Nitrification Inhibitors Market - Forecast(2023 - 2028)
Nitrification Inhibitors Market Overview
Nitrification inhibitors market size is forecast to reach US$619.1 million by 2027, after growing at a CAGR of 3.1% during 2022-2027. Nitrification inhibitors are chemical substances that impede the nitrification of fertilizers containing ammonia, ammonium, or urea, which are applied to soil as fertilizers. Nitrification inhibitors such as dicyandiamide, nitrapyrin, and others are widely utilized in agriculture and horticulture as a controlled release fertilizer for soil management. Since these compounds temporarily reduce populations of Nitrosomonas and Nitrobacter bacteria in soil, this results in improving the yield production. However, the effectiveness of nitrification inhibitors varies from the soil, climate, geography, and other factors and it may not it does not have consistent performance, these factors are resulting in a bottleneck for the growth of the nitrification inhibitors market.
The major economies across the world were under lockdown in the year 2020, because of which in the starting months of 2020 there was a decline in agriculture production. For instance, according to the United States Department of Agriculture, Australia's Wheat production in March 2020 was 15.2 million metric tonnes (MMT), down 0.4 MMT (3%) from February 2020, and 2.1 MMT (12%) from March 2019. Also, Thailand's rice production for April 2020 was about 18.0 million metric tonnes (milled basis), down 3% from March 2020 and 12% from April 2019. Similarly, there was a decline in agriculture production in other parts of the world, this resulted in a decline in demand for nitrification inhibitors. However, with increased emphasis on food security increased agriculture productivity was encouraged, which benefited the nitrification inhibitors market growth. In addition, it is projected that by the start of 2023, the impact of the Covid-19 pandemic will be minimal, which will result in nitrification inhibitors market growth scenario similar to pre-Covid time.
The report: "Nitrification Inhibitors Market–Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Nitrification Inhibitors Market.
By Type: Dicyandiamide (DCD), 2-Chloro-6-Trichloromethyl Pyridine (Nitrapyrin), Pronitradine, 3,4-Dimethylpyrazole Phosphate (DMPP), and Others
By Crop Type: Food Crop (Cereals, Pulses, Wheat, Rice, Maize, and Others), Cash Crop (Cotton, Oilseeds, Sugarcane, Soyabean, and Others), Fruits (Apples, Grapes, Banana, Watermelons, and Others), Vegetables (Tomato, Potato, Onions, Carrot, and Others) Plantation Crop (Coffee, Tea, and Others)
By End-Use Industry: Agriculture and Horticulture
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (Middle East (Saudi Arabia, UAE, Israel, and Rest of Middle East), and Africa (South Africa, Nigeria, and Rest of Africa))
- Asia-Pacific region dominated the nitrification inhibitors market, owing to the growth of the food grain production in the region. For instance, according to Invest India, the food grains production in India during 2019-20 was at 296.65 million metric tons, the highest level ever.
- The increasing research and development related to the new nitrification inhibitors will be a potential opportunity for the growth of the nitrification inhibitors market.
- The growing concern about the detrimental consequences of heavily fertilized agro-ecosystems releasing reactive nitrogen is leading to the increasing adoption of nitrification inhibitors, thereby driving market growth.
- Moreover, the increasing usage of nitrification inhibitors in fertilizers for food crops to increase the yield is further accelerating the growth of the market.
Figure: Asia-Pacific Nitrification Inhibitors Market Revenue, 2021-2027 (US$ Million)
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Nitrification Inhibitors Market Segment Analysis – By Type
The 3,4-Dimethylpyrazole Phosphate (DMPP) held the largest share in the nitrification inhibitors market in 2021 and is growing at a CAGR of 3.2% during 2022-2027. The 3,4-Dimethylpyrazole Phosphate (DMPP) is widely utilized in fertilizers to reduce the nitrogen losses which occur due to nitrate leaching. In addition, its properties are superior to dicyandiamide (DCD) because its usage in soil management increases soil NH4+-N by 41.1%, which is higher than dicyandiamide (DCD). Also, the use of 3,4-Dimethylpyrazole Phosphate (DMPP) has been resulting?in?lower gaseous emissions from the soil, including?N2O, NH3,?NO, CH4, and CO2.?Moreover, 3,4-Dimethylpyrazole Phosphate (DMPP) decreased soil NO3--N content by 20.7%. Due, to these advantages of 3,4-Dimethylpyrazole Phosphate (DMPP) over other types, its usage is increasing, which is accelerating the nitrification inhibitors market growth.
