PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1401806
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1401806
The Nitrogenous Fertilizers Market size was valued at USD 62,000 Million in 2022, expanding at a CAGR of 6.2% from 2023 to 2030.
Nitrogenous fertilizers play a crucial role in providing plants with essential nitrogen nutrition, comprising both mineral and organic components. The appropriate application rates of these fertilizers are determined by several factors, such as soil conditions, biological characteristics of crops, and the availability of organic alternatives like manure. However, it is imperative to acknowledge that the escalating global consumption of nitrogenous fertilizers, driven by the needs of a growing population, has adverse environmental consequences. The excessive use of nitrogen in the soil-plant system leads to the release of greenhouse gases, contributing to global warming and diminishing the nitrogen use efficiency (NUE) of crops. A prime example of a widely utilized nitrogenous fertilizer is Urea, which contains approximately 46% nitrogen. This white, crystalline substance readily dissolves in water and can be applied to the soil or used as a foliar spray.
Nitrogenous Fertilizers Market- Market Dynamics
The increasing need for nitrogenous fertilizers in the agricultural sector is anticipated to drive the demand for nitrogenous fertilizers in the market.
As the global population continues to rise, there is a growing need for food production. Nitrogen is an essential nutrient for plants, and the use of nitrogenous fertilizers helps to improve crop yields and meet the rising demand for food. Advancements in agricultural technology, such as precision farming, allow for more efficient and targeted application of fertilizers, including nitrogenous ones. This enables farmers to optimize the use of resources and minimize the impact on the environment. However, despite the growing demand for food, there are limitations in terms of available land and farming inputs. By 2050, the world's population is projected to reach 9.7 billion, requiring a 70 percent increase in available calories for consumption. However, the cost of inputs needed to produce these calories is also increasing. The nitrogenous fertilizer market can benefit from changing consumer preferences and market demands for a variety of crops. However, there are challenges in the form of stricter regulations and a greater focus on environmental sustainability.
Nitrogenous Fertilizers Market- Key Insights
As per the analysis shared by our research analyst, the global Nitrogenous Fertilizers market is estimated to grow annually at a CAGR of around 6.2% over the forecast period (2023-2030)
Based on product type segmentation, Urea was predicted to show maximum market share in the year 2022
Based on application segmentation, Cereals & Grains was the leading type in 2022
On the basis of region, Asia pacific was the leading revenue generator in 2022
The Global Nitrogenous Fertilizers Market is segmented on the basis of Product Type, Application, and Region.
The market is divided into six categories based on product type: Urea, Methylene Urea, Ammonium Nitrate, Ammonium Sulfate, Ammonia, Calcium Ammonium Nitrate and Others. The market is predominantly dominated by the urea segment. Urea is a nitrogenous fertilizer that is extensively utilized worldwide. Its high solubility in water allows for convenient application through different methods, such as granular fertilization or inclusion in liquid formulations. Urea is frequently preferred due to its cost-effectiveness when compared to alternative nitrogenous fertilizers.
The market is divided into two categories based on application: Cereals & Grains, Oilseeds & Pulses, Fruits & Vegetables and Others. The market is primarily dominated by the Cereals & Grains segment. Cereal crops possess a significant need for nitrogen, which plays a vital role in their overall growth and development. Nitrogen is essential for the formation of proteins, enzymes, and chlorophyll within these crops.
Nitrogenous Fertilizers Market- Geographical Insights
Geographically, this market is spread across various regions including North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided based on the countries involved in business activities. The Asia Pacific region is projected to have a dominant role in the market's growth, primarily due to its growing population and increased demand for crop protection. With a larger population, there is a higher demand for food, which in turn leads to an increased need for nitrogenous fertilizers to enhance crop yields. According to the UNFPA, the Asia and Pacific region is home to 60 percent of the world's population, which amounts to approximately 4.3 billion people. This region includes China and India, the two most populous countries in the world. Additionally, agriculture holds significant importance in many Asia-Pacific countries, and there is a growing recognition of the need to adopt modern agricultural practices to boost productivity. Nitrogenous fertilizers play a crucial role in replenishing soil nutrients and improving crop yields. On the other hand, Europe and North America are also expected to contribute to the market's growth in forecast period, driven by increased investments in research and development activities.
The competitive landscape of the nitrogenous fertilizers market is of great importance in both international and domestic markets. The presence of spatial competition plays a significant role in determining the rivalry between firms. In the North American fertilizer industry, there have been numerous announcements regarding the expansion or establishment of new plants that produce nitrogen-based fertilizers. This has intensified the competitive pressures within an industry that already has excess capacity, but remains highly competitive in terms of production costs and technology. Manufacturers are actively investing in research and development activities to enhance nitrogen fertilizer production technologies and processes. These efforts include the development of innovative production methods, exploration of alternative sources of nitrogen, and optimization of resource utilization. Furthermore, investments in infrastructure such as storage facilities, transportation networks, and port infrastructure are considered crucial for improving the efficiency of the supply chain.
Nutrien Ltd has announced intentions to expand its fertilizer manufacturing capacity in anticipation of structural changes in the global energy, agricultural, and fertilizer markets. Today, at 10:30 a.m. EDT, the firm will have a virtual investor update meeting to discuss its strategic development and capital allocation strategies.
The scope of this report covers the market by its major segments, which include as follows: