Ammonia Global Market Opportunities and Strategies to 2033

This report describes and explains the ammonia market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global ammonia market reached a value of nearly $72.86 billion in 2023, having grown at a compound annual growth rate (CAGR) of 4.7% since 2018. The market is expected to grow from $72.86 billion in 2023 to $97.45 billion in 2028 at a rate of 6%. The market is then expected to grow at a CAGR of 6.6% from 2028 and reach $134.2 billion in 2033.

Growth in the historic period resulted from the growth of the fertilizer industry, rise in demand for agriculture and increased demand for agrochemicals. Factors that negatively affected growth in the historic period were stringent regulations.

Going forward, the favorable government support, growing population and growing ammonia production will drive the growth. Factor that could hinder the growth of the ammonia market in the future include hazardous effects of ammonia.

The ammonia market is segmented by product type into anhydrous ammonia and aqueous ammonia. The anhydrous ammonia market was the largest segment of the ammonia market segmented by product type, accounting for 62.7% or $45.69 billion of the total in 2023. Going forward, the anhydrous ammonia segment is expected to be the fastest growing segment in the ammonia market segmented by product type, at a CAGR of 6.4% during 2023-2028.

The ammonia market is segmented by form type into liquid, powder and gas. The liquid market was the largest segment of the ammonia market segmented by form type, accounting for 62.8% or $45.78 billion of the total in 2023. Going forward, the liquid segment is expected to be the fastest growing segment in the ammonia market segmented by form type, at a CAGR of 6.2% during 2023-2028.

The ammonia market is segmented by application into fertilizers, chemicals, refrigeration, pharmaceutical, fibers and plastics, pulp and papers and other applications. The fertilizers market was the largest segment of the ammonia market segmented by application, accounting for 62.2% or $45.3 billion of the total in 2023. Going forward, the fertilizers segment is expected to be the fastest growing segment in the ammonia market segmented by application, at a CAGR of 6.5% during 2023-2028.

Asia-Pacific was the largest region in the ammonia market, accounting for 52% or $37.9 billion of the total in 2023. It was followed by North America, Western Europe and then the other regions. Going forward, the fastest-growing regions in the ammonia market will be South America and Middle East where growth will be at CAGRs of 8% and 7.7% respectively. These will be followed by North America and Asia-pacific where the markets are expected to grow at CAGRs of 6.2% and 5.9% respectively.

The global ammonia market is fairly fragmented, with a few large players operating in the market. The top ten competitors in the market made up to 22.5% of the total market in 2022. CF Industries Holdings, Inc. was the largest competitor with a 4.5% share of the market, followed by Nutrien Ltd. with 4.1%, Yara International ASA with 4%, OCI Global with 2.2%, SABIC with 1.8%, China National Petroleum Corporation with 1.7%, Qatar Fertilizer Company with 1.5%, Wesfarmers Limited (CSBP Limited) with 1.3%, BASF SE with 0.9% and Koch Industries with 0.5%.

The top opportunities in the ammonia market segmented by product type will arise in the anhydrous ammonia segment, which will gain $16.49 billion of global annual sales by 2028. The top opportunities in the ammonia market segmented by form type will arise in the liquid segment, which will gain $16.04 billion of global annual sales by 2028. The top opportunities in the ammonia market segmented by application will arise in the fertilizers segment, which will gain $16.83 billion of global annual sales by 2028. The ammonia market size will gain the most in China at $6.68 billion.

Market-trend-based strategies for the ammonia market include focus on new applications of ammonia, such as the introduction of ammonia-powered engines for passenger cars, focus on investing in new technologies to improve energy efficiency and reduce CO2 emissions in ammonia production, focus on increasing their investments to expand their product portfolio and drive revenues and focus on strategic partnerships and collaborations to improve their financial strength, strengthen their product portfolio and expand their geographical presence.

Player-adopted strategies in the ammonia market include focus on expanding operational capabilities through strategic acquisitions, focus on enhancing business capabilities through the launch of new products, focus on strengthening its operational capabilities through production expansions and focus on enhancing business operations through strategic collaborations and partnerships.

To take advantage of the opportunities, the analyst recommends the ammonia market companies to focus on sustainable production, focus on strategic investments for market expansion, focus on the anhydrous ammonia segment for rapid growth, increase focus on liquid ammonia, expand in emerging markets, continue to focus on developed markets, focus on strategic collaborations for market expansion, focus on distribution channel expansion for market reach, provide competitively priced offerings, focus on strategic pricing for competitive edge, participate in trade shows and events, continue to use B2B promotions, focus on strategic promotion for market visibility, focus on fertilizers and chemicals application segments for strategic growth and focus on customer-centric strategies.