Nitrification Inhibitors Market Segment Analysis – By End-Use Industry
Agriculture held the largest share in the nitrification inhibitors market in 2021 and is growing at a CAGR of 3.4% during 2022-2027. Nitrification inhibitors are widely employed in agriculture production for the soil management purpose to restrict nitrifying microorganisms in the soil from converting ammonium to nitrate nitrogen, which may damage the yield. Apart from this, in agriculture, nitrification inhibitors are commonly deployed to reduce nitrous oxide (N2O) emissions while also increasing crop production. Also, the predictions about increased agriculture production globally will boost the demand for nitrification inhibitors, which will accelerate the market growth. For instance, according to the OECD-FOA Agriculture Outlook, worldwide agricultural production is expected to reach 3,04,403.61 tonnes by 2026. Thus, the projected agriculture production growth is expected to boost the nitrification inhibitors demand, thereby, propelling the market growth during the forecast period.
Nitrification Inhibitors Market Segment Analysis – By Geography
Asia-Pacific region held the largest share in the nitrification inhibitors market in 2021 up to 45%. The agriculture and horticulture activities are increasing in Asia-Pacific and also the production is growing from these activities, which is benefiting the nitrification inhibitors market growth. For instance, according to Invest India, India's overall horticulture production in 2019-2020 was 319 MMT, the greatest ever produced for the country. Furthermore, the United States Department of Agriculture (USDA), predicted Australia's cotton production in January 2022 at 5.5 million 480-pound bales, up 0.2 million bales from December 2021, and up 2.7 million bales or 96% from January 2021. Thus, the growing horticulture and agriculture production in Asia-Pacific will further boost the nitrification inhibitors market growth.
Nitrification Inhibitors Market Drivers
Increasing government initiatives to bolster agriculture production
Growing Food Crop Production
Nitrification Inhibitor is utilized for food crops such as wheat, coarse grains, and other similar crops to increase the yield production by reducing the bacteria in the soil. The increasing food crop production including wheat, coarse grains, and others across the world is accelerating the demand for nitrification inhibitors, which is further potential for market growth. For instance, according to the United States Department of Agriculture (USDA), in the year 2019, the global production of wheat was 762.2 million metric tonnes, and in 2021 it was 775.9 million metric tonnes, an increase of about 2%. Furthermore, in the year 2019, the total production of coarse grains across the world was 1,417.2 million metric tonnes, and in the year 2020, it was 1,433.9 million metric tonnes, an increase of 1.2%. Thus, the increasing food crop production such as wheat, coarse grains, and others across the globe is expected to boost the demand for nitrification inhibitors, which will drive the nitrification inhibitors market growth during the forecast period.
Nitrification Inhibitors Market Challenges
Uncertain Efficiency of Nitrification Inhibitor
Nitrification inhibitors have a huge amount of potential for reducing nitrous oxide emissions. However, nitrification inhibitors' performance varies depending on the soil, crop, and temperature. There is very little information on the inhibitor’s efficacy and ability to reduce nitrous oxide production under Australian circumstances. The market's growth could be hampered by the untested efficiency of nitrification inhibitors. Moreover, the use of compounds such as pyrazole as a nitrification inhibitor has the disadvantage of pyrazole rings being extremely volatile, which is not beneficial for agriculture usage, especially for food crops. Thus, factors such as the undiscovered potential of a nitrification inhibitor, limited types, and other factors are posing as a major challenge, which is restricting the growth of the nitrification inhibitors market.
Nitrification Inhibitors Industry Outlook
Technology launches, acquisitions, and increased R&D activities are key strategies adopted by players in this market. Nitrification Inhibitors top 10 companies include:
- BASF SE
- Dow AgroSciences
- COMPO EXPERT GmbH
- Eco Agro
- DowDuPont Inc
- National Fertilizers Limited
- Nico Orgo Manures
- Solvay SA
- Koch Fertilizer, LLC
- In September 2019, Koch Agronomic Services, LLC expanded its nitrification inhibitors business in Canada, with its product CENTURO. Business expansions like these will result in increased revenue benefits for the nitrification inhibitors market.
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