Summary

Nitric acid, commonly referred to as aqua fortis, is a colorless substance that gradually turns yellow over time due to the breakdown of nitrogen and water into oxides. This compound is highly corrosive and plays a key role in producing ammonium nitrate and various other chemicals used in fertilizer manufacturing. Additionally, nitric acid is utilized to create chemicals such as nitrobenzene, adipic acid, and chloronitrobenzene, which serve as important raw materials in industries such as plastics, automotive, and construction. The growing automotive industry in developing regions has surged the consumption of these products, influenced by population growth and rising consumer demand, thereby fueling market expansion. The benefits of nitric acid include being used in manufacturing explosives, fertilizers, rocket propulsion, wart removal, chemical doping agents, and pharmaceuticals for health benefits, driving the growth of the market. AI has many applications in handling and using concentrated nitric acid, mainly in the industrial and research sectors. AI is helpful in safety monitoring and process optimization for nylon precursors, fertilizers, and explosives. In predictive maintenance, preventing accidents, automation, quality control to ensure the concentration and purity of nitric acid, and analysis of samples. These factors help to the growth of the concentrated nitric acid market. In January 2024, a new, unconventional, powerful artificial intelligence-based tool that can reimagine the sustainability of the chemical manufacturing industry was created by a West Virginia University engineer. According to the research report "Global Nitric Acid Market Outlook, 2030," published by Bonafide Research, the Global Nitric Acid market was valued at more than USD 29.11 Billion in 2024, and expected to reach a market size of more than USD 36.05 Billion by 2030 with the CAGR of 3.70% from 2025-2030. Nitric acid production is subject to stringent environmental regulations aimed at reducing harmful emissions and promoting sustainable practices. In regions like Europe and North America, governments have implemented strict nitrogen oxides (NOx) emissions standards, compelling manufacturers to adopt advanced technologies such as catalytic reduction systems and energy-efficient production processes to comply with these regulations. The nitric acid industry has witnessed several strategic partnerships and mergers aimed at enhancing production capabilities and expanding market reach. For instance, in 2025, Gujarat Narmada Valley Fertilizers & Chemicals Ltd awarded a contract to thyssenkrupp Udhe India for a new nitric acid plant, boosting company capacity by 57% and enhancing domestic production in India. The nitric acid market is also influenced by supply chain dynamics, including raw material sourcing and regional production shifts. Ammonia, a key feedstock for nitric acid production, represents a significant portion of production costs. Variations in natural gas prices and availability impact production economics, leading to regional disparities in production costs and trade patterns. Technological innovations play a crucial role in addressing environmental concerns and improving production efficiency. The adoption of green ammonia production methods and carbon capture technologies is gaining momentum, particularly in Europe, where regulatory pressures are driving investments in cleaner production technologies. Market Drivers • Rising Demand from Fertilizer Industry: One of the primary drivers of the global nitric acid market is the growing demand from the fertilizer industry, particularly for the production of ammonium nitrate, urea ammonium nitrate (UAN), and calcium ammonium nitrate. These nitrogen-based fertilizers are crucial for enhancing crop yield and meeting the increasing global food demand driven by population growth. Since nitric acid serves as a key raw material in their production, the expansion of agricultural activities and the emphasis on improving soil fertility are fueling its market growth. • Expanded Use in Energetic Materials: Another major driver is the extensive use of nitric acid in explosives and specialty chemicals production. Nitric acid is essential for manufacturing explosives such as TNT (trinitrotoluene), nitroglycerin, and ammonium nitrate-based compounds used in mining, construction, and defense industries. Additionally, it serves as a precursor in producing various organic and inorganic chemicals, including adipic acid and nitrobenzene key intermediates in nylon, polyurethane, and plastic manufacturing. The increasing demand for these materials in automotive, textile, and consumer goods industries continues to accelerate nitric acid consumption. Market Challenges • Environmental Concerns: One of the most significant challenges facing the nitric acid market is its environmental impact and strict emission regulations. Nitric acid production releases nitrogen oxides (NOx), which are potent greenhouse gases contributing to air pollution and acid rain. Managing these emissions requires costly abatement systems and compliance with stringent environmental standards. Nitric acid is highly corrosive and poses health and safety risks during production, handling, and transportation, making safety protocols and regulatory compliance key concerns for