New York, Jan. 18, 2024 (GLOBE NEWSWIRE) -- The global ammonia market size is predicted to grow at a CAGR of over ~7% from 2023 to 2033. The market is projected to garner a revenue of USD 120 billion by the end of 2033, up from a revenue of ~USD 75 billion in the year 2022.One of the primary drivers for the market is its extensive use in the agriculture sector. Ammonia is a crucial component in the production of fertilizers, particularly urea, which is widely utilized to enhance soil fertility and promote plant growth. As global population growth continues, the demand for ammonia-based fertilizers remains strong, especially in regions with significant agricultural activities. As of 2021, the global ammonia fertilizer sales were valued at over USD 40 billion. This growth reflects the sustained demand for ammonia in agriculture.
Request Free Sample Copy of this Report @ https://www.researchnester.com/sample-request-4518
Ammonia serves as a versatile industrial chemical with applications in various sectors. It is used in the production of chemicals such as nitric acid, which is essential for manufacturing fertilizers, explosives, and other chemical products. Additionally, ammonia is a vital refrigerant in industrial processes, including cold storage and food processing. The concept of "green ammonia" has gained attention as part of the broader sustainability and clean energy initiatives. Green ammonia is produced using renewable energy sources, such as wind or solar power, and has the potential to reduce the environmental impact associated with traditional ammonia production methods.
Increasing Use of Ammonia in Maritime Shipping across the Globe to Boost Market Growth
Ammonia is colorless and does not produce carbon dioxide on combustion. Also, ammonia can be produced from renewable sources such as water, electricity, and air. All these major factors are estimated to boost the market growth in the coming years. Ammonia is projected to be one of the leading alternatives to traditional oil-based fuels by 2050, according to the International Maritime Organization. Maritime shipping has long been associated with significant environmental impacts, particularly in terms of air pollution and carbon emissions. In response to global efforts to combat climate change, the maritime industry is exploring alternative fuels that offer a cleaner and more sustainable energy source for vessels. Ammonia stands out as a promising candidate, as its combustion produces nitrogen and water vapor without emitting carbon dioxide. Ammonia's role as a green marine fuel is gaining prominence, driven by its ability to serve as a zero-emission fuel when produced using renewable energy sources. Unlike conventional marine fuels such as heavy fuel oil, ammonia has the potential to decarbonize the shipping industry and contribute to achieving international emission reduction targets. The use of ammonia in maritime shipping aligns with the industry's commitment to reducing its carbon footprint and adhering to increasingly stringent environmental regulations. Ammonia combustion releases nitrogen oxides (NOx) in lower quantities compared to conventional fuels, addressing air quality concerns in addition to mitigating climate change impacts.
Ammonia Market: Regional Overview
The market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa region.
Trade Dynamics and Global Market Trends to Drive the Market Growth in Asia Pacific Region
The ammonia market in Asia Pacific region is estimated to garner the largest revenue by the end of 2033. Asia Pacific countries play a crucial role in the global ammonia trade, both as producers and consumers. Trade dynamics, influenced by factors such as geopolitical considerations and global market trends, impact the market in the region. Changes in trade policies and international agreements can influence ammonia prices and trade volumes. As of 2020, Asia Pacific accounted for a significant share of the global ammonia trade, with major exporting and importing countries in the region. According to the United Nations Commodity Trade Statistics Database (UN Comtrade), the trade value of ammonia in Asia Pacific exceeded USD 10 billion in 2020, reflecting the region's integral role in the global ammonia market. The Asia Pacific region is witnessing a growing emphasis on renewable energy sources and sustainable practices. Green ammonia, produced using renewable energy, is gaining traction as a carbon-neutral fuel and feedstock. Government initiatives and investments in renewable energy projects contribute to the development of green ammonia production facilities in the region.
Make an Inquiry Before Buying this Report @ https://www.researchnester.com/inquiries-before-buying-4518
Agricultural Demand and Fertilizer Consumption to Propel the Growth in the North America Region
The North America ammonia market is estimated to garner the highest CAGR by the end of 2033. A primary driver of the market in North America is the strong demand from the agriculture sector, specifically for fertilizer production. Ammonia is a key component in nitrogen-based fertilizers, supporting crop growth and enhancing soil fertility. The high agricultural output in North America, driven by extensive farming practices, contributes significantly to sustained demand for ammonia. As of 2022, North America accounted for a substantial share of global fertilizer consumption, with the United States being a major consumer. According to the Food and Agriculture Organization (FAO), fertilizer consumption in the United States alone exceeded 20 million metric tons in the same year, underscoring the region's significant role in agricultural demand for ammonia. Ammonia plays a vital role in various industrial applications, particularly in chemical manufacturing. It is a key ingredient in the production of numerous chemicals, including fertilizers, nitric acid, and various nitrogen-based compounds. The diversified industrial base in North America contributes to sustained demand for ammonia in chemical manufacturing processes.
