Top Ammonia Market Trends - Outlook 2024 Future Prospects

 

Overview

Ammonia is a clear, toxic gas with a recognizable pungent smell. It is found naturally, mainly created through the anaerobic decomposition of plants and animals; it has also been observed in space. The global ammonia market is expected to grow from USD 81.50 Billion in 2023 to USD 151.10 Billion by 2033, at a CAGR of 6.37% during the forecast period 2023-2033. Ammonia plays a vital role in worldwide agricultural systems as it is essential in the production of fertilizers. Ammonia serves as the initial stage for all mineral nitrogen fertilizers, acting as a connection between atmospheric nitrogen and food.

 

Competitive Landscape

The Global Ammonia Market is expected to experience strong growth in the forecast period due to the rapid expansion of the agricultural sector in emerging markets like India, China, and Thailand. Ammonia plays a vital role in making nitrogen-based fertilizers, necessary for improving crop production. Prominent players in the global ammonia market include CF Industries Holdings Inc, Yara, Nutrien Ltd, OCI, SABIC Agri-Business, and OCI. Due to their significant production capacities, global revenue base, access to affordable raw materials, patented facilities, and worldwide distribution network, these players dominate the majority of the global market share. Furthermore, it is anticipated that the implementation of different tactics including expansion, research and development, partnerships, takeovers, and investments will assist these companies in achieving the highest revenue and sustained growth in the predicted timeframe. For instance, in November 2022, Dmitry Mazepin, the CEO of Uralchem, revealed that the company intends to put RUB 50 billion towards building a port in Taman, situated in the Krasnodar Territory. This port will be custom-made for the specific purpose of handling and transporting ammonia.

 

Recent Developments in Global Fertilizer and Hydrogen Infrastructure: India's Subsidy Program, Germany's CCS Act, and Market Trends in the Asia Pacific Region

On June 18, 2024, the Solar Energy Corporation of India provided the last information on the subsidy program aimed at helping reduce carbon emissions in the production of fertilizers in India. Eleven renewable ammonia production projects will be assigned to eleven fertilizer manufacturers through a reverse auction, with predetermined annual amounts and delivery times for the ammonia. On June 03, 2024, the national cabinet approved the draft law with the goal of establishing a legal structure to swiftly grow and enhance hydrogen infrastructure, which includes ammonia import and cracking facilities. The process of planning, approval, and procurement will be made easier and digitized when feasible, and projects under the Act will be reviewed with the consideration of the general public's best interest while keeping certain important conditions in mind. The national cabinet of Germany has also given its approval to a CCS Act this month, with the goal of reducing emissions from difficult-to-decarbonize industrial processes. Furthermore, in 2020, the Asia Pacific market was valued at significant share and is projected to lead the ammonia market share in the upcoming period. This is because of the growing need from the fertilizer sector in India and China. The need for food is increasing due to urbanization and population growth, leading to a higher demand for fertilizers to enhance crop yield. China is the world's biggest consumer and producer of fertilizers. China's naturally low levels of phosphate in soils have prompted government initiatives to promote the use and production of phosphate in order to increase total crop output.

 

The report provides a summary of the global top trends and future prospects for the global ammonia market based on historical data sets (current trends, industry statistics, and emerging trends shaping the ammonia industry’s future, preliminary estimates from 2020-2021, 2022, and 2023), as well as projections for the global ammonia trends and future prospects for global regions in 2024 and 2025. This data-driven research offers users an industry-wide view of emerging technologies and innovative insights to help them make critical business decisions. 

