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Global Ammonia Industry Report: by Application; Urea, Nitrates, Phosphates, NPK, AS, Industrial Use, Direct Application, Others; Country Overview; Recent Events; Value Chain Analysis; Trade Analysis; Cost Structure; Price Analysis; Market Dynamics: Drivers & Constraints, Industry Events, Innovations & Trends, SWOT Analysis; Market Analysis; Industry Best Practices; Key Supplier Analysis, 2022-2027

Ammonia Industry Report by Regional Category Spend, Price Analysis, Key Demand and Price Indicators, and Best Buying Practices

The global ammonia market reached a value of about USD 64.3 billion in 2021. The industry is projected to grow at a CAGR of around 1.5% in the forecast period of 2022-2027 to reach a value of about 70.31 billion by 2027.

The ammonia industry report gives a comprehensive analysis of the industry including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The expanding demand in the agriculture industry increased usage of ammonia in refrigerant polymer synthesis applications paired with the increasing use of ammonia in the manufacturing of explosives is the primary driver of the market. In the industry report, the critical demand indicator is the highest category spender by region—Asia Pacific.

Industry Definition and Segmentation

Ammonia is a nitrogen-hydrogen chemical with the formula NH3. Ammonia is a colourless, flammable gas with a strong odour. It is both caustic and toxic in its concentrated form, which is found in nature mainly due to the anaerobic degradation of plant and animal materials. It has also been discovered in space and is widely used. It is classed as an exceedingly dangerous material in many countries, and establishments that create, store, or use it in large amounts must comply with stringent reporting requirements. The ammonia industry report comprises segments by type (liquid, gas), end-user industry (agriculture, textiles, mining, pharmaceutical, refrigeration, other end-user industries) and region (North America, Europe, Asia Pacific, the Middle East, and Africa, and South America).

North America, Europe, Asia Pacific, the Middle East & Africa, and South America Regions are Driving the Growth of the Ammonia Industry

Asia Pacific led the global market, with China and India accounting for most consumers, and this trend is projected to continue in the future. Market participants' geographic growth has grown increasingly visible in European and East Asian nations. This is owing to attempts to fulfil the demand for ammonia-based goods, acquire access to high-growth areas in Europe and the Asia Pacific, and expand their position in the worldwide market.

The agriculture industry is the primary driver of the ammonia market since it is used extensively in fertilisers. Separate industrial chemical enterprises have also been directed to create new chemically treated fertilisers by governments. Demand for ammonia, which has acidifying and soil-conditioning properties, has increased as farmers become more conscious of the need to produce higher-quality and quantity crops. NPK/NP fertilisers, according to experts, contribute to the increase in ammonia usage, which is projected to continue in the future. This is due to expanding population in developing nations, which would increase demand for mining and agriculture.

Best Procurement Practices

The global ammonia industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by major global ammonia regions across the globe, such as engagement models, contract terms, and buyer and supplier negotiation levers, among others.

Category Management Studies

Natural gas, liquefied petroleum gas, or petroleum naphtha are all converted into gaseous hydrogen in a typical contemporary ammonia factory. Steam reforming is a process for generating hydrogen from hydrocarbons. The hydrogen is subsequently mixed with nitrogen in the Haber-Bosch process to make ammonia. Because sulphur deactivates the catalysts employed in the following procedures, the first step in the process is to remove sulphur compounds from the feedstock. To remove sulphur from feedstocks, catalytic hydrogenation reduces sulphur compounds to gaseous hydrogen sulphide. After that, the gaseous hydrogen sulphide is absorbed and eliminated by passing it through zinc oxide beds, transforming it into solid zinc sulphide.

The sulphur-free feedstock is then catalytically steam reformatted to produce hydrogen and carbon monoxide. The carbon monoxide is subsequently converted to carbon dioxide and additional hydrogen in the following stage, which involves catalytic shift conversion. The carbon dioxide is later absorbed in aqueous ethanolamine solutions or adsorbed in pressure swing adsorbers (PSA) utilising a patented solid adsorption medium. The final stage in the hydrogen production process is catalytic methanation, which removes any remaining carbon monoxide or carbon dioxide from the hydrogen. The hydrogen is then catalytically reacted with nitrogen (produced from process air) to generate ammonia, the intended end-product.

Wide Range of Applications of the Product, Further Driving the Procurement of Ammonia

Pharmaceuticals, agriculture, pulp and paper, textiles, and mining are the end-use sectors affected by ammonia consumption. Among other drugs and chemicals, ammonia is used to make amines, nitriles, hydrogen cyanide, hydrazine, hydroxylamine, ammonium carbonate, phenol, urea, and amino acids. Ammonia is widely employed in producing pharmaceuticals and vaccines and fertilisers, and other end-use applications worldwide. The product's widespread use in detergents and cleaning agents moves the market forward. Ammonia is particularly effective in breaking down household grime and removing stains caused by vegetable oils, fats, cooking grease, and wine from tubs, sinks, toilets, worktops, and tiles. It also evaporates fast, making it easier to wipe glass without leaving any streaks behind. The rising demand for ammonium nitrate for mining and explosive applications contributes to the market's expansion. Other reasons, such as product advancements, including creating green ammonia using sustainable technologies, are expected to propel the industry further.

