Global Urea Market Outlook: Projected to Reach US$ 118.9 Bn by 2032 at 2.5% CAGR | Persistence Market Research

The global urea market is poised for steady growth, driven by rising demand from the agricultural sector and increasing use in industrial applications. According to Persistence Market Research, the market is estimated to reach a valuation of US$ 102.3 billion in 2025, expanding at a compound annual growth rate (CAGR) of 2.5% through the forecast period, ultimately reaching US$ 118.9 billion by 2032. This upward trajectory reflects the market's resilience and evolving utility across key industries.

As one of the most commonly used nitrogen fertilizers globally, urea holds a pivotal role in ensuring food security through improved crop yields. In addition to its widespread application in agriculture, urea is gaining momentum in the chemical, medical, and automotive industries. The market's largest segment by application remains agriculture, with Asia Pacific emerging as the dominant region due to high fertilizer consumption in countries like India and China.

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✅Overview of the Urea Market

The global urea market is experiencing consistent growth with an emphasis on efficiency in fertilizer use and increasing agricultural activities. In 2025, the market size is projected at US$ 102.3 billion, and it is anticipated to grow to US$ 118.9 billion by 2032, registering a CAGR of 2.5%. This growth is being significantly propelled by the increasing population and demand for higher agricultural productivity across emerging economies.

One of the key drivers fueling market expansion is the heightened demand for food, requiring efficient fertilizers like urea. The agriculture segment leads the market, accounting for the largest share due to its critical use in enhancing crop productivity. Asia Pacific stands out as the dominant geographical region, primarily due to favorable government policies, population growth, and high fertilizer demand in countries such as China, India, and Indonesia.

✅Key Highlights from the Report:

➤ The global urea market is projected to grow from US$ 102.3 Bn in 2025 to US$ 118.9 Bn by 2032.
➤ Agriculture remains the dominant application segment, holding a significant market share.
➤ Asia Pacific is the leading regional market, driven by high fertilizer consumption and government subsidies.
➤ Industrial use of urea in resins and adhesives is expected to grow at a steady rate.
➤ Liquid urea is gaining traction for its use in diesel exhaust fluid (DEF) in the automotive industry.
➤ Technological innovation in urea production methods is enhancing efficiency and reducing environmental impact.

📊Market Segmentation:

The urea market can be segmented based on product type into granular urea, prilled urea, and liquid urea. Among these, granular urea leads the segment due to its durability and extended shelf life, making it a preferred choice for bulk applications in agriculture. Prilled urea is commonly used in regions where quick dissolution is desired, while liquid urea is growing in demand particularly for automotive DEF applications, aiding in reducing nitrogen oxide emissions.

By end-user industry, the market is segmented into agriculture, chemical, automotive, and medical sectors. The agriculture sector dominates due to urea's role as an essential nitrogen source in fertilizers. However, the automotive segment is expected to register notable growth during the forecast period, driven by strict emission norms and rising adoption of DEF systems in diesel engines globally.

📊Regional Insights:

Asia Pacific is the largest and fastest-growing region in the urea market, primarily due to its substantial agricultural base and high population density. Countries such as India, China, and Indonesia heavily rely on nitrogen-based fertilizers to meet food production goals, supported by government subsidy programs that encourage urea use.

North America and Europe are also significant markets. In these regions, the use of urea in industrial applications such as adhesives, resins, and DEF is witnessing steady growth. Environmental concerns and regulatory standards around emissions are prompting higher consumption of high-purity urea for non-agricultural use, especially in the U.S. and Germany.

Market Drivers

One of the primary drivers of the global urea market is the growing demand for food due to the rising global population. Urea, being a nitrogen-rich fertilizer, is critical for increasing crop productivity. Additionally, government incentives and subsidies in developing economies further stimulate the consumption of urea in agriculture. The expanding industrial sector is also boosting the demand for urea in resin production, adhesives, and plastics.

Market Restraints

Despite promising growth, the market faces certain challenges. Volatility in raw material prices, especially natural gas used in urea production, affects manufacturing costs. Moreover, environmental concerns related to nitrogen runoff and water pollution have led to stringent regulatory norms, especially in Europe, which could curb urea usage. The availability of alternative fertilizers with lower environmental impact may also hinder market expansion.

Market Opportunities

The market offers significant opportunities, particularly in liquid urea used in diesel exhaust fluid (DEF) to comply with global emission standards. As more countries adopt stricter regulations, the DEF segment is set for robust growth. Additionally, technological advancements in urea production and enhanced-efficiency fertilizers present new avenues for expansion. Emerging markets in Africa and Latin America, with rising agricultural investment, also provide untapped potential for future growth.

👉Frequently Asked Questions (FAQs):

➤How Big is the Urea Market projected to become by 2032?
➤Who are the Key Players in the Global Urea Market?
➤What is the Projected Growth Rate of the Urea Market through the forecast period?
➤What is the Market Forecast for Urea in terms of revenue by 2032?
➤Which Region is Estimated to Dominate the Urea Industry during the Forecast Period?

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📌Key Players

The global urea market features a mix of regional and international players competing on pricing, product quality, and distribution networks. Key market participants include:

✦ Yara International ASA
✦ CF Industries Holdings, Inc.
✦ Koch Fertilizer, LLC
✦ SABIC
✦ EuroChem Group AG
✦ Nutrien Ltd.
✦ OCI N.V.
✦ China National Petroleum Corporation (CNPC)
✦ BASF SE
✦ Indian Farmers Fertiliser Cooperative Limited (IFFCO)

Recent Developments:

■ In 2024, Yara International announced a new initiative to produce green urea using renewable energy, reducing carbon emissions in the process.
■ CF Industries partnered with Mitsui & Co. to explore clean ammonia and urea production projects in North America, aiming at long-term sustainability goals.

With an expanding population, rising agricultural needs, and increasing industrial applications, the global urea market is firmly on a growth path. Backed by evolving technologies, government initiatives, and new market opportunities, the industry is set to play a pivotal role in the global economy through 2032 and beyond.

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