by The global Ammonia Market is estimated to be valued at US$ 65.78 billion in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period of 2023-2030, as highlighted in a new report published by Coherent Market Insights
Market Overview:
Ammonia is a widely used chemical compound with various applications across multiple industries. It is primarily utilized in the agriculture sector as a key component of fertilizers, as it provides essential nutrients to crops for optimal growth. The need for ammonia in the agriculture industry is driven by the increasing global population and the consequent demand for food. Additionally, ammonia finds applications in the manufacturing of various chemicals, such as plastics, fibers, and refrigerants, further contributing to its market growth.
Market Key Trends:
One key trend in the ammonia market is the growing demand for ammonia-based refrigerants, particularly in the HVAC (Heating, Ventilation, and Air Conditioning) industry. Ammonia has excellent thermodynamic properties, making it an efficient and environmentally friendly refrigerant choice. With the increasing concerns regarding the adverse effects of synthetic refrigerants on the ozone layer and climate change, there is a shift towards ammonia-based alternatives. This trend is further supported by government regulations and initiatives promoting sustainable refrigerants. As a result, the ammonia market is witnessing a surge in demand from the HVAC sector.
Segment Analysis: Ammonia Market
The ammonia market can be segmented by application and end-use industry. In terms of application, the market can be categorized into fertilizers, chemicals, refrigeration, and others. Among these segments, fertilizers dominate the ammonia market due to the high demand for nitrogen-based fertilizers in agriculture. Ammonia is a key raw material for the production of nitrogen fertilizers, such as urea and ammonium nitrate, which are essential for crop cultivation. The increasing global population and the need for food security are driving the demand for ammonia-based fertilizers. Additionally, ammonia is also used in the production of a variety of chemicals, such as nitric acid, ammonium phosphate, and ammonium sulfate, further fueling the growth of the ammonia market.
Key Takeaways:
The Global Ammonia Market Demand is expected to witness high growth, exhibiting a CAGR of 5.4% over the forecast period from 2023 to 2030. This growth is primarily driven by the increasing demand for nitrogen-based fertilizers in the agriculture sector. The growing global population and the need for enhanced crop yield are propelling the use of ammonia-based fertilizers, thereby boosting the ammonia market.
In terms of regional analysis, Asia Pacific is expected to be the fastest-growing and dominating region in the ammonia market. This can be attributed to the high agricultural activities and the presence of major players in the region. Moreover, the rising population and improving economic conditions in countries like China and India are further driving the demand for ammonia-based fertilizers in the region.
Key players operating in the ammonia market include Yara International ASA, BASF SE, CF Industries Holdings, Inc., Nutrien Ltd., Potash Corporation of Saskatchewan Inc., Dangyang Huaqiang Chemical Co., Ltd., Shanxi Jinfeng Coal Chemical Co. Ltd., GTS Chemical Holdings plc., Togliattiazot, OCI Nitrogen B.V., Agrium Inc., Sabic, and Koch Fertilizer, LLC among others. These companies have a significant market presence and engage in strategic initiatives such as mergers, acquisitions, and collaborations to strengthen their market position and expand their customer base.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
