Nitric Acid Market Size, Share & Trends Analysis Report By Application (Fertilizers, Nitrobenzene, Adipic Acid, Toluene di-Isocyanate, Nitoroclorobenzene), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global nitric acid market size was valued at USD 29.2 billion in 2021 and is anticipated to expand at a compound annual growth rate (CAGR) of 2.3% from 2022 to 2030. The growth for the product is expected to be driven by increasing demand for the product from fertilizers formulators and by the rising consumption of fertilizers in agrarian economies of the world. Growing demand for food has propelled the expansion of various fertilizers and agricultural units globally to optimize crop yield, lower cultivation time, attain healthy crop growth, and more. Nitric acid is one of the key components of producing nitrogen fertilizers which are highly demanded by the agricultural world. The global product industry is highly competitive, especially in the presence of multinationals that are constantly innovating to capture the broader share of the market. 

Companies like BASF SE, Dow Chemicals, Nutrient, and CF Industries are the major players and dominate the industry with a wide range of products for each application and a strong global presence. Development of the cutting-edge technologies such as mono-medium pressure process, mono-high pressure process, and dual pressure process for producing the product more efficiently are poised to increase the awareness and enhance market growth over the coming years. Increasing demand for the product from the nylon production sector is poised to pave new avenues in the global market space.

The product is consumed in the production of TDI and adipic acid, which are widely used in the development of Nylon 6, 6. Nylon 6, 6 is further used across multiple applications such as manufacturing plastics and industrial carpeting. Nitric acid is a vital raw material in the making of Nitrobenzene which is excessively utilized in the construction industry. The growth in the construction industry is anticipated to trigger the demand for Nitrobenzene in the forecast period.

Applications Insights

Fertilizer manufacturing companies dominated the nitric acid application with a share of 80.07% in 2021. Its high share is attributable to the increasing demand for food which has led to the development of fertilizers units globally. Farmers are adopting techniques that maximize the crop yield in minimum time with the help of fertilizers.

Adipic acid is produced by the use of the product as an important raw material. It is considered one of the key components for the production of Nylon 6, 6 which is used widely in the development of plastics and industrial carpets. Nylon 6, 6 is expected to stagnate over the forecast period resulting in a reduced margin in Adipic acid manufacturing owing to which the consumption of nitric acid for the production of Adipic is anticipated to be on the lower side.

Nitrobenzene is one of the key applications of nitric acid and is used in the construction industry. The future scenario of nitrobenzene totally depends on how the construction industry grows after the industry was slowed down in emerging economies due to an unexpected strike of coronavirus which has affected the demand for nitrobenzene. However, the demand is expected to pick up over the forecast period.

Toluene di-isocyanate is widely used in the production of soft foam that is used in mattresses, and automotive seats. The demand for TDI was disrupted due to the unforeseeable situation of pandemics. The margin in TDI is also facing a downfall and is expected to grow at a slower rate which is putting pressure on the TDI value chain.

Other applications of the product include its use as a rocket propellant, analytical reagent in metalworking, cleaning agent, and woodworking applications. Among these aforementioned application sectors of the product, its utility in cleaning products is substantial. However, as per the assessments made in the cleaning & hygiene sector, the use of nitric acid in cleaning products is deemed harmful to humans. Multiple household cleaning products used across various Latin American countries contain nitric acid in their formulations, excessive use of which can lead to serious consequences on the health of humans.

Regional Insights

Europe dominated the nitric acid market with a share of 65.5% in 2021. This is attributed to the presence of a robust value chain and significant domestic consumption in the region. The growth in Central Europe is steady and moderate. However, the majority of the demand comes from Eastern Europe which shows huge potential for expansion. The automotive and chemical industries are the major pillars and driving forces for the product in the region.

France which has a highly specialized chemical industry provides adequate opportunities for market growth of nitric acid. Nitric acid consumption is expected to take a leap due to the presence of specialty chemical manufacturers such as Arkema, Air Liquide, Solvay, SEQUINS, L’Oréal, BASF, DowDuPont, Henkel, and Bayer. With government initiation in developing a sustainable economy for the chemical industry, the demand is expected to witness steady growth.

The Asia Pacific accounted for second-largest revenue contributor globally in 2021. This is attributed to the extensive use of fertilizers in agrarian countries including Thailand, Japan, India, Indonesia, the Philippines, and other agricultural-based economies. The growing population and rising income are expected to continue accelerating the demand for agricultural commodities. Fertilizer is a majorly used application of nitric acid in APAC due to the rising production of wheat, maize, cotton, and potatoes in countries such as India, China, and Pakistan. These factors are driving the demand for nitric acid in the region over the forecast period.

Key Companies & Market Share Insights

The presence of multinationals has increased the competition in the market. Multinationals conduct constant research and development activities to formulate new innovations and increase their market. Global companies are focusing on process innovation, capacity expansion, and various other operational strategies to gain the maximum share in the competitive industry space. These scenarios are a reflection of higher rivalry in the coming years. Some prominent players in the nitric acid market include:

• BASF SE

• Dupont

• Nutrien Ltd.

• Omnia Holding Limited

• Apache Nitrogen Products Inc.

• CF Industry Holdings, Inc

• Thyssenkrupp AG

• Yara International ASA

• Rashtriya Chemical & Fertilizers Ltd.

Nitric Acid Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global nitric acid market report on the basis of application, and region:

• Application Outlook (Revenue, USD Million; Volume, Kilotons; 2018 - 2030)

  • Fertilizers

  • Nitrobenzene

  • Adipic acid

  • Toluene diisocyanate (TDI)

  • Nitrochlorobenzene

  • Others

• Regional Outlook (Revenue, USD Million; Volume, Kilotons; 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Russia

    • France

    • Poland

    • Ukraine

  • Asia Pacific

    • China

    • Uzbekistan

    • Kazakhstan

    • Thailand

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Egypt