 

Growth Factors and Emerging Trends in the Ammonia Market

 

1. Increased demand for fertilizers and higher agricultural productivity will fuel market expansion.

The rising world population and the growing need for food are expected to create profit in the fertilizer sector. The fertilizer sector is crucial for agricultural efficiency and harvest output. Fertilizers supply plants with essential nutrients such as nitrogen, phosphorus, and potassium (NPK) needed for growth. The increasing acceptance of commercial agriculture on a worldwide scale is expected to result in the use of nitrogen-based fertilizers. The demand for oilseeds and grains crops greatly influences the market for these fertilizers, impacting overall fertilizer production. The majority of the ammonia created is utilized in the agriculture sector as a nitrogen source, crucial for plant development. The substance is widely used in the fertilizer sector to manufacture solid products like urea, phosphate, ammonium nitrate, and sulfate. Moreover, ammonium phosphate acts as a quick-release fertilizer and can be applied during new grass installation, overseeding, lawn renovation, and regular maintenance.

 

1. Rising Utilization of Ammonia as a Renewable Fuel.

Ammonia, made from sustainable sources, is the favored choice for a hydrogen fuel cell in transportation due to its greater energy density than liquid hydrogen. It has the ability to be transformed back into hydrogen and nitrogen. Ammonia is being used more as an eco-friendly fuel option in India, Australia, and China. Recently, there have been substantial advancements and funding in the manufacturing and application of green hydrogen and green ammonia. In June 2023, the government of Andhra Pradesh in India introduced a policy focused on promoting the production of green hydrogen and green ammonia. Developers of these projects are offered incentives such as 100% reimbursement of net state goods & service tax on the sale of green ammonia or green hydrogen for 5 years starting from the project's commissioning date. In November 2023, Odisha, a state in India, also gave the green light to investment plans for four ammonia and methanol plants that run on green hydrogen, totaling USD 5.5 billion.

 

Opportunities and Future Prospects in the Ammonia Market

A major development in the ammonia industry is the growing need for ammonia as a soil nourisher. Ammonia is crucial for plants as it provides important nitrogen for their growth. As the need for food increases, there is an increasing demand for ammonia as a fertilizer to improve crop yield and quality. Therefore, it is anticipated that the ammonia market will experience significant growth in the upcoming years.

 

List of Key Companies in the Ammonia Market

• Yara International ASA
• BASF SE
• CF Industries Holdings, Inc.
• Nutrien Ltd.
• SABIC
• Qatar Petroleum
• EuroChem Group
• Koch Fertilizer, LLC
• Praxair Technology, Inc.
• China National Petroleum Corporation
• Rashtriya Chemicals and Fertilizers Limited (RCFL)
• Others

 

Top 5 Key Players Profile in Ammonia Market

 

1. YARA INTERNATIONAL

 

Headquarters: Oslo

Yara International is a renowned worldwide provider of agricultural products and solutions, focusing on fertilizers and crop nutrition. Established in 1905 in Oslo, Norway, Yara is based in over 60 countries, providing services to farmers and industrial clients globally. The company aims to feed the world responsibly and protect the planet by using innovative and sustainable agricultural practices. Yara's wide range of products includes fertilizers, crop protection items, and digital farming solutions to improve productivity and sustainability. Yara is dedicated to enhancing agricultural efficiency, minimizing environmental impact, and supporting global food security through a significant emphasis on research and development.

 

2. LINDE GAS & EQUIPMENT

Headquarters: Danbury, Connecticut

Linde Gas & Equipment is a key player in the industrial gases industry, leading globally by supplying top-notch gases and equipment to various industries. Placing a high focus on creativity and environmental consciousness, the company provides a diverse range of products such as oxygen, nitrogen, argon, and hydrogen, along with specialized tools for managing and distributing gases. Linde Gas & Equipment runs an extensive system of production and distribution centers globally, guaranteeing dependable and effective service for its clients. Dedicated to progressing technology and lessening environmental harm, the company concentrates on providing solutions that boost efficiency and safety in industries like healthcare, manufacturing, and energy.

