Australia Ammonia Market is Anticipated to Witness High Growth Owing to Increasing Usage in the Agricultural Industry

 

The Australia ammonia market includes several benefits such as being widely used as a fertilizer to provide nitrogen to plants and increase crop yields. Ammonia is commonly used in the agricultural sector for fertilizers production which enables supply for large volumes of food. It is an essential raw material for commercial fertilizers that are extensively utilized in Australia's agriculture industry. Ammonia's unique Nitrogen content provides crops with the nutrients essential for growth. The farming sector is a key industry in Australia, accounting for around 2-3% of the country's GDP. Therefore, rising demand for fertilizers from the agriculture industry is anticipated to propel the Australia ammonia market.

The Global Australia ammonia market is estimated to be valued at US$ 934.85 Million in 2024 and is expected to exhibit a CAGR of 6.4% over the forecast period 2023 to 2030.

Key Takeaways

Key players operating in the Australia ammonia are Incitec Pivot Limited, Yara International ASA, Orica Limited, and Wesfarmers Chemicals, Energy & Fertilisers. Incitec Pivot Limited is one of the largest producers and distributors of fertilizers in Australia. Yara International ASA is a major global fertilizer manufacturer headquartered in Norway with operations across Australia.

There are significant opportunities for ammonia producers and distributors in Australia given the large-scale agricultural industry. Expanding production of nitrogenous fertilizers will continue driving ammonia consumption. Additionally, the utilization of ammonia as a marine fuel and in various industrial processes is expected to open new avenues of growth over the coming years.

The Australia ammonia market players are focusing on global expansion to leverage opportunities in international fertilizer markets. Key companies are pursuing strategic collaborations and acquisitions to strengthen their presence across major agriculture markets worldwide including Europe, North America, and Asia Pacific countries. This will allow diversifying revenues and customer base beyond domestic operations.

Market drivers

- Increasing usage of ammonia as fertilizer for the large-scale Australian agriculture sector which grows crops like wheat, barley and cattle grazing. This is a major end-use sector driving market demand.
- Growing population and urbanization is placing greater pressure on food supplies, augmenting the need for higher agricultural productivity through fertilizer consumption.

Market restraints

- Stringent environmental regulations regarding ammonia production and transportation due to its hazardous nature if not handled properly. This increases production and distribution costs.
- Volatility in natural gas prices which is a key raw material for ammonia synthesis increases overall costs. Dependence on gas imports also poses supply challenges.

Segment Analysis

The Australia ammonia market is dominated by the fertilizer segment. It accounted for over 60% share of the total market in 2024. Ammonia is one of the key components used in the production of nitrogen-based fertilizers such as urea, ammonium nitrate, and ammonium sulphate. With growing awareness regarding soil health and sustainability, demand for fertilizers is increasing in the agricultural sector. The government support for R&D activities associated with developing advanced fertilizers to boost crop yield is also driving the sales in this segment.

The industrial segment was the second largest segment in 2024. Ammonia has wide applications as a building block for the production of numerous chemicals, fibres, explosives, refrigerants, and cleaning products. It is extensively used in the mining industry as an explosives precursor. Growing construction and mining industries in Australia are expected to drive the consumption of ammonia in industrial applications over the forecast period.

Global Analysis

The Asia Pacific region led the Australia ammonia market and accounted for over 35% of the global demand in 2024. China dominated the regional market owing to large production and consumption of ammonia for fertilizer manufacturing. Australia & New Zealand is the fastest growing region due to increasing exports of agricultural products. The government efforts to enhance farm productivity and support agro-industries are positively impacting the sale of ammonia-based fertilizers. North America is another major market worldwide on account of a developed chemical industry and growing exports of nitrogenous fertilizers to Latin American countries.

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