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Home ➤ Chemicals & Materials ➤ Bulk Chemicals ➤ Ammonia Market
Ammonia Market
Ammonia Market
Published date: Oct 2023 • Formats:
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  • Home ➤ Chemicals & Materials ➤ Bulk Chemicals ➤ Ammonia Market

Global Ammonia Market By Form (Gas, Liquid, and Powder), By Application (Fertilizers, Textiles, Pharmaceuticals, Refrigerants, and Other Applications), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

  • Published date: Oct 2023
  • Report ID: 18440
  • Number of Pages: 223
  • Format:
  • Overview
  • Table of Contents
  • Major Market Players
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  • Quick Navigation

    • Report Overview
    • Key Takeaways
    • Driving Factors
    • Restraining Factors
    • By Form Analysis
    • By Application Analysis
    • Key Market Segments
    • Growth Opportunity
    • Latest Trends
    • Regional Analysis
    • Key Player Analysis
    • Recent Developments
    • Report Scope

    Report Overview

    In 2022, the Global Ammonia Market size was valued at USD 70.4 Billion. This market is estimated to reach USD 134.9 Billion in 2032 the highest CAGR of 6.9% between 2023 and 2032. Ammonia, a colorless gas that emits a distinctive odor, is also known as a building block chemical.

    It is an important component of many products we use every day. It can be found in air, soil, water, plants, animals, and humans. Ammonia is also a key building block of ammonium-nitrate fertilizer. This fertilizer releases nitrogen, a vital nutrient, to grow plants. The majority of ammonia that is produced around the globe is used to fertilize food production.

    The composition usually depletes the soil’s nutritional content of food crops. Most farmers use ammonia-based fertilizers to keep their soil productive and maintain healthy crops. The global ammonia market will grow due to the rising demand for food and growing dependence on fertilizers.

    Ammonia is a popular refrigerant gas that is widely used in air-conditioning equipment. Ammonia’s properties allow it to absorb large amounts of heat from the environment. Ammonia is also used to purify water supplies, which drives demand. Ammonia is an important component of the food and beverage, wastewater, recycling, cold storage, rubber, pulp and paper, and waste treatment industries.

    Ammonia can also be used in various manufacturing products, including plastics and explosives, textiles, pesticides, and colors. Ammonium hydroxide and ammonium by-products are essential ingredients in many household cleaning products. These include tubs, toilets sinks, toilets, countertops, and tiles. There are many uses for ammonia that almost all end users can use. This is why there will be a significant increase in demand for ammonia during the forecast period.

    Ammonia Market by form

    Key Takeaways

    • Market Growth: In 2022, the global ammonia market reached USD 70.4 Billion; its strength was demonstrated through impressive success in reaching such an enormous size. Projections indicate a robust surge with expectations that it may approach USD 134.9 billion by 2032 based on an incredible compound annual growth rate (CAGR) of 6.9% during that timeframe (2023-2032).
    • By Form Analysis: The market can be divided into three broad categories according to product form; these categories include gas, liquid, and powder products. Of these categories, liquid ammonia holds the greatest ammonia market share – this trend is anticipated to expand over time as more applications for its use arise; hence expanding ammonia’s popularity on an industrial level.
    • Application Analysis: Ammonium-nitrate fertilizers utilize ammonium-3H3, known as NH3, as their key element and source of nitrogen essential to plant health and growth. Farmers rely heavily on fertilizers as a vital means of increasing selenium or boron concentration in foodstuffs that is found within food items.
    • Drivers: Key factors driving the ammonia market include its widespread application in agriculture for fertilizer production and its involvement in chemical manufacturing processes, along with growing interest in using ammonia as a green energy carrier, driving innovation of ammonia-based energy solutions.
    • Challenges in Ammonia Production and Market: Ammonia markets face significant difficulties associated with energy-intensive production methods, and safety considerations, and need sustainable production processes that minimize their environmental footprint.
    • Growth Opportunities: Market expansion possibilities exist through sustainable ammonia production methods that support global efforts to limit carbon emissions.
    • Emerging Trends in Ammonia Market: Recent developments within the ammonia market include increased research into environmentally friendly production processes as well as innovative uses of ammonia for energy storage and transportation applications.
    • Regional Dominance: Asia Pacific holds 55.7 percent of ammonia market revenue worldwide and holds the largest revenue share (56.7%). China dominates this region’s ammonia production through the gasification of coal while globally most ammonia comes from natural gas; other large producers in this region include India, Indonesia, and Brazil.
    • Key Players in the Ammonia Market: These companies specialize in ammonia production and include industry giants like Yara International ASA, BASF SE, CF Industries Holdings Inc, and Nutrien Ltd as key industry players.

