Ammonia is a hydrogen and nitrogen chemical also referred to as azane. Ammonia is a colorless gas with a strong odor. Many foods and fertilizers use ammonia as a supplement. The market's expansion may primarily be ascribed to the rising demand for agricultural products and related agrochemicals such as fertilizers due to the world's expanding population. Furthermore, a significant driver anticipated to fuel market expansion is the rising need for ammonia in the pharmaceuticals sector. The ability of ammonia to condition and acidify the soil, as well as growing public awareness about growing crops of higher quality, are additional factors that are predicted to increase demand for ammonia. According to the Food and Agriculture Organization (FAO), 170,761 thousand tonnes of ammonia will be available worldwide in 2020.
COVID-19 IMPACT
The COVID-19 outbreak has severely impacted the supply chain for fertilizer in the Asia Pacific region. The inability of farmers to obtain fertilizers because of difficulties with customs clearance, disruptions in local and global transportation systems, and backed-up roads and ports. The production of grains and oilseeds has decreased due to farmers' inability to obtain raw materials because they depend on these qualities. To ensure farmers have easy access to soil nutrients during the coronavirus pandemic, the Indian government, for instance, is closely monitoring the production and distribution of fertilizers. The coronavirus outbreak, the labor scarcity, and the lockdown in China had a detrimental effect only in the first quarter of 2020.
DRIVING FACTORS
Increased Agricultural Production and Rising Fertilizer Consumption Will Drive Market Growth
Fertilizer sales are projected to increase due to the expanding world population and rising food consumption. Regarding crop yield and agricultural productivity, the fertilizer sector is crucial. The essential nutrients that plants require to thrive, such as nitrogen, phosphorus, and potassium (NPK), are provided by fertilizers. The rising global popularity of commercial agriculture is probably driving the usage of nitrogenous fertilizers. The market for these fertilizers relies on the demand for grains and oilseed crops, which fuels fertilizer production. The agriculture sector uses most ammonia produced as nitrogen source, which is essential for plant growth. The substance is widely used in fertilizer to create solid materials like asurea, phosphate, ammonium nitrate, and sulfate.
RESTRAINING FACTORS
Exposure to High Concentrations of Ammonia May Affect Humans and Limit Market Growth
The majority of persons are exposed to NH3 through gas or vapor inhalation. Due to the product's natural occurrence and inclusion in cleaning products, exposure to such sources is highly likely. Contact with the eyes, skin, respiratory system, and oral cavity results in an instant interaction. Rapid eye or skin irritation may result from exposure to low amounts of ammonia in solutions or the environment. Significant burns and damage could result from higher concentrations. Any interaction with concentrated liquids, such as those found in industrial cleaners, can result in corrosive wounds like skin burns, long-term eye damage, or even blindness. In addition to these consequences, swallowing solutions at high concentrations damages the mouth, throat, and stomach with corrosive agents.
SEGMENTATION
By End Users
Based on end users, the ammonia market is segmented into fertilizers, chemicals, refrigeration, textile, household & industrial cleaning fibers & plastics, pharmaceuticals and others. The fertilizers category dominated the market in 2021. It is regarded as a significant supply of nitrogen, which is crucial for plant growth. Additionally, it is employed in producing several liquid fertilizer mixtures, including urea, aqua ammonia, and ammonium nitrate. Due to its quick reactions with soil water, organic matter, free hydrogen ions, and clay particles, ammonia is frequently utilized in agricultural applications (that prevent the volatilization of ammonia).
Besides, the household & industrial cleaning fibers & plastics category is anticipated to grow significantly over the forecast period. Numerous household cleaning and disinfection products contain the active component ammonium hydroxide, sometimes referred to as household ammonia. It cleans various surfaces, such as worktops, sinks, tubs, tiles, and others. These cleaning solutions work well in homes when water is combined with 5% to 10% NH3.
By Form
By form, the market is segmented into liquid, powder and gas. The gas category dominated the market in 2021. Anhydrous ammonia's high concentration in commercial fertilizers and rising use can be blamed for this market segment's expansion. Anhydrous ammonia (NH3), which contains 82 percent nitrogen, has the greatest nitrogen content of any commercial fertilizer. A liquid gas that is colorless and flammable is anhydrous ammonia. In sizeable freezing and refrigeration facilities, it is frequently employed commercially.
Besides, the liquid category is anticipated to grow significantly over the forecast period. Throughout the forecast period, the product's expanding demand in end-use applications is anticipated to drive the ammonia market. Most often, liquid ammonia is used. Fertilizers and commercial and domestic cleaning products use most frequently. It is liquidized and combined with other plant enhancers before being compacted for fertilizers.
REGIONAL INSIGHTS
Asia Pacific is projected to hold the largest share of the ammonia market over the forecast period. The rising demand for fertilizer in China and India is to blame for this. Food demand has increased due to rapid urbanization and rising populations, and this trend will only fuel crop production's need for fertilizer. China uses and produces the most fertilizer globally. The government has implemented programs to promote phosphate consumption and production to increase overall output because China's soils are naturally phosphate deficient.
On the other hand, the European ammonia market is anticipated to grow significantly over the forecast period. Natural gas production, a crucial raw material, and steam methane reforming (SMR), the primary method, are the essential foundations for NH3 synthesis. Nitrogen fertilizer manufacturing requires a lot of energy. The manufacture of mineral fertilizers uses less energy due to innovations made by the European fertilizer sector.
LIST OF KEY COMPANIES PROFILED:
- OCI N.V.
- Nutrien Ltd.
- Orica Limited
- Dow Chemical Company
- Praxair Technology, Inc.
- MITSUBISHI GAS CHEMICAL COMPANY, INC.
- A.B. "Achema"
- Koch Fertilizer, LLC.
- Incitech Pivot limited
- Linde plc
- Others
KEY INDUSTRY DEVELOPMENTS:
- November 2021: OCI N.V. announced that Iowa Fertilizer Company, a division of OCI N.V., had signed an agreement with Navigator CO2 Ventures LLC to provide transportation for CO2 and storage services within its carbon capture and storage (CCS) system.
- July 2021: A joint venture between Nutrien Ltd. and the liquefied gas transporter EXMAR was announced. This alliance seeks to reduce maritime emissions by developing a low-carbon ammonia-fueled vessel.
REPORT SCOPE AND SEGMENTATION
| Attributes | Details |
| Study Period | 2016-2028 |
| Base Year | 2021 |
| Estimated Year | 2022 |
| Forecast Period | 2022-2028 |
| Historical Period | 2016-2020 |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By End Users, By Form, and By Geography |
| By End Users |
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| By Foam |
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| By Region |
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