Global Market Study on Ammonia: Agrochemicals End Use Segment to Hold over 45% Market Share Throughout the Forecast Period 2017 - 2025


Ammonia Market
  • Published On : Oct-2017 |
  • Pages : 230 Pages |
  • Format :

Persistence Market Research has come up with a new report titled “Ammonia Market: Global Industry Analysis (2012 – 2016) and Forecast (2017 – 2025)that tracks the performance of the global ammonia market for a period of eight years. To present a crystal clear picture of the market to our clients our analysts went the extra mile to give detailed information about market size, forecast, drivers, restraints, trends and opportunities of all the five regions that have been covered in this report. Apart from regional insights, we have also given comprehensive information on various segments. Global players in the ammonia market are focusing on increasing their market share by entering into untapped end use sectors and countries in the target geography. Mergers, acquisitions and investments in key technological startups have emerged as a key trend in the global ammonia market over the last couple of years.

Report Structure

All responses have triangulated through validation from primary research. Indicators such as R&D expenditure, research funding from government and non-profit organizations etc. have been considered to arrive at the indicated market numbers. Report focusses on highlighting consumption of primary ammonia across the globe. All values for market size are in US$ (US Dollar) and have been stated in Millions (Mn). Top-down approach has been used to assess market numbers for each product category, while bottom-up approach has been used to counter validate the market estimations. To make this report an exclusive one, the analysts have segmented the market into four categories namely region, product type, application and end use under the section market taxonomy. Macro-economic indicators such as GDP, industrial production index have been considered while forecasting market numbers.

Another section includes executive summery which extensively cover the market overview, overall market approach, target geographies and differentiating strategies of the global ammonia market. The executive summery section is followed by the market introduction and is consists of the thorough definition of various types of products in the market. The analysts have covered detail analysis of global ammonia market scenario. This analysis includes Y-o-Y growth and absolute $ opportunity for the projected period. Various market dynamics that consists of drivers, restraints, opportunities and trends are covered under this section. The analysts have made sure to cover each and every segment in detail along with the highlighting the market share analysis, BPS analysis and the Y-o-Y growth rate of global ammonia market. Finally, the report is concluded with the key player’s profiles accompanied by key developments, key player’s strategy overview and SWOT analysis.

Global Ammonia Market Segmentation

By Product Type

  • Anhydrous Ammonia
  • Aqueous Ammonia

By Application

  • MAP (Mono-ammonium Phosphate)
  • DAP (Di-ammonium Phosphate)
  • Urea
  • Nitric Acid
  • Ammonium Sulphate
  • Ammonium Nitrate
  • Others

By End Use

  • Industrial Chemicals
  • Agrochemicals
  • Explosives
  • Others (Electronics, etc.)

By Region

  • North America
  • Europe
  • Latin America
  • Asia Pacific
  • Middle East & Africa (MEA)

Research Methodology

Market volume is inferred through in-depth secondary research and validated from industry experts through primary interviews. Each interview is thoroughly analyzed and average market volume is deduced and reconfirmed prior to incorporating in the report. The price of the essential ammonia is deduced on the basis of product type, where the average price of each product type is inferred across all the five assessed regions. The market value of the global ammonia market is thus calculated from the data provided by the average selling price and market volume.

For the 8-year forecast of the global ammonia market, various macroeconomic factors and changing trends have been observed, giving an idea about future of the market. Other important factors considered to arrive at market forecast are the size of the current market, inputs from the demand side and the supply side and other dynamics shaping the scenario of the market.

In the compilation of the report, the forecast is conducted in terms of CAGR, while other important criteria such as year-on-year growth and absolute dollar opportunity have also been incorporated presenting the client with crystal clear insights and future opportunities as far as the global ammonia market is concerned.

