Global Ammonia Market Analysis Report 2022-2026: Explosives Emerge as a Promising End-Use Market and Ammonia as a Refrigerant to Propel Market Gains

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Oct 07, 2022, 09:30 ET

DUBLIN, Oct. 7, 2022 /PRNewswire/ -- The "Ammonia - Global Market Trajectory & Analytics" report has been added to ResearchAndMarkets.com's offering.

Global Ammonia Market to Reach $89.6 Billion by 2026

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.

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.

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.

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.

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

Key Topics Covered:

I. METHODOLOGY

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW

Ammonia - Global Key Competitors Percentage Market Share in 2022 (E)
Impact of COVID-19 Pandemic and Looming Global Recession
2020 Marked as a Year of Disruption & Transformation
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
Competition
World Brands
Recent Market Activity

2. FOCUS ON SELECT PLAYERS (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

3. MARKET TRENDS & DRIVERS

Rising Food Needs of the World and Focus on Improving Farm Yield through Fertilizer Use to Drive Ammonia Demand
Role of Fertilizers in Addressing Multi-Nutrient Deficiency Causing Food and Nutritional Insecurity to Spur Market Growth
Rapidly Evolving Threat of Plant Diseases and Concerns over Associated Yield Losses
Explosives Emerge as a Promising End-Use Market for Ammonia
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
HCFC Phase Out Programs Build Momentum for Alternative Refrigerants in Cold Chains
Pharmaceutical Manufacturing Industry to Boost Prospects for Ammonia
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