Nitric Acid Market

Nitric Acid Market 2024, Size and Trends:

The global nitric acid market size was valued at USD 31.0 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 41.95 Billion by 2033, exhibiting a CAGR of 3.44% from 2025-2033. Asia-Pacific currently dominates the market, holding a market share of over 37.2% in 2024. The nitric acid market share is expanding, driven by the rising demand for nitrogen fertilizers in the agriculture industry, the increasing item applications in the production of adipic acid, and technological advancements in manufacturing processes.

At present, the demand for fertilizers, especially ammonium nitrate, is high due to the growing need for food production. As agricultural activities expand, the requirement for efficient fertilizers increases, encouraging the use of nitric acid. Besides this, the chemical industry also plays a big role, as nitric acid is essential for manufacturing products like adipic acid and explosives for mining and construction. Additionally, the demand for materials like nylon, which is a key material in producing tires, airbags, and other automotive components, promotes the employment of nitric acid. Moreover, environmental regulations that support cleaner production processes enable innovations, thereby fueling the nitric acid market growth.

The United States has emerged as a major region in the nitric acid market owing to many factors. The demand for fertilizers is high, especially ammonium nitrate, which is made using nitric acid. With a strong agricultural base and rising investments, the need for crop nutrients and fertilizers keeps growing. As per the information provided on the official website of the US Department of Agriculture, USDA granted over USD 116 Million via the Fertilizer Production Expansion Program (FPEP) to assist eight facilities in enhancing innovative fertilizer production across California, Colorado, Georgia, Indiana, Iowa, Kansas, Michigan, Oklahoma, and Wisconsin. The region also has a well-established chemical industry that employs nitric acid to produce items like explosives.

Nitric Acid Market Trends:

Growing Fertilizer Production

The nitric acid market demand in the fertilizer industry is acting as a growth-inducing factor. As the population is rising, the need for food products is becoming high, which requires enhanced agricultural productivity. To meet this requirement, farmers depend on fertilizers to improve crop yields and soil quality. Nitric acid is a key ingredient in nitrogen-based fertilizer production, particularly ammonium nitrate and urea. Big companies team up to invest in product innovations and the establishment of facilities. For instance, in July 2024, Stamicarbon partnered with NextChem Tech to perform a feasibility study and initiate a pre-FEED contract for FertigHy. Under this agreement, Stamicarbon promised to supply its NX Stami Green AmmoniaTM and NX Stami Nitric AcidTM technologies for FertigHy's inaugural low-carbon fertilizer facility in France. With countries focusing on improving food security and wagering on modern farming methods, the demand for fertilizers continues to grow.

Rising applications in the tire Industry

The increasing usage of nitric acid in the tire industry is propelling the nitric acid market share. For instance, according to IMARC, the global tire market size reached USD 164.9 Billion in 2023. A large portion of tires produced employ synthetic rubber, which is derived from petrochemicals. Nitric acid is involved in the nitration process that creates chemicals, such as butadiene and acrylonitrile, key precursors for synthetic rubber-like nitrile rubber (NBR) and butadiene rubber (BR). Additionally, nitric acid is utilized in the manufacturing of nylon. Nylon is essential for making tire cords, which provide strength and durability to tires. IMARC Group anticipates that the tire market will attain USD 256.8 Billion by 2032, demonstrating a growth rate (CAGR) of 4.9% from 2024 to 2032.

Expanding Mining and Explosive Projects

Nitric acid is crucial for manufacturing explosives, such as trinitrotoluene (TNT) and other nitrated compounds. The mining industry, which relies heavily on explosives for extraction, is expanding, especially in developing regions with rich mineral resources. Mining companies require explosives for breaking rocks, tunneling, and extracting minerals, which directly increases the need for nitric acid. Similarly, large-scale construction projects, such as road building and tunneling, also depend on explosives for excavation, further driving the demand for nitric acid. For instance, in January 2024, the Ministry of Mines and the Government of India inked the first lithium exploration and mining project agreement between Khanij Bidesh India Limited (KABIL) and the state-owned business of Argentina's Catamarca region. Partnerships like these are offering a favorable nitric acid market outlook.