 

3. BASF

 

Headquarters: Ludwigshafen

BASF, based in Ludwigshafen, Germany, is a well-known global chemical industry leader offering a diverse array of products and solutions across multiple sectors. BASF, one of the biggest chemical companies globally, operates in various sectors such as chemicals, plastics, performance products, agricultural solutions, and oil and gas. The company has a wide range of products including cutting-edge materials, sophisticated catalysts, and top-quality chemicals that contribute to advancements in the automotive, construction, agriculture, and consumer goods sectors. BASF is dedicated to sustainability and aims to incorporate eco-friendly practices into its operations. BASF prioritizes research and development to provide innovative technologies and solutions for its worldwide customers' changing needs.

 

4. CF INDUSTRIES

 

Headquarters: Northbrook, Illinois

CF Industries Holdings, Inc. is a top worldwide manufacturer of nitrogen-based fertilizers, crucial for contemporary farming and food manufacturing. Based in Deerfield, Illinois, CF Industries manages a series of production sites and distribution hubs throughout North America and the UK. The company's range of products consists of ammonia, urea, and ammonium nitrate, essential for improving crop yields and promoting sustainable agricultural methods. CF Industries is dedicated to innovation and operational excellence, concentrating on advanced manufacturing technologies and efficiency enhancements in order to satisfy the increasing worldwide need for food. The company prioritizes environmental stewardship and strives to reduce its ecological impact while providing top-notch products to farmers and agricultural businesses globally.

 

5. NUTRIEN

 

Headquarters: Saskatoon, Saskatchewan

Nutrien Ltd. is a top worldwide supplier of agricultural products and services, with its main office located in Saskatoon, Saskatchewan. Nutrien, one of the biggest producers of potash, nitrogen, and phosphate fertilizers globally, plays a vital role in improving agricultural productivity and sustainability. The company has a diverse range of fertilizer products, crop protection solutions, and seed development services in its extensive portfolio. Nutrien runs an extensive system of manufacturing, delivery, and sales sites to uphold its dedication to providing creative solutions that fulfill farmers' requirements worldwide. Nutrien's main goal is to enhance agricultural methods and environmental responsibility to uphold food security worldwide, all while encouraging sustainable farming practices and optimal resource utilization.

 

Recent Developments

 

• In May 2024, Cepsa selected thyssenkrupp nucera as the top provider for a 300-megawatt electrolyzer in their new green hydrogen facility in Spain. This announcement was made during the World Hydrogen Summit in Rotterdam. The electrolyzer will have a key role in generating green hydrogen to help Cepsa progress towards sustainable energy solutions.

 

• In November 2023, DAI Infrastruktur and compatriot technology major Siemens Energy have teamed up to work on the green ammonia project in East Port Said, Egypt. DAI’s Ra project is expected to have a production capacity of 2 million tons per year of green ammonia and is scheduled to begin in 2028. Siemens will provide electrolysers, accompanying plant systems, and additional equipment for the "hydrogen island" part of Project Ra. Both groups will work together on engineering services throughout the project development phase.

 

• In September 2023, OPAL Fuels and South Jersey Industries entered into a partnership to build and manage RNG facilities.

 

• In August 2022, Uniper SE and EverWind Fuels agreed to a Memorandum of Understanding for the procurement of green ammonia from EverWind's first plant in Nova Scotia. EverWind and Uniper plan to discuss a binding offtake deal for 500,000 tons of green ammonia each year.

 

• In January 2022, ITM Power signed a contract with YARA International, which is an EPC company. ITM Power delivered a 24 MW electrolyzer to YARA International, which was slated for installation at a facility overseen by Yara Norge AS.

 

About the Spherical Insights & Consulting

Spherical Insights & Consulting is a market research and consulting firm which provides actionable market research study, quantitative forecasting and trends analysis provides forward-looking insight especially designed for decision makers and aids ROI.

Which is catering to different industry such as financial sectors, industrial sectors, government organizations, universities, non-profits and corporations. The company's mission is to work with businesses to achieve business objectives and maintain strategic improvements. 

 

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