The market for ammonium nitrate is expected to grow at a CAGR of over 4% during the forecast period. Major factors driving the market studied are the growing demand from the agriculture industry. An increase in regulations due to potential misuse is expected to hinder the growth of the market studied.
- The agricultural industry dominated the market and is expected to grow during the forecast period owing to the increasing agriculture activities across the world.
- Research in smart explosives is likely to act as an opportunity in the future.
- North America dominated the market across the world with the largest consumption of ammonium nitrate from countries, such as the United States and Canada.
Key Market Trends
Agriculture Segment Accounted for Major Share of the Ammonium Nitrate Market
- In the agricultural industry, fertilizers are used to enrich the growth of plants. They contain essential nutrients for plants, which provide healthy growth and keep them disease free. There are various types of fertilizers that are available in soluble, dry crystalline, and time-release forms. Ammonium nitrate is one such fertilizer that is used for providing adequate levels of nitrogen to plants.
- It is a high-nitrogen fertilizer and is used as an oxidizing agent. Ammonium nitrate (NH4NO3) is made by combining ammonia with nitric acid.
- Upon the application of ammonium nitrate fertilizer, it dissociates into ammonium (NH4+) and nitrate (NO3-). This dissociated nitrogen present in the soil can be directly consumed by the plants. The instant availability of nitrate ions makes ammonium nitrate superior over other fertilizers.
- Hence, with the rapidly growing agricultural activities across the world, the demand for ammonium nitrate is expected to rapidly increase over the forecast period.
North America Region to Dominate the Market
- North America represents the largest regional market for global ammonium nitrate market.
- This enormous demand for ammonium nitrate is a consequence of the growing demand for ammonium nitrate fuel oil and an increase in demand for explosives in defense.
- In North America, the United States provides the primary market for the agricultural industries.
- Fertilizers segment is projected to grow owing to the dynamic growth of agricultural activities in the region over the forecast period.
The global ammonium nitrate market is highly fragmented with the presence of many players in the market. The major companies include Euro chem, Orica, CF Industries, Enaex, and The Chemours Company, among others.
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