Impact Analysis of Covid-19

The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.

Definition of Market/Industry:

Ammonia is one of the most abundant nitrogen-containing compounds with formula NH3. It is a colorless gas with a distinct pungent odor and occurs naturally in the environment in the air, plant, soil, and animals including humans. In humans, the synthesis of ammonia takes place when the body breaks down food especially protein into amino acid and then converting the ammonia into urea. Household ammonia is commonly called ammonium hydroxide, it is an ingredient that is mainly used in various cleaning products for breaking down stains such as cooking grease and other stains.

In 2018, Australia ammonia market was valued at US$ 776.1 million, in terms of revenue and 1,581.5 kilo tons in terms of volume.

Drivers

Rising consumption of ammonia-based fertilizer in Australia to enhance the yield productivity to meet the growing demand for food. According to the Australian Bureau of Statistics Agricultural businesses in Western Australia continued to fertilize the largest areas of land with 19 million hectares reported in 2016-17 or 37% of Australia's total area of agricultural land fertilized. Both Western Australia and New South Wales (including the ACT) used the largest amounts of fertilizer during 2016-17 with both applying just over 1 million tons.

Rising demand for household cleaning products as ammonia has excellent cleanser property and mainly used to produce household cleaning products such as window cleaners, bathroom cleaners, drain cleaners, toilet cleaners, oven cleaners, etc. Increasing disposable income of the people and improving the living of standards is another major factor expected to propel the market growth of the ammonia over the forecast period. 

Among region, Western Australia region dominated the Australia ammonia market in 2018, accounting for 34.1% share in terms of value, followed by New South Wales and Queensland, respectively.

Figure 1. Australia Ammonia Market Share (%), By Region, 2018

Australia Ammonia  | Coherent Market Insights

Market Restraints

High dependency of the Australia agriculture industry on imports of fertilizer products from China and other countries is projected to impact the sales of ammonia for the production of fertilizers in the region. Moreover, variation in seasonal demand for fertilizers is also projected to lower the demand for ammonia, especially in Queensland and Victoria. Hence, the aforementioned factors are presumed to hinder the market growth of Australia ammonia over the forecast period.

Ammonia as a refrigerant has a major disadvantage due to its toxicity because of its hygroscopic nature, it spread to most areas of the body such as eyes, throat, and nose and may lead to severe burn injuries. Moreover, ammonia as a refrigerant may cause various skin and respiratory disorders on exposure. Hence, health issues associated with the exposure of ammonia as refrigerant is expected to hinder the Australia market growth over the forecast period.

Market Opportunities

The rising focus of the manufacturer of the Australia ammonia market to produce green ammonia in order to promote sustainability is expected to fuel market growth. For instance, in September 2019, on behalf of the Australian Government, the Australian Renewable Energy Agency (ARENA) has provided $1.9 million in funding to Queensland Nitrates Pty Ltd (QNP) to assess the feasibility of the construction and operation of a renewable ammonia plant at its existing facility near Moura in Central Queensland.

Increasing focus of politicians of Australia to export solar power using ammonia is expected to fuel the market growth of the Australia ammonia market. For instance, in October 2017, Yara’s Australian unit announced plans to build a pilot plant to produce ammonia using solar power. This is a key step in Australia’s efforts to develop its economy around clean energy exports and could lead to a new system of global trade in which renewable ammonia is an energy commodity.

Figure 2. Australia Ammonia Market – Opportunity Analysis

Australia Ammonia  | Coherent Market Insights

Market Trends/Key Takeaways

Rising investment by the major manufacturer in Australia is expected to foster market growth over the forecast period. For instance, in October 2019, the Australian government will allocate US$ 1.93 million in financing for two studies seeking to explore the potential of using green hydrogen from wind and solar power electrolysis in the production of ammonia. Therefore, rising support of the Australian government in order to expand the application of ammonia is expected to fuel the market growth.

An increasing number of partnerships in the Australia region is projected to augment market growth over the forecast period. For instance, in November 2018, Australia’s Commonwealth Scientific and Industrial Research Organization (CSIRO) announced the formation of a partnership that will support the commercialization of CSIRO’s high-purity ammonia-to-hydrogen conversion technology. Therefore, the rising number of partnerships in the country is expected to fuel market growth.

Figure 3. Australia Ammonia Market Share (%), By Application, 2018

Australia Ammonia  | Coherent Market Insights

Based on application, Australia ammonia market is segmented into agrochemicals, industrial chemicals, explosives, and others. In 2018, industrial chemicals accounted for largest chunk of the market and contributed for the revenue share of 41.8% in the same year, followed by agrochemicals and explosives.

