The global ammonia market is expected to grow from USD 52.71 Billion in 2017 to USD 81.42 Billion by 2025 at a CAGR of 5.59% during the forecast period 2018-2025, a report published by Fior Markets has found. Ammonia, a colorless gas with a distinctively pungent smell, is a compound made up of hydrogen and nitrogen with the formula NH3. Ammonia forms a building block in the synthesis of many important day to day products such as common cleaning products, pharmaceuticals etc. Ammonia is the most significant crude material for the assembling of ammonium nitrate, a commercially important fertilizer. The report points out that increasing demand for nitrogenous fertilizers and eco-friendly refrigerants is driving the global demand for the ammonia, while volatility in prices of natural gas, an important raw material, as well as concerns related to production overcapacity are anticipated to hamper the market growth.
Key players in the global ammonia market are BASF SE, CF Industries Holdings, Inc., PotashCorp, Huaqiang Chem Group, Shanxi Jinfeng Coal Chem, Rashtriya Chemicals & Fertilizers Ltd., China Petroleum & Chemical Corporation, China National Petroleum Corporation, Yara International, Orica Limited, Praxair, Inc, Achema AB, Linde Group, Haifa Chemicals Ltd, Haldor Topsoe, Koch Fertilizer LLC among others. To enhance their market position in the global ammonia market, the key players are now focusing on adopting strategies such as product innovations, mergers & acquisitions, recent developments, joint ventures, collaborations, and partnerships. For instance, in January 2020, BASF plans to increase the production capacity for its antioxidant Irganox 1520L by 20% at the site in Pontecchio Marconi, Italy. In February 2019, the technology company The Linde Group has signed a contract with US industrial gas company, Praxair Inc., to supply a hydrogen plant in Louisiana. Moreover, in January 2020, Orica announced the release of its new blast design and modelling software for underground mining applications, SHOTPlus Underground.
Product form in the ammonia market is segmented into liquid, gas, and powder. Due to the wide-ranging utilization of liquid ammonia in fertilizer and various end industries, the liquid form segment emerged as the leading segment with USD 25.20 billion revenue in 2017. The gas form segment is also projected to attain a healthy market share over the forecast period. The application segment is divided into fertilizers, refrigerants, pharmaceuticals, textiles and others. Because of its property for discharging nitrogen when in contact with soil, ammonia broadly utilized as a fertilizer in the agriculture sector. Thus the global emphasis on raising farm productivity led the fertilizer segment to emerge as the dominating segment with USD 22.09 billion revenue in 2017. Ammonia has emerged as the preferred refrigerant owing to its high efficiency and better heat transfer properties coupled with its zero ozone depletion potential. Thus refrigerant segment is projected to grow at the highest CAGR of 7.67% over the forecast period.
In terms of the regional segment analysis of the ammonia market, the report focused on North America, Europe, South America, Asia Pacific, and Middle East and Africa. Asia Pacific region emerged as the largest market for ammonia with a 39.26% share of revenue in 2017 whereas the North region accounted for a significant market share in 2017, owing to its well established and highly productive farm sector. The rising demand for the fertilizers from the farm sector and the presence of major end-user industries such as pharmaceuticals, textiles propelled Asia Pacific region to dominate the global ammonia market with USD 20.69 billion revenue in 2017.
