Ammonia Market

The global ammonia market is projected to witness significant growth during the review period, exhibiting a CAGR of 4.02%. The market is expected to reach a value of USD 68,354.5 million by the end of the forecast period. In terms of volume, the market size was 1, 61,722.7 kilo tons in 2018 and is projected to reach 2, 21,093.2 kilo tons exhibiting a CAGR of 3.16%.

The prime drivers of the global ammonia market include the extensive demand from the agricultural industry. The increasing demand for food coupled with growing consumption of protein-rich diets and fruits and vegetables is driving the growth of the agricultural industry and consequently the consumption of fertilizers. Additionally, the growing use of ammonia as a refrigerant in refrigeration systems over HFCs and HCFCs is another key driver of the global ammonia market. This is attributed to the substantial properties offered by ammonia such as high efficiency, excellent heat transfer properties, and cost-effectiveness. Furthermore, in the coming years, the steady growth in the demand for ammonia as an alternative fuel in power generation and transportation is expected to create significant growth opportunities for the players operating in the global market.

However, increasing ammonia emissions and strengthening emission regulations against ammonia refrigeration systems are likely to hinder the global market growth during the years to follow.

According to Wantstats analysis, the global ammonia market has been segmented into form, sales channel, and application. By form, the market is segmented into liquid, gas, powder. The liquid form segment accounted for around 43% of the market share in 2018. This is because when applied to the soil by surface injection method, the liquid form of ammonia quickly vaporizes but is captured by soil and water. Additionally, the liquid ammonia is used as a solvent in chemical reactions requiring nitrogen.

On the basis of sales channel, the market is bifurcated into direct channel and distribution channel. The distribution channel is expected to register the highest CAGR of 4.14% during the review period. This is due to the fact that the players in the market are adopting various strategies such as collaborating with distributers and establishing long-term sales agreements with suppliers to expand their geographic presence.

Based on the application, the market is categorized into fertilizers, chemicals, refrigeration, fibers & plastics, pharmaceutical, pulp & paper, and others. The industrial application segment was valued at USD 28,984.1 million in 2018 and is projected to be valued at USD 44,601.4 million by the end of 2028. This is attributed to the use of ammonia in the manufacturing of various mineral fertilizers such as urea, ammonium nitrate, ammonium sulfate, ammonium phosphate, and diammonium phosphate.

The global ammonia market has been spanned across five regions, namely, North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. Among these regions, Asia-Pacific accounted for more than 50% of the market share in 2018 and is expected to exhibit the highest CAGR of 4.44% during the review period. This can be attributed to the presence of major agricultural countries such as China, Siberia, Central Asia, India, the Philippines, Thailand, South Korea, and others.