2017-18: Latest Industry Insights on Ammonia Market

Bio-Ammonia and a range of other Innovative Technologies are going to be the Major Industry Trend for the Global Ammonia Market through 2026.

Understanding Ammonia and its Applications:

Ammonia, chemically notated as NH3 refers to the colorless compound which is known for producing a strong odor in its gaseous form. Ammonia can be manufactured artificially through natural gas as well as naturally through biological degradation of organic matter. Ammonia is widely utilized across the agriculture, pharmaceutical, refrigerants, textile and various other industrial & household applications. A broad array of ammonia derivatives such as urea, ammonium nitrate, ammonium phosphates, nitric acid, ammonium sulfate, etc. are used to make explosives, plastic resins, nitrogen fertilizers, etc.

The latest and most trending news to hit the Global Ammonia Market is that Yara International has announced plans to construct a pilot plant in Pilbara, Western Australia, to manufacture ammonia by means of solar power and the company is expecting to start the production of carbon-free ammonia by 2019.

The recent TechSci Research Report on “Global Ammonia Market, Competition Forecast and Opportunities, 2012-2026” talks about various salient points of the Global Ammonia market. Here is the role at play by the United States in the Global Ammonia Market:

Overview of US Ammonia Industry:

According to the U.S. Geological Survey, the country witnessed 13 Manufacturers engaged in the production and marketing of Ammonia through 31 plants in 15 States of US, at nearly 80% of rated capacity, during 2016. The Louisiana, Oklahoma and Texas accounted for more than 60% of Ammonia production capacity owing to the presence of methane reserves which is the chief requisite for ammonia.

US Ammonia Demand Supply Analysis, By Volume, 2012-16 (‘000 Metric Tons)

Agriculture industry accounted for more than 85% of ammonia consumption in the country during FY16.

With the growing plantation of small and large corn saplings, the demand for nitrogen fertilizers is also showcasing raise in the United States. As per data published by USDA, the total area under corn plantation demonstrated YoY growth of 6% and reached 38 million hectares in 2016. Moreover, the nation is expecting an expansion in corn acreage in Illinois, Iowa, Kansas, and North Dakota by 2017, which would further advance the demand for Ammonia in the United States.

US Area Harvested for Corn, By End Use, 2006-15 (‘000 Acres)

Bio Ammonia:

The production of sustainable Ammonia is gaining traction in the United States due to increasing cognizance among the fertilizer and refrigerant manufacturers about the associated benefits. The rising number of incidences related to the exposure to hazardous ammonia gas and fire eruptions at ammonia factories are driving the industry to focus on environment friendly solutions.  The eco-friendly and natural Ammonia refrigerant is facing wide demand from the industrial and food preservation applications across US due to its zero Ozone Depletion Potential (ODP) and Global Warming Potential (GWP).

Launch of Innovative Technologies is conducive to the Growth of Ammonia in US:

In 2016, California based – QuantumSphere, Inc. announced that the United States Patent and Trademark Office (USPTO) has granted a key patent to the advanced FeNIX™ nanocatalyst accelerator technology produced by the company in order to elevate overall production efficiency in ammonia synthesis.

Conclusion:

In conclusion, the Global Ammonia market is expected to grow at a CAGR of 4.2% during 2017-26 as a result of spurring demand from multiple downstream industries such as agriculture, consumer goods, pharmaceuticals, etc. The population outburst and increasing discretionary income followed by modern lifestyles in developing economic nations such as India, Brazil, Indonesia, etc. is escalating the demand for agriculture products, thereby boosting the consumption of ammonia in fertilizer applications. In addition to this, the shifting dietary trends across the globe and the increasing R&D activities to discover novel applications for Ammonia would continue to drive the Global Ammonia Market through 2026.

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