    Driving Factors

    Agriculture Sector Drives the Global Ammonia Market.

    Ammonia is the second most widely produced chemical commodity in the world. It is primarily used as a fertilizer in agriculture. Technological advances and advancements have discovered that green ammonia can be used in various other applications.

    It is also becoming increasingly popular as a shipping and marine fuel in transportation. Green ammonia emits no carbon and has zero sulfur traces. This reduces particulate emissions and improves air quality while complying with IMO 2020.

    The desire to produce higher quality, quantity, and yield crops has led to significant growth in the global agricultural industry. The agriculture industry contributes significantly to a country’s GDP, especially in emerging countries. The demand for various agricultural chemicals, such as fertilizer, increases with growing agriculture, indirectly raising the demand for ammonia.

    The constantly rising demand for fertilizer has led to an increase in ammonia consumption. This would boost the industry’s value over the projected period. Farmers will also benefit from the government’s fertilizer subsidies, increasing the demand for ammonia in the region.

    As a result of the largest global population growth, farmers all over the globe are forced to significantly increase their agricultural production in order to meet the growing demand for different types of grains and other commodities. This requires a large amount of premium fertilizer that can only be made using ammonia. The fertilizer industry accounts for 60% of global ammonia production.

    Several key players are currently testing green ammonia’s use as a marine fuel. They are also investing in green ammonia supply infrastructure development to offer alternative marine fuel with lower greenhouse gas emissions. This will drive the green ammonia market over the forecast period. Key players also plan to use green ammonia for power generation. This has led to many projects focusing on building turbines and engines that can be fed green ammonia.

    Restraining Factors

    Direct Contact with Concentrated Ammonia can Affect Human Health and Hinder the Ammonia Market Growth.

    People are more likely to be exposed to NH3 because it is naturally found in cleaning products. It reacts instantly with the skin, eyes, respiratory tract, oral cavity, and throat. Low ammonia concentrations in solution or air may cause rapid eye and skin irritation.

    Higher concentrations can cause severe burns or injury. Concentrated solutions, such as industrial cleaners, can cause severe skin burns and permanent eye damage or blindness. In addition to these side effects, swallowing high concentrations of solutions can cause corrosive damage to your stomach, throat, mouth, and throat.

    For many purposes, some areas have a higher demand than domestic production for ammonia. These areas rely heavily upon imports. North America must import ammonia to meet its needs. This forces the region to face several problems, like price volatility and a shortage of suppliers, ultimately limiting the ammonia sector to a limited extent.

    The extensive use of chemical fertilizers and pesticides has also significantly impacted the soil’s quality. Natural fertilizers are increasingly in demand due to the desire for more sustainable agricultural practices that reduce carbon emissions and dangerous production.

    By Form Analysis

    Liquid Form of the Ammonia Dominates the Market with a Major Share.

    The industry can be divided into three types based on product type: liquid, gas, and powder. The liquid version of the product dominated the ammonia market. This segment is expected to grow over the forecast period. The rising demand for the product in its end-use applications will boost the ammonia market.

    Anhydrous ammonia (which does not contain water molecules) is the purest type. It is a pungent gas that emits suffocating gases and is used primarily as a fertilizer. It is compressed into a clear and colorless liquid as a fertilizer made from one part of nitrogen and three parts of hydrogen. It can be used in its dilute form for industrial cleaning or in the manufacture & synthesis of some molecules.