Nitric Acid Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global nitric acid market, along with forecast at the global, regional, and country levels from 2025-2033. The market has been categorized based on type, application, distribution channel, and end use.

Analysis by Type:

• Concentrated Nitric Acid
• Dilute Nitric Acid

As per the latest nitric acid market forecast, concentrated nitric acid represents the largest segment. Its high concentration makes it ideal for producing a variety of chemicals, including fertilizers, explosives, and other critical industrial products. In agriculture, concentrated nitric acid is crucial for making ammonium nitrate, a widely employed nitrogen fertilizer. The chemical industry also depends on it to create adipic acid for nylon production and nitrobenzene for dyes and synthetic rubber. Concentrated nitric acid is also essential for manufacturing explosives like trinitrotoluene (TNT) and nitroglycerin, which are utilized in mining and construction. Because it is so versatile and effective in these key industries, concentrated nitric acid remains in high demand. Additionally, it is easier to transport and store in its concentrated form, which further drives its dominance in the market. Overall, its wide range of uses and efficiency make concentrated nitric acid the most preferred type in the market.

Analysis by Application:

• Fertilizers
• Adipic Acid
• Toluene Diisocyanate
• Nitrobenzene
• Others

Fertilizers account for the 80.0% of the market share. They form the most important employment of nitric acid. Nitric acid is a key ingredient in the production of ammonium nitrate, a nitrogen-based fertilizer that is widely used in agriculture to promote plant growth. With the worldwide demand for food items rising due to population growth, the need for effective fertilizers has increased, making ammonia-based fertilizers crucial in feeding the world. Nitric acid also helps to create other types of fertilizers, such as calcium ammonium nitrate and urea ammonium nitrate solutions. The agricultural sector depends on these fertilizers to boost crop yields and improve soil quality. As more countries focus on increasing food production and securing food security, the demand for fertilizers continues to rise. This consistent need in agriculture ensures that fertilizers remain the dominant application in the nitric acid industry.

Analysis by Distribution Channel:

• Direct and Institutional Sales
• Retail Sales
• Others

Direct and institutional sales lead the market. They cater to the bulk needs of industries that employ huge quantities of nitric acid. Many industries like agriculture, chemicals, mining, and automotive, require significant amounts of nitric acid for manufacturing fertilizers, explosives, and other chemicals. For these large-scale buyers, purchasing directly from producers ensures a steady and cost-effective supply of high-quality nitric acid. Institutional sales where companies or government bodies place big orders also play a key role in the market. These buyers often need customized quantities and long-term contracts, making direct sales the most efficient option. The relationship between suppliers and buyers in direct sales channels is strong, with regular shipments and well-established logistics. Additionally, direct sales allow manufacturers to offer competitive prices and avoid middlemen, reducing costs.

Analysis by End Use:

• Explosives
• Agrochemicals
• Electronics
• Automotive
• Others

Agrochemicals account for the 76.5% of the market share in 2024. They play an essential role in agriculture. Nitric acid is an important ingredient in manufacturing fertilizers, especially ammonium nitrate, which is widely used to improve soil quality and promote plant growth. With the demand for food items growing, agrochemicals, including fertilizers, have become critical in enhancing agricultural productivity. Nitric acid also helps to create other fertilizers like calcium ammonium nitrate and urea ammonium nitrate, which are widely employed in farming to increase crop yields. As countries focus on food security and sustainable farming practices, the requirement for efficient fertilizers continues to rise. Additionally, the high adoption of modern farming techniques, which often require specialized fertilizers, further drives the demand for nitric acid. Given that fertilizers are the primary end use of nitric acid, the agrochemical sector remains the dominant driver of the market.

