Concentrated Nitric Acid Market – by Type, Application, End-use Industry, and Region 2024-2030

The Concentrated Nitric Acid Market size was valued at USD 30.39 Billion in 2023 and the total Concentrated Nitric Acid revenue is expected to grow at a CAGR of 2.3% from 2024 to 2030, reaching nearly USD 35.9 Billion by 2030
Concentrated Nitric Acid Market Overview:
Concentrated nitric acid (HNO3) is a highly potent mineral acid and Strong oxidizing agent commonly found in commercial form with a concentration of around 68%, although higher concentrations, known as fuming nitric acid, are also available. Its distinctive pungent odor and strong corrosive nature make it a key chemical compound in various industrial applications. Due to its powerful oxidizing properties, it is widely utilized across industries. The production of concentrated nitric acid primarily occurs through the Ostwald Process, a catalytic oxidation of ammonia, which is the dominant method in industrial settings. Additionally, it can be synthesized in laboratories by reacting concentrated sulfuric acid with sodium nitrate as Industrial acids. In terms of applications, concentrated nitric acid plays a vital role in fertilizer production, particularly in the manufacture of ammonium nitrate, a crucial component in nitrogen-based fertilizers. Moreover, it finds application in the plastics manufacturing process and the dye industry, where it contributes significantly to the coloration process. Furthermore, concentrated nitric acid is a key component in the production of explosives, including well-known explosives like trinitrotoluene (TNT). Its ability to act as a potent oxidizing agent makes it invaluable in the creation of explosive materials essential in various sectors, including defense and mining Fuming nitric acid as Corrosive chemicals.

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The demand for concentrated nitric acid is propelled by its pivotal role in various industrial sectors. One significant area is its use in industrial chemical production, where it serves as a crucial precursor for manufacturing essential compounds like ammonium nitrate. Ammonium nitrate is a key component in fertilizers such as ANFO (Ammonium Nitrate/Fuel Oil), which are vital for the agriculture and mining industries. For instance, in agriculture, ANFO is extensively used as an explosive in mining operations and as a nitrogen-rich fertilizer to enhance crop yields. Another major driver for the demand for concentrated nitric acid is the expanding semiconductor industry. Nitric acid plays an indispensable role in semiconductor fabrication processes, particularly in cleaning and etching silicon wafers. With the proliferation of electronic devices like smartphones and IoT gadgets, the semiconductor industry is experiencing unprecedented growth. This surge in demand for electronic components fuels the need for nitric acid in semiconductor manufacturing. Moreover, stringent environmental regulations worldwide contribute to the growing demand for nitric acid. These regulations mandate the use of nitric acid in pollution control technologies, such as Selective Catalytic Reduction (SCR) systems in power plants. For instance, regulations like the Clean Air Act in the United States and the European Union's Industrial Emissions Directive necessitate the use of nitric acid to reduce nitrogen oxide emissions, thus driving its demand in the environmental sector Drives Concentrated Nitric Acid Market.
Concentrated Nitric Acid Market Dynamics:
Nitric Acid's Dual Role in Automotive and Agricultural Sectors Drives Concentrated Nitric Acid Market

The expansion of the automotive sector drives the demand for concentrated nitric acid. The automotive industry relies on nitric acid for catalytic converter production, which aids in emission control. With the implementation of increasingly stringent emissions standards globally, such as Euro 6 standards in Europe and China VI standards in China, the demand for catalytic converters—and consequently, nitric acid—is expected to escalate. Additionally, the growing importance of modern agricultural practices contributes to the demand for concentrated nitric acid. Nitrogen-based fertilizers produced using nitric acid are crucial for enhancing crop yields. As the global population continues to grow, there is increasing pressure to improve agricultural productivity to meet food demands. Nitric acid-based fertilizers play a significant role in achieving this goal, further driving the demand for nitric acid in the agricultural sector.

For instance, on January 25, 2023, Grupa Azoty has inaugurated a new concentrated nitric acid unit, doubling its production capacity to 40,000 tonnes per year, as announced by the company. As the sole manufacturer of concentrated nitric acid in Poland, Grupa Azoty invested Zloty (Zl) 57.1 million ($13.1 million) over two years in this plant, which will play a crucial role in bolstering the production of high-value chemicals. The installation's commencement reinforces Grupa Azoty SA's position as a leading European supplier of raw materials for nitrocellulose and fuel additive manufacturers, as well as the organic synthesis industry, which serves as a precursor for high-value chemicals. This expansion allows Grupa Azoty to serve over 30 customers across 20 European countries. Concentrated nitric acid finds application in various sectors across Europe, including the production of polyurethane foams, dyes, plant protection products, fuel additives for emission reduction, and other organic syntheses, highlighting its versatile utility in multiple industries for Nitric acid production.

Pricing Pressures and Raw Material Fluctuations in Nitric Acid Production Restrains the Concentrated Nitric Acid Market

The significant restraint is the stringent environmental regulations governing the handling, storage, and disposal of concentrated nitric acid. Compliance with these regulations often requires costly emission control measures, increasing operational costs for manufacturers and posing barriers to market expansion. Additionally, the highly corrosive and reactive nature of concentrated nitric acid presents significant safety risks, leading to concerns about accidents, environmental contamination, and potential harm to workers and communities. Volatile raw material prices, such as ammonia and natural gas, further exacerbate challenges for market players. Fluctuations in these prices can impact production costs and profitability, making it difficult for manufacturers to maintain competitive pricing and sustain growth. Moreover, the emergence of alternative technologies and substitutes poses a threat to the market. Developments in environmentally friendly or cost-effective alternatives for applications traditionally served by concentrated nitric acid could reduce demand and limit market opportunities in Nitric acid applications.

Global economic uncertainty also poses challenges for the concentrated nitric acid market. Economic downturns or geopolitical instability in key markets can lead to reduced industrial activity and demand for nitric acid, impacting overall market growth. Supply chain disruptions, such as transportation delays or raw material shortages, further hinder market dynamics by disrupting production schedules and customer deliveries. Technological challenges, including the development and implementation of advanced production processes, add complexity to the market landscape. Upgrading existing facilities to incorporate energy-efficient processes or pollution control measures requires significant investment and expertise, particularly for smaller manufacturers. Health and environmental risks associated with concentrated nitric acid exposure also necessitate stringent safety protocols and environmental mitigation measures, increasing costs and complexities for market players.

Nitric Acid Driving Progress in Healthcare and Infrastructure Development Worldwide Boost the Concentrated Nitric Acid Market

The pharmaceutical sector is experiencing substantial growth, the market for concentrated nitric acid is expanding due to its essential role as a key raw material in drug synthesis. With increasing healthcare needs worldwide, especially amid pandemics like the COVID-19 crisis, the demand for medications and pharmaceutical intermediates is on the rise. Concentrated nitric acid plays a crucial role in pharmaceutical manufacturing processes, making it an indispensable component in meeting the escalating demand for essential drugs and medical treatments. Simultaneously, infrastructure development projects worldwide are fueling demand for construction materials, including those utilizing concentrated nitric acid. The expansion of transportation networks, such as roads, bridges, and highways, necessitates the use of concrete surface treatments that often incorporate nitric acid. These treatments enhance the durability, strength, and longevity of concrete structures, ensuring their resilience to various environmental factors. Consequently, the demand for concentrated nitric acid in the construction industry is increasing, presenting significant growth opportunities for the market.

The pharmaceutical industry's growth trajectory is supported by various factors, including advancements in medical research, rising healthcare expenditure, and an aging population. With the emergence of new diseases and the ongoing battle against existing health challenges, there is a continuous need for innovative drugs and therapies. Concentrated nitric acid serves as a critical ingredient in the synthesis of pharmaceuticals, enabling the production of a wide range of medications and treatments to address diverse medical conditions. As pharmaceutical companies strive to meet the escalating demand for healthcare products, the market for concentrated nitric acid is poised for substantial growth. Similarly, infrastructure development projects play a pivotal role in driving economic growth and societal progress.

Governments and private investors worldwide are allocating significant funds towards infrastructure initiatives, including the construction of transportation networks, residential complexes, and commercial facilities. As these projects progress, the demand for construction materials like concrete, which utilize concentrated nitric acid in surface treatments, is expected to surge. This presents lucrative opportunities for manufacturers and suppliers in the concentrated nitric acid market to capitalize on the growing demand from the construction sector.
For instance, on Aug 14, 2023, Deepak Fertilizers and Petrochemicals Corporation Limited plans a brownfield extension of its nitric acid production facility in Dahej, Gujarat. Approved by the Board of Directors, the project includes setting up a Weak Nitric Acid plant and two Concentrated Nitric Acid plants with total capacities of 300 KT PA and 150 KT PA respectively. The estimated expenditure for the project is approximately 1950 crore, covering preoperative expenses, contingencies, and financial costs. Production is expected to commence in the second half of fiscal year 2026, leveraging avant-garde technology from leading global providers.


Concentrated Nitric Acid Market Segment Analysis:
Based on Type, the market has been divided into Strong Nitric Acid and Fuming Nitric Acid. Among these, the Fuming Nitric Acid sub-segment is projected to generate the maximum revenue. The Strong Nitric Acid sub-segment witnessed the highest revenue in 2023. Strong nitric acid is the most common type of concentrated nitric acid, and it is used in a variety of applications, including the production of fertilizers, explosives, and nylon. Fuming nitric acid is a more concentrated form of nitric acid, and it is used in more specialized applications, such as the etching of metals.

In contrast, fuming nitric acid represents a more concentrated form of nitric acid, distinguished by its high reactivity and corrosiveness. While its usage is more specialized compared to strong nitric acid, it serves critical roles in niche applications. One such application is in the etching of metals, where fuming nitric acid's strong oxidizing properties enable precise and controlled etching processes. This is particularly valuable in industries such as electronics and semiconductor manufacturing, where intricate metal patterns are essential for component fabrication. Despite being less commonly used than strong nitric acid, the demand for fuming nitric acid remains significant due to its indispensable role in specific industrial processes.

The high reactivity makes it ideal for applications where precise material removal or modification is required, offering superior performance compared to other etching agents. Furthermore, advancements in manufacturing technologies and increasing demand for high-performance electronic devices continue to drive the need for fuming nitric acid in specialized industries. Overall, while strong nitric acid dominates the concentrated nitric acid market in terms of revenue, fuming nitric acid plays a vital role in fulfilling specialized industrial requirements. As industries evolve and demand for tailored solutions grows, both types of concentrated nitric acid are expected to maintain their relevance and contribute to the diverse array of applications in which nitric acid.

Competitive Landscape

1. On January 17, 2023, Dorogobuzh, a member of Acron Group, unveils a new 135-ktpa UKL nitric acid unit in Smolensk, costing USD 17 million. Designed by Acron Engineering Research and Design Centre, the facility boosts nitric acid capacity to 1.5 million tonnes annually upon the fourth unit's operation. Chairman Alexander Popov highlights its significance for enhancing ammonium nitrate and NPK fertilizers output. The UKL-7M unit, equipped with a GTU-8 gas turbine, ensures advanced emissions control and efficiency. Utilizing cutting-edge technology, it promises reduced gas consumption, prolonged catalyst life, and improved acid quality. This expansion underscores Acron's commitment to innovation and production optimization.

2. On Oct. 8, 2020, LSB Industries, Inc. declared a 7-year nitric acid supply deal, targeting 70,000 to 100,000 tons annually, effective Q1 2021. Mark Behrman, President and CEO, hails it as a strategic move to utilize surplus production capacity at El Dorado plant, enhancing margins. The contract aligns with LSB's focus on marketing efforts to optimize product mix and boost EBITDA. LSB, headquartered in Oklahoma City, manufactures chemical products for agricultural, mining, and industrial sectors across facilities in Alabama, Arkansas, Oklahoma, and Baytown. This agreement underscores LSB's commitment to strategic growth and operational efficiency.
Concentrated Nitric Acid Market Scope: Inquire before buying



Global Concentrated Nitric Acid Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
US $ 30.39 Bn.


