The global ammonia market was worth more than USD xx billion in revenue in 2018 and is expected to cross USD xx billion in 2023, growing at a healthy CAGR of over xx% during the forecast period.
Ammonia is a colorless gas with a pungent smell and can be easily condensed into a liquid at low temperatures. It is an inorganic compound produced using Haber production process by combining nitrogen and hydrogen. It is a major raw material used in the manufacture of nitrogen fertilizers. It is largely used in producing derivatives including ammonium nitrate, urea, ammonium phosphates and ammonium sulphate. Some of the other important uses include producing hexamethylenediamine, acrylonitrile, caprolactam, isocyanates, hydrazine and explosives. It is used as a catalyst in phenol-formaldehyde condensation and in urea-formaldehyde condensation to make synthetic resins.
Rising demand for nitrogen fertilizers from agriculture sector is likely to drive the ammonia market. As ammonia is a major raw material for nitrogen fertilizers, demand for nitrogen fertilizers is expected to fuel the growth of this market. Demand from agriculture and other related industries are actually increasing because of growing population and extra income in developing countries. Additionally, demand for chemicals like hexamethylenediamine, acrylonitrile, caprolactam, isocyanates, hydrazine and explosives is likely to increase at a greater rate because of an upsurge in demand due to growing end-use markets. This demand is growing at a higher rate, which in turn will boost consumption of ammonia.
Drivers and Restraints of Ammonia Market
Growing investments in downstream industries in regions like the Asia and Americas are likely to offer tremendous possibilities for ammonia market in the future. As a result of accessibility to raw material, multinational businesses are investing in resource-rich regions to be able to limit the overall production cost.
Ammonia has a probability of volatility in supply and price due to its high energy production costs. The production costs and feedstock prices are influenced by energy prices. The global economic slowdown has been a challenge for the downstream growth of ammonia. Especially, slow growth of Chinese economy will hinder the growth of global ammonia market.
Ammonia Market by Region
Asia was the largest consumer of ammonia and this pattern is anticipated to continue to be identical over the following few years. Consumption in Asia is showing upward trend because of increase in economic activity in China. China and India were the largest consumers of ammonia in this region. Growing demand for agriculture products, refrigerants, explosives and others will drive ammonia market in Asia. Consumption of ammonia in North America was second highest and is likely to grow at a reasonable rate next to Asia. Europe is likely to grow at a significant rate due to demand from the agriculture industry. Demand from the Middle East and South America was low relatively and is likely to stay same in the next few years.
Top players in this market include BASF SE, Terra Industries, Agrium, Inc., Koch Nitrogen Company, Potash Corporation of Saskatchewan, Inc. and CF Industries, Inc.
The report covers exhaustive analysis on:
- Global Market Segments
- Global Market Size
- Global Market Competitive Landscape
- Production Technology
- Global Market Value Chain
- In depth summary of parent market
- Altering market characteristics in the industry
- Detailed market segmentation
- Historical and forecast market size in terms of volume and value
- Current industry developments
- Competitive landscape
- Potential and niche segments, regions showing promising growth