Granular Urea Market size was valued at USD 36.02 Billion in 2023 and is set to cross USD 52.23 Billion by 2036, expanding at more than 2.9% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of granular urea is evaluated at USD 37.04 Billion. The reason behind the growth is impelled by the growing chemical industry. This, as a result, has increased the demand for granular urea since it is used as a raw material to generate a variety of chemicals, as well as feedstock, glue, fertilizer, commercial goods, and resin.According to estimates, over USD 4 trillion in sales were generated by the chemical industry worldwide in 2021
The spiking demand for diesel is believed to fuel the granular urea market growth. Diesel is considered fuel efficient, therefore it is widely used in commercial sectors such as buses, and heavy-duty trucks. This has led to an increased demand for granular urea since it is used in diesel engines in vehicles, buses, and trucks, and is employed in reactions known as Selective Non-Catalytic Reduction (SNCR) and Selective Catalytic Reduction (SCR) to reduce the NO x pollutants in exhaust gases produced by the combustion of diesel.
In 2023, the global demand for diesel engines is anticipated to rise by more than 4%, reaching over USD 240 billion.
Growth Drivers
For instance, Petrochemical Industries Company (PIC) in Kuwait successfully reduced ammonia emissions by over 70%, and urea emissions by more than 50% by replacing the melting and prilling units of finished-product urea prills with an eco-friendly granulation process.
Challenges
Base Year |
2023 |
Forecast Year |
2024-2036 |
CAGR |
2.9% |
Base Year Market Size (2023) |
USD 36.02 Billion |
Forecast Year Market Size (2036) |
USD 52.23 Billion |
Regional Scope |
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Product Type (Fertilizer, Feed, Technical Grade)
The fertilizer grade segment in the granular urea market is estimated to gain a robust revenue share of 38% in the coming years owing to the growing demand for food. Granular urea is efficient in enhancing agricultural processes, therefore it is widely used to meet the demand for food.
Fertilizer grade is considered to be the highest quality nitrogen fertilizer which is used to supply nitrogen to plants, to encourage the growth of green leaves. It also has other benefits such as cost effectiveness, and easy availability which as a result is expected to propel the population to adopt fertilizer-grade granular urea.
According to estimates, by 2050, the demand for food is anticipated to rise globally by over 65%.
Application (Agriculture, Chemical, Building & Construction)
The agriculture segment is set to hold 46% share of the global granular urea market in the near future owing to an increasing usage of granular urea in the agriculture sector. Granular Urea is heavily used in the agricultural sector as a nitrogen fertilizer owing to its various advantages over prilled urea.
It has around 46% nitrogen concentration, and it is extensively utilized in horticulture, agriculture, and pasture growth to increase crop yields. By controlling and eradicating undesirable vegetation farmers use granular urea to protect crops and plants.
Our in-depth analysis of the global granular urea market includes the following segments:
Product Type |
|
Application |
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APAC Market Forecast
The granular urea market in the Asia Pacific is predicted to account for the largest share of about 35% by the end of 2036 impelled by rapid urbanization. As more and more people in the region are shifting towards urban areas the agricultural land is being largely used for non-agricultural purposes which has reduced the availability of arable land. As a result, farmers in the region are widely using granular urea to increase crop production in the limited available land.
According to predictions, more than 50% of the population in Asia Pacific will live in urban areas in 2030.
North American Market Statistics
The North America granular urea market is estimated to hold the second-largest share of about 24%, during the forecast timeframe led by the growing polymer sector. There is an increasing need for polymer-based products in the region which may increase the demand for granular urea since it is used as a feedstock in the production of the polymer.
Author Credits: Rajrani Baghel
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