The global ammonia market size was worth USD 48.65 billion in 2016. The rising demand for ammonia in the fertilizer industry is expected to boost the industry growth. The product is also the building block for the world nitrogen industry.
Ammonia is a colorless and highly irritating with a sharp suffocating odor gas. It easily dissolves in water and forms an ammonium hydroxide solution. The solution can cause burns and irritation. The gas can be easily compressed, which forms a colorless & clear liquid under pressure. It is usually transported in steel cylinders in the form of compressed liquid. Moreover, it is not highly combustible but may explode when exposed to high heat.
<img title="U.S. ammonia market revenue by product form, 2014 - 2025 (USD Billion)" src="
https://www.grandviewresearch.com/static/img/research/us-ammonia-market.png" alt="U.S. ammonia market" />
The U.S. market was valued at USD 5.76 billion in 2016 and is predicted to ascend at a CAGR of 5.2% from 2017 to 2025. The country is among the major producers of the product. Globally, the demand & supply ratio of the product is anticipated to move toward surplus, as the capacity addition is continuing to outpace consumption, resulting in declining utilization rates. This capacity addition is mostly increasing in the regions where the production cost is low and availability of the raw material, i.e. natural gas is high, especially in the Middle East and the U.S.
Commercially, it is manufactured by the Haber-Bosch process. The process involves direct reaction between elemental nitrogen & hydrogen in the presence of high temperature, catalyst, and elevated temperature. Several types of catalysis can be used in the process such as iron oxide, aluminum oxide, and magnesium oxide. In the laboratory, it is synthesized by the hydrolysis of a metal nitride.
<h3><strong>Product Form Insights</strong></h3>
On the basis of product form, the industry can be segmented into gas, liquid, and powder. The liquid form of the product dominated the market, in terms of revenue, with over 45% share in 2016. The segment is expected to ascend at a CAGR of 5.7% from 2017 to 2025. The rising demand for the product in the end-use application is expected to boost the market over the forecast period.
Anhydrous ammonia is the purest form of ammonia, which does not contain any water molecule. It is a pungent gas with suffocating fumes, which is primarily used as a fertilizer. It is compressed into a colorless and clear liquid when used as an agricultural fertilizer. It is manufactured from three parts of hydrogen and one part of nitrogen. The compound is readily used in its diluted form in industrial cleaning and in the manufacturing & synthesis of some molecules.
Ammonia is mostly used in the liquid form. It is majorly used in fertilizers and industrial & household cleaning. For application in fertilizers, it is compressed into a liquid and then mixed with different plant enhancers. In the gaseous form, it combines with moisture present in the dirt, which in turn results in ammonia enriched fertilizer soil.
<h3><strong>Application Insights</strong></h3>
Ammonia is primarily used in the agricultural industry in the form of fertilizers. The fertilizer application segment dominated the global market with over 40% share in 2016. It is considered as a major source of nitrogen, which is an essential element for plant growth. It is also used in the manufacturing of various liquid fertilizer solutions that consist of ammonium nitrate, aqua ammonia, and urea.
Ammonia is readily used in the agricultural application as it rapidly reacts with clay particles, organic matter, free hydrogen ions, and soil water (that prevent the volatilization of ammonia). The rate of application, soil texture & structure, and the method are the factors that enhance the use of ammonia in the segment.
<p class="paddLeft"><img title="Global ammonia market revenue by application, 2016 (%)" src="
https://www.grandviewresearch.com/static/img/research/global-ammonia-market.png" alt="Global ammonia market" /></p>
Other application industries include textiles, pharmaceuticals, industrial & household cleaning, food and beverages, metallurgical processes, water and wastewater treatment, rubber, pulp & paper, and leather. Ammonia is being used as a refrigerant owing to several benefits such as high efficiency, environmentally-friendly, smaller pipe size, better heat transfer properties, and cost.
With increasing focus on energy consumption systems, ammonia refrigeration systems are a sustainable and safe option. It belongs to the group of natural refrigerants and is considered as the most environmentally-friendly refrigerant. It has zero Ozone Depletion Potential (ODP) and Global Warming Potential (GWP). Ammonia also has better heat transfer properties in comparison to other chemical refrigerants. This allows the usage of refrigerant equipment in a smaller heat transfer area, which results in lower plant construction cost and operating costs of the system. Ammonia as a refrigerant is mainly used in heavy commercial and industrial applications.