Forecast Period 2024 to 2030 CAGR:
2.3%
Market Size in 2030:
US $ 35.9 Bn.


 Segments Covered:
by Type
Strong Nitric Acid
Fuming Nitric Acid


by Application
Ammonium Nitrate
Adipic Acid
Nitrobenzene
Toluene Diisocyanate
Others


by End Use Industry
Agrochemicals
Explosives
Automotive
Electronics
Others



Concentrated Nitric Acid Market, by Region:
North America (United States, Canada, and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria, and the Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan, and the Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria, and the Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Concentrated Nitric Acid Market, Key Players:
The concentrated nitric acid industry features a dynamic competitive landscape with established leaders and emerging players responding to the rising demand for fertilizers and defense applications. Top companies of the Concentrated Nitric Acid industry, including BASF, KBR, and Yara International, leverage advanced manufacturing technologies and sustainable practices to secure their competitive advantage. BASF's innovative Verbund concept optimizes resource use and enhances production efficiency across its global facilities, ensuring a consistent supply of concentrated nitric acid while minimizing environmental impacts. KBR prioritizes sustainability through its proprietary MAGNAC technology, which boosts production efficiency, reduces emissions, and promotes water recycling. Meanwhile, Yara International is committed to sustainable agriculture, supported by a robust distribution network and a focus on innovative fertilizer solutions. Emerging companies such as Gujarat Narmada Valley Fertilizers & Chemicals are enhancing operational efficiency and lowering carbon footprints by adopting innovative practices. The industry's competitive dynamics are increasingly shaped by an emphasis on sustainability and operational excellence, positioning the concentrated nitric acid industry for substantial growth amid evolving environmental standards and industry demands.

Major Contributors in the Concentrated Nitric Acid Market in North America:
1. The Chemours Company (United States)
2. CF Industries Holdings, Inc. (United States)
3. Dow Chemical Company (United States)
4. LSB Industries, Inc. (United States)
5. PotashCorp (Canada)

Major Leading Player in the Concentrated Nitric Acid Market in Europe:
1. BASF SE (Germany)
2. Yara International ASA (Norway)
3. OCI Nitrogen B.V. (Netherlands)
4. National Chemical Group (Russia)
5. URALCHEM (Russia)
6. Sandvik Materials Technology AB (Sweden)

Major Leading Player in the Concentrated Nitric Acid Market in Asia Pacific:
1. Deepak Fertilizers and Petrochemicals Corporation Limited (India)
2. Orica Limited (Australia)
3. Shandong Fengyuan Chemical Stock Co., Ltd. (China)
4. Sumitomo Chemical Co., Ltd. (Japan)
5. EuroChem Group AG (Switzerland)
6. Hanwha Corporation (South Korea)

FAQ:
1] What segments are covered in the Concentrated Nitric Acid Market report?
Ans. The segments covered in the Concentrated Nitric Acid Market report are based on Type, Technique, Application, and Region.

2] Which region is expected to hold the highest share in the Global Concentrated Nitric Acid Market?
Ans. North America region is expected to hold the highest market share in the Concentrated Nitric Acid market.

3] What is the market size of the Global Concentrated Nitric Acid Market by 2030?
Ans. The market size of the Concentrated Nitric Acid Market by 2030 is expected to reach USD 35.9 Billion.

4] What is the forecast period for the Global Concentrated Nitric Acid Market?
Ans. The forecast period for the Concentrated Nitric Acid Market is 2024-2030.

5] What was the market size of the Global Concentrated Nitric Acid Market in 2023?
Ans. The market size of the Concentrated Nitric Acid Market in 2023 was valued at USD 30.39 Billion.