The ammonia market was valued at $53.2 billion in 2023, and is projected to reach $87.7 billion by 2033, growing at a CAGR of 5.1% from 2024 to 2033.
Ammonia is a colorless, pungent gas composed of nitrogen and hydrogen. This property makes it ideal in the production of fertilizers, where it plays a critical role in providing essential nutrients for plant growth. In addition, it is used in the manufacturing of explosives, textiles, and pharmaceuticals, and as a refrigerant gas. However, ammonia handling requires careful attention due to its toxicity and environmental impact, necessitating stringent safety measures in its production, storage, and transportation.
The growth of the global ammonia market is majorly driven by exponential increase in population and significant rise in demand for food across the globe. This further propels the need for higher crop yield, which, in turn, is boosting the demand for nitrogen-based fertilizers like urea and ammonium nitrate, as they maximize crop yield along with controlling weed growth. According to a 2023 study published in Nature Synthesis - a scientific journal that focuses on publishing cutting-edge research in the field of synthetic chemistry - approximately 170 million metric tons of ammonia is produced each year across the globe, with 80% of it being used in the production of fertilizers. In addition, surge in demand for ammonia in industrial processes such as refrigeration and wastewater treatment notably contributes to the market growth. This is attributed to the fact that ammonia serves as a key raw material in the production of various chemicals, including nitric acid, explosives, and plastics. However, exposure to high concentrations of ammonia causes respiratory issues due to its toxic nature and pungent odor. Moreover, enforcement of stringent environmental regulations related to ammonia emissions and handling increases compliance cost for producers, which limits the market growth. High carbon footprint associated with its production acts as a major restraint of the global market, particularly as industries and governments are focusing on decarbonization and adopting more sustainable practices. On the contrary, innovations in ammonia production, such as green ammonia produced using renewable energy sources, are influencing the market by providing more sustainable options and reducing the carbon footprint of ammonia production. Furthermore, supportive government policies aimed at reducing carbon emissions and promoting sustainable agricultural practices are driving the adoption of green ammonia. As per Oxford Institute for Energy Studies, 2021, the production of green ammonia is estimated to reduce carbon emissions by 1.8 billion tons annually by 2050, if widely adopted. Thus, it is being explored as a carbon-free fuel for energy storage and transportation, particularly in the context of reducing greenhouse gas emissions, which is expected to drive future demand.
The global ammonia market is segmented into type, production type, end use, and region. On the basis of type, the market is bifurcated into aqueous and anhydrous. By production type, it is segregated into green ammonia, blue ammonia, grey ammonia, and brown ammonia. Depending on end use, it is divided into fertilizer, chemical, refrigeration, fibers, plastics, pharmaceuticals, paper & pulp, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By production type, the blue ammonia segment is anticipated to grow at a notable pace throughout the forecast period.
On the basis of end use, fertilizer is projected to emerge as a leading segment in the coming years.
Region wise, Asia-Pacific dominated the market in 2023, and is likely to continue the same trend during the forecast period.
Ammonia is a colorless, pungent gas composed of nitrogen and hydrogen. This property makes it ideal in the production of fertilizers, where it plays a critical role in providing essential nutrients for plant growth. In addition, it is used in the manufacturing of explosives, textiles, and pharmaceuticals, and as a refrigerant gas. However, ammonia handling requires careful attention due to its toxicity and environmental impact, necessitating stringent safety measures in its production, storage, and transportation.
