The Australian ammonia market is set to top $891.6 million by the end of 2016, a 5.8 per cent increase over 2015.
Consumption figures recorded for 2015 reached 1,324.9 KT and the market is set to experience serious growth in the next decade, according to a new report published by Persistence Market Research.
Figures from the report forecast the market will grow at a Compound Annual Growth Rate (CAGR) of 6.3 per cent between 2016 to 2024.
The research firm said a number of factors are driving this growth including rising demand for explosives and industrial chemicals.
Ammonia is also used as a commercial refrigerant alternative for hydrofluorocarbons, which is also driving growth.
“On the flipside, growing fertiliser imports and mutable prices of natural gas are major restraints in the Australian ammonia market," the report said.
The industrial chemicals segment is the leading segment followed by the explosives.
The explosives segment is projected to reach the value of $390.9 million at the end of 2024, registering a CAGR of 7.5 per cent through the forecast period. In terms of end-use, the market for ammonia in Australia is segmented with the nitric acid segment projected to account for a majority share in terms of both value and volume.
The segment is estimated to account for 46.2 per cent value share at the end of 2024, registering a CAGR of 7.9 per cent.
The ammonium nitrate segment is estimated to reach a value of $225.4 million at the end of 2016, registering 7.3 per cent growth over 2015.
Visit www.persistencemarketresearch.com/market-research/australia-ammonia-market.asp.