Growth of the ammonia market continues to be influenced by myriad factors ranging from robust adoption in the agrochemicals industry to increasing mining investments worldwide. Demand for ammonia will also remain underpinned by its consumption in fertilizers. Regular employment of fertilizers and pesticides have led to a drastic degradation of the arable land’s soil quality worldwide, which has further spurred the adoption of organic fertilizers to meet the sustainability goals and retaining the soil performance. This will significantly drive growth of the ammonia market in the near future.
An analytical research study of Persistence Market Research foresees the ammonia market to record a modest CAGR of over 3% through 2025. Agrochemicals continue to gain significant traction worldwide, and being one of the key application areas of ammonia, these continues to retain the market growth. Growing demand for fertilizers is one of the key factors driving demand for agrochemicals, consequentially driving growth of the ammonia market.
Europe to Remain a Lucrative Market for Ammonia
The study envisages Europe to remain a lucrative region for growth of the ammonia market, with fertilizer manufacturing companies in the region eyeing long-term agreements with the end-users. The agreement of Yara International with MicroAccount for the acquisition of Farm Management System business of the latter in Romania and Bulgaria is one of the prime examples. End-users who demand for ammonia and its relevant products such as explosives, industrial chemicals and agrochemicals are one of the key growth influencers of the ammonia market in Europe.
Asia-Pacific also remains one of the remunerative markets for ammonia, with leading players in the market focusing on consolidating their position in the region. Efforts of the companies operating in the ammonia market toward catering the demand uptake of ammonia-based fertilizers, while enhancing their footprint in the region’s marketplace, have been significantly contributing to growth of the ammonia market in APAC. Fertilizer manufacturers are further concentrating on establishment of a direct & robust supply chain with oil & gas refineries for procuring nitrogen directly from the refineries, as well as chemical manufacturers, thereby enhancing their production capabilities.
Key Takeaways from the Report
- Anhydrous ammonia continues to remain the preferred product, attributed to its benefits such as availability in gaseous state, and relative affordability. Aqueous ammonia is expected to hold a relatively lower share of the market, on account of its niche applications, which further limits the scope of its consumption.
- Urea will continue to remain the leading application area of ammonia, with sales estimated at a CAGR of nearly 4% through 2025. Proliferating demand for fertilizers across regions to enhance soil quality of arable lands is expected to drive demand for urea in the ammonia market.
- Agrochemicals is anticipated to retain its position as the most lucrative end-use area of ammonia, trailed by explosives and industrial chemicals. Over half share of the ammonia market is expected to be accounted by agrochemicals by 2025-end.
- Key players identified in the ammonia market, as profiled in the report, include Yara International ASA, Potash Corp, Orica Limited, CF Industries Holdings, Inc., Mitsubishi Gas Chemical Co., Inc., and Jiangsu Huachang Chemical Co., Ltd.
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