CONCENTRATED NITRIC ACID MARKET ANALYSIS

Regional Analysis

Market Outlook

• Europe dominated the global concentrated nitric acid market in 2016. Europe has the highest consumption for concentrated nitric acid, owing to its requirement in fertilizer industries for the synthesis of ammonium nitrate and calcium ammonium nitrate. According to Coherent Market Insights, the annual production of nitric acid was valued at 55 million tons. Furthermore, around 96% of the nitric acid is used for the production of calcium ammonium nitrate and ammonium nitrate, and a relatively small amount is used for the production of explosives. However, some of the European economies such as Germany and Ireland banned ammonium nitrate, mandating that it should be combined with calcium carbonate, which is restraining growth of the concentrated nitric acid market at present.
• Asia pacific is the fastest growing market region for concentrated nitric acid with China being the frontrunner for this market. The demand for concentrated HNO₃ is rising due to its increasing applications in fertilizers, textiles, vehicles, and explosives among others. Furthermore, the burgeoning growth of automotive industry in Asia Pacific has led to a robust demand for concentrated nitric acid. According to the India Brand Equity Foundation (IBEF), automobiles in India was valued at US$ 74 billion in 2015 and is estimated to reach up to US$ 260 billion to US$ 300 billion by 2026.
• North America is expected to show a steady growth in concentrated nitric acid market over the forecast period. Increasing demand for Ammonium Nitrate and Fuel Oil (ANFO), which acts as oxidizing agent and fuel absorbent in manufacturing of civil explosives is another major driver for high demand for concentrated nitric acid in the region. According to the United States Geographical Survey, in North America, mixtures of ANFO are used in around 80% of the explosives.