The ammonia market has been gaining significant traction over the past decade owing to the increasing application of nitrogenous fertilizers in the agricultural industry. Ammonia is majorly used in the production of various nitrogen fertilizers such as urea, ammonium nitrate, and ammonium sulfate among others. It acts as a carrier of nitrogen and provides nitrogen to crops which helps in promoting their growth. Ammonia provides nitrogen to plants in a form that is easily taken up by their roots. The growing global population has increased the demand for food, due to which the use of fertilizers is also rising at a significant rate. Agricultural yields can be improved with the proper application of fertilizers. According to some estimates, over half of the world's population is fed thanks to ammonia-based fertilizers.

The Global ammonia market is estimated to be valued at US$ 95 Billion in 2024 and is expected to exhibit a CAGR of 6.1% over the forecast period 2024 To 2031.

Key Takeaways

Key players operating in the ammonia market are Yara International, BASF SE, CF Industries Holdings Inc., Nutrien Ltd., Koch Fertilizer LLC, EuroChem Group, Orica Limited, SABIC and TogliattiAzot.

The market provides numerous growth opportunities such as increasing focus on green ammonia production, rising application in refrigerants, and expansion in industrial uses. Additionally, the burgeoning population and growing consciousness among farmers regarding depletion of soil nutrients have also augmented the demand for ammonia over the years.

Global expansion of the ammonia market has been witnessed with rising production capacities in Asian countries including China, India, Indonesia, and Malaysia. For instance, Yara International expanded its ammonia capacity in Malaysia. Increasing export of fertilizers from Asia Pacific is supporting the growth of the global market.

Market Drivers

The primary driver for the Ammonia Market Demand has been the increasing from the agricultural sector. Chemical fertilizers play a crucial role in meeting the food demand of the swelling global population. Ammonia is a major building block for production of urea and other nitrogen fertilizers. According to estimates, the global population is expected to reach around 9.8 billion by 2050, which will significantly drive the consumption of fertilizers and thereby ammonia over the next few years.

PEST Analysis

Political: Ammonia is widely used as fertilizers to enhance agricultural yields and as such government policies supporting agriculture will boost the demand for ammonia.

Economic: A stable economy with agriculture sector growth supports higher fertilizer demand and adoption which positively impacts the ammonia market.

Social: Growing population and demand for food drives the need for higher agricultural production and yields which increases fertilizer use including ammonia.

Technological: New technologies are improving the efficiency of ammonia production processes helping reduce costs. Automation is being used in manufacturing and distribution chain.

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