Ammonia, Segmentation by End User
- Pharmaceutical
- Fertilizer
- Pulp & Paper
- Textile
- Refrigerators
- Mining
- Others
Amongst these segments, the fertilizer segment in ammonia market is anticipated to hold the largest share over the forecast period. The burgeoning global population continues to be a significant driver for the fertilizer segment. As the world population expands, there is an increasing need to produce more food to meet the growing demand. Fertilizers, particularly nitrogen-based fertilizers, play a crucial role in enhancing crop yields and ensuring food security. As of 2022, the global population exceeded 7.8 billion, according to the United Nations. The Food and Agriculture Organization (FAO) estimates that by 2050, the world population will reach 9.7 billion. This population growth underscores the imperative for increased agricultural productivity, driving the demand for fertilizers. The intensification of agriculture, aimed at maximizing crop yields per unit of land, is a key growth driver for the fertilizer segment. Farmers globally are adopting modern agricultural practices that involve the use of fertilizers to optimize nutrient levels in the soil. This trend is particularly notable in regions striving to achieve higher agricultural efficiency.
Ammonia, Segmentation by Form
- Gas
- Liquid
- Powder
Amongst these segments, the gas segment in ammonia market is anticipated to hold a significant share over the forecast period. One of the primary growth drivers for the gas segment is the global energy transition towards cleaner and more sustainable sources. Natural gas, being a relatively low-emission fossil fuel, is positioned as a transitional energy source. Countries are increasingly relying on natural gas to reduce carbon emissions and transition away from more carbon-intensive fuels like coal. As of 2020, natural gas accounted for approximately 24% of global energy consumption, according to the International Energy Agency (IEA). This emphasizes the significant role natural gas plays in the global energy mix as countries strive to meet climate goals by transitioning to cleaner fuels. The industrial sector remains a major consumer of natural gas, primarily for process heat in manufacturing operations. Industries such as chemicals, steel, and food processing rely on natural gas as a crucial energy source for various manufacturing processes. The growth of industrial activities globally contributes to sustained demand for natural gas in this segment.
Ammonia, Segmentation by Sales Channel
- Direct
- Distribution
Few of the well-known indsutry leaders in the ammonia market that are profiled by Research Nester are Yara International ASA, CF Industries Holdings, Inc., Nutrien Ltd., Group DF, OCI N.V., EuroChem, Group AG, SABIC, Orica Limited, Uralchem JSC, AB Achema, and other key market players.
Recent Development in the Ammonia Market
- CF Industries Holdings, Inc’s subsidiary CF Fertilizers UK declared its plan to cease ammonia production for a short span at Billingham Complex on account of market situations. As the price of ammonia in market is half the spending cost of production the company stopped the plant.
- Yara International ASA associated with JERA Co., Inc to produce green and blue ammonia with the aim of decarbonization and enabling zero carbon emission in Japan.
Read our insightful Blogs and Data-driven Case Studies:
- Green Chemistry - A continuously-evolving frontier
Explore the significance and influence of Green Chemistry in this article. Gain knowledge about how this changing field is revolutionizing our perspective on chemical processes and their effects, on the environment.
- How Innovation in Agriculture Equipment's met the World's Demand for Food in 2023?
Our analysts provided a detailed analysis of critical areas to evaluate profitability. By help of our analysis, the farm equipment manufacturing company was able to choose the target audience and increase client base.
Research Nester is a one-stop service provider with a client base in more than 50 countries, leading in strategic market research and consulting with an unbiased and unparalleled approach towards helping global industrial players, conglomerates and executives for their future investment while avoiding forthcoming uncertainties. With an out-of-the-box mindset to produce statistical and analytical market research reports, we provide strategic consulting so that our clients can make wise business decisions with clarity while strategizing and planning for their forthcoming needs and succeed in achieving their future endeavors. We believe every business can expand to its new horizon, provided a right guidance at a right time is available through strategic minds.
