Urea Fertilizers Market Size, Share, Growth, and Global Industry Analysis by Type (Gas Based Urea Fertilizers and Coal Based Urea Fertilizers) By Application (Agriculture and Industrial), Covid-19 Impact, Latest Trends, Segmentation, Driving Factors, Restraining Factors, Key Industry Players, Regional Insights, and Forecast From 2024 To 2032

Updated On: 08 July 2024

UREA FERTILIZERS MARKET REPORT OVERVIEW

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The global urea fertilizers market size was USD 55540 million in 2023 and is expected to reach USD 65894.39 million in 2032, exhibiting a CAGR of 1.9% during the forecast period. Asia-Pacific holds a leading position in urea fertilizers market share in 2023.

Urea is a nitrogenous compound with a chemical formula of CO(NH2)2. It is colorless, non-toxic, odorless, and highly soluble in water. It consists of a carbonyl group with two amine groups and osmotic diuretic activity. Urea is also called carbamide and it is neither acidic nor alkaline in nature. It is manufactured on a large scale with a production volume of 180 million tons globally. It is widely used in fertilizers as a source of nitrogen, and as a raw material in the chemical industry. It is usually made from synthetic ammonia and carbon dioxide.

The common usage of urea as a fertilizer in the farming business will drive urea fertilizers market growth in the coming years. It increases crop yield in less time, is cost-effective, and can be useful in a variety of crops and soil. The substantial development in the agriculture sector is one of the main features motivating the urea fertilizers market growth across the globe. In association to traditionally used ammonium nitrate, it is cost-effective and has resulted in the extensive adoption of urea as a fertilizer and animal feed preservative. 

COVID-19 Impact: Supply Chain Disruption and Manufacturing Operations to Impede Market Progress

The global COVID-19 pandemic has been unprecedented and staggering, with urea fertilizers experiencing lower-than-anticipated/higher-than-anticipated demand across all regions compared to pre-pandemic levels. The rise in CAGR is attributable to the urea fertilizers market growth and demand returning to pre-pandemic levels once the pandemic is over.

Since the COVID-19 pandemic condition, numerous countries were forced to go into lockdown, which led people to decrease their usage of vehicles. Due to the unparalleled outburst of COVID-19, the urea fertilizers market observed a negative effect. The degeneration in the global economy and earnings is expected to disturb the whole food security, farm livelihoods, trade, and food consumption.  Several businesses, downstream industries, and other amenities were severely affected due to the pandemic.  The automotive engineering plants were on a momentary halt, thus leading to a decline in the intake of urea-based substances. The market progress post-pandemic witnessed a skyward route owing to the amplified demand from the automotive and chemical productions. 

LATEST TRENDS

"Adoption of Sulphur Coated Urea to Foster Market Growth"

Consumption of sulphur coated urea in crops yields extreme saturation of nutrients in the soil, which considerably removes damages due to leakage, volatilization or extreme turf progress. Nutrients are released straight into the core zone thus presenting greater productivity. Polymer sulphur coating provides more shields than the conventional wax coating due to slower nutrient discharge and advanced yield via wax coatings. Polymer Sulphur-coated urea is achieving significant traction on the back of higher blending properties and cost-effectiveness. Hence, it is an appropriate substitute for nitrogen controlling and high grain yield crops such as rice, corn, etc.

UREA FERTILIZERS MARKET SEGMENTATION

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• By Type Analysis

By type, the market is segmented into Gas Based Urea Fertilizers and Coal Based Urea Fertilizers.

• By Application Analysis

Based on applications, the market is classified into Agriculture and Industrial.

The agriculture segment is expected to hold the largest market share. The industry has experienced remarkable development in recent years. The rising demand for food and agricultural goods owing to the increasing population.

DRIVING FACTORS

"Rising Adoption in Various Applications to Foster Market Growth"

Urea is a white crystalline organic chemical compound with the highest proportion of nitrogen. It benefits in green leafy progress and makes the plants lavish. It is used broadly by farmers to endorse healthy crop yield in less time. It has excellent flexibility making it appropriate for all types of soils and is cost-effective. The chemical industry uses urea for the production of various products. It is used in the making of adhesives, urea-formaldehyde resins, plastics, glue, commercial products, feedstock, etc. Furthermore, urea helps in the photosynthesis method and is a vital animal feed preservative. These factors will enhance the growth of the urea fertilizers market during the forecast period.

"Increasing Adoption in Automotive to Boost Market Growth"

The growing application of urea in the automotive sector is likely to contribute to market growth. Urea is widely used in this industry to reduce nitrogen oxide discharges from diesel vehicles. Automotive urea, or diesel exhaust fluid (DEF), is added to the exhaust structures and tanks of vehicles and sports utility vehicles (SUVs) to eliminate nitrogen oxide from the diesel exhaust. The accessibility of good quality technical grade urea, which is broadly utilized in the manufacturing of medicinal drugs, antiseptics, bleaches, skincare and yeast, is acting as a key growth factor. Various factors such as containing developments in melting and granulation technologies to improve energy and cost-effectiveness and the increasing demand for urea in the chemical industry are expected to fuel the urea fertilizers market further. 

RESTRAINING FACTORS

"Environmental Laws to Impede Market Progress"

Producers have struggled to obey numerous environmental rules forced on the use of solid urea owing to the release of gaseous ammonia, which can be dangerous to the environment and human beings. Due to the high content of nitrogen in urea, it should not be used excessively.

UREA FERTILIZERS MARKET REGIONAL INSIGHTS

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"Increasing Demand from Automotive Sector to Propel Market Progress in Asia Pacific"

Asia Pacific is projected to dominate the urea fertilizers market share. The increasing number of population, expansions in the agriculture sectors such as India and China. China has rich sources of coal, a vital feedstock for urea manufacturing, and the Chinese coal charges support the growth of urea production in the region. This affects a rise in the consumption of nitrogen fertilizers, thus driving the market. Consumption is also growing with the improvements in the chemical, automobile, and medical industries.

North America is expected to hold the second-largest market share. This is due to the region is being likely to boost production, reducing the need for imports. The growing demand for products is likely to improve the economy of the region. Urea also acts as a vital feedstock in the manufacture of adhesives, resins, plastics, etc. Therefore, the growth of the markets of these products considerably supports the growth of the market.

KEY INDUSTRY PLAYERS

"Key Players Focus on Partnership to Strengthen their Market Position"

The global market is consolidated, with key players holding over one-third of the global transactions. Merger & acquisition, agreement, collaboration, & partnership, new product launch & enhancement, investment & funding, and award, recognition, & expansion are the categories that the competitive scenario represents. All of the information gathered assists the vendor in identifying market gaps, rival strengths and weaknesses, allowing them to improve their product and service.

INDUSTRY DEVELOPMENT

December 2019: PT Pupuk Kujang synergized with PT Pertamina and ITB to improve a substance plant. This partnership was recognized with the signing of a joint venture background contract.

List of Market Players Profiled

• QAFCO (Qatar)
• CF Industries (U.S.)
• SABIC (Saudi Arabia)
• Yangmei Chemical (China)
• Yara (Norway)
• Nutrien (Canada)
• Koch Fertilizer (U.S.)
• EuroChem (Switzerland)
• China XLX Fertilizer (Singapore)
• CVR Partners, LP (U.S.)

REPORT COVERAGE

Market analysis, market share, market sizing, and market segmentation are among the topics covered in the report. These market research reports provide insight into a variety of industry prospects and dangers, key trends that will influence the market growth during the projection period. It contains data on the changing competitive landscape, and a detailed vendor profile and market analysis.