The global nitric acid market share is expected to reach USD 27,536.9 million by 2027, exhibiting a CAGR of 3.5% during the forecast period. The booming automotive industry in developing nations has led to high consumption of this acid, which, in turn, will bode well for the market, states Fortune Business Insights, in a report. The nitric acid market share size stood at USD 22,268.1 million in 2019.
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Surging Construction Activities to Enable Speedy Expansion
The increasing application of the HNO3 agriculture industry for the manufacturing of fertilizers such as ammonium nitrate, potassium nitrate, calcium ammonium nitrate, and nitro phosphate will foster the healthy growth of the market. The utilization of fertilizers to increase crop yield and serve the rising population’s needs will spur opportunities for the nitric acid industry. Furthermore, the growing disposable income of consumers has subsequently boosted the demand for organic and quality food, thereby aiding the market growth. The surging construction activities will consequently accelerate the development of the market in the forthcoming years. For instance, Toluene di-isocyanate (TDI), a HNO3 intermediate, is used to manufacture polyurethane foams, wood and floor coatings, and insulation materials. The improving lifestyle of consumers and increasing renovation activities will contribute significantly to the market growth. Besides, new governmental infrastructure projects will bolster the nitric acid market growth.
Disturbed Supply Chain to Affect HNO3 Production Amid Coronavirus
The coronavirus pandemic had a drastic impact on industries, causing temporary shutdown of manufacturing and trade activities. The declined demand and production have disrupted the supply chain. Moreover, the momentary halt on automotive production has led to reduced demand for this type of acid, thus hampering this market. However, the rising application of plastic in the medical industry will favor development of the market. The growing demand for PPE kits has led to high production of plastics, propelling market growth for nitric acid.
Thriving Agriculture Industry to Drive Market in Asia Pacific
Asia Pacific is expected to hold the largest nitric acid market share during the forecast period. The growth is attributed to the increasing demand for HNO3 from various end-use industries, including automobile, agriculture, and construction. The growing population coupled with increasing crop production in countries such as India, China, and Japan, will incite the market’s development. China dominated the market due to rapidly growing population, rising infrastructure projects, along with an increase in middle-class income. Europe is expected to expand radically during the forecast period due to the growing demand for fuel efficient and environmentally-friendly lightweight automobiles from consumers.
October 2019: LSB Industries, Inc., signed a new long term nitric acid supply contract with customers. The agreement will include the supply of 70 KT to 100 KT nitric acid annually.
The Report Lists the Key Players in the Global Market: