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Ammonia - Global Market Trajectory & Analytics

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    Report

  • 496 Pages
  • July 2022
  • Region: Global
  • Global Industry Analysts, Inc
  • ID: 338564

Global Ammonia Market to Reach $89.6 Billion by 2026


Ammonia (NH3) is a compound of nitrogen and hydrogen and is a colorless gas that has a strong overpowering odor. A colorless and pungent gas, ammonia comprises 82.25% nitrogen and 17.75% hydrogen, is used for direct application on the soil and in irrigation of water. Ammonia constitutes the basic raw material in chemical fertilizers, synthetic fibers, resins, and other products. Ammonia is used for oxidation to nitric acid utilized in the production of nitric phosphates and ammonium, calcium, sodium and potassium nitrates, and for the production of nitrogen solutions, ammonium sulfate, ammonium phosphates, urea, ammoniated super-phosphate fertilizers and liquid fertilizers. A characteristic feature of ammonia is its ability to combine directly with acids to form salts. Salts thus produced are known as the ammonium salts and include compounds such as ammonium nitrate (widely used in fertilizers and explosives), ammonium phosphate, ammonium carbonate etc. About 80% of ammonia produced worldwide is used in the production of mineral fertilizers, while the remaining is used for technical purposes.

Ammonia is widely used in the manufacture of nitrogen-based fertilizers that include, urea, ammonium nitrates, ammonium phosphates and ammonium sulphate. Globally, regions vary in terms of various fertilizers used, which again is dependent on local climates. This leads to a significant difference in product-mix for different regions. For instance, urea has wide usage in regions with warmer climate such as North America and Europe while ammonium nitrate is used only in Europe. Fertilizer is any natural or manufactured material added to the soil in order to supply one or more plant nutrients. The term is generally applicable to all manufactured materials other than lime and gypsum. Fertilizer, regarded as food for plants, contains nutrients needed to supplement the soil`s supply, which is often less than required to satisfy demands for optimum crop production. The most common fertilizer nutrients are nitrogen (N), phosphorous (P), and potassium (K). These nutrients are needed in large amounts by crops and are often limited in soils. The composition of fertilizer varies depending on the crop for which it is used and the nutrient composition of the soil.

Apart from their use as fertilizers, derivates of ammonia have a number of other industrial uses. For instance, ammonia is being increasingly used as a refrigerant. Unlike many other gases ammonia does not result in depletion of ozone and global warming when out in the atmosphere. This characteristic of ammonia is aiding the return of the gas as a refrigerant. Ammonia is an efficient refrigerant used in food preservation and processing. Ammonia is also used in explosives and polymers. Industrial ammonia is also used as feedstock in carpet, textiles, animal feed, plastics, foams and building products sectors.

Amid the COVID-19 crisis, the global market for Ammonia estimated at US$69.8 Billion in the year 2022, is projected to reach a revised size of US$89.6 Billion by 2026, growing at a CAGR of 5.9% over the analysis period. Liquid, one of the segments analyzed in the report, is projected to grow at a 7.2% CAGR to reach US$49 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Gas segment is readjusted to a revised 5.1% CAGR for the next 7-year period. This segment currently accounts for a 32.7% share of the global Ammonia market. Ammonia is made available in powder, liquid, and gas formats, with the liquid form leading the market in revenue terms, given its widespread use in household and industrial cleaning solutions and in fertilizers. In the gas form, ammonia reacts with the moisture present in the soil, which leads to the soil being enriched with ammonia fertilizer. Anhydrous ammonia is anticipated to register strong growth, mainly attributed to its exceptional properties.

The U.S. Market is Estimated at $9.5 Billion in 2022, While China is Forecast to Reach $24.2 Billion by 2026


The Ammonia market in the U.S. is estimated at US$9.5 Billion in the year 2022. The country currently accounts for a 13.73% share in the global market. China, the world's second largest economy, is forecast to reach an estimated market size of US$24.2 Billion in the year 2026 trailing a CAGR of 7.7% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 2.8% and 5.3% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 3.3% CAGR while Rest of European market (as defined in the study) will reach US$26.2 Billion by the close of the analysis period.

Majority of the world's ammonia requirement is produced from natural gas, with the sole exception of China, which uses coal gasification techniques for ammonia production. Prior to its application to the soil, ammonia is processed to get downstream fertilizer products such as urea, nitrogen solutions, ammonium nitrates, ammonium phosphates, and ammonium sulfates, which promote plant growth in farm crops. Consumption of ammonia is anticipated to grow slightly faster in industrial applications than in fertilizers through the forecast period. Ammonium nitrates produced from ammonia are used to produce explosives. Ammonia is also used to produce acrylonitrile for plastics and acrylic fibers, caprolactam for nylon 6, hexamethylenediamine for producing nylon 66, isocyanates for hydrazine and polyurethanes, and various nitriles and amines. Further, ammonia is used in the manufacture of pesticides, chemicals, dyes, coloring agents, textiles, household cleaning products, and pharmaceuticals. The product is used also as a nitrogen source, neutralizer, refrigerant gas, and stabilizer in various applications including wastewater treatment, cold storage, pulp & paper, rubber, and food & beverages sectors. Ammonia absorbs heat from the surroundings, filters impurities, and purifies the liquid mediums. Due to this property, ammonia is extensively used as a purifying agent in water treatment plants, and as a refrigerant in heating, ventilation and air conditioning (HVAC) systems.

Over the forecast period, natural gas is anticipated to increase its market share, while the shares of feedstocks including fuel oil and naphtha are forecast to witness a declining trend. Natural gas would be the preferred raw material in the newer ammonia plants. Ammonia plants are, however, expensive, with investment costs exceeding $1 billion. Building these plants could also take up to a period of three years. Despite its growth potential, the global ammonia market is being adversely impacted by the growing awareness of the harmful impacts of ammonia on health. Also, the volatility in natural gas prices and strict regulations associated with the use of ammonia are expected to hamper market growth. Furthermore, a decline in prices in recent years, due to the steady rise in capacity additions and decelerating demand, are also posing challenges to the market. The ammonia market is being hindered by the fact that exposure to high concentrations and inhalation of NH3 gas or vapors might lead to health issues. Besides its existence naturally, NH3 is also present in cleaning solutions, and hence people are likely to get exposed to the gas. Upon contact with the skin, eyes, oral cavity, and the respiratory tract, the gas interacts immediately and produces skin or eye irritation. Contact with NH3 in higher concentrations in industrial cleaners might also cause severe skin burns, corrosive injuries, and eye damage or permanent blindness. In addition, swallowing solutions with high concentrations of NH3 could lead to corrosive damage to the mouth, throat, and stomach.

Powder Segment to Reach $16.1 Billion by 2026


In the global Powder segment, USA, Canada, Japan, China and Europe will drive the 3.8% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$8.1 Billion will reach a projected size of US$10.5 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$2.2 Billion by the year 2026, while Latin America will expand at a 4.8% CAGR through the analysis period.

Select Competitors (Total 122 Featured):

  • Casale SA
  • CF Industries Holdings, Inc.
  • Chambal Fertilisers and Chemicals Limited
  • CSBP Limited
  • EuroChem Group AG
  • Group DF
  • Indian Farmers Fertiliser Cooperative Limited
  • Koch Fertilizer, LLC
  • Nutrien Ltd.
  • OCI N.V.
  • PJSC Togliattiazot (TOAZ)
  • Rashtriya Chemicals and Fertilizers Limited
  • Saudi Basic Industries Corporation
  • Sumitomo Chemical Co., Ltd.
  • Yara International ASA

What`s New for 2022?

  • Global competitiveness and key competitor percentage market shares
  • Market presence across multiple geographies - Strong/Active/Niche/Trivial
  • Online interactive peer-to-peer collaborative bespoke updates
  • Access to the digital archives
  • Complimentary updates for one year
Frequently Asked Questions about the Global Market for Ammonia

What is the estimated value of the Global Market for Ammonia?

The Global Market for Ammonia was estimated to be valued at $69.8 Billion in 2022.

What is the growth rate of the Global Market for Ammonia?

The growth rate of the Global Market for Ammonia is 6.4%, with an estimated value of $89.6 Billion by 2026.

What is the forecasted size of the Global Market for Ammonia?

The Global Market for Ammonia is estimated to be worth $89.6 Billion by 2026.

Who are the key companies in the Global Market for Ammonia?

Key companies in the Global Market for Ammonia include Casale SA, CF Industries Holdings, Inc., Chambal Fertilisers and Chemicals Limited, CSBP Limited, EuroChem Group AG, Group DF, Indian Farmers Fertiliser Cooperative Limited, Koch Fertilizer, LLC and OCI N.V..

Table of Contents

I. METHODOLOGYII. EXECUTIVE SUMMARY
1. MARKET OVERVIEW
  • Ammonia - Global Key Competitors Percentage Market Share in 2022 (E)
  • Competitive Market Presence - Strong/Active/Niche/Trivial for Players Worldwide in 2022 (E)
  • Impact of COVID-19 Pandemic and Looming Global Recession
  • 2020 Marked as a Year of Disruption & Transformation
  • World Economic Growth Projections (Real GDP, Annual % Change) for 2020 through 2022
  • The Pandemic Slows Down Demand for Agricultural Products and Fertilizers
  • COVID-19 Related Issues Impacting Agriculture Industry
  • Ammonia: Product Profile
  • Ammonia Synthesis: Historical Perspective
  • Key Applications of Ammonia
  • Global Market Prospects & Outlook
  • Fertilizers: The Leading Application Market
  • Developing Regions to Spearhead Growth
  • Ammonia Production Scenario
  • Global Ammonia Production Capacity (in Million Metric Tons) for 2018, 2019 and 2030P
  • Global Ammonia Production Capacity Breakdown by Region (in %) for 2020E
  • Global Ammonia Production by Country (Thousand Metric Tons of Contained Nitrogen) for 2019 and 2020
  • Ammonia Production Capacity Additions (in mtpa) by Country through 2030
  • Competition
  • World Brands
  • Recent Market Activity
2. FOCUS ON SELECT PLAYERS
3. MARKET TRENDS & DRIVERS
  • Rising Food Needs of the World and Focus on Improving Farm Yield through Fertilizer Use to Drive Ammonia Demand
  • World Population (in Thousands) by Geographic Region for the Years 2019, 2030, 2050, 2100
  • Food Demand Worldwide: Demand Growth in Million Tonnes for Cereals and Sugar in Select Regions for the Period 2008-2017 and 2018-2027
  • Loss of Arable Land Exerts Immense Pressure on Yields Per Acre: Global Availability of Arable Land in Hectares Per Person for the Years 1990, 2000, 2018 and 2020
  • Arable Land Worldwide as a % of Total Land Area for the Years 1990, 2000, 2018 and 2020
  • Role of Fertilizers in Addressing Multi-Nutrient Deficiency Causing Food and Nutritional Insecurity to Spur Market Growth
  • Global Fertilizer Consumption by Region (in %) for 2020E
  • Global Fertilizer Consumption by NPK Fertilizer Type (in %) for 2020E
  • Rapidly Evolving Threat of Plant Diseases and Concerns over Associated Yield Losses
  • Explosives Emerge as a Promising End-Use Market for Ammonia
  • Global Explosives Market Revenues in US$ Million by Geographic Region/Country: 2018 & 2024
  • Ammonia as a Refrigerant to Propel Market Gains
  • List of Various Refrigerants Types
  • Importance of Cold Storage Systems in Global Supply Chains: Positive Outlook for Ammonia-Based Refrigeration Systems
  • Global Cold Storage Market Size (in US$ Billion) for the Years 2020, 2022, 2024 and 2026
  • HCFC Phase Out Programs Build Momentum for Alternative Refrigerants in Cold Chains
  • Pharmaceutical Manufacturing Industry to Boost Prospects for Ammonia