    Most ammonia is used in liquid form. It is used mainly in fertilizers, and industrial and household cleaning. It is made into a liquid, and then mixed with various plant enhancers. It is a gaseous form that reacts with soil moisture to produce ammonia-enriched fertilizer soil.

    By Application Analysis

    Fertilizers Lead the Market with Major Share in Global Ammonia Market.

    NH3 is an essential ingredient for ammonium-nitrate fertilizers. These fertilizers release nitrogen, which is important for plant growth. Farmers rely heavily on fertilizer to maintain healthy crops. Fertilizers are used to increase the levels of important nutrients like selenium and boron in food crops.

    Increasing population and increasing food demand will increase the need for fertilizers to improve crop production. The development of advanced farming techniques and the increasing use of bio-fertilizers drives the ammonia market growth.

    Ammonia Market by application

    Ammonia cooling systems offer a safe and sustainable alternative in a world that prioritizes energy use. It is considered to be the most eco-friendly coolant of all renewable sources. It is not capable of warming the atmosphere or reducing the ozone layer.

    Ammonium has a higher efficiency heat transfer rate than other chemical refrigeration systems. Operational costs are lower because ammonium can be used in a smaller area for heat transfer plant construction and systems. Ammonia is used as a coolant in large commercial and industrial settings.

    Ammonia is also used to prepare and process many drugs and compounds. These include amines and nitriles, as well as hydrogen cyanide and hydrazine. Global ammonia demand will rise due to the increasing use of ammonia for manufacturing vaccines and drugs and its popularity in fertilizers and other applications.

    Key Market Segments

    By Form

    • Gas
    • Liquid
    • Powder

    By Application

    • Fertilizers
    • Textiles
    • Pharmaceutical
    • Refrigerants
    • Others

    Growth Opportunity

    Mini Plants Gives Opportunities to Small Scale Ammonia Producers to Increase the Profits.

    Distributed small-scale ammonia plants can produce ammonia using various sources of stranded power such as solar or wind energy, flared gases, and biogas. This is considered one of the most sustainable ways to produce ammonia.

    Ammonia can be made so that it is a low-cost or sustainable source of stranded gas/power or hydrogen. This makes it much more affordable than traditional ammonia production.

    Mini-production units are safer than conventional units because they contain only 3 tonnes of pure ammonia. A small safety flare and scrubber are included. The flare for the purge gas stream (scrubbed) from the ammonia synthesizer removes argon and helium. Although the plants can be operated unmanned, they are monitored remotely by a panel operator.

    Small ammonia plants based on renewable energy or by-product hydrogen can be realized today, returning a profitable return for money invested in certain parts of the globe. The premium pricing of green ammonia will create a new market. It is produced from sustainable sources. Green ammonia storage is growing rapidly because large power companies see a future need for large-scale storage.

    Companies continue to look for low- and zero-carbon investment opportunities. The world will reach net-zero carbon emissions in 2050 if it has green hydrogen and NH3. According to industry experts, hydrogen will be able to meet 20% of the world’s energy needs by 2050. CF Industries, for instance, announced in October 2020 that it would concentrate on low-carbon and green production.

    This is where NH3 can be produced using a carbon-free process. The company signed Memorandums of Understanding (MOU) with ThyssenKrupp and Haldor Topsoe to help execute this process. CF Industries is discussing with global utilities and maritime transport providers about using low-carbon ammonia as a fuel.

    Latest Trends

    The growth in agricultural activity worldwide is the main driver of the ammonia market’s expansion. Plants require nutrients like potassium, nitrogen, and magnesium to grow strong. Depending on the type of plant, its location, and its size, the amount of these nutrients required will vary.

    Ammonia is a major source of these nutrients and is widely used as fertilizer. Mineral Commodity Summaries show that 88% of all ammonia was used in fertilizers in the United States in 2020. Due to the growing dependence of farmers on ammonia for excess crop yield, this percentage will likely rise in the coming years.

    Plants need nitrogen to grow strong and increase crop yield. But nitrogen remains in gas form and cannot be used for biological or chemical purposes. The Haber-Bosch method makes nitrogen usable. This captures nitrogen from the air and turns it into a liquid that plants can use. The nitrogen (N) in high amounts in Ammonia can be applied directly to soils or converted into other N fertilizers.

