The global granular urea market size is estimated to grow at a CAGR of ~3% during the forecast period i.e. 2023-2035 to reach ~USD 55 billion by the end of 2035. In addition, the market size of granular urea in 2022 was ~USD 35 billion. The major growth factor for the expansion of the global granular urea is the rapid growth of the agricultural industry. Granular urea is widely used as a nitrogen fertilizer in the agricultural sector. Due to its various advantages and low cost effectiveness over prilled urea, granular urea is considered as a preferred option for agricultural purposes. Hence, the global granular urea market is expected to grow significantly along with the growth of the agricultural industry. The United States Department of Agriculture (USDA) stated that the agri-food and related industries contributed approximately $1.264 trillion to the US gross domestic product (GDP) in 2021, accounting for 5.4% of the total. This figure is expected to increase further in the coming years.
Applications in the agricultural industry
In addition, granular urea is considered as a vital component in adhesives and resins, wood industry, health and beauty products, metal processing, tanning plants, water treatment, construction, and several other industrial applications. The high-quality granular urea market is also used as a particle in the board industry, which is an essential component in the manufacturing construction and wood industries. The chemical composition of granular urea is useful in the pharmaceutical industry to produce advanced medical products. All these versatile uses of granular urea across a wide range of industries are expected to create lucrative opportunities for the market growth during the forecast period.
Growth engine
Presence of large agricultural lands in the world – Food and food-related products have high demand for livelihood. These factors mainly lead to the presence of agricultural lands and increase in agricultural processes. With increasing focus on agricultural processes, the use of granular elements is expected to increase for rapid growth in food production. According to the World Bank data, the total agricultural land in the world in 2018 accounted for 36.9% of the total land area. Along with this, the increasing demand for high-value crops along with high demand for agricultural products is expected to bring lucrative growth opportunities for the market growth in the coming years.
Increase in food grain production – The demand for food grains has increased due to the rapidly growing population in recent years. This has led to expansion of agricultural processes. This factor is estimated to increase the utilization of granular urea as a nitrogen fertilizer to improve crop quality. Food grain production in India is projected to increase by nearly 6 million tonnes to 320 million tonnes in 2021-2022.
High Investment in Construction – Rapid industrialization and urbanization have led to a significant increase in the demand for construction of buildings and other infrastructure in recent times. Granular elements are considered as a crucial component in construction applications due to their advanced properties that help in enhancing durability and strength. Hence, with the increasing interest in the construction industry, the demand for granular elements is also expected to increase, which is expected to help expand the global market size during the assessment period. According to a recent report, the construction industry needs to invest at least USD 95 trillion over the next 20 years to construct 13,000 buildings every day from now until 2050 to support the 7 billion urban population.
Increasing Research and Development Activities – Governments of several countries and key players operating in the market are focusing on introducing advanced components such as granular elements glyphosate to improve crop quality and efficiency in agricultural processes . As a result of these investments, the global market for granular elements is expected to expand significantly in the near future. According to World Bank statistics, expenditure on research and development activities increased to 2.63% of the world GDP in 2020, up from 2.2% of the world GDP in 2018.
challenge
|
Base year |
2022 |
|
Forecast year |
2023-2035 |
|
CAGR |
~3% |
|
Base Year Market Size (2022) |
~ US$35 billion |
|
Forecast Year Market Size (2035) |
~ US$55 billion |
|
Area coverage |
|
The global granular urea market is segmented and analyzed by product type into fertilizer grade, feed grade, and technical grade. Among the three types of granular urea, the fertilizer grade segment is expected to account for the largest market share of ~38% in 2035. The primary reason for the segment growth across the globe is the presence of a rapidly growing population demanding food and other agricultural products. High demand and production of food grains are expected to aid the segment growth during the forecast period, as granular urea is efficient in improving agricultural processes. Food grain production in India is expected to increase by nearly 6 million tonnes to 320 million tonnes in 2021-2022. Additionally, fertilizer grade is considered to be the highest quality nitrogen fertilizer available in the market compared to other fertilizers. Additionally, benefits such as cost-effectiveness, easy availability, and positive outcomes are expected to drive the population to adopt fertilizer grade granular urea. All these factors are expected to add up to create a positive outlook for the segment growth during the forecast period.
