Market Overview
The Global Ammonia Market is expected to reach a value of
USD 243.1 billion by the end of 2024, and it is further anticipated to reach a market value of
USD 415.3 billion by 2033 at a
CAGR of 6.1%.
Nitrogen is vital for improved plant growth, but its gaseous form creates challenges. The Haber-Bosch method transforms atmospheric nitrogen into ammonia, a key component in fertilizers, boosting crop productivity. NH3 plays a major role in improving germination, crop-soil separation, & nutrient availability. The ammonium market is expected to growth, driven by textile industry demand and government initiatives, as government regulations impact ammonia costs globally due to complex production processes.
Key Takeaways
• The Global Ammonia Market is expected to grow by 172.2 billion, at a CAGR of 6.1% during the forecasted period.
• By Product, anhydrous ammonia segment is expected to lead in 2024 & is anticipated to dominate throughout the forecasted period.
• By Application, the fertilizer segment is expected to take the lead & drive the market in 2024.
• Asia Pacific is expected to hold a 58.5% share of revenue in the Global Ammonia Market in 2024.
• Some of the use cases of ammonia include fertilizer production, emission control in power plant, and more.
Use Case:
• Fertilizer Production: Ammonia is a key component in the production of nitrogen-based fertilizers, like ammonium nitrate, urea, and ammonium sulfate, as farmers use these fertilizers to enhance soil fertility & promote plant growth, as nitrogen is an essential nutrient for plants.
• Refrigeration and Air Conditioning: Ammonia is highly used as a refrigerant in industrial refrigeration systems & large-scale air conditioning systems. Further, ammonia has excellent thermodynamic properties, high efficiency, & is environmentally friendly in comparison to some synthetic refrigerants, making it a preferred choice in certain applications.
• Cleaning Agent in the Food Industry: It is used in the food industry as a cleaning & sanitizing agent, mainly in the dairy and beverage sectors, as it helps remove grease, oils, & protein based residues from processing equipment, ensuring a hygienic production environment.
• Emission Control in Power Plants: Ammonia can be used in selective catalytic reduction (SCR) systems to minimize nitrogen oxide (NOx) emissions from power plants and industrial facilities. It is injected into the flue gas stream, and it reacts with NOx over a catalyst to form nitrogen and water, reducing the environmental impact of power plant emissions.
Market Dynamic
Ammonia plays an important role in big cooling systems, existing in liquid and gas forms. It's cost-effective, around 10-20% cheaper than alternatives like CFCs, making it a leading choice. Further, not only is it budget-friendly, but it's also environmentally friendly, as it doesn't harm the ozone layer, has no direct impact on greenhouse gases, and is energy-efficient, which makes it a preferred option for refrigeration & air conditioning systems, especially in large-scale applications.
However, the market experiences challenges, as it needs to create safer solutions for human & animal environments. Further, it has to deal with imbalances in supply & demand, mainly in areas heavily dependent on ammonia exports like North America.
Research Scope and Analysis
By Product
Anhydrous Ammonia, under the segmentation of Product, is expected to dominate the market in 2024, commanding a substantial revenue share, because of its user-friendly handling & higher accessibility for agricultural participants. NH3-based nitrogen fertilizers, mainly in the anhydrous form, provide better crop productivity, efficient management of pests, & optimized cultivation cycles, mainly in hotter climates. Also, its distinct features, like a strong odor & high heat vaporization, make it a valuable asset for refrigeration & solvent applications. In addition, the liquefied ammonia variant serves an important role in sectors like synthetic fiber production, metal extraction from ores, and medical formulation.
Furthermore, aqueous ammonia, featured as a combination of ammonia gas & water, functions as a potent cleansing agent, effectively dissolving & eliminating various kinds of contaminants such as oils, & residues from a diverse range of materials & surfaces, and is also expected to drive the market in coming future.
By Application
As an application, fertilizers are expected to show market dominance in 2024, contributing a significant share in terms of revenue collection, which can be because of its growing popularity among farmers, driven by the fast & efficient absorption features of nitrogenous fertilizers due to their enhanced solubility. Further, a majority of the global ammonia demand is due to nitrogen fertilizer production.
The adaptability of NH3-based fertilizers shines through their diverse formulations, made to fit distinct agricultural contexts & crop varieties. Like, ammonium nitrate functions as a rapid nitrogen source for crops such as corn & wheat, while urea serves crops leading to prolonged nitrogen release, like vegetables. Beyond its agricultural role, NH3 finds strategic usage in niche refrigeration sectors, including cold storage facilities, ice rinks, & widespread installations in sectors such as petroleum, chemical, & gas processing, etc.
