Global Ammonia Market: by Application; Urea, Nitrates, Phosphates, NPK, AS, Industrial Use, Direct Application, Others; Country Overview; Recent Events; Value Chain Analysis; Trade Analysis; Cost Structure; Price Analysis; Market Dynamics: Drivers & Constraints, Industry Events, Innovations & Trends, SWOT Analysis; Market Analysis; Industry Best Practices; Key Supplier Analysis, 2024-2032

Ammonia Market Outlook

The Global Ammonia Market size reached up to nearly USD 64.3 billion in 2021. The market is rapidly advancing at a CAGR of 1.5% during the forecast of 2022-2027. The Ammonia Market share is anticipated to reach USD 70.31 billion by 2027.

The Ammonia market demand is expanding due to the increased usage of ammonia in refrigerant polymer synthesis applications paired with the increasing use of ammonia in the manufacturing of explosives.

The commodity’s application in the agricultural industry is propelling the Ammonia market growth.

The Ammonia market report mentions that the prominent demand indicator by region is Asia.

Recent Ammonia Market Developments

AUGUST 4, 2022- To rev up the decarbonization solutions and gigawatt-scale energy security, Carlyle and GIC have financed Eneus Energy, a green ammonia development company. The investment was made to aid the development of a 14GW+ pipeline.

August 04, 2022- KBR and McDermott International, construction and engineering powerhouses, have signed an accord for a licensing deal to supply combined solutions for KBR's proprietary ammonia technologies. The deal will act as a solution to fulfil the developing ammonia industry, incorporating KBR's top technology paired with McDermott's global implementation abilities and vision and modularization expertise.

August 4, 2022- SABIC (Agri-Nutrients Company), paired with Aramco, acquired the foremost independent acknowledgement worldwide as a result of recognizing “blue” hydrogen and ammonia production. A leading self-reliant testing, inspection, and certification agency, TÜV Rheinland, originating in Germany, granted the recognition. It was awarded to SABIC AN in Jubail, and to Aramco’s wholly owned refinery (SASREF), also in Jubail, for 37,800 tons of “blue” ammonia and 8,075 tons of “blue” hydrogen, respectively.

August 3, 2022- CF Industries stated that while witnessing declining gas supplies, specifically in Europe, the producers in North America should keep benefiting from vast energy spreads and focus on ammonia instead of urea ammonia nitrate (UAN) output.

August 01, 2022- Jai Kisan, India's leading agriculture fintech, received funding of USD 50 million from Yara Growth Ventures.

Industry Definition and Segmentation

Ammonia is a colourless vaporous substance with the composition of nitrogen and hydrogen (NH3) soluble with water and can be concentrated into liquid by cold and pressure. It has a sharp smell that can aggravate the eyes, lungs, skin etc.

It is derived from decaying remains from animals and plants by bacteria. It is present in soil, air and water. Artificially, ammonia can be liquified and employed in the medical household, among other products.

The product is considered exceedingly dangerous in many regions and has mandatory reporting conditions for its creation, storage, and use. The ammonia market analysis includes segments based on application Nitrates, NPK, Direct Application, AS, Phosphates, Industrial Use, Urea, and Others.

Based on region, the global ammonia market is divided into MEA, Europe, Latin America, Asia Pacific, and North America.

On the basis of key market players CF Industries Holdings, Inc., PJSC Togliattyazot, SABIC, Yara International ASA, Koch Fertilizer, LLC are the major companies present in the industry.

Asia Region Driving the Growth of the Industry

The main factor driving the Ammonia market in Asia is China and India being the major regions making significant contributions to the growth. China is a major consumer and producer of ammonia, exceeding 48 million tonnes of production, which is nearly fourfold in comparison to Russia's output. Russia is the biggest competitor, producing about 12.5 million tons, with India making approximately 11 million. Comparatively, the U.S put out less than 9.8 million tons which makes it rely on ammonia imports.

According to the Ammonia market forecast, Asia stands at approximately 39 million metric tonnes. Next was Russia, with the United States and India following with 10 million tons each. India plans on 12 capacity expansions within Asia totalling around 6.97Mtpa by 2026. The estimated investment for the following is around USD 2.75 Billion. Reliance Industries Jamnagar Ammonia Plant will majorly contribute to the plan with a total of 1.50Mtpa.

