Concentrated Nitric Acid Market 2030 Size, Share, Trends, Growth, Regional Outlook And Forecast to 2030

Market Overview:

Commercially available nitric acid is an azeotrope with water at a concentration of 68% HNO 3. This solution has a boiling temperature of 120.5 °C (249 °F) at 1 atm. Ordinary nitric acid is about 68% with a density of 1.4., (with boiling point  of 120°C). Whereas, concentrated nitric acid is about 98% and has a density 1.51. These compounds are used in a variety of products, such as fertilizers, explosives, dyes, synthetic rubber, elastomers, and others. Moreover, it has applications in a variety of industries, including chemicals, metallurgy, steel, and others that are anticipated to grow in the global market.

Competitive Landscape:

Major players operating in the global concentrated nitric acid market are Yara International, Ube Industries, DowDuPont Inc., LSB Industries Inc., Bayer A.G., CF Industries Holdings, BASF S.E., Nutrien Ltd., and Shandong Fengyuan Chemical Stock Co., Ltd., among others.

Key Market Drivers:

Increasing use/consumption of concentrated nitric acid across the world is expected to augment the growth of the concentrated nitric acid market over the forecast period. For instance, in June 2022, Gujarat Narmada Valley Fertilizers & Chemicals (GNFC), a company promoted by the Government of Gujarat and Gujarat State Fertilizers & Chemicals (GSFC), planned to become the largest producer of concentrated nitric acid by the end of the current calendar year. With this, GNFC’s production will escalate to 165,000 MT by the end of year 2022.

Moreover, increasing demand from numerous automotive applications is expected to boost the growth of the concentrated nitric acid market. Thus, with the rapid growth of the automotive industry, the demand for concentrated nitric acid is also increasing rapidly. For instance, the Automotive Mission Plan 2016-26 is a mutual initiative by the Government of India and the Indian automotive industry to lay down the roadmap for the development of the industry. The Government of India expects the automobile sector to attract US$ 8 to 10 billion in local and foreign investments by 2023.

COVID-19 Impact Analysis:

The outbreak of COVID-19 has had a severe impact on the growth of the concentrated nitric acid market growth. The manufacturing activities were on temporary halt due to government-imposed lockdown (to curb the spread of the novel coronavirus), thus leading to a decrease in consumption or use of concentrated nitric acid. However, the concentrated nitric acid market is expected to witness robust growth during the forecast period.

Key Takeaways:

• The concentrated nitric acid market is expected to exhibit a CAGR of 4.0 % during the forecast period due to the increasing demand for nitric acid from various end-use industries. For instance, in June 2022, Aarti Industries faced continuing shortage of nitric acid in Q4 that impacted volumes of nitric acid based products. Thus, the company plans to set-up concentration capacity of 225-250 TPD to mitigate supply shortfall and also evaluating a comprehensive nitric acid strategy.
• Among regions, North America and Asia Pacific are expected to witness robust growth in the concentrated nitric acid market due to the increasing industrialization, rise in demand for nitric acid from various end-use industries, increasing demand for technical ammonium nitrate, and rapid growth of the automotive, agriculture, and electronics industry.

For instance, in April 2019, Narmada Valley Fertilizers & Chemicals Limited (GNFC) of India awarded a contract to Plinke GmbH to build concentrated nitric acid plant at Bharuch, Gujarat (India), to enhance its plant capacity.

Moreover, in April 2019, Deepak Fertilizers and Petrochemicals Corp. Ltd. announced the commercial start of the nitric acid production complex, with an annual production capacity of 92-kiloton of concentrated nitric acid in Dahej, Gujarat, India.