Home > Pressrelease > Middle East Ammonia Market size to exceed $8.5bn by 2028
Middle East Ammonia Market size to exceed $8.5bn by 2028
- Published Date: April 27, 2022
Middle East Ammonia Market size is set to surpass USD 8.5 billion by 2028, according to a new research report by Global Market Insights Inc.
Product penetration in nitrogen fertilizer production along with favorable government policies to increase food production is likely to augment the market expansion. The agricultural industry owns the ammonia market, with an estimated market share of over 75%. Ammonia is widely used in fertilizers, and its use has been increasing over the years, which may further increase its use in the agricultural market during the forecast period. Furthermore, the increasing global population and demand for food are driving the Middle East ammonia market demand in the fertilizer industry. The usage of fertilizer applications plays a prominent role in agricultural productivity and crop yield.
Ammonia is a colorless pungent alkaline gas composed of nitrogen and hydrogen. Ammonia is essential in biological processes, fertilizer, industrial, and household cleaning applications. Further, ammonia is used as a refrigerant gas, and in the manufacturing of pharmaceuticals, pesticides, textiles, and other chemicals. The outbreak of the COVID-19 pandemic had an impact on the supply chain and crop producers were affected by disruptions in regional transport systems, which restrained their access to fertilizers. This resulted in less production due to the unavailability of raw materials by farmers. Additionally, controlling the disruption and production of fertilizers to provide soil nutrients that can be easily accessible to farmers will propel the demand for the utilization of ammonia in the industry.
Rapid increase in the usage of aqueous ammonia in household applications will propel the business landscape
Middle East ammonia market from aqueous ammonia segment is expected to reach USD 3 billion by 2028, growing at a CAGR of 2.5% throughout the forecast period owing to increasing usage in pharmaceutical applications. Aqueous ammonia is clear and colorless with a pungent ammonia odor liquid. Aqueous ammonia is readily available due to its natural presence in water, air, and soil. Aqueous ammonia, also known as ammonium hydroxide, is used as an acid neutralizer, due to the alkaline nature of the chemical. It is used in the synthesis of a variety of chemicals and acts as an acid neutralizer in pharmaceutical applications.
The nitrogen is produced from aqueous ammonia thus aqueous ammonia is used in the production of fertilizers in the agriculture segment. Moreover, the increasing utilization of fertilizers in agriculture applications will foster the market progression.
Browse key industry insights spread across 114 pages with 46 market data tables & 31 figures & charts from the report, “Middle East Ammonia Market Analysis by Type (Anhydrous Ammonia, Aqueous Ammonia), By Application (Fertilizers, Refrigeration, Pharmaceuticals, Water Purification Chemicals), Industry Analysis Report, Country Outlook, Application Development Potential, Price Trend, Competitive Market Share & Forecast, 2022 – 2028’’ in detail along with the table of contents:
Prominent ammonia consumption in chemical applications to drive the market forecasts
Middle East ammonia market from chemical applications is anticipated to cross USD 1 billion by 2028. The rising essentiality of the chemical production sector among the construction, food & beverages, electronics, and utility industries is expected to boost the market revenue. Ammonia is highly utilized in the chemical industry for manufacturing cyanides, hydrazine, and other chemicals that are used in paper, textile & plastic production. Additionally, ammonia is widely used to manufacture chemical fertilizers including ammonium phosphate, urea, and ammonium nitrate.
Fertilizer applications holds the major share in Middle East market. Fertilizers are natural or synthetic materials that contain chemical elements that improve plant growth and production. Fertilizers promote natural soil fertility or replace chemicals taken from the soil by previous plants. The need to increase crop yields per unit of cultivated land to meet growing production needs drives the widespread adoption of fertilizers and crop products. As ammonia is a key ingredient in the production of agrochemicals such as fertilizers, hence it will fuel overall market growth.
Cost-effective ammonia production supported by ease in raw material available ammonia will influence the market in the Saudi Arabia
Saudi Arabia ammonia market estimated to surpass USD 3.5 billion by 2028. Ammonia is prominently used in the production of nitrogen-based fertilizers such as urea, ammonium phosphate, ammonium nitrates, and ammonium sulfate. Ammonia is produced from natural gas with air and steam combined with subsequent removal of water and CO2. Further, the increasing production of ammonia owing to the low cost of natural gases such as methane production in the country. Furthermore, ferrous, and non-ferrous catalysts are used to produce ammonia. Currently, the ammonia-producing Petrochemicals provide much-needed catalysts from reputable middle east industries. The production of ammonia in petrochemical projects will augment the regional market expansion.
Some of the notable market players operating in the Middle East ammonia market include Yara International ASA, SABIC, Ma’aden, Qatar Fertiliser Company, Hemmat Petrochemical Company, Gulf Petrochemical Industries Company, Pardis Petrochemical Company, Petrochemical Industries Co., OCI N.V., and Istanbul Fertilizer Industry Inc. Co. (IGSAS). The key strategies observed among the industry participants include new acquisitions & market penetration.