Ammonia is a compound of nitrogen and hydrogen with many industrial uses. It is used in the production of fertilizers, plastics, explosives and more. Ammonia is also used for cleaning and refrigeration. Some key properties of ammonia include its ability to dissolve in water and form an alkaline solution that is commonly used in household cleaners. It is also liquefied under pressure for use as a refrigerant.
Propelled by increased agricultural output, the 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, as highlighted in a new report published by Coherent Market Insights.
The global Australia Ammonia Market is driven by the need for ammonia as a key component in nitrogen-based fertilizers. Ammonia is an essential nutrient for plants and is widely used as a nitrogen fertilizer to maximize agricultural yields. It improves the fertility of soil and enables farmers to produce higher quantities of crops. Ammonia promotes healthy plant growth and increases both the size and number of fruits, vegetables, grains and other crops. Rising population and consumption of food have increased agricultural activities in Australia over the years, driving higher demand for ammonia-based fertilizers.
Market key trends:
The key trend propelling the Australia ammonia market is increased agricultural output. Agriculture is a major industry in Australia owing to its fertile soils and favourable climate. As the population grows, the demand for food is also rising substantially. This is prompting farmers to expand crop production and optimize farming yields using fertilizers. Ammonia plays a pivotal role in nitrogen-based fertilizers and its usage has been growing steadily over the past few years to support the mounting needs of the agricultural sector. Rising agricultural production will continue spurring demand for ammonia in Australia during the forecast period.
SWOT Analysis
- Strength: The Australia ammonia market has large production facilities, which enables economies of scale for key players. The market is mature with consistent demand from agriculture and industrial applications.
- Weakness: Stringent regulations regarding safe handling and transportation of ammonia can increase compliance costs for companies. Dependence on natural gas as raw material exposes the market to price volatility in energy costs.
- Opportunity: Growing demand for nitrogenous fertilizers from the agriculture industry is expected to boost ammonia consumption. Adoption of ammonia as marine fuel can create new revenue streams for market players.
- Threats: Shift towards green technologies and alternate fertilizers may slow down usage of ammonia. Increased emphasis on sustainable agriculture may constrain market growth over the long term.
Key Takeaways
The global Australia ammonia market is expected to witness high growth over the forecast period. The market size is projected to reach US$ 934.85 Million by 2024, expanding at a CAGR of 6.4% during 2023 to 2030.
Regional analysis: The Australia region currently dominates the ammonia market accounting for over 30% of the global supply. Major producers in the region include Incitec Pivot Limited, Yara International ASA, and Orica Limited. Abundance of natural gas reserves, large production capacities, and steady demand from agriculture are driving the region’s dominant position.
Key players operating in the Australia ammonia market are Incitec Pivot Limited, Yara International ASA, Orica Limited, and Wesfarmers Chemicals, Energy & Fertilisers. Incitec Pivot Limited is the largest producer with production facilities located in Queensland and New South Wales. Yara International ASA’s plant at Kwinana, Western Australia is a major supplier to the fertilizer industry.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