Regional Analysis:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa

The Asia-Pacific region, accounting for 37.2%, enjoys the leading position in the market. The region is noted for its huge industrial base and the growing demand for fertilizers. Countries like China and India are major producers and users of nitric acid due to their well-setup agricultural sectors where ammonium nitrate, a key nitrogen fertilizer, is widely employed. The area also has a high number of chemical firms, which depend on nitric acid for manufacturing products like adipic acid and other essential chemicals. Additionally, rapid infrastructure development and urbanization in countries like China and India create the need for nitric acid. Government agencies in nations, such as India and China, wager on railway construction projects where explosives are adopted to break rock formations and clear land for tracks, bridges, and tunnels. In January 2024, Anhui, province in East China, hosted a ceremony to mark the beginning of construction for the Hefei-Wuhan High-Speed Railway, alongside the initial set of major projects in 2024. A total of 460 significant projects have been initiated in the province, amounting to a total investment of 489.63 billion yuan (USD 68.5 Billion), as of 2024. The region’s strong manufacturing capabilities allow large-scale nitric acid production, keeping costs lower and making it the go-to supplier. Furthermore, Asia-Pacific countries spend resources on new and advanced production technologies and sustainable practices, ensuring the market remains competitive and aligned with environmental standards.

Key Regional Takeaways:

United States Nitric Acid Market Analysis

In the United States holds 84.70% share in North America. The market in the US is experiencing growth, owing to the presence of big chemical companies. Agriculture, food, and related industries are also essential to the US economy, accounting for a staggering USD 1.537 Trillion through the Bureau of Economic Analysis. Recognizing the importance of supporting this sector, the US government revealed an investment of USD 500 Million in September 2022 to enhance fertilizer manufacturing domestically, according to reports. This is significant especially for nitric acid, as an essential input for the production of nitrogenous fertilizers, such as ammonium nitrate. These have played a major role in raising soil fertility and crop productivity in general. In increasing local fertilizer manufacturing, this will ensure that it is reduced or avoided to stabilize the supply chain and increase fertilizer access and affordability among American farmers. With an increasing emphasis on sustainable farming practices and advanced production methods, the requirement for nitric acid is poised to grow. As farmers work to meet rising food item demands both at home and abroad, this government support is expected to strengthen the market and its role in improving agricultural output.

Europe Nitric Acid Market Analysis

Nitrogen-based fertilizers remain the backbone of Europe's agriculture sector to ensure high crop yields and food security. Fertilizers Europe anticipates that the average nitrogen fertilizer usage in the EU will reach approximately 10.6 million tons during the 2029/2030 season, which is a minor decline from the overall average of 11.2 million tons. This decrease is an indicator of increasing efficiency and sustainable practices on the farm, thereby remaining consistent with a cut in environmental impact being sought after. Nitric acid, a critical ingredient in producing nitrogen-based fertilizers, remains central to the region's agricultural industry. Innovations in fertilizer formulations and application methods encourage the employment of high-quality nitric acid, as farmers seek to maximize productivity while minimizing waste. Additionally, stringent EU regulations on fertilizer manufacturing and emissions are attracting investments in cleaner production technologies. These dynamics ensure a steady demand for nitric acid, as the EU balances agricultural output with environmental stewardship, securing its role in the market.

Asia-Pacific Nitric Acid Market Analysis

The Asia Pacific region is one of the world's significant fertilizer players because of its enormous agricultural activities and high population. As per IFA, China is the largest user of fertilizer, representing nearly a quarter of global usage. In 2022, China manufactured 55.7 Million Tons of NPK fertilizer, showing a steady rise from 55.44 Million Tons in 2021 and 54.96 Million Tons in 2020. This steady growth highlights China's important position in fulfilling both local and worldwide agricultural needs. India, a significant market in the area, generated 42.59 Million Metric Tons of fertilizer in 2021-22, according to the Fertilizer Association of India. This marked a minor fall of 1.1% from the previous year, however, self-sufficiency emphasis by India along with the increasing agricultural productivity would ensure the continued need for fertilizers. The Asian Pacific region will also witness a consistent demand for nitric acid in fertilizer manufacturing since the region will continue to increase its agricultural output to sustain the population and the growth of its economy.

