The global urea industry size was valued at USD 128.92 billion in 2023 and is projected to grow from USD 123.95 billion in 2024 to USD 160.67 billion by 2032, exhibiting a CAGR of 2.2% during the forecast period. Urea, a white crystalline compound, is crucial in two major industries: agriculture and chemicals. Let's delve into the world of urea, exploring its production, applications, and the factors that influence this vital industry.
The Fertilizer Powerhouse:
Urea reigns supreme as the world's most common nitrogen fertilizer, accounting for over 90% of global production destined for this purpose. Its popularity stems from its high nitrogen content (around 46%), making it a cost-effective way to boost crop yields. Nitrogen is vital for plant growth, and urea provides a readily available source for plants to thrive.
Manufacturing Process:
The magic behind urea production involves combining ammonia (NH3) and carbon dioxide (CO2) under high pressure and temperature. Interestingly, the ammonia used is often a byproduct of natural gas processing, creating a synergistic link within the chemical industry. This proximity to ammonia production facilities is key to plant location decisions.
Segments:
Fertilizer Grade to Lead industry Due to Extensive Adoption as Key Nitrogen Fertilizer
In 2021, fertilizer grade urea held the largest share of the industry and is expected to retain its position during foreseeable future. It can be attributed to the increased use of fertilizers to enhance the production of crops.
Owing to Higher Demand, the Agriculture Segment to Account for Largest Revenue Share
In 2021, the agriculture segment held the largest share of the global industry. It can be attributed to large-scale use of carbamide as fertilizers to increase crop yield. Granular and prilled forms make it easy for transportation and handling in agriculture application.
Based on region, the industry is segregated into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
Source- https://www.fortunebusinessinsights.com/urea-market-106850
Report Coverage:
The report presents a systematic study of the urea industry share and a thorough analysis of the industry overview. A thoughtful evaluation of the current industry trends as well as the future opportunities is offered in the report. Moreover, it presents an exhaustive analysis of the regional insights and how they help to form the industry growth.
Global Urea industry:
The global urea industry is complex, with production capacity reaching around 180 million tonnes in 2020. While major producers like China and India dominate, the industry is geographically widespread. Pricing can be volatile, closely tied to the cost of natural gas, a key raw material. Additionally, global agricultural demand significantly influences urea prices.
Beyond the Farm:
While agriculture is the primary consumer of urea, its applications extend beyond farms. In the chemical industry, urea serves as a building block for various products like plastics, adhesives, and even some explosives. This versatility contributes to the overall stability and demand within the urea industry.
The Future of Urea:
The future of the urea industry is intertwined with several key trends. Sustainable practices are gaining traction, and research is ongoing into more efficient urea production methods. Additionally, the global food security challenge will continue to drive demand for fertilizers like urea.
India's Urea Scenario:
India is a major player in the urea industry, with significant domestic production and a focus on self-sufficiency. Government policies play a crucial role in regulating urea prices and ensuring fertilizer availability for farmers.
In conclusion, the urea industry plays a vital role in global food security and industrial production. As the world grapples with population growth and resource scarcity, the sustainable development of the urea industry will be critical for meeting the challenges of tomorrow.
Regional Insights:
Asia Pacific will Continue to Rule Powered by High Food Consumption
In 2021, the Asia Pacific industry had a value of USD 71.05 billion. There has been a significant growth in population in the area, which led to higher food consumption. In order to boost crop output per hectare of agricultural land, this has led to an increase in demand for fertilizers.
Carbamide is a majorly imported for Europe from Asia and the Middle East. The technological advancements in the product, supported by rigorous restrictions, are anticipated to lower input costs and cut carbon emissions. The region's highly developed automobile industry is driving the industry there.
Throughout the projected period, North America is anticipated to remain a industry with steady growth. This region's growth is primarily related to increased agriculture and demand for industrial applications.
Competitive Landscape:
Key Players' Important Business-Related Announcements will Affect industry Dynamics
Important industry players frequently announce significant business decisions, which have a favorable or negative impact on the industry. Players buy businesses, introduce products, enter into collaboration agreements, agree to terms with governmental bodies, and so forth.
Key Industry Development:
June 2022: Nutrien Ag announced that it is increasing its fertilizer production unit. This move is expected to enable the company to respond to changes in global energy, agriculture, and fertilizer industrys.
List of Key Players Mentioned in the Report:
SABIC (Saudi Arabia)
Qatar Fertilizer Company (Qatar)
EuroChem (Switzerland)
Yara International ASA (Norway)
Nutrien AG (Canada)
OCI N.V. (Netherlands)
Acron Group (Russia)
CF Industries Holdings (U.S.)
HUBEI YIHUA CHEMICAL INDUSTRY CO., LTD. (China)
China National Petroleum Corporation (CNPC) (China)
Koch Fertilizer, LLC (U.S.)
Coromandel International Limited (India)