Category Management Studies

In an ammonia manufacturing plant, Natural gas, liquefied petroleum gas, or petroleum naphtha are all converted into gaseous hydrogen. For generating hydrogen out of hydrocarbons, the steam reforming process is employed.

The Haber-Bosch process derives ammonia, while nitrogen is subsequently mixed with hydrogen. Because sulphur deactivates the catalysts used in the following procedures, the first step is removing sulphur compounds from the feedstock. To remove sulphur from feedstocks, catalytic hydrogenation reduces sulphur compounds to gaseous hydrogen sulphide.

Later, the gaseous hydrogen sulphide is absorbed and eradicated by passing it through zinc oxide beds, converting it into solid zinc sulphide. The sulfur-free feedstock is then catalytically steam reformate to produce hydrogen and carbon monoxide.

In the next phase, the carbon monoxide gets converted into carbon dioxide and additional hydrogen in the following stage, which involves catalytic shift conversion. The carbon dioxide is later absorbed in aqueous ethanolamine solutions or adsorbed in pressure swing adsorbers (PSA) utilising a patented solid adsorption medium.

The final stage in the hydrogen production process is catalytic methanation, which removes any remaining carbon monoxide or carbon dioxide from the hydrogen. The hydrogen is then catalytically reacted with nitrogen (produced from process air) to generate ammonia, the intended end product.

Employment of the Commodity in Primary End-User Sectors like Agriculture Bolstering the Market Demand

Globally around USD, 60 billion value of ammonia is produced annually. It is mainly employed as a fertiliser. The never-ending demand for the commodity from the agricultural sector fuels the industry's expansion. There have been growing initiatives by the government to create chemically treated fertilisers, further creating ammonia market opportunities for the key players.

The rapid population growth along with demand for food is boosting the need for agricultural expansion, which in turn is positively impacting the market. There has been active research interest in using ammonia and converting it into fuel. The vision of using it as a clean, eco-friendly liquid fuel is furthering the ammonia market's growth.

Many other industries, including textiles, pharma, and mining, contribute to ammonia consumption. The extensive use of the commodity in a wide range of sectors is propelling the industry growth and hence impacting the ammonia market price.

The regional market for ammonia can be categorised into MEA, Europe, Latin America, Asia Pacific, and North America.

Hazardous Nature of the Commodity is Challenging the Industry Demand

Despite its many uses, the high risk associated with inhalation, exposure to sensitive areas like eyes, or ingestion can result in grave situations. Due to the hazardous nature of the product, it can negatively impact the market. Furthermore, its manufacturing can negatively impact the industry, which is further hindering the industry's proliferation.

Global Ammonia Market Key Players

• Yara International ASA
• CF Industries Holdings, Inc.
• SABIC
• PJSC Togliattyazot
• Koch Fertilizer, LLC

Competitive Market Landscape

• Yara contributes to the goal of a world without hunger and a worthy planet by following sustainable development, eco-friendly crop nutrients and zero energy emission solutions.
• Their goal is to create a sustainable food future that adds value for the shareholders, clients and society to provide a sustainable food value chain. They work in more than 60 nations, with almost 17,000 employees making extraordinary returns.
• CF industry's goal is to deliver clean energy to fuel and feed the globe in an eco-friendly way. The company's employees concentrate on reliable and safe functions, and environmental management, with corporate and capital administration.
• The aim is to decarbonize their production network for ammonia and boost blue and green nitrogen and hydrogen products for industrial, fertilizer, and energy, among other things.
• SABIC is a leader in various chemical products based in Riyadh, Saudi Arabia. It produces multiple products, including high-performance plastics, chemicals, metals, and agri-nutrients.
• They identify, find solutions, and create opportunities in end-uses like packaging, electrical, construction transportation etc. They employ 31,000 + employees and have operations in 50 countries.
• TogliattiAzot has been booming for the past 50 years. The chemical company is heavily involved in Togliatti’s social, environmental, and educational life.