ID: MRFR/CnM/1775-CR | February 2021 | Region: Global | 282 pages
Global Ammonia Market is projected to register a CAGR of 4.02% to reach USD 68,354.5 Million by the end of 2028.
Ammonia is a colorless inorganic compound of nitrogen and hydrogen with a characteristic pungent smell. It is mainly produced using natural gas, the Haber process, in which nitrogen and hydrogen react in the presence of an iron catalyst to form ammonia.
The global demand for ammonia is mainly driven by the growth of the fertilizer industry. Around 60% of the ammonia produced is consumed by the fertilizer industry. Some of the common fertilizers produced through ammonia include urea, ammonium nitrate, ammonium sulfate, ammonium phosphate, diammonium phosphate, monoammonium phosphate, nitric acid, sodium bicarbonate, and sodium carbonate. According to the United Nations, the world’s population is likely to exceed 8.6 billion by 2030. Thus, the increasing demand for food coupled with the growing consumption of protein-rich diets, fruits, and vegetables is expected to boost the demand for fertilizers in the agricultural industry.
Global Ammonia Market Revenue, By Application, (USD Million)
Sources: MRFR Analysis
Global Ammonia has been segmented on the basis of Form, Sales Channel, Application and Region.
Global Ammonia Market has been categorized based on three forms, namely liquid, gas, and powder. Among these, the liquid form segment accounted for more than 40% of the global market share in 2018; and is projected to register a CAGR of 4.08% during the assessment period. This is attributed to the high demand for the product in almost all the major applications such as refrigerants, chemicals, and pharmaceuticals. Moreover, the liquid form of ammonia is applied to the soil by the surface injection method. It quickly vaporizes but is captured by soil and water. Additionally, the liquid ammonia is used as a solvent in chemical reactions requiring nitrogen.
By the Sales Channel, the market is bifurcated into direct channel and distribution channel. The direct sales channel segment was valued at USD 35,727.2 million in 2018.
Based on Application, the global market has been segmented into fertilizers, chemicals, refrigeration, fibers and plastics, pharmaceutical, pulp and paper, and others. The fertilizer segment emerged as the leading and fastest-growing segment; exhibiting a CAGR of 4.39% during the forecast period. The significant growth of the fertilizer industry and constantly rising demand for food due to the growing global population are expected to boost the growth of the segment.
Global Ammonia Market Share, by Region, 2018 (%)
Sources: MRFR Analysis
The Global Ammonia Market has been studied across five regions, namely Asia-Pacific, North America, Europe, Latin America, and the Middle East & Africa. The market in Asia-Pacific held the largest market share of over 50% in 2018, with a market value of around USD 24,798.0 million. This is mainly attributed to the increasing demand for ammonia for producing fertilizers in the major economies of India, China, Thailand, and Indonesia.
Key Players operating in the Global Ammonia Market include Yara (Norway), CF Industries Holdings Inc. (US), Nutrien Ltd. (Canada), Group DF (Ukraine), OCI NV (Netherlands), EuroChem Group AG (Switzerland), SABIC (Saudi Arabia), Acron (Russia), Orica Limited (Australia), Uralchem JSC (Russia), AB ”Achema” (Lithuania), Togliattiazot (Russia), Indian Farmers Fertiliser Cooperative Limited (India), Qatar Fertiliser Company (Qatar), and Koch Fertilizer, LLC (US).
Companies such as CF Industries Holdings Inc., Yara, Nutrien Ltd, OCI NV, EuroChem Group AG, and GROUP DF are the prominent players operating in the global ammonia market. These players account for a majority of the global market share owing to their large production capabilities, global revenue base, availability of low-cost raw material, patented production facilities, and global distribution network.
Players in this market are focused on strategic growth initiatives such as expansion, agreement, and acquisition to remain at the forefront to meet the growing demand for ammonia.
Global Ammonia Market, by Form
Global Ammonia Market, by Sales Channel
Global Ammonia Market, by Application
Global Ammonia Market, by Region
Available Additional Customizations
Frequently Asked Questions (FAQ) :
The global ammonia market is touted to record a substantial market valuation of USD 68.35 billion by 2028.
The global ammonia market is projected to register a moderate 4.02% CAGR in the forecast period.
The massive demand for ammonia from the fertilizer industry is the primary growth inducer of the market.
The liquid segment is expected to observe substantial demand over the review period.
The direct sales channel segment is expected to secure the highest CAGR.
The fertilizer segment is slated to expand as the fastest-growing segment.
A few eminent market players operating in the global ammonia market are Yara (Norway), CF Industries Holdings Inc. (US), Nutrien Ltd. (Canada), among others.