The Ammonia Market Report is segmented on the basis of the following:
By Product
• Anhydrous Ammonia
• Aqueous Ammonia
By Application
• Refrigerants
• Fertilizers
• Pharmaceuticals
• Textiles
• Others
Regional Analysis
The Asia Pacific region is anticipated to be a dominant force in the ammonia market in 2024, as it is expected to
hold a substantial 58.5% share in terms of total revenue, which can be accredited to the presence of key agrarian nations within the APAC region, including major markets like Indonesia, Japan, Thailand, India, & the Philippines
Further, China, as per the IEA (International Energy Agency), stands is the prominent global ammonia producer, contributing a good chunk of 30% to the overall production. China's status as the largest consumer of nitrogenous fertilizers globally is equally notable, accounting for one-third of the total global consumption. Apart from China, India also emerged as a prominent player in ammonia production, resulting in 8% production in the global production landscape. A significant chunk of India's ammonia production is due to direct conversion into urea, a vital fertilizer.
By Region
North America
• The U.S.
• Canada
Europe
• Germany
• The U.K.
• France
• Italy
• Russia
• Spain
• Benelux
• Nordic
• Rest of Europe
Asia-Pacific
• China
• Japan
• South Korea
• India
• ANZ
• ASEAN
• Rest of Asia-Pacific
Latin America
• Brazil
• Mexico
• Argentina
• Colombia
• Rest of Latin America
Middle East & Africa
• Saudi Arabia
• UAE
• South Africa
• Israel
• Egypt
• Rest of MEA
Competitive Landscape
The major players in the market are engaged in extending the product range by formulating distinct product grades customized to various end-use sectors. Furthermore, industry stakeholders are prioritizing the creation of sustainable & environmentally friendly ammonia as a strategic move to diminish their carbon impact in the coming future.
Some of the prominent players in the global Ammonia Market are:
• BASF SE
• CF Industries Holdings, Inc.
• Yara International ASA
• Nutrien Ltd.
• Acron
• Koch Fertilizer, LLC
• Qatar Fertilizer Company
• Rashtriya Chemicals and Fertilizers Limited
• Helm AG
• SABIC
• ACME Group
• EuroChem Group
• China National Petroleum Corporation
• Other Key Players
Recent Developments
• In January 2024, India’s Ministry of New & Renewable Energy announced two new auctions for subsidies to drive the uptake of green hydrogen in ammonia production & oil refining, which aggregate demand from industry & tender fixed payments for production and supply. Further, the auction would specifically subsidize green hydrogen producers supplying oil refineries, while the other pay companies that produce green ammonia, as long as the hydrogen is made in-house.
• In January 2024, INOX Air Products announced that the company signed a major deal with the Government of Maharashtra to construct a large-scale green ammonia plant with a planned outlay of USD 3 billion, which is set to be commissioned within a three to five-year timeline, and is expected to produce 500,000 metric tonnes per annum (MTPA) of renewable produced liquid ammonia.
• In December 2023, Sembcorp Green Hydrogen Pte Ltd, signed a memorandum of understanding (MoU) with Japanese conglomerate Sojitz Corp & energy major Kyushu Electric Power to pursue potential opportunities for green ammonia production in India for export to Japan.
• In November 2023, Adani Power announced that the company initiated a green ammonia combustion pilot project at its Mundra plant as part of its decarbonization efforts partnering with Japan’s IHI Corporation & Kowa, which aims to co-fire up to 20 percent green ammonia in the boiler of a conventional coal-fired 330MW unit at the Mundra Plant.
• In October 2023, Petroliam Nasional (Petronas) & Singapore's sovereign wealth fund GIC announced to invest in a project to produce 5 million tonnes of green ammonia annually in India by 2030, as Gentari, the renewable energy arm of Petronas & an affiliate of GIC, would invest in the project being developed by AM Green.
Report Characteristics |
Market Size (2023) |
USD 243.1 Bn |
Forecast Value (2032) |
USD 415.3 Bn |
CAGR (2023-2032) |
6.1% |
Historical Data |
2018 - 2023 |
Forecast Data |
2024 - 2033 |
Base Year |
2023 |
Estimate Year |
2024 |
Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
Segments Covered |
By Product (Anhydrous Ammonia and Aqueous
Ammonia), By Application (Refrigerants, Fertilizers,
Pharmaceuticals, Textiles, and Others) |
Regional Coverage |
North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
|
Prominent Players |
BASF SE, CF Industries Holdings, Inc., Yara
International ASA, Nutrien Ltd., Acron, Koch
Fertilizer, LLC, Qatar Fertilizer Company, Rashtriya
Chemicals and Fertilizers Limited, Helm AG, SABIC,
ACME Group, EuroChem Group, China National
Petroleum Corporation, and Other Key Players |
Purchase Options |
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Frequently Asked Questions
The Global Ammonia Market size is estimated to have a value of USD 243.1 billion in 2024 and is
expected to reach USD 415.3 billion by the end of 2033.
Asia Pacific is expected to have the largest market share in the Global Ammonia Market with a share of
about 58.5% in 2024.
Some of the major key players in the Global Ammonia Market are BASF SE, CF Industries Holdings, Inc,
Yara International ASA, and many others.
The market is growing at a CAGR of 6.1 percent over the forecasted period.