Nitric Acid Market - Forecasts from 2021 to 2026

The nitric acid market is expected to grow at a compound annual growth rate of 3.59% over the forecast period to reach a market size of US$21.894 billion in 2026 from US$17.104 billion in 2019. One of the prime applications of nitric acid is the production of adipic acid. Adipic acid is a prime ingredient in the production of nylon resins and fiber which is used in automotive for the interior. The acid is also used as a precursor during the production of nylon 6,6, another raw material used by the automotive industry. Nylon products are used as a substitute for heavy metal components in the automotive industry, facilitating low carbon emission and lesser fuel consumption. Furthermore, nitric acid in the form of explosive is used by the mining industry to carry out various operations. The prime reason driving the market growth of nitric acid is robust growth among its end products across various industry verticals.

Geographically, the nitric acid market is segmented into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific region. The Asia Pacific nitric acid market is expected to surge at a significant CAGR owing to mushrooming industrial sector which had fueled the automotive and textile industry. growth in the mining industry is also projected to show promising market prospects in the Asia Pacific and the Middle East region. The North America nitric acid market is expected to hold a significant share during the forecast period.

Market Trends

The market for nitric acid was mainly driven by the fertilizer industry. Nitric acid is used in the manufacturing of ammonium nitrate and calcium ammonium nitrate which finds application in fertilizers. Ammonium nitrate, a significant by-product of nitric acid, is used in the production of urea ammonium nitrate (UAN). UAN is used as fertilizer solution and in explosives. Ammonium nitrate is also used as blasting and explosives across various industry verticals, including mining. Calcium ammonium nitrate is a prime ingredient used in the production of fertilizers solutions. Nylon 6,6 uses adipic acid as a raw material during its production. Nylon 6,6 is used by numerous industries including textile, automotive, and tire. Toulene diisocyanate is another key material used in these industries and employs Nitric acid in its production. Nitric acid also acts as an intermediary in the production of nitrobenzene and nitrochlorobenzenes and as an oxidizer.

However, the health risk faced by the workers operating in the nitric acid industry has raised serious concerns and has the potential to hinder market growth.

Growth Factors

The rising adoption of Nylon in the automotive industry is expected to increase the market demand for nylon and hence the demand for nitric acid.

One of the prime factors which are expected to support the growth of nitric acid is the increasing demand for nylon in the automotive industry. With growing environmental concerns and increasing carbon footprint on the earth, the automotive sector has been adopting economic and eco-friendly alternatives. Nylon products facilitate less carbon emission in the vehicle and encourage lower fuel consumption and hence have witnessed increased adoption. Furthermore, US automotive manufacturers, in order to adhere to Corporate Average Fuel Economy (CAFE) regulations, have increased usage of polymer matrix composites, which also helps in achieving fuel economy.

Impact of COVID-19 on the nitric acid market

The advent of the COVID-19 pandemic negatively impacted the nitric acid market. The prime industry that employee Nitric acid is the mining industry which uses it as an explosive. With the outbreak of the covid-19 virus, a halt in operation across several industries was implemented, including the mining industry, to contain the spread of the virus. The reduced operation resulted in lower demand for nitric acid. Furthermore, the automotive industry as well witnessed decrease in production with physical shutdown of manufacturing units. OICA records fall in production of motor vehicles by 16% in 2020 to 77.621 million vehicles.

Competitive Insights

The promising market shown by t\lucrative growth in the nitric acid market has encouraged several new players to enter the market for better gains. Major players operating in the nitric acid market include Sasol, Du Pont, and BASF. These companies have been exhaustively covered along with their relative competitive strategies.

Recent Developments

October 2020, Contract. LSB industries, one of the leading nitric acid producers globally, entered into a long-term contract which is expected to increase the company revenues. As per the contract, the company will supply 70 to 100-kilo tons of nitric acid annually.

April 2019, Contract. Gujarat-based Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) has won a contract to construct a nitric acid plant at Bharuch, Gujarat in India incorporation with Plinke GmbH, which is a subsidiary of KBR Inc. This contract is expected to significantly enhance the company’s business.

Segmentation:

By Type

• Diluted Nitric Acid
• Concentrated Nitric Acid

By Application

• Ammonium Nitrate
• Nitrobenzene
• Adipic Acid
• Toluene diisocyanate
• Nitrochlorobenzene
• Fertilizers
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• UK
• Germany
• Italy
• Spain
• Others
• Middle East and Africa
• Israel
• Saudi Arabia
• Others
• Asia Pacific
• China
• Japan
• India
• Australia
• South Korea
• Taiwan
• Thailand
• Indonesia
• Others