The global nitric acid market is expected to be valued at over $17 billion by 2024, growing at an estimated CAGR of 6% from 2017 to 2024. Increasing fertilizer demand along with rsing consumption in end-use industries such as polymers and pharmaceuticals is anticipated to boost market growth over the forecast period.
Key Product Categories & Technologies
Nitric acid is corrosive mineral acid, which is colorless, commercially marketed with 70% concentration. Commercially, nitric acid is produced through Ostwald’s process in which catalytic oxidation of anhydrous ammonia is carried. This process gives nitric oxide which is again treated with water and then re-oxidized to get nitric acid.
83% of the manufactured nitric acid is used in the production of Ammonium Nitrate, Ammonium Nitrate is majorly (85%) used by Fertilizer industry and explosives, rest of them are shared by polyurethanes and polyamides. Since plant roots do not directly absorb the urea form of N to a large extent, ammonium nitrate is an efficient and immediate source of plant nutrition. Explosive chemical market is expected to be growing due to increase in mining activities. Asia Pacific was the largest market for nitric acid in 2012-2013 with strong and impactful presence of fertilizers industries in that region. North America and Europe are estimated to witness loss of market share by over 2.4% in the forecast period. Growing countries like China and India, it is further expected to increase more demand of nitric acid market in projected years.
Apart from agrochemicals, nitric acid is used in the production of Adipic acid, which is utilized in the production of nylon 6 6, with globally 2,300 kilo tons of Nitric Acid demand in 2014. Polyamide is widely used in key end-user industries such as tire, textiles, and automotive industries. Toluene di-isocyanate (TDI) uses nitric acid as an intermediate to manufacture polyurethane foams used in furniture, carpets, transportation, and automotive industries. Nitric acid is within aerospace industry as an oxidizer in rocket propellants expected to be de-growing due to various health and environmental hazards related issues. It is also used in metallurgy, photoengraving, etching steel, metal ore flotation, laboratory work, and the production of urethane and rubber chemicals. This wide range of application will never allow Nitric acid market to deplete its growth.
In general Nitric Acid plants are designed based on pressure, Mono medium pressure, Mono high pressure and Duel pressure processes. Krupp Uhde High Pressure process, a compact, efficient and economic process has been developed recently. Yara, BASF, Johnson Matthey, and Hereaus have developed selective catalysts for the removal of N2O, this selective catalyst will split N2O to N and O in the burner. Leading Nitric Acid technology licenser companies like Weatherly Engineering Sweden, ESPINDESA Spain, Tecnicas Reunidas Spain, Borealis of Austria, and ThyssenKrupp Industrial Solutions of Germany are continuously developing new technologies to meet the demand, economy and environmental challenges.
“Optimal Price Point (OPP) for Nitric Acid Market”
Estimated Average cost of nitric acid – $ xx globally. The pricing and business models in the nitric acid market are unique in different regions. With growth in environmental concerns, technological advancements, and shifting farmer preferences OPP and range of acceptable Prices (RAP) are going to change over the forecast period. We at Ameri Research continuously track these prices with our proprietary pricing model.
Top Players, Company Share, Competitive Dynamics & M&A Insights
Leading market participants include DuPont, BASF SE, Bayer AG, Lyondell Basell, PCS Nitrogen, Terra Industries, Agrium, AkzoNobel NV, Apache Nitrogen Products, Basic Chemical Solutions LLC and PVS Chemicals. BASF S.E. has started operating a new plant for the production of Nitric acid at its Antwerp Verbund site having production capacity of 500,000 m.t./year. In 2012, BASF gave a new contract to M+W Group for the construction of a new nitric acid production plant. LSB Industries – El Dorado Nitrogen subsidiary has signed a seven-year extension to supply Bayer Material Science with nitric acid.
Terra Industries is the largest producer of nitric acid in the United States will also spend an estimated 17 million USD to install and implement new controls and technologies that are expected to reduce harmful nitrogen oxide emissions at its facilities by at least 1,200 tons per year. Agrium and Koch Nitrogen Company are manufacturing nitrogen-based fertilizers such as ammonium nitrate and ammonia.
Growth Drivers & Restraints
Need for high crop yield to compromise the increasing demand of food along with growing population is driving the consumption of synthetic fertilizers over the past few years which is directly impacting on the global nitric acid market. Growth in chemical processing industry, particularly in developing economies including China and India, is further expected to boost the nitric acid demand in forecast year. On the other hand pollution and water contamination causing by the use of fertilizers are leading to strict environmental rules. Europe and North American market may see direct impact of this in upcoming years.
Europe was the leading region in nitric acid market with 21.5 million tons of Nitric Acid in 2014, followed by the Asia-Pacific. Asia Pacific is one of the fastest growing regions for the nitric acid market with a CAGR of 3.04 from 2016 to 2024, with China as the major shareholder. North America is currently exhibiting the third-largest demand for nitric acid.
This report provides factors about current markets trends, product category, technologies, and market drivers and M&A. Provides market and technology projections for the upcoming years including the present technology and trends
- Market growth drivers
- Top players
- Product outlook
- Technology outlook
- North America
- Asia Pacific
- Middle East and Africa