Ammonia is majorly used in the production of fertilizers which has applications in increasing crop yield to meet the growing demand for food. The rising population has increased pressure on the agriculture sector to augment food production. This has propelled the demand for ammonia-based nitrogen fertilizers that help enhance soil fertility. Additionally, ammonia derivatives like ammonium nitrate, nitric acid, and urea have extensive usage in industries such as explosives, glass, fibers, plastics which further supports market growth.
Key Takeaways
Key players operating in the ammonia market are Yara International ASA, BASF SE, CF Industries Holdings, Inc., Nutrien Ltd., Potash Corporation of Saskatchewan Inc., Dangyang Huaqiang Chemical Co., Ltd., Shanxi Jinfeng Coal Chemical Co Ltd., GTS Chemical Holdings plc.,Togliattiazot, OCI Nitrogen B.V., Agrium Inc., Sabic, and Koch Fertilizer, LLC. Yara International is one of the leading producers of ammonia with a production capacity of over 13 million tonnes per year.
The rising construction activities across developing regions have increased the Ammonia Market Size for ammonium nitrate as an essential component in manufacturing of explosives. With growing urbanization and infrastructure development projects in Asia Pacific and Latin America, significant opportunities lie for ammonia producers in these markets.
Key players are focusing on strategic expansion plans and capacity additions across regions. For instance, CF Industries plans to spend over $2 billion by 2023 on projects including ammonia plants in Indonesia and Canada. Yara International also aims to increase ammonia production by 30% in Middle East and Asian markets by 2030 to capture growing fertilizer demand.
Market Drivers
- Rising global population has increased pressure on agriculture sector to enhance food production, propelling demand for nitrogen fertilizers produced using ammonia as a key raw material.
- Growth of construction industry especially in developing economies is driving consumption of ammonium nitrate used in explosives for mining, infrastructure, and other applications.
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