The global ammonia market size is projected to reach USD 110.93 billion by 2028, exhibiting a CAGR of 6.4% during the forecast period. Fortune Business Insights™ highlights this information in its report, titled “Ammonia Market, 2021-2028”, which also provides that this market’s value stood at USD 67.01 billion in 2020 and is expected to touch USD 71.98 billion in 2021.
The COVID-19 pandemic outbreak has caused the market growth to stumble and decline by 4.8% in 2020 owing to the obstructions created by lockdowns and social distancing measures for the fertilizer industry. These obstructions are mainly in the form of supply chain upheavals leading to production delays and a sudden contraction in the availability of agricultural inputs.
Cummins Partners with KBR to Develop Integrated Green Ammonia
In May 2021, technology leader Cummins and KBR inked a Memorandum of Understanding (MoU) to join forces to develop holistic and integrated solutions and techniques to produce NH3 from renewable energy sources. The partnership would be characterized by Cummins’s expertise in proton exchange membrane electrolysis to generate hydrogen and KBR’s competencies in NH3 technologies. Together, thus, the two companies aim at speeding up de-carbonization in various industries and accelerate the development of green ammonia, which holds enormous potential in aiding the growth of sustainable agriculture. Moreover, the combined financial strength of the two entities will be an added advantage for this joint venture.
Emergence of NH3 as an Energy Storage Solution to Catalyse the Market
The most challenging task facing the energy industry today is the issue of energy storage. While lithium has proven to be adequate in storing excess energy, especially from renewables, more efficient solutions and technologies are being demanded due to the soaring consumption of electricity worldwide. In response, leading technology companies have been engaged in the development of next-generation solutions based on the potential of ammonia. For example, in June 2018, Siemens unveiled its Green Ammonia Energy Storage Demonstrator in the UK. The technology uses renewable energy to produce NH3 from hydrogen and nitrogen from the air and the NH3 thus derived is stored in a tank and reconverted to electricity as and when required. The potential of this chemical in storing energy has also encouraged researchers to devise innovative ways to produce the compound. In May 2020, for instance, researchers at the Massachusetts Institute of Technology (MIT) formulated a technique under which hydrogen and nitrogen can be synthesized using an electric current to generate a lithium catalyst, where the two elements will create ammonia.
Fertilizer Segment to Spearhead the Market, states Fortune Business Insights
On the basis of application, the market is segmented into fertilizers, textiles, refrigeration, pharmaceuticals, household & industrial cleaning, and others. While the textile segment held a share of 10.93% in the US market in 2020, the fertilizer segment is anticipated to dominate the market as ammonia is the fundamental compound in the production of ammonium nitrate fertilizers. Moreover, NH3 is also vital in the manufacturing of urea, which is an essential element in coating seeds.
Based on geography, the market is segregated into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
Heightening Demand for Food to Drive the Market in Asia Pacific
- Asia Pacific is expected to dictate the ammonia market share during the forecast period on account of the exponential demand for food and food security in the region’s developing economies. Furthermore, China has emerged as the largest producer and consumer of fertilizers in the world due to the lack of availability of fertile soils in the country. The Asia Pacific market size stood at USD 27.41 billion in 2020.
- The increase in agricultural lands in the US will be a prominent growth factor for the market in North America, where the production and deployment of NH3 are considerably high.
- In Latin America, on the other hand, sufficient access to natural gas and improving farming infrastructure will create ample business opportunities in the region.
Introduction of Digital Tools by Key Players to Feed Market Growth
Key players in this market, in a bid to expand their footprint, are introducing digital technologies to take NH3 production and supply to the next level. The idea behind the launch of such advanced tools is to enhance value chains and augment the production and distribution competencies of players of all sizes. In addition, these technologies are also enabling leading companies to further entrench their market position and broaden their sales horizons.
Browse In-depth Summary of This Research Insight@ https://www.fortunebusinessinsights.com/industry-reports/ammonia-market-101716
- August 2020: Haldor Topsoe and BASF teamed up to integrate BASF’s OASE connect simulation platform with TopSEOs’s flagship connected service solution for NH3 producers, Clearview Ammonia. Using the combined capabilities of these tools, NH3 producers can optimize operations at plants and gain real-time insights into production processes.
List of Key Players Profiled in this Market Report
- China National Petroleum Corporation (Beijing, China)
- Koch Fertilizer, LLC (Kansas, the U.S.)
- Qatar Petroleum (Doha, Qatar)
- Nutrient Ltd. (Saskatoon, Canada)
- BASF SE (Ludwigshafen, Germany)
- Rashtriya Chemicals and Fertilizers Limited (RCFL) (Mumbai, India)
- Praxair Technology, Inc. (Connecticut, the U.S.)
- EuroChem Group (Zug, Switzerland)
- SABIC (Riyadh, Saudi Arabia)
- CF Industries Holdings, Inc. (Illinois, the U.S.)
- Yara International ASA (Oslo, Norway)
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