Latin America Nitric Acid Market Analysis

Industry reports indicate that in January 2024, the Brazilian government lowered the tax on electric vehicles (EVs)from 30% to 15%. This policy move is part of Brazil's drive to promote green transport and reduce carbon emissions. With the increased adoption of EVs, nitric acid is expected to find more use, as it is critical in the manufacturing of batteries and other parts for EVs. This region, specifically Brazil, continues to see much investment in the production of green technologies, ranging from EV manufacture to infrastructure construction. This can potentially increase companies using nitric acid in their activities, such as high-tech material manufacturing and coatings utilized in EV-related batteries and equipment. Furthermore, the tax reduction aligns with broader efforts in this area to enable the shift toward cleaner energy and sustainable industrial practices, positioning nitric acid as a vital component in supporting these emerging technologies and fostering economic growth in the region.

Middle East and Africa Nitric Acid Market Analysis

Industry reports indicate that the UAE's ambitious automotive goals, targeting 50% of its fleet to consist of EVs by 2050 alongside a combination of internal combustion engine (ICE), compressed natural gas (CNG), and hydrogen vehicles, is anticipated to drive expansion in the nitric acid market across the Middle East and Africa. In line with this strategy, 70% of buses will be electric, while trucks will include 10% plug-in hybrids and 40% hybrids. This shift toward greener transportation intends to drive the demand for materials like nitric acid, which plays a key role in the manufacturing of advanced EV batteries. This will increase the demand for nitric acid further, as hydrogen production processes are critical in this vision. As the region moves toward cleaner energy solutions and more sustainable transportation methods, industries relying on nitric acid will experience growth, particularly in the automotive and energy sectors, contributing to the overall market expansion.

Competitive Landscape:

Key players in the market wager on innovations, expanding production and meeting nitric acid market demand. They invest in advanced technologies to improve efficiency and reduce environmental impact during nitric acid manufacturing. Major companies focus on producing high-quality nitric acid for various industries, like fertilizers, chemicals, and explosives. They also partner with agriculture and mining sectors to ensure a steady supply of raw materials. Big companies adopt sustainable practices like low-emission production methods to align with stricter environmental regulations. By broadening their operations to new regions, key players tap into growing markets, especially in developing countries. Additionally, they make constant efforts to enhance and scale manufacturing to keep the nitric acid market competitive. For instance, in March 2024, Casale reported an important achievement as its subsidiary, Casale Project a.s. successfully obtained a turn-key contract with BorsodChem MCHZ, s.r.o. for the building of an advanced nitric acid facility.

The report provides a comprehensive analysis of the competitive landscape in the nitric acid market with detailed profiles of all major companies, including:

• CF Industries Holdings Inc.
• Columbus Chemical Industries
• Deepak Fertilizers and Petrochemicals Corp. Ltd.
• Enaex SA (Sigdo Koppers S.A.)
• Koch Engineered Solutions (Koch Industries Inc.)
• LSB Industries Inc.
• Nutrien Ltd.
• Orica Limited
• Rashtriya Chemical & Fertilizers Ltd.
• Sasol Limited
• Shandong Fengyuan Chemical Co. Ltd.
• Thyssenkrupp AG
• UBE Corporation
• Yara International ASA

Latest News and Developments:

• July 2024: Stamicarbon teamed up with NextChem Tech to perform a feasibility study and a pre-FEED contract for FertigHy. According to this agreement, Stamicarbon will supply its NX Stami Green AmmoniaTM and NX Stami Nitric AcidTM technologies for FertigHy's inaugural low-carbon fertilizer facility in France.
• April 2024: Tata Projects Limited (TPL) took over the nitric acid expansion initiative of Deepak Fertilizers and Petrochemicals Corporation Ltd. (DFPCL).

Nitric Acid Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the nitric acid market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global nitric acid market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the nitric acid industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.