With more than 50% market share, APAC is anticipated to outshine other regions in the global ammonia market

The population is exponentially increasing in the Asia Pacific region, which leads to the growing demand for daily use products such as food, cosmetics, and so on. Obviously, the growing demand for these products leads to the growing demand for ammonia, as ammonia is used in manufacturing process or fertilizers.  As rice, wheat, and few other food grains mainly grow in Asia Pacific region, ammonia as a fertilizers (Urea, MAP, DAP, etc.) leads to grow the global market for ammonia. Mining sector in APAC is also growing speedily since last few years. Particularly, countries like Indonesia and China are leading the mining sector in the region. The growing mining activities in the region are responsible for the increasing demand for explosives. Similarly India is also influencing the regional market of ammonia due to the growth of the pharmaceutical sector. As ammonia is used as a feedstock for the various products such as medicines and cosmetics, it will give a boost to the global ammonia market in the region.

Agrochemicals segment is expected to continue its market dominance over the forecast period

The Agrochemicals segment is considered to be a prominent segment with a higher market attractiveness. The segment is expected to grow with significant CAGR of 3.7% during the forecast period. This can be attributed to the increasing demand for fertilizers especially from India. The Agrochemicals segment is projected to create a total incremental $ opportunity of more than US$ 9,600 Mn between 2017 and 2025. This segment is expected to account for close to 50% share in the total global ammonia market in 2017.

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Global Ammonia Market: Influential trends across key regional markets

North America: Growing preference for organic fertilizers

With the regular use of chemical fertilizers and pesticides, there has been a substantial decrease in the quality of soil across the globe. As a result, in order to meet the increasing demand for sustainable methods of agriculture, the demand for organic fertilizers is increasing. With the increasing demand for organic fertilizers in North America, growth of inorganic fertilizers might face challenges over the coming years, affecting the market growth of inorganic fertilizers.

Europe: Agreements of major market players with fertilizer companies

Over the past five years, fertilizer companies are found to have been involved in long-term agreements with other market players of the region, who are dealing with ammonia and its products, such as agrochemicals, industrial chemicals, explosives and others. For instance, in 2016, Yara International made an agreement with MicroAccount to acquire one of their business segment, the Farm Management System business in Bulgaria and Romania. This segment is associated with the trading of fertilizers and other agrochemicals.

APAC: Top market players are focusing on consolidation and expansion

Since last five years, an increase in the number of expansion activities has been witnessed in the ammonia market. This can primarily be attributed to the efforts being made by companies to meet the rising demand for ammonia based fertilizers and gain access to high-growth markets of Asia Pacific as well as to strengthen their foothold in the global market.

Latin America: Increasing fertilizer production capacity

In Latin America, Argentina and Brazil are the prominent crop producer countries. The consumption of fertilizers in this region was around 11% of the global consumption. Particularly the consumption of fertilizers such as Urea, Mono-ammonium Phosphate, and Di-ammonium Phosphate was around 6.4 Mn Mt in 2015. According to the world export data, Trinidad and

Tobago are the major exporter of ammonia, with the export capacity of 4.4 million tons. Additionally, fertilizer manufacturers are channelizing efforts to cater the increasing demand for urea and other fertilizers, which has resulted in an increase in demand for agrochemicals and, in turn, is expected to drive the growth of the ammonia market over the forecast period.

MEA: Integration with fertilizer manufacturers

The demand for ammonia for the production of modified fertilizers is increasing significantly. This demand accounted for approximately 46% of the global estimated demand for ammonia, which was pegged at approximately 62 million tons in 2016. Fertilizer manufacturers are focusing on establishing a direct supply chain with the oil & gas refineries to procure nitrogen directly from refineries and from chemical manufacturers in order to enhance the production, which will decrease the inventory cost and increase their operational efficiency.

Company Profiles

  • Yara International ASA
  • CF Industries Holdings, Inc. 
  • Potash Corp
  • Orica Limited
  • Incitec Pivot Ltd
  • Mitsubishi Gas Chemical Co., Inc.
  • Praxair, Inc.
  • Achema AB
  • Linde Group
  • Jiangsu Huachang Chemical Co., Ltd
  • Koch Fertilizer LLC
  • SABIC
  • BASF SE
  • The Dow Chemical Company
  • Toggliazot PJSC
  • OCI Nitrogen
  • Haifa Chemicals Ltd.
  • CNPC (China National Petroleum Corporation)
  • Trammo, Inc.
  • Haldor Topsoe A/s
  • Others.
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