Ammonium Nitrate Market is Anticipated to Witness High Growth Owing to Rising Demand from Construction Industry

 

Ammonium Nitrate Market

Ammonium nitrate is an industrial chemical which has wide applications across various end-use industries such as construction, mining, agriculture, and transportation among others. It is primarily used as a high nitrogen fertilizer in agriculture industry. However, its use has increased significantly in construction industry as an explosive material for mining and quarrying activities. The rising infrastructure development activities around the globe have spurred the demand for ammonium nitrate from construction industry. Ammonium nitrate offers benefits such as high energy, low cost of production, versatility, and has desirable explosive characteristics which enhances its suitability for usage in construction applications.

The Global Ammonium Nitrate Market is estimated to be valued at US$ 25.86 Bn in 2024 and is expected to exhibit a CAGR of 4.4% over the forecast period 2024 To 2031.

Key Takeaways

Key players operating in the Ammonium Nitrate market are Orica, Enaex, Austin Powder Company, Incitec Pivot, CSBP, Yara International, San Corporation, Fertiberia, Neochim, URALCHEM Holding, Dyno Nobel, Vijay Gas Industry, Solar Industries, Maxam, AEL Mining Services, EPC Groupe, Gulf Oil Corporation, IDEAL Industrial Explosives, Sichuan Meifeng Chemical Industry, and Jiaocheng Jinxin Chemical. Key players such as Orica and Dyno Nobel account for significant Ammonium Nitrate Market Value and have strong distribution network across major countries.

The rising construction of roads, rails, tunnels, buildings, and other infrastructure projects globally has opened new opportunities for usage of ammonium nitrate. Additionally, growth in mining industry due to rising mineral and metal extractions is another key opportunity area.

Key players have been focusing on geographical expansion plans to leverage growth opportunities in emerging markets. For instance, Orica and Dyno Nobel have expanded their manufacturing and distribution footprint in Asia Pacific and Latin American countries. Similarly, Yara International is investing in capacity additions across Middle East and Africa region.

Market drivers:

1) Rising infrastructure development activities globally due to rapid urbanization is a major growth driver.

2) Increasing mining and quarrying operations to meet demand from construction and automotive industries propels consumption.

Market Restraints:

 1) Stringent transportation and storage regulations due to explosive nature act as a restraint.

2) Imposition of trade barriers by few countries restrict growth opportunities.

Segment Analysis

The ammonium nitrate market is dominated by the mining sub segment owing to its extensive use in mining explosives during quarrying and mining activities. Ammonium nitrate finds application in construction, mining, agriculture. Within mining, it is used as an oxidizing agent in explosives and is widely used for fragmenting rock and soil in mining and quarrying. The mining industry accounts for approximately 60% of the global ammonium nitrate market. The widespread use of ammonium nitrate in mining activities and explosives makes the mining segment the largest consumer of ammonium nitrate.

Global Analysis

Regionally, the Asia Pacific region dominates the global ammonium nitrate market and is expected to witness the fastest growth during the forecast period. This is due to the presence of emerging economies like China and India with large mining and construction industries. The growing mining, construction and agriculture industries are driving the demand for ammonium nitrate in the region. North America and Europe are also significant markets owing to developed mining and construction sectors. Key players are focusing on expanding their presence in developing nations to tap the growing demand.

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About Author:

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)