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Ammonium Nitrate Market
Rising demand for ammonium nitrate fuel oil is a major driving factor driving market revenue growth. Ammonium nitrate is highly used for blasting rock
VANCOUVER, BRITISH COLUMBIA, CANADA, June 19, 2024 /EINPresswire / -- The global ammonium nitrate market size was USD 15.5 Billion in 2022 and is expected to register a revenue CAGR of 3.4 % during the forecast period. The global ammonium nitrate market is experiencing substantial growth, fueled by rising demand from the mining and Agriculture sectors. Ammonium nitrate, a key component in blasting and mining operations, is essential for accelerating the combustion of combustible materials. This market expansion is closely linked to the increasing global need for minerals essential for clean energy.
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Market Drivers
The surge in mining activities is a primary driver of the ammonium nitrate market. According to the International Energy Agency, mining companies in 2023 planned around 4,700 new construction projects valued at USD 318 billion, reflecting a strong demand for minerals. This has led to a significant rise in ammonium nitrate procurement, particularly in developing countries where small-scale mining is expanding rapidly. The International Institute for Environment and Development (IIED) reports that small-scale mining in 35 countries across Africa, Asia, and Latin America has grown by an average of 20% over the last five years, a trend expected to continue.
Technological Developments
Technological advancements in the mining sector have also contributed to market growth. There is a notable shift towards autonomous mining systems, which can operate with minimal human intervention using remotely controlled tools and cameras. This technology enhances efficiency and safety in mining operations, further driving the demand for ammonium nitrate.
Market Restraints
However, stringent government regulations on ammonium nitrate usage pose challenges to market growth. Due to its potential as an explosive when mixed with fuel, different countries enforce strict regulations to control its production and use. For example, new safety rules require that ammonium nitrate stored at ports be moved to secure locations at least 500 meters away. These regulations are crucial for safety but can impede market expansion.
Segment Insights
Application Insights:
Fertilizers: The fertilizers segment dominated the market in 2022, driven by the high demand for agricultural fertilizers. Ammonium nitrate is a crucial ingredient for fertilizer production. The American Farm Bureau Federation indicates that major crops like corn, wheat, and rice drive two-thirds of global fertilizer demand. To meet this demand, manufacturers like Azoty Group S.A. are increasing production capacities, collaborating with Thyssenkrupp Uhde to build new plants that will enhance efficiency and reduce energy consumption.
Explosives: The explosives segment, particularly ammonium nitrate fuel oil (ANFO), held the second-largest market share in 2022. ANFO is widely used in blasting operations across mining, quarrying, and civil construction. Innovations such as Orica Limited's 4D explosives technology enable precise real-time blast outcomes, improving efficiency and reducing costs.
End-Use Insights:
Agriculture: The agriculture sector accounted for the largest revenue share in 2022. The rising global demand for agricultural products is boosting the need for fertilizers. According to the World Economic Forum, global agricultural product demand is expected to grow by 15% over the next decade. Government initiatives, like increasing Minimum Support Prices, are also supporting the agricultural sector's growth.
Mining: The mining sector is expected to register the fastest revenue growth. Essential for the production of various industrial materials like cement and aluminum, mining relies heavily on ammonium nitrate for explosive production. The extraction of lithium and other rare earth elements, crucial for modern technology, further drives this demand.
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Ammonium Nitrate Top Companies and Competitive Landscape
The global ammonium nitrate market is fragmented, with several key players accounting for the majority of market revenue. Major players are deploying various strategies, entering mergers & acquisitions, strategic agreements & contracts, developing, testing, and introducing new products and solutions.
Some major players included in the global ammonium nitrate market report are:
CF Industries Holdings, Inc.
Enaex
EuroChem Group
MAXAM
Orica Limited
Sasol
San Corporation
URALCHEM JSC
Vijay Gas Industry Pvt. Ltd
Austin Powder
Ammonium Nitrate Latest Industry News
On 4 May 2023, Austin Powder developed a lead-free primary explosive detonator for its clients that, it says, comes ahead of regulators mandating the use of such an alternative. Austin Powder started looking for a lead-free alternative to lead azide back in 2007 at its detonator facility, Austin Star Detonator. The initial work was started by Morris Bannerman and Göran Jidestig.
On 8 Feb 2023, Explosives and blasting services provider Enaex SA selected the K-GreeN technology offered by ammonia process licensor KBR Inc. for deployment as part of the HyEx green ammonia project in Chile. Ammonia is the main raw material for Enaex, which uses it to produce the ammonium nitrate needed for its blasting services and exports. However, ammonia imports currently account for about 90% of the company's total carbon footprint in the production process, it estimates.
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Ammonium Nitrate Market Segment Analysis
For the purpose of this report, Emergen Research has segmented the global ammonium nitrate market on the basis of application, end-use, and region:
Application Outlook (Revenue, Volume, USD Billion, Kilotonnes; 2019-2032)
Fertilizers
Explosives
Others
End-Use Outlook (Revenue, Volume, USD Billion, Kilotonnes; 2019-2032)
Agriculture
Mining
Defense
Construction
Quarry
Regional Outlook (Revenue, Volume, USD Billion, Kilotonnes; 2019-2032)
North America
U.S.
Canada
Mexico
Europe
Germany
France
U.K.
Italy
Spain
Benelux
Rest of Europe
Asia Pacific
China
India
Japan
South Korea
Rest of APAC
Latin America
Brazil
Rest of LATAM
Middle East & Africa
Saudi Arabia
UAE
South Africa
Turkey
Rest of MEA
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