Competitive Section:

Company Profiles

Players active in the market are Incitec Pivot Limited, Yara International ASA, Orica Limited, and Wesfarmers Chemicals, Energy & Fertilisers

Few Recent Developments

Incitec Pivot Limited

  • In October 2016, Incitec Pivot Limited Chairman Paul Brasher and Cornerstone Chemical CEO Greg Zoglio dedicated the US$1.025 billion production plant that includes the combined construction of Dyno Nobel’s $850 million ammonia plant with Cornerstone Chemical’s US$175 million investment in upgrades and infrastructure.
  • In 2015, the company set up a plant with an annual capacity of 800 KT of ammonia in Louisiana, U.S. The plant is expected to commence production by Q3 2016.

Ammonia is a gas produced from hydrocarbons. It is a common industrial chemical used in manufacturing of urea, urea formaldehyde resins, synthetic fibres, and as a building block in nitrogen fertilizers. The growth of end use industries such as agrochemicals, industrial chemicals, explosives, and others.

Market Dynamics

Based on end use, Australia ammonia market is segregated into ammonium nitrate, nitric acid, ammonium sulphate, urea, Diammonium Phosphate (DAP), Monoammonium Phosphate (MAP), others. In 2018, nitric acid accounted for the largest market share of 41.6%, in terms of revenue, followed by Ammonium Nitrate and Monoammonium Phosphate (MAP).

Among region, Western Australia accounted for the largest market share of 34.1%, in terms of revenue, followed by New South Wales and Queensland. Furthermore, New South Wales region is anticipated to record fastest growth of more than 7.0% during the forecast period (2019 to 2027).

Key features of the study:

  • This report provides in-depth analysis of Australia Ammonia market and provides market size (US$ Million & Kilo Tons) and compound annual growth rate (CAGR %) for the forecast period (2019–2027), considering 2018 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrices for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, regional outlook, and competitive strategy adopted by the leading players
  • It profiles leading players in the Australia Ammonia market based on the following parameters – company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans
  • Key companies covered as a part of this study includes, Incitec Pivot Limited, Yara International ASA, Orica Limited, and Wesfarmers Chemicals Energy & Fertilisers
  • Insights from this report would allow marketers and the management authorities of the companies to make informed decision regarding their future products launches, technology up-gradation, market expansion, and marketing tactics
  • The Australia Ammonia market report caters to various stakeholders in this industry including investors, suppliers, alcohol manufacturers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through the various strategy matrices used in analyzing the Australia ammonia market

Detailed Segmentation:

  • Australia Ammonia Market, By Product Type:
    • Anhydrous Ammonia
    • Aqueous Ammonia
  • Australia Ammonia Market, By End Use:
    • Ammonium Nitrate
    • Nitric Acid
    • Ammonium Sulphate
    • Urea
    • DAP
    • MAP
    • Others
  • Australia Ammonia Market, By Application:
    • Agrochemicals
    • Industrial Chemicals
    • Explosives
    • Others
  • Company Profiles
    • Incitec Pivot Limited*
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • Yara International ASA
    • Orica Limited
    • CSBP Limited (Wesfarmers Chemicals Energy & Fertilisers)

“*” marked represents similar segmentation in other categories in the respective section.

