Global ammonia market still shows growth

ammonia

The global ammonia market generated approximately USD 74 billion in sales in 2021, and it is anticipated to expand at a CAGR of 8% from 2022 to 2031, a market report from Kenneth Research states.

The market’s expansion may primarily be ascribed to the rising demand for agricultural products and related agrochemicals such fertilizers as a result of 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 soil, as well as increased public knowledge about growing crops of higher quality, are other factors that are predicted to increase demand for ammonia. According to the Food and Agriculture Organization (FAO), there will be 170,761 thousand tons of ammonia available worldwide in 2020.

What is ammonia?

Ammonia is a product that comes when nitrogen and hydrogen are combined. The chemical formula for this inorganic compound is NH3.

Since the nitrogen chemical is a major source of nutrition, which is necessary for plant growth, the agricultural sector is the main user of ammonia. In addition, ammonia is used to create a variety of liquid fertilizer solutions, including urea, ammonium nitrate, and aqua ammonia.

Ammonia (NH3) was the second most manufactured chemical after sulphuric acid (H2SO4) in 2019, according to statistics, with a global production of 235 million tonnes. Over the forecast period, it is expected that production would rise even further.

Market growth is seen in Europe and Asia

The ammonia market in the Asia Pacific area expanded noticeably during the previous few decades and brought in a sizable sum of money in 2021. Additionally, it is anticipated to increase at a higher CAGR over the course of the projection period due to factors such as the world’s population growth, the government’s expansion of assistance programs, the agriculture sector’s growing reliance on fertilizers, and rising demand for crop production. By the end of 2030, the Organization for Economic Co-operation and Development (OECD-FAO) predicts that the Asia Pacific region would produce 53% of all agricultural output worldwide.

During the projected period, a moderate CAGR is also expected for the market in the Europe region. The market is expanding as a result of the rising production of NH3 in the form of natural gas, which is essential to several sectors and where steam methane reforming is a crucial technology. Additionally, it is projected that a significant factor influencing the growth of the ammonia market in the region will be the region’s noticeably rising GDP. According to data provided by the World Bank, the region’s GDP was USD 13.03 trillion in 2020, and it increased to USD 14.49 trillion in 2021.

Companies such as Yara International ASA, EuroChem Group, BASF SE, Koch Fertilizer, are some of the players that are currently operating in this market.

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