  • Global Prescription Drug Sales (In US$ Billion) for the Years 2017, 2019, 2021, 2023 & 2025
  • Global Generic Drugs Market Size (in $ Billion) for the Years 2016, 2019, 2020 & 2025
  • Green Ammonia Holds Tremendous Potential for Growth
  • Green Ammonia Market Poised for High Growth
  • SOE Technology Leads Green Ammonia Market
  • Focus on Green Ammonia Projects
  • Ammonia Holds Promise for Convenient Hydrogen Transportation
  • Sustainable Focus of Mining Industry Drives Focus onto Green Ammonia
  • IMO Mandates Transition to Eco-Friendly Marine Fuel, Ammonia Market to Benefit in Long Run
  • Japan Embraces Green Ammonia for Marine Sector
  • Technology Developments and Research Programs to Boost Market Growth
  • Researchers Develop Eco-Friendly Ammonia to Green Hydrogen Conversion Method
  • Rutherford Appleton Laboratory Researchers Develop Green Ammonia as Eco-Fuel
  • Natural Gas Dynamics Determine Profitability of Ammonia Production
  • LNG Import Prices (US$ per Million BTU) in Select Countries: 2015-2019
4. GLOBAL MARKET PERSPECTIVEIII. MARKET ANALYSIS
UNITED STATES
  • Ammonia Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United States for 2022 (E)
  • Market Overview
  • US Ammonia Production in Thousand Metric Tons for the Years 2016-2020
  • US Imports of Ammonia: Breakdown of Import Volume by Country for 2016-19
  • Competition
  • US Ammonia Production Capacity Breakdown (in %) by Leading Players: 2020E
CANADA
JAPAN
  • Ammonia Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Japan for 2022 (E)
  • Rising Significance of Fuel Ammonia in Japan
CHINA
  • Ammonia Market Presence - Strong/Active/Niche/Trivial - Key Competitors in China for 2022 (E)
EUROPE
  • Ammonia Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Europe for 2022 (E)
FRANCE
  • Ammonia Market Presence - Strong/Active/Niche/Trivial - Key Competitors in France for 2022 (E)
GERMANY
  • Ammonia Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Germany for 2022 (E)
ITALY
UNITED KINGDOM
  • Ammonia Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United Kingdom for 2022 (E)
SPAIN
RUSSIA
  • Market Overview
  • Russian Ammonia Production Breakdown (in %) by Leading Companies for 2020E
  • Russian Ammonium Nitrate & Derivatives Market Breakdown of Production Volume (in %) by Leading Players: 2020E
REST OF EUROPE
ASIA-PACIFIC
  • Ammonia Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Asia-Pacific for 2022 (E)
AUSTRALIA
  • Ammonia Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Australia for 2022 (E)
INDIA
  • Ammonia Market Presence - Strong/Active/Niche/Trivial - Key Competitors in India for 2022 (E)
  • Market Overview
  • Indian Ammonia Plant Production Capacity (in mtpa) for 2015-2019
SOUTH KOREAREST OF ASIA-PACIFIC
LATIN AMERICA
  • Ammonia Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Latin America for 2022 (E)
ARGENTINABRAZILMEXICOREST OF LATIN AMERICA
MIDDLE EAST
  • Ammonia Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Middle East for 2022 (E)
AFRICA
  • Ammonia Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Africa for 2022 (E)
IV. COMPETITION
  • Total Companies Profiled: 122

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Casale SA
  • CF Industries Holdings, Inc.
  • Chambal Fertilisers and Chemicals Limited
  • CSBP Limited
  • EuroChem Group AG
  • Group DF
  • Indian Farmers Fertiliser Cooperative Limited
  • Koch Fertilizer, LLC
  • Nutrien Ltd.
  • OCI N.V.
  • PJSC Togliattiazot (TOAZ)
  • Rashtriya Chemicals and Fertilizers Limited
  • Saudi Basic Industries Corporation
  • Sumitomo Chemical Co., Ltd.
  • Yara International ASA