The India Ammonia market has reached around 19 million tonnes in FY2023 and is expected to further grow at a CAGR of 3.9% during the forecast period until FY2034.
Ammonia, an inorganic compound devoid of colour and characterized by a distinct and unpleasant odor, The gaseous state of ammonia is condensed into liquid form, which readily dissolves in water, forming ammonium hydroxide, and is typically transported in steel cylinders. Widely employed in the manufacture of ammonium nitrate fertilizers, ammonia releases nitrogen into the soil, stimulating the growth of crops and plants. Additionally, in the chemical sector, ammonia serves as a key raw material for the production of various chemicals such as ammonium nitrate, urea, and nitric acid, which find extensive applications in pharmaceuticals, textiles, and explosives manufacturing. Moreover, ammonia is widely utilized as a refrigerant in industrial refrigeration systems, particularly in cold storage facilities and food processing plants, owing to its high efficiency and low environmental impact.
In India, the Ammonia market thrives predominantly due to its pivotal role in the fertilizer sector, where it acts as a critical element for the production of Ammonium Nitrate. The domestic fertilizer industry heavily depends on Ammonia for internal consumption, underscoring its vital importance in facilitating agricultural endeavours through the production of nitrate-based fertilizers. This interdependence highlights the close correlation between the Ammonia market and the agricultural sector's need for essential fertilizers. With India witnessing an escalating demand for fertilizers, fuelled by factors such as advancements in farming techniques and agricultural practices, the Ammonia market is poised for sustained growth. Anticipated rise in fertilizer demand, propelled by trends like precision agriculture and innovative farming methods, are forecasted to further drive the demand for Ammonia in the foreseeable future. These factors will further propel the growth of the Ammonia market in India and reach a figure of approximately 28 million tonnes by FY2034.
Based on the region, the India Ammonia market is segmented into West, South, North, and South. During the historical period from FY2015 to FY2023, North India emerged as the dominant region in the Ammonia market followed by West India. The significant concentration of fertilizer manufacturers in western states stimulates the expansion of the Ammonia market in India.
Based on the end-user industry, the India Ammonia market is segmented into Fertilizer, and Others. Although, the Ammonium Nitrate industry is consuming the majority of Ammonia and held a market share of approximately 95% in the year FY2023.
Major players in the India Ammonia market are Chambal Fertilisers and Chemicals Ltd., Deepak Fertilisers and Petrochemicals Corporation Limited, Fertilisers and Chemicals Travancore (FACT), Gujarat State Fertilizers and Chemicals (GSFC), Indian Farmers Fertiliser Co-operative Limited (IFFCO), Kanpur Fertilizers and Chemicals Limited, Kribhco Fertlizers Limited, Mangalore Chemicals and Fertilizers Limited (MCFL), Nagarjuna Fertilizers & Chemicals Ltd., Brahmaputra Valley Fertlizers Corporation Limited, National Fertilizers Limited, and Others.
Years considered for this report:
Historical Period: FY2015-FY2022
Base Year: FY2023
Estimated Year: FY2024
Forecast Period: FY2025- FY2034
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Objective of the Study:
• To assess the demand-supply scenario of Ammonia which covers production, demand and supply of Ammonia market in India.
• To analyse and forecast the market size of Ammonia in India.
• To classify and forecast India Ammonia market based on end-use and regional distribution.
• To examine competitive developments such as expansions, green field projects/ brown field expansions. mergers & acquisitions, etc., of Ammonia market in India.
To extract data for India Ammonia market, primary research surveys were conducted with Ammonia manufacturers, suppliers, distributors, wholesalers and Traders. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various segments and projected a positive outlook for India Ammonia market over the coming years.
ChemAnalyst calculated Ammonia demand in India by analysing the volume of Ammonia consumed by the end-user industries and the forecast is calculated based on the growth rate of end-use industries. ChemAnalyst sourced these values from industry experts and company representatives and externally validated them by analyzing the historical sales data of respective manufacturers to determine the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
Key Target Audience:
• Ammonia manufacturers and other stakeholders
• Organizations, forums and alliances related to Ammonia distribution
• Government bodies such as regulating authorities and policy makers
• Market research organizations and consulting companies
The study is useful in providing answers to several critical questions that are important for industry stakeholders such as Ammonia manufacturers, customers and policy makers. The study would also help them to target the growing segments over the coming years, thereby aiding the stakeholders in taking investment decisions and facilitating their expansion.
Report Scope:
In this report, India Ammonia market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
Attribute
Details
Market size Volume in FY2023
19 million tonnes
Market size Volume by FY2034
28 million tonnes
Growth Rate
CAGR of 3.9% from FY2024 to FY2034
Base year
FY2023
Estimated year
FY2024
Historical Data
FY2015 – FY2022
Forecast period
FY2025 – FY2034
Quantitative units
Demand in million tonnes and CAGR from FY2024 to FY2034
Report coverage
Industry Market Size, Capacity by Company, Capacity by Location, Operating Efficiency, Production by Company, Demand by End- Use, Demand by Region, Demand by Sales Channel, Demand-Supply Gap, Company Share, Foreign Trade, Manufacturing Process.
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Member - Board of Directors
Osaka Gas Co. Ltd
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What is the anticipated India market growth rate of Ammonia in terms of volume in FY2034?
Ans:
The India Ammonia market is anticipated to grow at an anticipated CAGR of 3.9% in the forecast period until FY2034.
Q2.
Which industry is dominating the India Ammonia market?
Ans:
As of FY2024, Fertilizer industry is dominating the Ammonia market in India with a share of roughly 95% in FY2023.
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