Buy Now
Nitric Acid Market Size, Share, Growth & Industry Analysis, By Form (Powder, Liquid), By Application (Fertilizers, Adipic Acid, Nitrobenzene, Toluene Di-isocyanate, Nitrochlorobenzene, Others), By End-Use Industry (Agriculture, Chemical Manufacturing, Mining, Pharmaceuticals, Others), and Regional Analysis, 2024-2031
Pages: 170 | Base Year: 2023 | Release: February 2025 | Author: Versha V.
Nitric acid is a strong, highly corrosive mineral acid composed of hydrogen, nitrogen, and oxygen. It appears as a colorless or yellowish liquid that decomposes into nitrogen oxides when exposed to light. It is widely used in the production of fertilizers, explosives, dyes, and pharmaceuticals, as well as in metal refining and chemical synthesis.
Global nitric acid market size was valued at USD 20.15 billion in 2023 and is projected to grow from USD 21.16 billion in 2024 to USD 30.71 billion by 2031, exhibiting a CAGR of 5.47% during the forecast period.
The market is experiencing steady growth, driven by its growing use across diverse industries such as fertilizers, explosives, chemicals, and metal processing. A significant portion of nitric acid is used in producing ammonium nitrate fertilizers, supporting the agricultural sector’s need for higher crop yields.
Major companies operating in the nitric acid market are BASF, Apache Nitrogen Products, Inc., CF Industries Holdings, Inc., Yara International ASA, LSB Industries, Sasol Limited, Deepak Fertilisers and Petrochemicals Corporation Ltd., Nutrien, EuroChem Group, Omnia Nutriology, Casale SA, Trammo, Inc., DuPont de Nemours, Inc., INEOS AG, and Hanwha Group.
Nitric acid is crucial in manufacturing explosives such as TNT and nitroglycerin for mining, construction, and defense applications. Furthermore, the chemical industry relies on nitric acid for producing adipic acid precursor to nylon, dyes, and pharmaceuticals.
Market Driver
"Rising Need for Fertilizers and Advancements in N₂O Abatement Technologies"
The rising need for fertilizers is a significant factor influencing the nitric acid market, as it is essential for producing ammonium nitrate and other nitrogen-based fertilizers. With a growing global population and increasing food demand, agricultural productivity relies on nitrogen-rich fertilizers to enhance crop yields.
Additionally, the expansion of the chemical and explosives industries is boosting demand, given nitric acid’s crucial role in manufacturing explosives.
Furthermore, strict environmental regulations and the adoption of green technologies are shaping the market, with governments and industries investing heavily in low-emission production processes and N₂O abatement technologies to meet climate goals and reduce greenhouse gas emissions. The focus on sustainability and cleaner manufacturing is driving innovation in nitric acid production.
Market Challenge
"Environmental Impact and Volatility in Raw Material Prices"
Nitric acid production generates significant emissions of nitrogen oxides (NOx) and nitrous oxide (N₂O), which are potent greenhouse gases contributing to air pollution and climate change.
NOx emissions can lead to the formation of smog and acid rain, while N₂O is a highly effective greenhouse gas. To mitigate this challenge, industries are increasingly adopting advanced emission control technologies such as catalytic reduction and EnviNOx systems.
Ammonia, a key raw material in the production of nitric acid, is subject to price fluctuations due to supply-demand imbalances, geopolitical tensions, and other factors. When ammonia prices rise, production costs also increase, leading to reduced profitability for producers.
Companies are addressing this barrier by exploring alternative feedstocks and improving energy efficiency to reduce dependency on fluctuating raw material markets. Additionally, regulations governing industrial emissions, waste management, and sustainability are becoming increasingly strict.
Compliance with these regulations demands continuous investment in cleaner processes, waste treatment systems, and operational changes. To navigate this, firms are leveraging innovative process optimizations and sustainable certifications to meet regulatory standards while maintaining operational efficiency.
Market Trend
"Growing Emphasis on Sustainability and Specialty Chemicals Expansion"
There is a growing focus on sustainable production methods, with companies increasingly adopting low-emission and energy-efficient technologies to reduce the environmental impact of nitric acid manufacturing.
Additionally, the expansion of specialty chemicals production is contributing significantly to the expansion of the nitric acid market, as it serves as a key ingredient in various chemical synthesis processes, including dyes, pigments, and explosives.
Another notable trend is the increasing use of nitric acid in biopharmaceuticals, where it plays a crucial role in equipment cleaning, pH regulation, and pharmaceutical synthesis, ensuring compliance with stringent industry standards and high-purity production requirements.
|
Segmentation |
Details |
|
By Form |
Powder, Liquid |
|
By Application |
Fertilizers, Adipic Acid, Nitrobenzene, Toluene Di-isocyanate, Nitrochlorobenzene, Others |
|
By End-Use Industry |
Agriculture, Chemical Manufacturing, Mining, Pharmaceuticals, Others |
|
By Region |
North America: U.S., Canada, Mexico |
|
Europe: France, U.K., Spain, Germany, Italy, Russia, Rest of Europe |
|
|
Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific |
|
|
Middle East & Africa: Turkey, UAE, Saudi Arabia, South Africa, Rest of Middle East & Africa |
|
|
South America: Brazil, Argentina, Rest of South America |
Market Segmentation:
Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.
Asia Pacific nitric acid market accounted for a notable share stood around 50.12% in 2023, valued at USD 10.10 billion. This dominance is primarily reinforced by high fertilizer consumption, rapid industrialization, and expanding chemical manufacturing activities in countries such as China, India, and Japan.
The increasing demand for ammonium nitrate-based fertilizers to support agricultural productivity, coupled with government initiatives promoting food security, is fueling regional market growth. Additionally, rising investments in chemical processing, explosives for mining and infrastructure projects, and expanding automotive and textile industries are boosting the demand for nitric acid across the region.
Europe nitric acid industry is poised to grow at a CAGR of 4.99% over the forecast period. The region is a key producer of adipic acid, nitrobenzene, and toluene di-isocyanate, which are essential raw materials for the automotive, textile, and construction industries.
The rising demand for explosives in mining and infrastructure projects is further contributing to this expansion. Additionally, the increasing demand for explosives in mining, construction, and defence sectors is fueling the use of nitric acid.
The nitric acid industry is characterized by a large number of participants, including both established corporations and established players. Market participants are prioritizing capacity expansion, strategic partnerships, and technological advancements to strengthen their market position.
Innovation remains key, with manufacturers developing low-emission nitric acid production technologies and exploring alternative feedstocks to reduce environmental impact.
Fluctuations in raw material prices, particularly ammonia, drives pricing pressures, making cost optimization a key focus for market players. Additionally, companies are increasingly investing in R&D for process efficiency and safety improvements, while mergers and acquisitions are reshaping the competitive dynamics, allowing firms to gain technological expertise and expand their geographical footprint.
Recent Developments (Partnerships/Agreements/Expansion)