The global granular elements market is also segmented and analyzed for demand and supply by application in agrochemicals, building and construction, etc. Among these segments, the agricultural sector is expected to hold a significant share of ~46% in 2035. The major factor driving the growth of the sector during the forecast period is the increasing need for agricultural processes for livelihood and survival. Hence, granular elements are widely used in the agricultural industry due to their chemical composition. Hence, with the growth of the agricultural industry, employment is also increasing, which is considered a positive factor for the high utilization of granular elements in agricultural activities. The World Bank stated that agricultural employment accounted for at least 27% of the total employment in 2019. Farmers use granular elements to protect their plants and crops by controlling and eradicating undesirable plants and improving crop quality. As the population increases, the demand for food and agricultural products also increases, thus requiring granular elements to provide the best quality nutrition and help crops grow faster.
The in-depth analysis of the global granular elements market includes the following segments:
|
By product type |
|
|
By application |
|
The Asia Pacific region is expected to be the largest market share of granular elements by 2035, accounting for ~35% of the market among all other regions. The high share of agricultural employment in India is a major growth factor for the adoption of granular elements and the growth of the market in the Asia Pacific region. The high employment rate indicates that agriculture is dominant in the region, which is expected to lead to a high adoption of granular elements in agriculture and agricultural processes. The overall agricultural employment in India has increased from 37% in 2018-2019 to 38% in 2019-2020. Another factor driving the growth of the Asia Pacific market is the presence of a large amount of agricultural land, which is expected to increase the use of granular elements for agricultural and food production. According to the World Bank, agricultural land in East Asia and Pacific accounted for ~47.7% of the total land area in 2018. In addition to the aforementioned factors, the growth in GDP levels along with high investments in research and development activities and high consumption of chemicals are expected to be other growth factors for the market expansion during the assessment period. Domestic chemical sales in the Asia Pacific region reached approximately USD 3 trillion in 2021.
The North America granular elements market is estimated to be the second largest market by 2035, accounting for ~24% of the market share. The primary reason for the market growth in this region is the increasing technological advancements in the agricultural industry, which are expected to increase the production rate and utilization of granular elements. Another factor driving the market expansion in this region is the increasing use of modern agricultural products along with the increasing preference for genetically modified crops in the coming years. In addition to this, the ongoing support from several organizations such as the Environmental Protection Agency (EPA) and the Food and Agriculture Organization (FAO) to address consumer concerns and awareness regarding health impacts and environment, as well as the initiation of agricultural support policies, are expected to increase the utilization of granular elements in the coming years. Additionally, the rapidly growing agricultural sector and the need for granular elements for crop fortification are also expected to contribute positively to the market expansion.
Also, the market in the Europe region is expected to hold the majority share among all other regions by the end of 2035. The increasing level of awareness among European farmers about the benefits of granular elements is considered as a major factor for the growth of the market in the region. Also, favorable government initiatives to increase crop production in the region and increasing employment in the agricultural sector are considered as other factors for the rapid expansion of the market size during the forecast period.
Yara International ASA has joined Apollo’s investors, including SBI Investments, Anthemis Group and Leaps by Bayer. The motto is to work with management and investors to empower African farmers.
Fertilizer manufacturer EuroChem Group has signed an agreement to acquire a controlling stake in Brazilian distributor Fertilizantes Heringer SA, further strengthening the group's global production and distribution capabilities.
저자 크레딧: Rajrani Baghel
무료 샘플 사본에는 시장 개요, 성장 추세, 통계 차트 및 표, 예상 예측 등이 포함됩니다.
이 보고서를 주문하기 전에 질문이 있으십니까?