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.

Comments

Post a Comment

Popular posts from this blog

Nonylphenol Ethoxylate Market Size 2023 | Key Growth Drivers and Latest Opportunities

Image
Nonylphenol Ethoxylate  Nonylphenol ethoxylate (NPE) is a group of nonionic surfactants that are commonly used in a variety of industrial and household applications. They are produced by reacting nonylphenol with ethylene oxide, resulting in a range of products with varying degrees of ethoxylation. NPEs have been used in detergents, cleaning products, and personal care products as a surfactant, emulsifier, and wetting agent. They are also used in industrial applications, such as in the production of textiles, paper, and leather. However, NPEs have been found to be persistent in the environment, and are known to be toxic to aquatic life. They are also known to disrupt the endocrine system of animals, including humans, by mimicking the effects of estrogen. For these reasons, the use of NPEs has been restricted or banned in some countries, including the European Union and Canada. Many manufacturers have switched to using alternative surfactants, such as alcohol ethoxylates, which are cons
Read more

Hydrogen Peroxide Market Unveiled: Exploring Global Trends, Growth Drivers, and Future Prospects

Image
  Hydrogen Peroxide Market Overview Hydrogen peroxide (H₂O₂) is a chemical compound with a variety of industrial and consumer applications. It is a pale blue liquid, commonly used as a disinfectant, bleaching agent, and oxidizer. The hydrogen peroxide market is driven by its extensive use across various sectors, including healthcare, paper and pulp, textiles, food processing, electronics, and water treatment. Market Drivers Healthcare Industry:  Hydrogen peroxide is widely used as a disinfectant and antiseptic in the healthcare sector. It is employed for cleaning wounds, sterilizing medical equipment, and as a mouthwash. The ongoing emphasis on healthcare and hygiene has contributed to the  hydrogen peroxide market growth . Paper and Pulp Industry:  Hydrogen peroxide is utilized as a bleaching agent in the paper and pulp industry. It helps to whiten paper products and remove impurities, contributing to the production of high-quality paper. Textile Industry:  In the textile sector, hydr
Read more

Polyferric Sulfate Market Analysis: Growth, Trends, and Opportunities

Image
Polyferric sulfate, also known as PFS, is a chemical compound that finds widespread application in various industries. This inorganic coagulant is primarily utilized for water treatment and purification processes. It is an iron-based coagulant that is highly effective in removing impurities, such as suspended solids, organic matter, and contaminants, from water sources. Polyferric sulfate is known for its superior coagulation and flocculation properties, making it a preferred choice for treating both industrial and municipal water supplies. The market for polyferric sulfate has witnessed significant growth over the years due to increasing concerns about water quality and the need for efficient water treatment solutions. As populations grow, industrial activities expand, and environmental regulations become more stringent, the demand for reliable water treatment chemicals like polyferric sulfate has surged. This has led to a robust market expansion, driven by the critical role that PFS
Read more