The growth of the global ammonia market is majorly driven by exponential increase in population and significant rise in demand for food across the globe. This further propels the need for higher crop yield, which, in turn, is boosting the demand for nitrogen-based fertilizers like urea and ammonium nitrate, as they maximize crop yield along with controlling weed growth. According to a 2023 study published in Nature Synthesis - a scientific journal that focuses on publishing cutting-edge research in the field of synthetic chemistry - approximately 170 million metric tons of ammonia is produced each year across the globe, with 80% of it being used in the production of fertilizers. In addition, surge in demand for ammonia in industrial processes such as refrigeration and wastewater treatment notably contributes to the market growth. This is attributed to the fact that ammonia serves as a key raw material in the production of various chemicals, including nitric acid, explosives, and plastics. However, exposure to high concentrations of ammonia causes respiratory issues due to its toxic nature and pungent odor. Moreover, enforcement of stringent environmental regulations related to ammonia emissions and handling increases compliance cost for producers, which limits the market growth. High carbon footprint associated with its production acts as a major restraint of the global market, particularly as industries and governments are focusing on decarbonization and adopting more sustainable practices. On the contrary, innovations in ammonia production, such as green ammonia produced using renewable energy sources, are influencing the market by providing more sustainable options and reducing the carbon footprint of ammonia production. Furthermore, supportive government policies aimed at reducing carbon emissions and promoting sustainable agricultural practices are driving the adoption of green ammonia. As per Oxford Institute for Energy Studies, 2021, the production of green ammonia is estimated to reduce carbon emissions by 1.8 billion tons annually by 2050, if widely adopted. Thus, it is being explored as a carbon-free fuel for energy storage and transportation, particularly in the context of reducing greenhouse gas emissions, which is expected to drive future demand.
The global ammonia market is segmented into type, production type, end use, and region. On the basis of type, the market is bifurcated into aqueous and anhydrous. By production type, it is segregated into green ammonia, blue ammonia, grey ammonia, and brown ammonia. Depending on end use, it is divided into fertilizer, chemical, refrigeration, fibers, plastics, pharmaceuticals, paper & pulp, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key Findings
Depending on type, the anhydrous ammonia segment is expected to dominate the global market from 2024 to 2033.By production type, the blue ammonia segment is anticipated to grow at a notable pace throughout the forecast period.
On the basis of end use, fertilizer is projected to emerge as a leading segment in the coming years.
Region wise, Asia-Pacific dominated the market in 2023, and is likely to continue the same trend during the forecast period.
Competition Analysis
Competitive analysis and profiles of the major players in the global ammonia market include CF Industries Holdings, Inc., Nutrien Ltd., Jinmei Group, Hubei Yihua Group, Qatar Fertilizer Company, PetroChina Group, TogliattiAzot, EuroChem Group, Acron Group Limited, and Yangmei Group. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships to gain a strong foothold in the competitive market.Additional benefits you will get with this purchase are:
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Key Market Segments
By Type
- Aqueous
- Anhydrous
- Gas
By Product Type
- Green Ammonia
- Blue Ammonia
- Grey Ammonia
- Brown Ammonia
By End Use
- Fertilizer
- Chemical
- Refrigeration
- Fibers
- Plastics
- Pharmaceuticals
- Paper and Pulp
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- France
- Germany
- Italy
- Spain
- UK
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest of Asia-Pacific
- LAMEA
- Brazil
- South Africa
- Saudi Arabia
- Rest of LAMEA
- CF Industries Holdings, Inc.
- Nutrien Ltd.
- Jinmei Group
- Hubei Yihua Group
- Qatar Fertilizer Company
- PetroChina Group
- TogliattiAzot
- EuroChem Group
- Acron Group Limited
- Yangmei Group
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET LANDSCAPE
CHAPTER 4: AMMONIA MARKET, BY TYPE
CHAPTER 5: AMMONIA MARKET, BY PRODUCT TYPE
CHAPTER 6: AMMONIA MARKET, BY END USE
CHAPTER 7: AMMONIA MARKET, BY REGION
CHAPTER 8: COMPETITIVE LANDSCAPE
CHAPTER 9: COMPANY PROFILES
LIST OF TABLES
LIST OF FIGURES
Companies Mentioned
Key Market Players in the Ammonia Market include:- CF Industries Holdings, Inc.
- Nutrien Ltd.
- Jinmei Group
- Hubei Yihua Group
- Qatar Fertilizer Company
- PetroChina Group
- TogliattiAzot
- EuroChem Group
- Acron Group Limited
- Yangmei Group
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 325 |
| Published | July 2024 |
| Forecast Period | 2023 - 2033 |
| Estimated Market Value ( USD | $ 53.2 billion |
| Forecasted Market Value ( USD | $ 87.7 billion |
| Compound Annual Growth Rate | 5.1% |
| Regions Covered | Global |
| No. of Companies Mentioned | 11 |