The regional markets for the industry can be divided into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.

Key Industry Players Mentioned in the Ammonia Industry Report

  • Yara International
  • CF Industries

Market Landscape

The ammonia market is fiercely competitive globally, with a few leading manufacturers supplying low-cost goods. Some significant firms focus their efforts on developing markets for a specific demographic. It is distinguished by many suppliers and strong B2B networks. The sector has solid connections all along the value chain. Companies are proactively cooperating with end-users and regional distributors to improve their market penetration to suit the needs of an increasing customer base.

Key Initiatives by Companies

  • OCI NV signed a deal with MAN Energy Solutions, Hartmann Group, and Eastern Pacific Shipping in March 2021 to create a marine value chain and commercialise ammonia and methanol as future shipping fuels by 2023-2024.
  • Industries Qatar, one of the region's industrial behemoths, said in August 2020 that its Board of Directors had authorised the planned acquisition of Qatar Petroleum's 25% ownership in Qatar Fertiliser Company (QAFCO) during a meeting on August 23, 2020. The purchase of QP's QAFCO interest is consistent with IQ's objective of expanding its downstream footprint and creating value.

1.    Executive Summary
2.    Global Ammonia Market Snapshot

    2.1.    Ammonia Market Outlook
    2.2.    Ammonia Industry Analysis by Application
        2.2.1.    Urea
        2.2.2.    Nitrates
        2.2.3.    Phosphates
        2.2.4.    NPK
        2.2.5.    AS
        2.2.6.    Industrial Use
        2.2.7.    Direct Application
        2.2.8.    Others
    2.3.    Regional Overview
        2.3.1.    North America
        2.3.2.    Europe
        2.3.3.    Asia Pacific 
        2.3.4.    Latin America
        2.3.5.    MEA
3.    Impact of Recent Events 
4.    Ammonia Value Chain Analysis 
5.    Ammonia Production Process
6.    Trade Analysis 
7.    Major Risk Factors in Sourcing
8.    Ammonia Cost Structure
9.    Ammonia Price Analysis 
10.    Key Demand Indicator Analysis
11.    Key Price Indicator Analysis
12.    Ammonia Market Dynamics

    12.1.    Drivers & Constraints
    12.2.    Industry Events 
    12.3.    Innovations & Trends
    12.4.    SWOT Analysis
    12.5.    Porter’s Five Forces
        12.5.1.    Buyer Power
        12.5.2.    Supplier Power
        12.5.3.    Threat of New entrants
        12.5.4.    Threat of Substitutes
        12.5.5.    Industry Rivalry
13.    Feedstock Market Analysis 
    13.1.    Market Overview
    13.2.    Price Analysis 
14.    Industry Best Practices
    14.1.    Sourcing Strategy
    14.2.    Procurement Model
    14.3.    Contract Structure
    14.4.    Negotiation Levers
    14.5.    Pricing Model
    14.6.    Key Factors Influencing the Quotation 
15.    Key Supplier Analysis
    15.1.    Yara International ASA
    15.2.    CF Industries Holdings, Inc.
    15.3.    SABIC
    15.4.    PJSC Togliattyazot
    15.5.    Koch Fertilizer, LLC

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Key Questions Answered in the Report

The global ammonia market size was valued at USD 64.3 billion in 2021.

As per the applications provided, the urea segment is anticipated to lead the market between the period 2022 - 2027.

The significant demand for fertilisers in the agricultural segment is one of the essential drivers of market growth.

Yara International, CF Industries and SABIC are some of the leading companies in the market.

The agriculture end-user segment of the ammonia industry holds a significant share in the market.

Analyst Review

The global ammonia market attained a value of USD 64.3 billion in 2021, driven by the increasing demand for ammonia as a fertiliser in the agricultural sector. Due to the product's wide range of applications in various industries like, Pharmaceuticals, agriculture, pulp and paper, textiles, cleaning products and mining, the sector is witnessing further growth. Furthermore, owing to product innovations, including the creation of green ammonia using sustainable technologies, the market is expected to see a further increase in the forecast period of 2022-2027, growing at a CAGR of 1.5%. The market is projected to reach USD 70.31 billion by 2027.

Procurement Resources’ detailed research approach explores deep into the industry, encompassing the macro and micro aspects of the industry. Its team of experts uses a combination of cutting-edge analytical tools and their expertise thus, delivering its customers with market insights that are accurate, actionable, and help them remain ahead of their competition.

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