Table of Contents

  1. Research Objective and Assumptions
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet, By End User
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • Market Opportunities
      • Regulatory Scenario
      • Industry Trend
      • Mergers and Acquisitions
      • New Product Approvals/Launch
      • Promotion and Marketing Initiatives
      • Overview of the Parent Industry
  4. Australia Ammonia Market, By Product Type, 2017- 2027 (US$ Million & Kilo Tons)
    • Introduction
      • Market Share Analysis, 2018 and 2027 (%)
      • Y-o-Y Growth Analysis, 2019 - 2027
      • Segment Trends
    • Anhydrous Ammonia
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2017 - 2027, (US$ Million & Kilo Tons)
    • Aqueous Ammonia
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2017 - 2027, (US$ Million & Kilo Tons)
  5. Australia Ammonia Market, By End Use, 2017- 2027 (US$ Million & Kilo Tons)
    • Introduction
      • Market Share Analysis, 2018 and 2027 (%)
      • Y-o-Y Growth Analysis, 2019 - 2027
      • Segment Trends
    • Ammonium Nitrate
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2017 - 2027, (US$ Million & Kilo Tons)
    • Nitric Acid
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2017 - 2027, (US$ Million & Kilo Tons)
    • Ammonium Sulphate
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2017 - 2027, (US$ Million & Kilo Tons)
    • Urea
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2017 - 2027, (US$ Million & Kilo Tons)
    • Diammonium Phosphate (DAP)
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2017 - 2027, (US$ Million & Kilo Tons)
    • Monoammonium Phosphate (MAP)
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2017 - 2027, (US$ Million & Kilo Tons)
    • Others
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2017 - 2027, (US$ Million & Kilo Tons)
  6. Australia Ammonia Market, By Application, 2017- 2027 (US$ Million & Kilo Tons)
    • Introduction
      • Market Share Analysis, 2018 and 2027 (%)
      • Y-o-Y Growth Analysis, 2019 - 2027
      • Segment Trends
    • Agrochemicals
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2017 - 2027, (US$ Million & Kilo Tons)
    • Industrial Chemicals
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2017 - 2027, (US$ Million & Kilo Tons)
    • Explosives
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2017 - 2027, (US$ Million & Kilo Tons)
    • Others
      • Introduction
      • Market Size and Forecast, and Y-o-Y Growth, 2017 - 2027, (US$ Million & Kilo Tons)
  7. Australia Ammonia Market, By Region, 2017- 2027 (US$ Million & Kilo Tons)
    • Introduction
      • Market Share Analysis, By Region, 2017 and 2027 (%)
      • Y-o-Y Growth Analysis, By Region, 2019 - 2027
    • New South Wales
      • Market Size and Forecast, By Product Type, 2017- 2027 (US$ Million & Kilo Tons)
      • Market Size and Forecast, By End Use, 2017- 2027 (US$ Million & Kilo Tons)
      • Market Size and Forecast, By Application, 2017- 2027 (US$ Million & Kilo Tons)
    • Victoria
      • Market Size and Forecast, By Product Type, 2017- 2027 (US$ Million & Kilo Tons)
      • Market Size and Forecast, By End Use, 2017- 2027 (US$ Million & Kilo Tons)
      • Market Size and Forecast, By Application, 2017- 2027 (US$ Million & Kilo Tons)
    • Queensland
      • Market Size and Forecast, By Product Type, 2017- 2027 (US$ Million & Kilo Tons)
      • Market Size and Forecast, By End Use, 2017- 2027 (US$ Million & Kilo Tons)
      • Market Size and Forecast, By Application, 2017- 2027 (US$ Million & Kilo Tons)
    • Western Australia
      • Market Size and Forecast, By Product Type, 2017- 2027 (US$ Million & Kilo Tons)
      • Market Size and Forecast, By End Use, 2017- 2027 (US$ Million & Kilo Tons)
      • Market Size and Forecast, By Application, 2017- 2027 (US$ Million & Kilo Tons)
    • Rest of Australia
      • Market Size and Forecast, By Product Type, 2017- 2027 (US$ Million & Kilo Tons)
      • Market Size and Forecast, By End Use, 2017- 2027 (US$ Million & Kilo Tons)
      • Market Size and Forecast, By Application, 2017- 2027 (US$ Million & Kilo Tons)
  8. Competitive Landscape
    • Market Share Analysis (3x3 Matrix)
    • Company Profiles
      • Incitec Pivot Limited
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
        • Future Plans
      • Yara International ASA
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
        • Future Plans
      • Orica Limited
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
        • Future Plans
      • CSBP Limited (Wesfarmers Chemicals Energy & Fertilisers)
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
        • Future Plans
  9. Section
    • References
    • Research Methodology
    • About us and Sales Contact

Frequently Asked Questions

The Australia ammonia market is estimated to reach US$ 1,245.6 Million by the end of 2027.
Major players operating in the Australia ammonia market include Incitec Pivot Limited, Yara International ASA, Orica Limited, and Wesfarmers Chemicals, Energy & Fertilizers
High dependency of the Australia agriculture industry on imports of fertilizer products from China and other countries is one of the major factors that is expected to hamper growth of the market over the forecast period.
Rising consumption of ammonia-based fertilizer in Australia to enhance the yield productivity to meet the growing demand for food is one of the major factors that is expected to propel growth of the market over the forecast period.
The rising number of acquisitions by market players in the country is one of the major trends that has been observed in the market.
Among regions, Western Australia region held a dominant position in the Australia ammonia market in 2018, accounting for 34.1% share, in terms of value, followed by New South Wales and Queensland, respectively.
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