Nitric Acid Market to Reach USD 31.0 Billion by 2034 Amid Rising Fertilizer and Chemical Demand

The Nitric Acid Market is projected to grow steadily, rising from USD 19.8 Bn in 2023 to USD 31.0 Bn by 2034. Expanding at a CAGR of 4.2% from 2024 to 2034, this growth is driven by increasing demand for fertilizers, explosives, and specialty chemicals, along with rising industrial and agricultural activities worldwide. The market continues to benefit from advancements in production technologies and strong consumption across key end-use sectors.

High demand for fertilizers is fueling the nitric acid market size. Nitric acid is a key chemical in the manufacture of fertilizers as it promotes rapid growth in plants. Consumption of nitrogenous fertilizers, including urea and nitric acid, is increasing in the agriculture sector, thereby boosting the demand for nitric acid.

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Rise in investment in Concentrated Nitric Acid (CNA) production is driving the nitric acid market expansion. Surge in production of CNA is likely to consolidate the position of key suppliers of intermediate chemical feedstock.

Nitric acid is one of the most important inorganic chemicals. It is widely employed in the manufacture of explosives, fertilizers, dyes, and drugs. North America, Japan, and Western Europe are major producers of nitric acid. A majority of nitric acid is consumed as an intermediate in the manufacture of ammonium nitrate, which in turn is employed in fertilizers.

Market Segmentation

The nitric acid market is segmented based on concentration, application, end-use industry, and region.

By Concentration (Type)

Type

Market Share (Approx.)

Key Applications

Description

Dilute Nitric Acid

Dominated in Volume (approx. 67% in 2024)

Fertilizers, various chemical intermediates.

Lower production cost, greater versatility, lower corrosion management expenses.

Concentrated Nitric Acid

Major segment in revenue (e.g., Concentrated market reached USD 27.11 billion in 2024)

Explosives, rocket propellants, specialty chemicals, electronic grade applications.

Used in high-purity and specialized synthesis.

By Application

Fertilizers: The dominant application segment, capturing an overwhelming revenue share of over 81% in 2024. This primarily involves the production of Ammonium Nitrate and nitrophosphates.

Adipic Acid: Key precursor for Nylon 6,6, widely used in the automotive, textiles, and plastics sectors.

Toluene Di-isocyanate (TDI): Essential intermediate for polyurethane foams, used in insulation, coatings, and furniture.

Nitrobenzene: Intermediate for aniline production, used in dyes, rubber, and pharmaceuticals. Accounted for about 4.5% of the revenue share in 2024.

Explosives: Used in the production (Ammonium Nitrate/Fuel Oil) and other blasting agents for mining and construction. This segment is identified as a fastest-growing end-use sector (e.g., 3.93% CAGR from 2025-2030).

Electronic Grade Nitric Acid: Used for wafer cleaning, etching, and oxidation removal in semiconductor and electronics manufacturing.

By Industry Vertical (End-User)

Agrochemicals (Fertilizers): The largest end-use sector, driven by global food demand.

Chemical Manufacturing: For the production of intermediates like Adipic Acid, TDI, and Nitrobenzene.

Explosives/Mining/Defense: For blasting agents in construction and resource extraction.

Semiconductor/Electronics: For high-purity acid in microfabrication.

Automotive: Driven by the demand for nylon (for tires/parts) and polyurethane (for foams/coatings).

Regional Analysis

Europe: Dominated the market with a share of approximately 65.84% in 2024 (in value terms) and a market size of USD 20.01 billion in 2024. Its dominance is attributed to a strong presence of major chemical players and widespread application scope.

Asia-Pacific (APAC): Projected to be the fastest-growing region, particularly for Concentrated Nitric Acid (CAGR of 3.68% from 2025 to 2034). This growth is fueled by rapidly expanding agriculture, industrialization, and its status as a global hub for semiconductor manufacturing in countries like China, India, Japan, South Korea, and Taiwan. APAC holds a significant share in volume (e.g., 58% in 2024).

