Market Overview
Global Urea Market reached USD 129.2 billion in 2022 and is expected to reach USD 152.5 billion by 2031, growing with a CAGR of 2.1% during the forecast period 2024-2031. With the growth of the agricultural industry, particularly in developing countries, there is a rising demand for fertilizers like urea which enhances soil fertility and crop productivity.
As farmers and agriculturalists adhere to the advantages of the use of nitrogen fertilizers, the urea market is likely to grow. For instance, according to National Bureau of Statistics, Nigeria, the urea’s export value for 2022 amounted to N810.26 billion, 3.02% of the country’s total export. Hence, the growing demand for Nitrogen-based fertilizers is driving the market growth of the urea market.
Urea‘s application does not limited to the agricultural sector, it also has applications in various non-agricultural industries, such as the automotive, chemical and healthcare sectors. As these industries develop, the demand for urea also rises. Hence, the rising adoption of urea in non-agricultural industries is playing a key trend in urea market growth.
Market Summary
| Metrics | Details |
| CAGR | 2.1% |
| Size Available for Years | 2021-2030 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | Type, Grade, Technology, Distribution Channel, Application, End-User and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America and Middle East & Africa |
| Fastest Growing Region | Asia-Pacific |
| Largest Region | North America |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Equipment Type Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
Increasing Demand from the Automotive Sector
According to UNEP, air pollution is the greatest environmental threat to public health globally which accounts for an average of 7 million premature deaths every year. As a result, governments and environmental agencies are implementing strict regulations and policies globally to decrease emissions of harmful gasses from automobiles, especially nitrogen oxides, which are significantly contributing to air pollution and smog formation. To fulfill these regulations, automakers need to equip their diesel vehicles with SCR(selective catalytic reduction) systems.
SCR is used as an advanced emissions control technology in diesel vehicles to decrease NOx emissions. It needs a solution of urea in demineralized water. When the diesel exhaust gases pass through the SCR system, the urea solution is injected into the exhaust stream. Urea reacts with the NOx in the presence of a catalyst, converting it into harmless nitrogen gas and water vapor. This process significantly reduces NOx emissions, helping vehicles meet strict emission standards.
Increasing Usage in the Fertilizer Segment
The world's population is continuously rising which drives demand for higher food production. To meet the food requirements of the rising population, agricultural productivity needs to be enhanced. Urea, being a nitrogen-based fertilizer, is essential for improving crop yields and ensuring food security. According to the International Fertilizer Association, in 2020 the total consumption of urea fertilizer in the world amounted to 54,516 thousand tonnes
With the rising need for agricultural products, there is a growing emphasis on intensifying agricultural practices. Higher-intensity farming demands the use of fertilizers like urea to provide essential nutrients to crops and maximize yields. Hence, the increasing usage of urea in fertilizer to intensify agricultural production is driving urea market growth
Environmental Concerns
According to Quench Water, every day, more than 2 million tons of sewage, industrial and agricultural waste are discharged into the world’s water and causing it polluted. The excessive usage of urea and other nitrogen-based fertilizers can result in nitrogen runoff, causing pollution in water bodies. This results in issues like eutrophication, harming aquatic ecosystems and human health. Concerns about water quality can lead to further restrictions on urea usage in many regions.
Urea application within the soil can make the release of nitrous oxide, a potent greenhouse gas that contributes to climate change. Nitrous oxide possesses a higher global warming capacity in comparison to carbon dioxide, making nitrous oxide a major concern for environmentalists and policymakers in search of mitigating greenhouse gas emissions.
Market Segmentation Analysis
The global urea market is segmented based on type, grade, technology, distribution channel, application, end-user and region.
Effectivity of Urea as a Nitrogen-based Fertilizer
Urea is primarily used as a nitrogen-based fertilizer in the agricultural sector, making it the largest and most significant application segment for urea. According to THE CHEMICAL COMPANY, more than 90 percent of world urea production is used for making a nitrogen-release fertilizer.
Urea fertilizer is a versatile fertilizer that can be used for numerous crops, like cereals (wheat, rice, corn), oilseeds, fruits, vegetables, etc. Its extensive application results in a preferred choice for farmers with diverse agricultural practices. Urea contains a high amount of nitrogen content which makes 46% by weight, making it one of the most concentrated nitrogen fertilizers available. This high nitrogen concentration allows for efficient nutrient delivery to crops and cost-effective fertilization.
Market Geographical Shares
Asia Pacific’s Growing Agricultural Industry
Asia Pacific is home to the world's most populous and agriculturally dominant countries, which includes China and India. These countries have significant agricultural industries and urea is a broadly used nitrogen-based fertilizer for effectively enhancing crop yields. China exported 849,000 tons of urea from July-September 2022, up from 303,000 tons and 421,000 tons during Q1 2022 and Q2 2022, respectively.
The region has a rapidly growing population driving the demand for food. To meet the food requirements of its people, there is a considerable need for fertilizers. According to the Fertilizer Association of India, the total fertilizer products stood at 43.49 million MT, an increase of 1.7% over 2019-2020. Urea, as a fertilizer boost agricultural productivity which drives its market growth in the Asia Pacific region.
Market Key Players
The major global players include SABIC, Yara, Industries Qatar, CF Industries Holdings Inc, OCI NV, BASF SE, Koch Fertilizer LLC, Qatar Fertilizer Company, EuroChem, Nutrien AG
COVID Impact
COVID-19 led to disruptions in global supply chains due to lockdowns, travel restrictions and workforce limitations. This could have impacted the production, transportation and distribution of urea, leading to potential supply shortages or delays. The pandemic affected various sectors of the economy, including agriculture and industrial activities. Changes in consumer behavior, reduced industrial output and fluctuations in agricultural practices could have led to shifts in urea demand dynamics. International trade was also affected by the pandemic, with many countries implementing export and import restrictions. These measures could have impacted the flow of urea across borders, affecting global trade patterns.
Key Developments
- In June 2023, IFFCO, a fertilizer company, announced an agreement with California-based Kapoor Enterprises Inc for the export of nano liquid urea to the United States.
- In May 2022, in India, Prime Minister Narendra Modi inaugurated the World’s first nano urea liquid plant by IFFCO in Gujarat to provide farmers with the means to boost productivity & help increase their income.
- In June 2021, IFFCO, a producer of fertilizer in India, launched a new product referred to as a urea nano fertilizer,
Why Purchase the Report?
- To visualize the global urea market segmentation based on type, grade, technology, distribution channel, application, end-user and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of urea market-level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as Excel consisting of key products of all the major players.
The global urea market report would provide approximately 85 tables, 93 figures and 181 Pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
