Global Ammonium Perchlorate Market Report and Forecast 2024-2032

Global Ammonium Perchlorate Market Outlook

The global ammonium perchlorate market size was around USD 833.35 million in 2023. The market is estimated to grow at a CAGR of 6.9% during 2024-2032 to reach a value of USD 1,499.31 million by 2032.

Key Takeaways

• Ammonium perchlorate is advantaged by its ideal density, favourable oxygen balance, and tailorable burn rates, which support its use in propellants.

• Aerospace and defence are among the leading end use sectors for the product. In 2022, the global military expenditure reached 2.3% of the GDP.

• The use of ammonium perchlorate in pyrotechnics is rising due to its oxidiser characteristics.

Due to its ideal density, favourable oxygen balance, tailorable burn rates, and excellent performance, ammonium perchlorate is actively used in solid composite propellants, for application in solid propellant engines and aerospace boosters, where the AP content is more than 70%.

The primary employment of ammonium perchlorate is in the making of solid fuels. It accounts for nearly three-fourths of the fuel used in spacecraft. Ammonium perchlorate is also used in the making of smokeless flare signals. Its ability to generate huge energy on oxidation makes it perfect for usage in rocket propellants.

Ammonium perchlorate is also used in explosives and fireworks due to its strong oxidizing properties.

Governments across the globe are making significant investments in their line of defence to safeguard the countries against attacks and other security challenges, leading to a requirement for ammonium perchlorate in large amounts.

Figure: Countries with the highest military spending worldwide in 2022 (in billion U.S. dollars)

Key Trends and Developments

Favourable government investments; growth of the defence sector; rising space exploration activities; and customisation of ammonium perchlorate are the major factors impacting the ammonium perchlorate market growth

May 24, 2023

The US Army broadened its ammonium perchlorate (AP) supply for artillery amid the rising demand for rockets in Ukraine and concerns over the security of supply chains for energetic materials.

May 2, 2022

Black Sky Aerospace, a Brisbane-based rocket manufacturer, accomplished a significant feat by becoming the first Australian company to domestically produce ammonium perchlorate (A.P.), a crucial component constituting approximately 70 per cent of rocket fuel.

Ammonium Perchlorate Market Trends

The demand for ammonium perchlorate is driven by advancements in aerospace and investments in the defence sector. As a potent oxidizer, it plays a crucial role in rocket propellants and explosives.

Middle East countries like Israel, Saudi Arabia, and Iraq are investing a massive amount in their military and defence departments. Germany, Russia, China, and India are also spending a large proportion of their GDP on their military and defence budgets. This is further expected to drive the ammonium perchlorate market over the forecast period.

Rising space exploration, commercial satellite transportation, and national defence programs, aids the demand for ammonium perchlorate.

Significant government investments

A rise in government investments in the defence sector globally supports the use of ammonium perchlorate as an oxidising agent for solid propellant rockets, booster motors, and missiles. A rise in space exploration, commercial satellite transportation, and defence programs, aids the market growth.

Expanding space sector

Ammonium perchlorate is a compound used as an oxidant in solid rocket fuel. In addition to this, the simplicity and stability offered by ammonium perchlorate allow for its use in pyrotechnics.

Customisation of ammonium perchlorate

Ammonium perchlorate can be customised according to clients’ needs with respect to particle size, packaging, and packaging size.

Growing defence sector

The growth of the defence sector has expanded the application scope of ammonium perchlorate. Ammonium perchlorate is used in the making of smokeless flare signals. Its ability to generate huge energy on oxidation makes it perfect for usage in propellants, among other things.

Market Segmentation

“Global Ammonium Perchlorate Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Spherical

• Non-Spherical (Needle)

Market Breakup by Application

• Rocket Fuel Additive

• Strong Oxidizing Agent

• Others 

Market Breakup by End Use

• Aerospace and Defence

• Pyrotechnics and Fireworks

• Others

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Based on application, rocket fuel additives account for the majority of the ammonium perchlorate market share

Ammonium perchlorate is combined with rocket fuels to form rocket propellant. It is being widely used in both defence rockets and civilian rockets in space technology.

Meanwhile, ammonium perchlorate also finds application as an oxidising agent with high density (1.95 g/cm3) and positive oxygen balance (34%) and is applied in fireworks and munitions. In fireworks, ammonium perchlorate burns and creates oxygen that mixes with the fuel mixture, producing a thrust force and enabling the firework to leave the ground.

The aerospace and defence sector is a significant contributor to the global ammonium perchlorate market revenue

Ammonium perchlorate’s cost-effectiveness, high thermal stability, high oxygen content, and low sensitivity to shock ensure its success in rocket propellants. The growth of the military and defence sector and the investments in the production of rockets and missiles globally, are likely to increase the production of ammonium perchlorate.

In July 2023, the German government approved a EUR 51.8 billion draft defence budget, a multi-year financial plan up to 2027, and the 2024 plan for the Zeitwende special fund to meet the North Atlantic Treaty Organization's target for members to spend at least 2% of their GDP on defence from 2024.

Competitive Landscape

The market players are focusing on making substantial investments in research and development to boost production efficiency and enhance the performance attributes of ammonium perchlorate

American Pacific

American Pacific is a private company based in Utah, United States. The company is engaged in providing speciality chemicals such as perchlorates and halocarbon-based clean fire-extinguishing agents.

Aldebaran Sistemas, S.L.

Headquartered in La muela (Zaragoza), Spain, the company offer an extensive range of products categorised under salts, metals and alloys, and resins and rubbers.

Japan Carlit Co., Ltd.

Japan Carlit Co., Ltd. is a chemical company headquartered in Tokyo, Japan. The product offerings extend to ammonium perchlorate, agricultural chemicals, and perchloric acid.

Pandian Chemicals Limited

Pandian Chemicals Limited is a privately owned company situated in Tamil Nadu, India. The company provides ammonium perchlorate, potassium chlorate, potassium perchlorate, sodium perchlorate, and magnesium perchlorate.

Other notable player operating in the global ammonium perchlorate market is Dalian Gaojia Chemical Co., Ltd, among others.

Ammonium Perchlorate Market Analysis by Region

The United States possesses the top position in the global military force and is rapidly developing its missile offerings including hypersonic missiles, creating the greater requirement for ammonium perchlorate. The Department of Defence (DoD) approved grade 1 ammonium perchlorate (AP1) and is currently being used in weapons employed by the army's Guided Multiple Launch Rocket System (GMLRS).

Additionally, members of the European Space Agency (ESA) such as France, Germany, Italy, The Netherlands, Spain, and the UK, among others, are actively involved in space exploration missions.

The LATAM satellite sector invests in satellites for communication and climate monitoring as well as nanosatellites for scientific purposes. These satellites are launched into space using rockets, which provides a favourable market for ammonium perchlorate.

Key Highlights of the Report

Ammonium Perchlorate Market Report Snapshots

Ammonium Perchlorate Market Size

Ammonium Perchlorate Market Trends

Ammonium Perchlorate Market Share

Ammonium Perchlorate Companies

Ammonium Perchlorate Market Regional Analysis