North America: Holds a substantial share, supported by robust chemical manufacturing and technological progress.

Market Drivers and Challenges

Market Drivers

Growing Demand for Fertilizers: The primary driver, fueled by rising global population and the need to enhance agricultural productivity and food security.

Increasing Demand for Adipic Acid: The rising need for nylon in the automotive and textile industries acts as a major growth catalyst.

Expansion of Explosives Market: Driven by increased mining and infrastructure/construction projects worldwide.

Growth in the Electronics/Semiconductor Industry: Increased production of advanced chips, 5G infrastructure, and electric vehicles drives demand for high-purity, electronic-grade nitric acid.

Market Challenges

Environmental Concerns and Regulations: Stricter environmental regulations, particularly in Europe (e.g., EU BAT-AEL tightening), mandate costly compliance measures for reducing Nitrous Oxide and nitrogen oxide emissions, impacting profitability.

Volatile Raw Material Prices: Fluctuations in the price of ammonia, the primary feedstock (derived from natural gas), introduce unpredictability in production costs and final pricing.

Competition from Alternatives: Emerging interest in organic farming and bio-based fertilizers presents a potential threat to traditional nitric acid-based products.

Health and Safety Concerns: Nitric acid is a hazardous substance, leading to strict protocols and increased operational expenses for handling, storage, and transportation.

Market Trends and Future Outlook

Sustainability and Decarbonization: A key trend is the industry's shift towards sustainable practices. This includes:

Adoption of cleaner production technologies to reduce emissions.
Exploration of green ammonia (produced using renewable energy) as a cleaner feedstock.

Development of carbon-neutral ammonium nitrate (e.g., Enaex S.A. in Latin America).

Focus on High-Purity Grades: Rapid technological advancements in semiconductors are fueling the demand for ultra-high-purity Electronic Grade Nitric Acid (EGNA), which is expected to grow at a strong CAGR (e.g., 5.8% from 2025 to 2034).

Digitalization: Adoption of Artificial Intelligence (AI) and digital tools for predictive maintenance, quality control (to ensure concentration/purity), and process automation in chemical manufacturing.

The future outlook remains positive, primarily tied to population growth and agricultural needs, but is increasingly shaped by technological advancements in high-value, high-ppurity applications like electronics.

Key Market Study Points

Fertilizer Reliance: The market's health is heavily dependent on global fertilizer demand, specifically for Ammonium Nitrate.
Regional Production Shift: While Europe currently holds a leading market share in value, Asia-Pacific is driving future growth, especially in production capacity and demand for concentrated and electronic grades.

Regulatory Impact: Environmental regulations on emissions will drive capital expenditure and potentially consolidate the market among players who can invest in abatement technologies.

Automotive Influence: Demand for lightweight vehicles continues to boost the use of nylon and polyurethane, directly supporting the nitric acid market via Adipic Acid and TDI production.

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Competitive Landscape and Recent Developments

The global nitric acid market is highly competitive and fragmented. Companies focus on capacity expansion, R&D for cleaner production, and strategic integration across the value chain.

Key Market Players

CF Industries Holdings, Inc.
Yara International ASA
BASF SE
Nutrien Ltd.
EuroChem Group AG
LSB Industries, Inc.
Dyno Nobel
UBE Corporation
OCI Nitrogen B.V.

Recent Developments

Capacity Expansion and Technology Upgrades:
In December 2024, Grupa Azoty Pulawy Group completed commissioning its fifth nitric acid line to increase capacity.

In November 2024, Ube Corporation announced a 30% increase in high-purity nitric acid production capacity to meet growing semiconductor demand.
In 2023, BASF expanded its nitric acid plant in Germany, focusing on both increased capacity and lower emissions.

Sustainability Focus:

In November 2023, Enaex S.A. became the first to produce carbon-neutral ammonium nitrate in Latin America.

In July 2024, Stamicarbon partnered with NextChem Tech to supply its NX Stami Green AmmoniaTM and NX Stami Nitric AcidTM technologies for a low-carbon fertilizer facility in France.

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