<h3><strong>Regional Insights</strong></h3>
Asia Pacific was the major producer and consumer of ammonia in 2016. China is the largest producer of the product and the country’s market is anticipated to ascend at a CAGR of 6.3% from 2017 to 2025. In China, ammonia is mostly produced from coal gasification, whereas globally it is mostly obtained from natural gas. In terms of production, China is followed by India and Indonesia. Globally, the capacity is anticipated to increase significantly. The major capacity addition is projected to be in the Middle East & Africa, Central & South America, and in Southeast Asia. The largest addition is anticipated to be in Indonesia and China.
The industry is witnessing continuous fall in prices from the past two years on a global level. This is mainly due to the increasing supply and demand gap in the region. The rising supply owing to increasing capacity and weaker demand is the major reason for the gap in the market. This weaker demand is due to lower crop & food prices, poor economic prospects, fluctuating energy prices, and rising competition.
The U.S. is among the major producers of ammonia globally. The country had over 13 companies that produced the product at their 20 production plants in 2015. In the U.S., approximately 45% of the product is consumed in nitrogen fertilizer and the remaining is used for producing synthetic fibers plastics, resins, and various other chemical compounds. As the natural gas accounts for around 50% of the production cost for nitrogen fertilizer, the availability of cheap natural gas in the country is expected to be a major driving factor for industry growth in the region.
<h3><strong>Competitive Insights</strong></h3>
The global market is highly competitive in nature and is currently witnessing constant price fluctuations. The industry is marked by the presence of global as well as regional market players. The global players are investing in the research & development activities for innovating new and developed processes. Some of the global players operating in the industry include Yara International; BASF SE; CF Industries Holdings, Inc.; PotashCorp; Huaqiang Chem Group; Shanxi Jinfeng Coal Chem; Rashtriya Chemicals & Fertilizers Ltd.; China Petroleum & Chemical Corporation; and China National Petroleum Corporation.
<h3><strong>Report Scope</strong><strong> </strong></h3>
<table border="1" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td width="308"><strong>Attribute</strong></td>
<td width="315"><strong>Details</strong></td>
</tr>
<tr>
<td width="308">Base year for estimation</td>
<td width="315">2016</td>
</tr>
<tr>
<td width="308">Actual estimates/Historical data</td>
<td width="315">2014 - 2015</td>
</tr>
<tr>
<td width="308">Forecast period</td>
<td width="315">2017 - 2025</td>
</tr>
<tr>
<td width="308">Market representation</td>
<td width="315">Volume in Kilotons, Revenue in USD million and CAGR from 2017 to 2025</td>
</tr>
<tr>
<td width="308">Regional scope</td>
<td width="315">North America, Europe, Asia Pacific, Central & South America, Middle East & Africa</td>
</tr>
<tr>
<td width="308">Country scope</td>
<td width="315">U.S., Canada, Mexico, UK, Germany, Russia, China, India, Saudi Arabia</td>
</tr>
<tr>
<td width="308">Report coverage</td>
<td width="315">Revenue & volume forecast, company share, competitive landscape, growth factors and trends</td>
</tr>
<tr>
<td width="308">15% free customization scope (equivalent to 5 analyst working days)</td>
<td width="315">If you need specific market information, which is not currently within the scope of the report, we will provide it to you as a part of customization</td>
</tr>
</tbody>
</table>
<h3><strong>
Segments covered in the report</strong></h3>
This report forecasts volume and revenue growth at the global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global ammonia market on the basis of product form, application, and region:
<ul>
<li><strong>Product Form Outlook (Volume, Kilotons; Revenue, USD Million; 2014 - 2025)</strong>
<ul>
<li>Liquid</li>
<li>Gas</li>
<li>Powder</li>
</ul>
</li>
<li><strong>Application Outlook (Volume, Kilotons; Revenue, USD Million; 2014 - 2025)</strong>
<ul>
<li>Fertilizers</li>
<li>Refrigerants</li>
<li>Pharmaceuticals</li>
<li>Textile</li>
<li>Others</li>
</ul>
</li>
<li><strong>Regional Outlook (Volume, Kilotons; Revenue, USD Million; 2014 - 2025)</strong>
<ul>
<li>North America
<ul>
<li>U.S.</li>
<li>Canada</li>
<li>Mexico</li>
</ul>
</li>
<li>Europe
<ul>
<li>UK</li>
<li>Germany</li>
<li>Russia</li>
</ul>
</li>
<li>Asia Pacific
<ul>
<li>China</li>
<li>India</li>
</ul>
</li>
<li>Central & South America</li>
<li>Middle East & Africa
<ul>
<li>Saudi Arabi</li>
</ul>
</li>
</ul>
</li>
</ul>
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