Global Gas Based Urea Fertilizers Market Size By Type (Granular, Liquid), By Application (Agricultural, Industrial), By Region, And Segment Forecasts, 2023 to 2032

The Global Gas-Based Urea Fertilizers Market was valued at USD 45.6 billion in 2023 and is projected to surpass USD 72.3 billion by 2031, growing at a CAGR of 5.9% during the forecast period of 2023-2031. The market growth is driven by the increasing demand for nitrogen-based fertilizers, the rising global population leading to higher food production needs, and the abundant availability of natural gas as a feedstock. Gas-based urea is a critical component in modern agricultural practices, ensuring higher crop yields and soil fertility.

Drivers

Increasing Demand for Food Production

With the global population projected to reach 9.7 billion by 2050, the demand for food is escalating. Farmers are increasingly relying on nitrogen-based fertilizers, including gas-based urea, to enhance crop productivity and meet the growing food demand.

Abundant Availability of Natural Gas

Natural gas is the primary raw material for urea production. Major gas-producing regions, including the Middle East, Russia, and the U.S., provide a steady supply of natural gas, making gas-based urea production more cost-effective and sustainable.

Government Initiatives and Subsidies

Several governments worldwide provide subsidies on fertilizers, including gas-based urea, to support farmers. Countries like India, China, and Brazil have robust policies promoting the use of urea to enhance agricultural productivity.

Restraints

Environmental Concerns and Regulations

Excessive use of urea-based fertilizers contributes to soil degradation, water pollution, and greenhouse gas emissions. Regulatory policies promoting eco-friendly alternatives, such as organic fertilizers, pose a challenge to the growth of the gas-based urea market.

Volatility in Natural Gas Prices

The cost of urea production is directly linked to natural gas prices. Fluctuations in global gas markets due to geopolitical tensions, trade policies, and supply chain disruptions can impact production costs and market stability.

Opportunity

Adoption of Precision Farming Techniques

The integration of digital agriculture, precision farming, and controlled fertilizer application is reducing the environmental impact of urea while enhancing its efficiency. Smart fertilizers and coated urea are emerging as promising solutions.

Emerging Markets in Africa and Latin America

Developing countries in Africa and Latin America are investing in agriculture and fertilizer production. Infrastructure improvements and rising awareness of modern farming practices present growth opportunities for the gas-based urea market.

Market by System Type Insights

Granular Urea Dominates the Market

Based on system type, the Granular Urea segment held the largest market share in 2023, driven by its higher nitrogen content, ease of storage, and better application efficiency compared to prilled urea. The segment is expected to maintain its dominance throughout the forecast period.

Market by End-Use Insights

Agriculture Leads the Market

The Agriculture sector accounted for over 80% of the market share in 2023, making it the largest end-use segment. The rising demand for high-yield crops and intensive farming practices is fueling the demand for gas-based urea fertilizers. The Industrial sector, particularly chemical manufacturing, is also a significant consumer of urea, primarily for resins, adhesives, and melamine production.

Market by Regional Insights

Asia-Pacific held the largest market share in 2023, accounting for over 50% of the total demand. China, India, and Indonesia are the largest consumers of gas-based urea, supported by government subsidies and extensive agricultural activities.

North America and Europe are experiencing moderate growth, with a shift toward eco-friendly fertilizers and controlled-release urea solutions.

The Middle East and Africa are emerging as key producers due to their abundant natural gas resources and investments in fertilizer production plants.

Competitive Scenario

Key players in the Global Gas-Based Urea Fertilizers Market include:

CF Industries Holdings, Inc.

Yara International ASA

Nutrien Ltd.

OCI N.V.

Qatar Fertilizer Company (QAFCO)

Saudi Basic Industries Corporation (SABIC)

EuroChem Group AG

TogliattiAzot

Indian Farmers Fertiliser Cooperative Limited (IFFCO)

These companies are focusing on capacity expansions, technological advancements, and sustainability initiatives to strengthen their market presence.

Scope of Work – Global Gas-Based Urea Fertilizers Market

Key Market Developments

2023: CF Industries expanded its green ammonia and urea production facilities to reduce carbon emissions.

2024: Yara International launched a low-carbon urea fertilizer, targeting sustainable agriculture.

2025: Qatar Fertilizer Company (QAFCO) signed a strategic agreement to supply gas-based urea to African markets.

FAQs

1. What is the current market size of the Global Gas-Based Urea Fertilizers Market?

The Global Gas-Based Urea Fertilizers Market was valued at USD 45.6 billion in 2023.

2. What is the major growth driver of the Gas-Based Urea Fertilizers Market?

The rising demand for nitrogen-based fertilizers to support global food production is the primary growth driver.

3. Which region holds the largest market share during the forecast period?

Asia-Pacific dominates the market, with China and India leading in fertilizer consumption and production.

4. Which segment accounted for the largest market share in the Gas-Based Urea Fertilizers Market?

The Agriculture segment accounted for the largest market share in 2023, driven by high demand for nitrogen fertilizers.

5. Who are the key market players in the Gas-Based Urea Fertilizers Market?

Key players include CF Industries, Yara International, Nutrien Ltd., OCI N.V., and SABIC.

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