    Regional Analysis

    Asia Pacific is the Major Ammonia Producer and Consumer Region in the World.

    Asia Pacific Holds a major revenue share of 55.7% to dominate the global ammonia market. In Asia Pacific, China is the largest ammonia producer in the world. Ammonia is mainly produced in China from coal gasification. Globally, it is primarily obtained from natural gas. China is first in production, followed by India, Indonesia, and Brazil.

    Ammonia Market regional analysis

    The global capacity is expected to rise significantly. Asia Pacific ammonia market growth, can be attributed to the presence and growing demand for agricultural products. China and India are the top ammonia producers in the region. Along with Indonesia, these countries are contributing to the regional market growth in ammonia.

    North America is the world’s second-largest ammonia producer and consumer. Ammonia’s growth in North America has been driven by expanding the region’s end-use industries. Majorly, ammonia is used in agriculture as fertilizer.

    North America is experiencing a growing need for fertilizers due to rising population and increased crop productivity. The United States is one of the largest producers of ammonia worldwide.

    In 2015, the country was home to over 13 companies producing the product in its 20 production facilities. The U.S. consumes approximately 45% of the product in nitrogen fertilizer, while the rest is used to produce synthetic fibers, plastics, resins, and other chemical compounds. The country’s natural gas supply accounts for approximately 50% of the cost of nitrogen fertilizer production. This will be a significant factor in driving industry growth.

    Key Regions and Countries

    • North America
      • The US
      • Canada
      • Mexico
    • Western Europe
      • Germany
      • France
      • The UK
      • Spain
      • Italy
      • Portugal
      • Ireland
      • Austria
      • Switzerland
      • Benelux
      • Nordic
      • Rest of Western Europe
    • Eastern Europe
      • Russia
      • Poland
      • The Czech Republic
      • Greece
      • Rest of Eastern Europe
    • APAC
      • China
      • Japan
      • South Korea
      • India
      • Australia & New Zealand
      • Indonesia
      • Malaysia
      • Philippines
      • Singapore
      • Thailand
      • Vietnam
      • Rest of APAC
    • Latin America
      • Brazil
      • Colombia
      • Chile
      • Argentina
      • Costa Rica
      • Rest of Latin America
    • Middle East & Africa
      • Algeria
      • Egypt
      • Israel
      • Kuwait
      • Nigeria
      • Saudi Arabia
      • South Africa
      • Turkey
      • United Arab Emirates
      • Rest of MEA

    Key Player Analysis

    Market leaders are investing a lot in R&D to improve their product lines. This will allow the ammonia market to grow even further. Market players are also taking key market initiatives to expand their global footprint.

    These include new product launches, contract agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Ammonia industry competitors must provide cost-effective products to survive and expand in a highly competitive market.

    Manufacturers in the ammonia sector use local manufacturing to lower operating costs as one of their primary business strategies to increase client satisfaction and grow the market. In recent years, the ammonia industry has provided medicine with some of its most important benefits.

    Major players in the ammonia market include Uralchem JSC, SABIC (Saudi Arabia), Yara Norway, CF Industries Holdings Inc. (US), and other players working to increase market demand through investing in research and development activities.

    Abu Dhabi National Oil Company is the national oil company of the (UAE), and it is the 12th biggest oil company. The company’s oil production capacity is expected to exceed by 2030, and Company plans to increase to 5 million barrels per day. Abu Dhabi-based chemical company Abu Dhabi National Oil Company (ADBOC) partnered with Fertiglobe to build the first blue ammonia plant with a capacity of 1,000,000 tonnes per year. The collaboration was part of energy producers’ efforts to attract investment in low-carbon products.