manufacturers. • Volatility in Raw Material Prices: The fluctuation in raw material prices, particularly ammonia, presents another major challenge. Ammonia is the primary feedstock for nitric acid production, and its prices are influenced by energy costs, natural gas prices, and global demand-supply dynamics. Any instability in these factors directly affects nitric acid production costs and profit margins. This price volatility can disrupt production planning and reduce competitiveness for manufacturers, especially smaller players operating on tight margins. Market Trends • Adoption of Green Technologies: A key trend in the nitric acid market is the shift toward eco-friendly and energy-efficient manufacturing processes. Companies are investing in technologies that minimize NOx emissions and improve energy recovery during production. The integration of catalytic reduction systems and low-emission plants helps reduce the carbon footprint and align with global sustainability goals. Furthermore, the focus on circular economy principles and renewable feedstocks is pushing manufacturers to adopt cleaner nitric acid production techniques to meet both environmental standards and customer preferences. • Increasing Demand from Emerging Economies: Another growing trend is the rising demand from emerging economies due to rapid industrialization, infrastructure development, and expanding agricultural activities. These regions are investing heavily in fertilizers, explosives, and chemical manufacturing to support their economic growth. As a result, nitric acid consumption is increasing significantly in these markets, encouraging global producers to expand capacity and establish strategic partnerships or production facilities in developing regions to meet this growing demand. Dilute nitric acid dominates the global nitric acid market because it is the most widely used form in large-scale industrial applications which account for the majority of nitric acid consumption worldwide. The dominance of dilute nitric acid in the global nitric acid market primarily stems from its extensive use in the agriculture and fertilizer industry, which represents over 75% of the total nitric acid demand. Nitric acid, when diluted, becomes a crucial intermediate in the production of ammonium nitrate, one of the most widely used nitrogen fertilizers globally. The rising global population has significantly increased the demand for food, which in turn has driven the expansion of the agricultural sector. Concentrated nitric acid is highly corrosive and volatile, requiring specialized materials for storage and transportation, which increases operational costs. In contrast, dilute nitric acid is comparatively safer to manage and can be transported in bulk for use in large-scale industrial operations, making it the preferred choice for many manufacturing sectors. Another significant factor contributing to its market dominance is its versatility across multiple industries beyond fertilizers. Dilute nitric acid is extensively used in the production of explosives and synthetic fibers such as nylon. Its moderate concentration allows for greater flexibility in chemical reactions without the need for expensive safety controls associated with concentrated forms. Many countries are promoting the use of fertilizers that reduce nitrogen losses and environmental harm. Ammonium nitrate, derived from dilute nitric acid, offers better nitrogen utilization efficiency compared to alternatives like urea, thereby aligning with sustainability goals. This eco-friendly advantage reinforces the steady demand for dilute nitric acid in fertilizer manufacturing. The fertilizer segment leads the global nitric acid market because the majority of nitric acid produced worldwide is used in manufacturing nitrogen-based fertilizers like ammonium nitrate, which are essential for enhancing agricultural productivity. Agriculture remains one of the most critical sectors driving global economic stability, and as the world’s population continues to rise, the pressure to produce more food from limited arable land has intensified. Farmers worldwide are increasingly depending on chemical fertilizers to improve soil fertility, boost crop yields, and ensure food security. Among these, ammonium nitrate derived directly from nNitrogen is a vital component of chlorophyll, amino acids, and enzymes that support plant metabolism and growth. However, soil nitrogen levels naturally decline after every harvest, making fertilizer application essential to restore soil health. Ammonium nitrate provides a highly soluble and readily available form of nitrogen that plants can absorb quickly, ensuring efficient nutrient uptake. This high effectiveness compared to other nitrogen sources, such as urea, has sustained the preference for ammonium nitrate fertilizers in many agricultural economies. Nitric acid is one of the most effective sources of nitrogen, an essential nutrient for plant growth. Most large-scale nitric acid producers operate adjacent to or in partnership with fertilizer manufacturers, ensuring a steady and cost-efficient supply chain. This vertical integration reduces transportation costs, minimizes losses, and ensures a consistent demand for nitric acid, further strengthening the fertilizer segment’s market leadership. Controlled-release and nitrogen-efficient