be consistent rise in demand as a result of government involvement in the development of a sustainable economy for the chemical sector.

In 2021, the Asia Pacific region was responsible for the second-largest contribution to global revenues. This can be added to the widespread use of fertilisers in agricultural nations such as Thailand, Japan, India, Indonesia, the Philippines, and other nations with economies that are built on agriculture. The demand for agricultural goods is predicted to continue increasing at a rapid pace as a result of both the expanding population and the growing wealth. Due to the increasing production of wheat, maize, cotton, and potatoes in countries such as India, China, and Pakistan, one of the most common applications of nitric acid in the Asia-Pacific region is in the form of fertiliser. Over the course of the forecast period, these variables will be the primary drivers of demand for nitric acid in the area.

Segmental Analysis

The nitric acid market is segmented into the following categories: Application and Region.

In 2021, fertiliser producing businesses held an 80.07% share of the nitric acid application market, making them the market leaders. The rising need for food throughout the world is largely responsible for the expansion of fertiliser production facilities around the world, which explains why this sector has such a large proportion of the market. Farmers are turning to methods that, with the assistance of fertilisers, can increase crop output while simultaneously reducing the amount of time needed to do it.

The utilisation of the product as a significant raw material results in the production of adipic acid. It is believed to be one of the most important components necessary for the manufacturing of Nylon 6, 6, which is a material that is extensively utilized in the creation of plastics and industrial carpets. It is anticipated that the price of Nylon 6, and 6 will remain relatively unchanged over the course of the forecast period, which will result in a decreased margin in the production of adipic acid. As a consequence of this, it is anticipated that the amount of nitric acid consumed in the production of adipic will be on the lower side.

One of the important applications of nitric acid is the production of nitrobenzene, which is utilized in the field of building. After being slowed down in emerging economies due to an unexpected strike of coronavirus, which has affected demand for nitrobenzene, the future scenario of nitrobenzene is entirely dependent on how the construction industry grows. This is because the demand for nitrobenzene has been negatively impacted. On the other hand, during the course of the projected time, a rise in demand is anticipated.

Toluene di-isocyanate is a component that is frequently used in the manufacturing of soft foam, such as that which is found in mattresses and car seats. Because of the unpredictability of the pandemic crisis, there was a disruption in the demand for TDI. The margin in TDI is also suffering a decline and is likely to increase at a slower rate, which is placing pressure on the TDI value chain. TDI margins are expected to grow at a slower rate.

In addition to its usage as a rocket propellant, other applications of the substance include its use as an analytical reagent in metalworking, a cleaning agent, and applications in woodworking. The product has significant value in the aforementioned fields of application, but perhaps most notably in the field of cleaning goods. Nitric acid, when used in cleaning solutions, is thought to be hazardous to human health, according to the evaluations that have been conducted in the cleaning and hygiene industry. Nitric acid is present in the formulas of a variety of home cleaning solutions that are popular throughout a variety of Latin American nations. Excessive usage of these products can have major effects for the health of humans.

Impact of covid-19

When the world witnessed the noble Coronavirus breakout, it disrupted all nations' economies. The government imposed lockdowns to slow the disease's rapid spread. Productions were stopped, all workplaces were closed, public interactions were limited, and temporary manufacturing and trading operations suspensions were implemented globally. Implementing the lockdown and public exchange caused interruption causing a cutting down of the market's operations. The social distancing norms of the government also disrupted the supply chain. Because of lockdowns imposed by the government, businesses and employees could not use the equipment. This forced the farmers to lean towards the help provided by autonomous tractors pushing the autonomous tractor market growth further.

The South Korean nation faced many problems due to the social distancing and public interaction restrictions imposed by the government, which resulted in a workforce shortage. Travel restrictions imposed also restricted the movement of emigrant laborers into the nation. So the country had to ultimately shift towards using autonomous machines to continue their production and operations, to generate income during tough times. But still, during the era of covid, the market had to face a few bumps, such as the level of participation by the companies in the market declined, suppliers and distributors also slowed down their operations, and this negatively affected the farm machinery industry supply chain, resulting in a delay of deliveries of agricultural machinery.

Recent Developments

• January 2024 - Saudi Chemical Co. inked a contract to build a unique ammonium nitrate and nitric acid production facility in Ras Al Khair. According to the company's Tadawul announcement, the relationship with Dyno Nobel, through its subsidiary Saudi Chemical Co., aims to help critical projects and important areas that align with the Kingdom's Vision 2030.
• February 2024 - A novel method for synthesizing graphene oxide was discovered by Umeå researchers, and the resulting materials have much fewer flaws than materials made using the most popular method. Previously, only a highly hazardous process requiring extremely toxic fuming nitric acid could be used to produce graphene oxide of comparable quality.