Increasing Agriculture Industry to Fuel Growth of Nitrogenous Fertilizers Market
Most of the fertilizers contain nitrogen in two available forms, i.e., nitrate form (NO3), and ammonical form (NH4). Urea, however, contains nitrogen in amide form but this form of nitrogen is swiftly converted by soil micro-organisms into ammonical form and then into nitrate form. Based on the forms of nitrogen they contain, nitrogenous fertilizers are classified into following four categories, viz. nitrate fertilizers, ammonical fertilizers, ammonical-nitrate fertilizers, and amide fertilizers. The agricultural business has been experiencing a considerable increase in demand for nitrogenous fertilizers to ensure proper nutrition to diverse food crops, consequently increasing their productivity. Growing adoption for some of the highest consumed agricultural commodities such as vegetables, fruits, cotton, and cereals is expected to predominantly drive nitrogenous fertilizers market.
Fluctuations in climatic conditions have a significant impact on crop production capacity, resulting in seasonal variations in crop supply and demand. Catalyst fertilizers are important components in agricultural practice because they help crops grow faster and are being extensively used to accelerate the growth of a wide range of crops. According to the Food and Agriculture Organization of the United Nations (FAO), In 2020, global use of the three major fertilizer nutrients, nitrogen (N), phosphorus expressed as phosphate (P2O5), and potassium represented as potash (K2O), is expected to reach 186.67 million tonnes (N, P2O5, and K2O), up 1.4 percent from 2015.
Nitrogenous Fertilizers Market Grows Hand in Hand with Expanding Commercial Agriculture
Commercial agriculture refers to the cultivation of crops for the purpose of profiting from them on the domestic or international market. This will work to the advantage of nitrogenous fertilizer market. The rise of commercial farming has been aided by an increase in population, as well as the utilisation of increased technology, and infrastructure. The advancements in the agricultural industry have paved the way for the adoption of technology and the usage of high-quality fertilizers such as nitrogen-based fertilizers to increase yield. This is likely to push the progress of nitrogenous fertilizers market. For instance, according to the Food and Agriculture Organization of the United Nations (FAO), total fertilizer nitrogen demand was predicted to be 184.02 million tonnes, with 186.67 million tonnes expected in 2020. It is predicted to reach 201.66 million tonnes by the end of 2020, with an average annual growth rate of 1.9 percent in the following years.
Soaring need for nitrogenous fertilizers will thus accompany the expansion of commercial agriculture, thereby accounting for the growth of nitrogenous fertilizers market. For example, to promote soil fertility, the introduction and usage of coated urea, as well as increased demand for mixed N, P, and K fertilizers and the adoption of coated fertilizer with yeast, has gained significance in the agricultural industry. Currently, complex machinery, and sophisticated technology are used in the bulk of agricultural operations. For example, soil sensors and drones have become commonplace in large-scale farming, while vertical farming is projected to make significant progress by harvesting crops without the need for sunlight or soil.
High Nitrogen Content in Urea to Make Market Grow for Nitrogenous Fertilizer
Urea is expected to be the fastest-growing segment of the nitrogenous fertilizers market over the forecast period. The special features of urea fertilizer are expected to continue to boost demand in the worldwide plant nutrition business. Urea is a nitrogenous fertilizer that is easily soluble in water and is one of the most cost-effective. Because of its high nitrogen content, urea is the most frequently utilised nitrogenous fertilizer on the planet (46 percent). The world's main producers and consumers of urea are China, and India. Countries with abundant natural gas, particularly those in the GCC region, are important urea exporters. According to the International Fertilizer Association (IFA), global urea demand is predicted to grow at 1.6 percent per year until 2022, reaching 188.0 million metric tonnes, while supply (effective capacity) is expected to reach 197.0 million metric tonnes.
During the predicted years, demand for nitrate-based fertilizers is expected to increase rapidly. The increased demand for ammonium nitrate/UAN can be attributed to the nitrate compounds' rapid absorption characteristics by crops, with minimal nutrient loss when compared to other nitrogen fertilizers. Nitrogenous fertilizers market is thus expected to benefit from the rising demand for ammonium nitrate. Nitrate-based fertilizers are a cost-effective, and dependable source of nitrogen. Furthermore, because of improved leaching control, a lower life cycle carbon footprint, and lower volatilisation, these goods have a significantly lower environmental impact than urea-based solutions.
Increased Food Demand to Drive Growth of Asia Pacific Nitrogenous Fertilizers Market
Asia Pacific is projected to witness dominance in the nitrogenous fertilizers market during the forecast period. A wider available area for cultivation, excellent climate conditions, and a higher rural population are all factors contributing to the increase. Due to rising demand and a growing focus on food security, major international nitrogen fertilizer manufacturers are developing manufacturing operations in Asian countries. China is the world's largest user of the commodity, accounting for roughly one-third of total global consumption. These fertilizers are critical in maintaining China's food security by allowing for a greater increase in both non-grain and grain yields. Some of the most important food crops grown in the country include barley, rice, soybeans, potatoes, tea, wheat, millets, tomatoes, cotton, and peanuts.
China, and India account for the majority of fertilizer use in the Asia Pacific area, with China alone accounting for more than 50.0 percent of total consumption. Rice production in Asia consumed the most nitrogenous fertilizer in 2020, accounting for 35.0 percent of global usage. The second-largest consumer of nitrogenous fertilizer, the oil palm, contributed 17.0 percent of total fertilizer use. Rice, and oil palm production are predicted to continue to rise strongly, owing to the region's population and economic expansion.
Global Nitrogenous Fertilizers Market: Competitive Landscape
In April 2021, Koch Fertilizer, LLC, one of the world's leading fertilizer makers and marketers, launched an endeavour to use autonomous drones to drive transformation at Koch Fertilizer's largest production plant. On the other hand, in March 2021, Koch Fertilizer, LLC. invested nearly $150 million in its nitrogen-producing facilities in Enid, Oklahoma. This investment will boost urea output while also improving the stability of existing production units, allowing the company to supply up to 1.8 million tonnes of ammonia products each year.
A few of the players in the nitrogenous fertilizers market include Yara International ASA (Norway), CF Industries Holdings (US), Koch fertilizer LLC, Nutrien [Agrium (Canada) and Potash Corp. of Saskatchewan (Canada)], and EuroChem Group AG (Switzerland).
Global Nitrogenous Fertilizers Market is Segmented as Below:
By Crop Type
By Application, the market has been segmented as follows:
Key Elements Included In The Study: Global Nitrogenous Fertilizers Market
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