Ammonium Nitrate Market size may grow at a CAGR of over 3% from 2016 to 2024: GMI
Ammonium Nitrate Market size is expected to have a moderate growth at a CAGR of over 3% from 2016 to 2024. The growth in the demand of fertilizers and explosives will be the major drivers for the market. The fertilizer industry is the major driver for global ammonium nitrate market demand, being more stable than urea and with more usage as fertilizer throughout the globe in the forecast timeframe.
The global fertilizer nutrient (N+P2O5+K2O) consumption was estimated at over 180 million tonnes in 2013 and reached close to 190 million tonnes in 2015. In the next eight years, this demand is expected to grow significantly.
Another major ammonium nitrate market size driver is the growing demand of explosives and gunpowder. With growing military expenditure and mining activities, the demand for explosives is expected to escalate from 2016 to 2024. According to studies conducted by Global Market Insights Inc., the global mining industry is expected to cross USD 740 billion by 2024.
Request for an in-depth table of contents for this report @ https://www.gminsights.com/request-toc/upcoming/818
Natural and synthetic are key product variations. The naturally occurring mineral (ammonia nitre) is found in the Atacama Desert in Chile. Almost all the ammonium nitrate used in the industry today is synthetically manufactured by Haber’s Process followed by Ostwald Process. Another method to synthetically produce ammonium nitrate crystals is through a variant of the Odda Process.
Major applications include the fertilizer industry and the explosives industry. It has an NPK value of 34-0-0 and makes it a nitrogen rich fertilizer. Its lesser nitrogen concentration as compared to urea (NPK rating 46-0-0) makes it lose nitrogen into the atmosphere at a slower rate. The growing global population and ever increasing demand for food and other agricultural products, the demand of fertilizers is expected to increase from 2016 to 2024. This will have a healthy impact on the global ammonium nitrate market size.
Ammonium nitrate forms explosive mixtures upon reaction with primary explosives like azides or other fuels. These mixtures find application in mining, construction, quarry works and in military purposes. Global Market Insights Inc. study shows a CAGR of over 5% in the global military expenditure till 2024. The demand for smart explosives for the military is expected to drive the global explosives market from 2016 to 2024. With the growing military expenses all over the globe, the demand of ammonium nitrate in the explosive industry is expected to shoot up in the forecast period.
Browse complete summary of this report @ https://www.gminsights.com/industry-analysis/ammonium-nitrate-market
Europe is the major market for ammonium nitrate with over 30% of the global ammonium nitrate demand, followed by North America. United States has almost 25% agricultural land. This will affect the ammonium nitrate market in the fertilizer industry in the upcoming future. North America, led by the US, accounted for more than a third of the global military expenditure in 2015. This will drive the market for explosives positively and will ultimately have a great impact on the market demand of ammonium nitrate.
Asia Pacific countries are mostly agriculture dependent and will have a significant role in the market of ammonium nitrate. With growing demand of agricultural end products in China and India, the demand for fertilizer is forecast to increase from 2016 to 2024. The rising demand of mining explosives in China and India will also propel the ammonium nitrate market. Certain regulations in Australia regarding proportions of ammonium nitrate in fertilizers may restrain the market. Expansion of agricultural lands in Latin America and certain CIS nations will have a positive impact on the market for ammonium nitrate fertilizers.
Some of the market players involved in the manufacturing of ammonium nitrate are Orica, Enaex S.A, CF Industries Holdings, Inc., San Corporation, OSTCHEM Holding Company, EuroChem Group AG, Austin Powder International, Abu Qir Fertilizers Co, Neochim PLC, Fertiberia SA, Uralchem JSC, Vale Fertilizantes and Dorogobuzh JSC. Orica has entered a long-term supply agreement with CF Industries to supply up to 800,000 tons of ammonium nitrate per annum in North America in 2015.