Global Urea Market Share, Growth & Demand By 2033

The global urea market exhibits a mature landscape with regional variations. Major producers include China, India, Russia, and the United States. While established markets like North America and Europe are expected to experience moderate growth, driven by agricultural needs and evolving farming practices, significant growth potential lies in developing regions like Asia and Africa, where rising populations and increasing disposable incomes will necessitate higher food production.

• For instance, China's "14th Five-Year Plan (2021-2025)" prioritizes sustainable farming and precision agriculture technologies, accelerating the demand for specialty urea-based fertilizers. According to the National Agro-Tech Extension and Service Center (NATESC), controlled-release urea fertilizers can improve nitrogen use efficiency (NUE) by up to 30%, aligning with China's goal of reducing chemical fertilizer dependency by 10% by 2030.

Environmental concerns regarding excessive fertilizer use and potential pollution from nitrogen run-off pose challenges for the urea market . The future of the global carbamide (urea) market hinges on its ability to embrace sustainability. Companies that invest in cleaner production technologies, develop environmentally friendly urea products, and promote responsible agricultural practices will be well-positioned to navigate the evolving landscape and achieve long-term success.

Market Dynamics The rising adoption of urea in industrial applications, particularly in emission control systems drives the global market

As per the International Energy Agency (IEA), the sales of diesel-powered heavy-duty vehicles equipped with Selective Catalytic Reduction (SCR) systems reliant on urea-based Diesel Exhaust Fluid (DEF) rose by 8% in 2024, reaching 32 million units globally. This surge aligns with stricter emission regulations, such as the U.S. Environmental Protection Agency's (EPA) updated NOx standards for heavy-duty vehicles, effective March 2024, mandating a 90% reduction in nitrogen oxide emissions by 2027. Similarly, China's Ministry of Ecology and Environment reported in 2025 that DEF consumption in commercial fleets doubled in 2024 to 1.5 million tonnes, driven by the China VI emission standard.

As per International Fertilizer Association (IFA) green ammonia-based urea production using renewable energy sources like wind or solar could reduce the carbon footprint of urea by up to 80% compared to traditional natural gas-based methods. A notable example is Stamicarbon's "Green Urea" pilot project in the Netherlands, launched in October 2024, which uses electrolyzed hydrogen and captured CO2 to produce 50,000 tonnes of urea annually, with plans to scale globally by 2027.

Moreover in 2023, SABIC Agri-Nutrients Company made first ever global shipment of low-carbon urea in Timaru, New Zealand, on July 21, marking a significant step in the company's continuing efforts towards SABIC's net zero commitment. On receiving the 2,700-ton consignment of urea, Ravensdown, a New Zealand-farmer owned agricultural co-operative company, has made a significant step in its transition to a low carbon future.

Regional Analysis

Asia Pacific holds a commanding position in the global urea market, accounting for 69.2% of the market share in 2025. This dominance stems from the region's massive agricultural base and government-backed initiatives to enhance food security amid rapid population growth. Beyond agriculture, Asia Pacific's urea market is expanding due to industrial applications, particularly in automotive emission control.

North America's urea market benefits from non-agricultural demand, notably in emission control and biofuels. Innovations like“Blue Urea” (produced using renewable energy and reduced emissions) present opportunities to meet environmental goals and consumer preferences. For instances:

• The Department of Energy (DOE) supports clean energy initiatives, with USD 7 billion allocated under the Bipartisan Infrastructure Law (2021) for hydrogen production, a key component in sustainable urea synthesis.
• The Green Fertilizer Grant Program provides funding to agricultural and rural electric cooperatives to invest in green fertilizer production facilities located in Minnesota. Program funds can be combined with available federal financial assistance programs, such as the Inflation Reduction Act Green Hydrogen Tax Credit (45V), or Department of Energy loan programs.

Key Highlights

• The global urea market size was valued at USD 98.9 billion in 2024 and is projected to grow from USD 103.2 billion in 2025 to USD 154.1 billion by 2033, exhibiting a CAGR of 5.7% during the forecast period (2025-2032).
• Based on type, the global urea market is segmented into liquid and solid. The solid segment is the largest revenue contributor to the market and is projected to exhibit a CAGR of 4.6%.
• Based on end use, the global urea market is segmented into Agriculture, Chemical, Automotive, Medical and Others. The agriculture segment is the largest revenue contributor to the market and is projected to exhibit a market share of 4.9%.