fertilizers many of which are derived from nitric acid are being developed to minimize environmental pollution and improve nutrient use efficiency. The agrochemical industry is the largest end-use segment in the global nitric acid market because nitric acid serves as a key raw material in the production of fertilizers and crop protection chemicals. As the global population continues to grow, food security has become one of the most pressing challenges. The world’s agricultural systems must produce more food using limited arable land, which has significantly boosted the demand for fertilizers and other agrochemicals. Nitric acid’s importance in the agrochemical sector lies in its chemical versatility. It is used not only to produce fertilizers but also to synthesize intermediates for herbicides and pesticides that protect crops from weeds, insects, and diseases. The combination of these products ensures that crops can grow faster, stronger, and in a more controlled manner, even under challenging environmental conditions. The demand for nitric acid in agrochemicals is closely tied to the global rise in fertilizer consumption, particularly in developing agricultural economies. Rapid urbanization and industrialization have reduced the availability of cultivable land, pushing farmers to increase yield per hectare through intensive farming methods. Fertilizers rich in nitrogen, such as ammonium nitrate and calcium ammonium nitrate both derived from nitric acid offer a highly effective solution. The development of environment-friendly fertilizers and controlled-release nitrogen compounds relies heavily on nitric acid as a key feedstock. Manufacturers are also adopting sustainable chemical processes that optimize nitric acid use while reducing emissions and waste. These innovations not only improve crop efficiency but also align with global sustainability goals, reinforcing nitric acid’s relevance in modern agrochemical manufacturing. Asia-Pacific is the largest and fastest-growing region in the global nitric acid market due to its rapidly expanding agricultural sector and high demand for fertilizers to sustain food production. Agriculture remains a cornerstone of many economies in this region, providing livelihoods to a large portion of the population and playing a vital role in food security. Nitric acid, being a crucial intermediate for producing ammonium nitrate and other nitrogen fertilizers, has seen consistently high consumption levels across Asia-Pacific. The region’s rapid population growth and shrinking arable land have made it essential to enhance crop productivity through fertilizers, directly boosting the demand for nitric acid. The region is home to a significant share of the world’s population, and with urbanization and industrialization expanding, agricultural land per capita is declining. To meet the rising food requirements, countries in the region are adopting high-efficiency farming techniques that rely heavily on chemical fertilizers derived from nitric acid. The chemical and explosive industries, both of which utilize nitric acid in manufacturing, are flourishing in this region. Nitric acid is an essential feedstock for producing industrial explosives used in mining, construction, and infrastructure development sectors that are growing rapidly due to urbanization and investment in large-scale projects. The region’s market dominance is further strengthened by the presence of large-scale chemical manufacturing facilities and integrated production networks. Many leading fertilizer and chemical producers have established extensive nitric acid production plants across Asia-Pacific to cater to domestic and export needs. The easy availability of raw materials such as ammonia and natural gas, coupled with low production costs, has given the region a competitive advantage in nitric acid manufacturing. • March 2025: Gujarat Narmada Valley Fertilizers & Chemicals Ltd awarded thyssenkrupp Udhe India a contract for a 600 MTPD weak nitric acid plant, raising company capacity by 57% and supporting domestic Make in India initiatives. • November 2024: UBE Corporation announced an expansion of high-purity nitric acid capacity at its Ube Chemical Factory to meet semiconductor and specialty polymer demand. • January 2024: Saudi Chemical Co. Holding (SCCH), a manufacturer of explosives and detonators, through its subsidiary Saudi Chemical Co. Ltd. (SCCL), signed a non-binding memorandum of understanding (MoU) with Dyno Nobel for a facility to produce ammonium nitrate and nitric acid in Ras Al Khair • August 2023: Deepak Fertilisers and Petrochemicals Corporation Ltd. (DFPCL) announced to expand the nitric acid capacity at Dahej, in Gujarat, India. The company will set up a Weak Nitric Acid (WNA) plant with a capacity of 300 kilotons per annum (KTPA) and two CNA plants with a total capacity of 150 KTPA. • Feb 2023: BASF SE has announced plans to invest 1.2 billion Euro in nitric acid production at its Ludwigshafen site in Germany. The investment will be used to build a new nitric acid plant and to expand an existing plant. • Jan 2023: Grupa Azoty has launched a new facility to produce concentrated nitric acid with a design output of 40,000 tonnes per year, doubling its existing capacity. This is a second production line for above 98 per cent concentrated nitric acid now operating in Tarnów