December 9, 2024

The Australia Ammonia Market driven by fertilizer production is expected to exhibit robust growth

Ammonia is widely used as a raw material in the production of nitrogenous fertilizers for agricultural applications in Australia. It is cost effective and enhances crop yield. Urea, ammonium nitrate, ammonium sulfate are some common nitrogenous fertilizers produced using ammonia as a key feedstock.Strong growth in agricultural produce such as wheat, barley and canola in Australia is supplementing demand for nitrogen fertilizers and subsequently ammonia.

The global Australia Ammonia Market is estimated to be valued at US$ 934.85 Million in 2023 and is expected to exhibit a CAGR of 6.40% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
One of the key trends in the Australia ammonia market is the shift towards renewable and green ammonia production. Producers are increasingly investing in renewable energy integrated production facilities to generate carbon free ammonia using solar and wind power. For instance, Incitec Pivot is collaborating with Fortescue to develop a green ammonia production plant powered by renewable energy in Western Australia. Such initiatives are expected to boost sustainable production and consumption of ammonia for various applications including as marine fuel and fertilizer production in the coming years.

Porter’s Analysis

Threat of new entrants: Low barrier to entry in ammonia production reduces the threat. However established players dominate the distribution network.

Bargaining power of buyers: Large buyers can negotiate lower prices, but ammonia has few substitutes so buyers still need to purchase.

Bargaining power of suppliers: Suppliers of raw materials like natural gas have strong influence as their prices significantly impact production costs.

Threat of new substitutes: No major substitutes exist for ammonia in industries like fertilizers and plastics where it serves as a crucial feedstock.

Competitive rivalry: Top players compete strongly in exports and infrastructure. Smaller local producers face competitive pressures.

Key Takeaways

The Australia ammonia market is expected to witness high growth over the forecast period. The global Australia Ammonia Market is estimated to be valued at US$ 934.85 Million in 2023 and is expected to exhibit a CAGR of 6.40% over the forecast period 2023-2030.

Australia has a growing population and demand from key fertilizer and industrial sectors is driving growth of ammonia consumption. The regional analysis shows that New South Wales dominates ammonia production due to presence of large manufacturing plants of key players.

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 integrated facilities and distribution infrastructure. Yara International ASA is a major global player expanding its exports from Australia.

Money Singh

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.

Money Singh

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.

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