NEW YORK, Dec. 15, 2022 (GLOBE NEWSWIRE) -- A new report on the global ammonia market has just been published by the market intelligence platform IndexBox. Here are some of the most interesting takeaways.
Market Outlook
The global anhydrous ammonia market is expected to reach USD 116 billion by 2030, from USD 82.2 billion in 2022, at a CAGR of 4.4% during the forecast period 2022-2030. Ammonia is an essential raw material for various industries and is mainly used in the production of fertilizers. The growing demand for fertilizers from the agriculture industry is expected to drive the growth of the ammonia market.
Ammonia is also used in the production of chemicals, plastics, and textiles. The rising demand for these products from various end-use industries is expected to boost the growth of the ammonia market during the forecast period. The increased use of ammonia as a refrigerant gas is also expected to contribute to the growth of the market. However, stringent environmental regulations regarding the emissions of ammonia are expected to restrain the growth of this market.
The Asia-Pacific region is the largest market for ammonia, followed by North America and Europe. The Asia-Pacific region is also projected to be the fastest-growing market for ammonia during the forecast period. The increasing demand for fertilizers from countries such as China and India is expected to drive the growth of the ammonia market in this region.
Market Trends
The major drivers for the market are the growing demand from the fertilizer industry and the increasing use of ammonia in the petrochemical industry.
The fertilizer industry is the largest consumer of ammonia, accounting for over 80% of the total demand. Ammonia is used in the production of urea, ammonium nitrate, and diammonium phosphate fertilizers. The growing population and the need for food security are the major drivers for the demand for fertilizers. According to the IndexBox, the global fertilizer consumption is expected to grow by 1.9% per year between 2021 and 2030, reaching 653 million metric tons in 2030. This increase in demand for fertilizers will drive the growth of the ammonia market during the forecast period.
The petrochemical industry is another major consumer of ammonia. It is used in the production of acrylic acid, ethylene amines, caprolactam, and cyanides. The increasing use of these chemicals in various applications such as plastics, textiles, detergents, and pharmaceuticals is driving the demand for ammonia.
Another driver influencing market growth is the growing demand for ammonium nitrate (AN) from end-use industries such as construction and mining. AN finds applications in these industries as an explosive material and blasting agent. The expansion of these industries will lead to an increase in demand for AN, which will consequently drive the growth of the ammonia market during the forecast period.
The major drivers that are influencing growth in this market are the increased use of ammonia in power generation and rising environmental concerns over carbon emissions. However, challenges faced by this market such as high capital investment requirements and health hazards associated with exposure to ammonia are restraining its further growth potential to some extent over the forecast period.
Market Prospects
The increased demand for urea and other nitrogenous fertilizers is expected to drive the growth of the global ammonia market during the forecast period. Urea is one of the most important nitrogenous fertilizers, used in agricultural applications worldwide. It is an excellent source of nitrogen for crops and helps improve yields. Additionally, urea is also used as a raw material in the manufacture of several chemicals, such as adhesives, resins, and plastics. The increased demand for these products is expected to boost the growth of the global ammonia market during the forecast period.
However, the declining use of ammonium sulfate in agriculture is expected to restrain the growth of the global ammonia market during the forecast period. Ammonium sulfate is a key ingredient in many nitrogenous fertilizers. However, its use has declined in recent years due to its negative impact on crop yields. Additionally, ammonium sulfate is also considered to be an environmental pollutant, due to its high sulfur content. This is expected to hamper the growth of the global ammonia market during the forecast period.
About IndexBox
IndexBox is a market research firm developing an AI-driven market intelligence platform that helps business analysts find actionable insights and make data-driven decisions. The platform provides data on consumption, production, trade, and prices for more than 10K+ different products across 200 countries.
Companies Mentioned in the Report
BASF SE (Germany), The Mosaic Company (US), Yara International ASA (Norway), CF Industries Holdings, Inc. (US), and Potash Corporation of Saskatchewan Inc.(Canada), DowDuPont Inc. (United States), Royal Dutch Shell plc (Netherlands), ExxonMobil Corporation (U.S.), OCI Nitrogen BV (Netherlands).
Sources
World - Ammonia - Market Analysis, Forecast, Size, Trends and Insights
EU - Ammonia - Market Analysis, Forecast, Size, Trends and Insights
Asia - Ammonia - Market Analysis, Forecast, Size, Trends and Insights
U.S. - Ammonia - Market Analysis, Forecast, Size, Trends and Insights