    Key Players

    • Yara International ASA
    • BASF SE
    • CF Industries Holdings, Inc.
    • Nutrien Ltd.
    • SABIC
    • Qatar Petroleum
    • EuroChem Group
    • Koch Fertilizer, LLC
    • Praxair Technology, Inc.
    • China National Petroleum Corporation
    • Rashtriya Chemicals and Fertilizers Limited (RCFL)
    • Other Key Players

    Recent Developments

    • In May 2022, Thyssen Krupp Uhde USA and Bloom Energy will each produce approximately 30,000 tonnes of greener fertilizer annually at LSB Industries’ Pryor, Oklahoma facility. LSB Businesses is a US fertilizer producer. Thyssen Krupp Ulde will create the engineering plan to convert a small portion of Pryor’s existing conventional ammonium production to greener ammonia.
    • In September 2022, OCI Nitrogen announced the Blue Ammonia Hydrogen project in United States Gulf Vf. OCI began constructing a blue ammonia facility capable of producing 1.1 million tonnes per annum (mtpa). The infrastructure will double the capacity to 2.2 Mtpa.

    Report Scope

    Report FeaturesDescription
    Market Value (2022)USD 70.4 Bn
    Forecast Revenue (2032)USD 134.9 Bn
    CAGR (2023-2032)6.9%
    Base Year for Estimation2022
    Historic Period2016-2022
    Forecast Period2023-2032
    Report CoverageRevenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments
    Segments CoveredBy Form – Gas, Liquid, and Powder; By Application – Fertilizers, Textiles, Pharmaceuticals, Refrigerants, and Other Applications.
    Regional AnalysisNorth America – The US, Canada, & Mexico; Western Europe – Germany, France, The UK, Spain, Italy, Portugal, Ireland, Austria, Switzerland, Benelux, Nordic, & Rest of Western Europe; Eastern Europe – Russia, Poland, The Czech Republic, Greece, & Rest of Eastern Europe; APAC – China, Japan, South Korea, India, Australia & New Zealand, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, & Rest of APAC; Latin America – Brazil, Colombia, Chile, Argentina, Costa Rica, & Rest of Latin America; Middle East & Africa – Algeria, Egypt, Israel, Kuwait, Nigeria, Saudi Arabia, South Africa, Turkey, United Arab Emirates, & Rest of MEA
    Competitive LandscapeYara International ASA, BASF SE, CF Industries Holdings, Inc.,  Nutrien Ltd., SABIC, Qatar Petroleum, EuroChem Group, Koch Fertilizer, LLC, Praxair Technology, Inc., China National Petroleum Corporation, Rashtriya Chemicals and Fertilizers Limited(RCFL), and Other Key Players.
    Customization ScopeCustomization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements.
    Purchase OptionsWe have three license to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF)

    Frequently Asked Questions (FAQ)

    What is the value of the global Ammonia Market?

    In 2022, the global Ammonia Market was valued at USD 70.4 billion.

    What will be the market size for Ammonia Market in 2032?

    In 2032, the Ammonia Market will reach USD 134.9 billion.

    What CAGR is projected for the Ammonia Market?

    The Ammonia Market is expected to grow at 6.9% CAGR (2023-2032).

    List the segments encompassed in this report on the Ammonia Market?

    Market.US has segmented the Ammonia Market Market by geographic (North America, Europe, APAC, South America, and MEA). By Form, market has been segmented into Gas, Liquid and Powder. By Application, the market has been further divided into Fertilizers, Textiles, Pharmaceutical, Refrigerants and Others.

    Which segment dominate the Ammonia industry?

    With respect to the Ammonia industry, vendors can expect to leverage greater prospective business opportunities through the Liquid Form segment, as this dominate this industry.

    Name the major industry players in the Ammonia Market.

    Yara International ASA, BASF SE, CF Industries Holdings Inc, Nutrien Ltd, SABIC, Qatar Petroleum, EuroChem Group and Other Key Players are the main vendors in this market.

    Ammonia Market
    Ammonia Market
    Published date: Oct 2023
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    • Yara International ASA
    • BASF SE Company Profile
    • CF Industries Holdings, Inc.
    • Nutrien Ltd.
    • SABIC
    • Qatar Petroleum
    • EuroChem Group
    • Koch Fertilizer, LLC
    • Praxair Technology, Inc.
    • China National Petroleum Corporation
    • Rashtriya Chemicals and Fertilizers Limited (RCFL)
    • Other Key Players
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