- Ammonia market to reach worth of US$ 34 Bn by 2031, Ammonia witnesses substantial uptake in nitrogen fertilizers
- Covid-19-led slump in economies hampered prospects of ammonia market, growing popularity of ammonia as a refrigerant in several applications spurs growth momentum
ALBANY, N.Y., June 10, 2021 /PRNewswire/ -- Ammonia finds use in wide range of industries and its production has enriched the downstream markets of nitrogen-based products. A majority of ammonia produced worldwide over the past decades has been consumed in the fertilizer industry. Ammonia-based fertilizers—notably ammonium nitrate fertilizers--are extensively used by food growers and crop producers in ensuring a steady supply of nitrogen to the soil for plant's growth. The ever-rising demand for food crops globally has spurred the use of fertilizers by farmers, thus bolstering the production of ammonia.
Besides the uptake in agriculture industry, ammonia has been used as a popular natural refrigerant, due to its low cost and attractive thermodynamic properties. All these have made ammonia as an environmentally sustainable refrigerant for industrial refrigeration systems over the past several years. Other applications shaping the value chain of the ammonia market are waste and wastewater treatment, pharmaceutical industry, and paper and pulp industry.
Globally, the ammonia market is projected to reach valuation of US$ 34 Bn by 2031, clocking CAGR of ~2% from 2021 to 2031.
Massive Demand Comes from Agriculture Industry: Ammonium nitrate has become a prominent source of nitrogen utilization in agriculture. A growing body of studies have found nitrogen fertilization promoting soil biodiversity, thereby propelling the demand for nitrogen-based fertilizers worldwide. Thus the ammonia market has witnessed a steady revenue streams from the demand for ammonium fertilizers among farmers.
The production itself has undergone vast advancements in technology and technique. Natural gas has been widely used for producing ammonia. Newer inexpensive sources are being explored in some major economies of the world, with China being a glaring example. Ever-growing demand for food crops cultivation to feed a burgeoning world's population is a key trend that has proliferated the demand for nitrogen fertilizers in agriculture. The trend is likely to remain lustrous for growth in the ammonia market.
Nitrogen-based Products See Substantial Utilization of Ammonia: Ammonia producers have been witnessing vast revenue potential in the downstream markets of nitrogen-based products. The trend is evident in use of ammonia in the manufacturing of acrylic fibers and plastics. Apart from this, ammonium nitrates find use in making explosives. Rise in utilization of ammonia in pulp and paper and textiles manufacturing industries has further bolstered the prospects of the ammonia market. Other nitrogen-based compounds utilize nitriles, hydrazine, hydrogen cyanide, hydroxylamine, ammonium carbonate, urea, amino acids, and phenol. Other popular applications of ammonia propelling revenue generation come from industrial and commercial refrigeration, food preservation, and space conditioning.
Pharmaceutical Industry Contributes Steady Revenue Streams: A range of pharmaceuticals are produced using ammonia where it is used as an API. It is also used as a neutralising agent. Thus, producers of APIs catering to the demand for drugs have garnered huge revenue gains from the ammonia production.
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