Market Overview

Global Ammonia Market size was valued at USD 221.61 Billion in 2023 and is poised to grow from USD 234.88 Billion in 2024 to USD 374.09 Billion by 2032, growing at a CAGR of 6.10% in the forecast period (2024-2032).

The ammonia world market is a very important and fast-paced industry that plays its role in several companies, especially in sectors like agriculture, chemical, and manufacturing. Ammonia (NH₃) is a colourless gas with a sour smell and is mainly produced by the Haber-Bosch process, where nitrogen from the air is combined with hydrogen from natural gas or from some other sources. With this being one of the most globally produced chemicals globally, ammonia must be absolutely non-replaceable in fertilizer manufacture since it acts as a basic constituent in any nitrogenous fertilizers, no matter if used in the preparation of urea, ammonium nitrate or ammonium sulphate. The agriculture sector is one of the biggest sectors whose demand for ammonia in recent times is driven by the increasing necessity of enhancing crop yields to meet the nutritional demands of the growing world population.

Other than being primarily applied in agriculture, ammonia has other diverse application in so many sectors. Some of its importance in the chemical industry include, it is useful in the development of industrial chemical products like the nitric acids, which would be used elsewhere in making nitro-glycerine’s, plastics as well as producing resins and many others in the explosives class. It applies in the production of ammonia particularly for refrigerants in huge scales of cooling products. It is also very important in the purification of impurities that exist in water: through chlorination and nitrification.

The ammonia market has grown impressively over the last few decades. This growth comes from the demand in agriculture as well as increased industrial use accompanied by further improvements in production. However, producing it requires a lot of energy that is almost entirely based on natural gas and thus exposes it to volatile energy pricing and environmental effects. Increasing pressure is growing to produce it in more sustainable ways. Some of these can be done by green methods, such as the production of renewable sources through wind, solar, or hydrogen.

The industry has moved toward the development of productive and environmentally friendly production and usage practices with its environmental impact, especially regarding greenhouse gas emissions and water contamination due to runoff from ammonium ion production and operations. Future developments and developments will depend on innovations in the field of ammonia synthesis, small-scale modular plants, and advancements in ammonia-based energy solutions, such as ammonia as hydrogen carrier or fuel to generate power.

The bright chances of developing the ammonia market would be achieved with the world continually looking to boost agricultural demand while promoting sustainability, innovation, efficiency, and responsibility toward the environment. The ongoing challenges involve higher energy consumption, environmental damage, and supply chain disruptions. However, the massive use in many areas places ammonia among the world's most vital industries. The continually changing landscape in production technologies and growing interest in ammonia as a clean energy carrier are expected to make the market explore new frontiers in the coming years.

Market Drivers

Increasing Industrial Applications in Chemicals and Manufacturing

• The increasing ammonia use in chemicals and manufacturing industries is thus driving the demand for this critical compound across a wide sector. The raw material in the production of nitric acid is ammonia; subsequently, it is the main material for the manufacturing of an assortment of chemicals, including explosives, plastics, and resins. Ammonia's role in intermediate synthesis for producing synthetic fibres such as nylon in the case of polymer production. Ammonia is utilized in the formation of pharmaceutical compounds; it often acts as an intermediary in some pharmaceutical’s chemical synthesis and numerous other health compound productions.
• Besides chemical manufacturing, ammonia is indispensable in the manufacture of detergents, cleaning agents, and textile processing. Its applications do not stop there; it serves as a catalyst in some industrial processes and also as a pH regulator in some chemical reactions. In addition, ammonia's role as an efficient refrigerant in industrial cooling systems increases its demand. Ammonia will continue to be a vital ingredient in both traditional and emerging manufacturing industries as the focus of industries on more efficient and sustainable production processes continues. This is because expansion of manufacturing activities in emerging economies, coupled with the continuous development of new applications for ammonia, is expected to further elevate its role in the global industrial landscape.

Expansion of Food Production to Meet Global Population Needs

• An increase in food production to feed the growing population worldwide is the most important reason behind ammonia demand, which further becomes more critical because it is used in fertilizers. While the world population is increasing, the agricultural productivity too needs to be raised to meet the food supply. Ammonia-based fertilizers become very important for soil fertility enhancement, crop yield improvement, and sustainable agricultural production. The use of ammonia is a source and nitrogen acts absolutely as a nutrient for any kind of plant growth so that it could not be waived in the productions of staple crops like wheat and rice, and also corn, products which feed world population.
• Precisely with the urgency to combat food insecurity and rising climate change challenges, more efficient food production systems continue to increase reliance on ammonia in precision agriculture. Ideally, this is taking the form of fertilizers that can match specific soil and crop requirements; hence, resource use can be maximized and environmental impacts minimized with greater integral application of ammonia in modern farming techniques. Demand for ammonia is going to stay high because all the countries are continuing to invest in improving food security and agricultural productivity. That's why it's vital because it can boost crop yields at the same time help solve problems in feeding more people.

Market Opportunities

Expansion of Ammonia’s Role in Water Treatment and Cooling Systems

• Ammonia has been utilized in water treatment and cooling systems widely because it is effective and versatile. Ammonia, in water treatment, is utilized in the nitrification process to remove ammonia nitrogen contaminants in wastewater. It involves the oxidation of harmful ammonia compounds into less toxic nitrates. Ammonia, therefore, plays an even more paramount role in water disinfection mainly in municipal treatment plants where chlorine and ammonia are added frequently to the process simultaneously, and its solution becomes chloramine-a very stable disinfectant that helps in the reduction of pathogens, and it produces no hazardous byproducts. With people's increasing concern regarding the availability of quality water in this world, the role of ammonia-based solutions has been found growing for water-quality improvement and supply of safe drinking water.
• Ammonia is widely used as a refrigerant in cooling systems for large-scale industrial and commercial uses. It possesses a high efficiency as a transfer medium of heat and lower environmental impacts as compared to synthetic refrigerants, hence the popularity in refrigeration systems in food processing, cold storage, and HVAC systems. Ammonia-based cooling technologies are energy-friendly and more eco-friendly, meaning its adoption has grown in using ammonia in cool technology. As its use expanded from water treatment into cooling system, ammonia improved the demand on its market in respect to resolving water management across the globe issues as well as efficient energy systems.

Market Restraining Factors

Strict Environmental Regulations and Compliance Challenges

• Strict environmental regulations and compliance issues are significant constraints to the global ammonia market, mainly because of the environmental impact of ammonia and the energy-intensive nature of its production. Ammonia production has traditionally been based on the Haber-Bosch process, which consumes large amounts of natural gas and results in considerable carbon dioxide emissions. Pressure from stronger environmental regulations that governments of the world have put in place to reduce greenhouse gas emissions and fight the effects of climate change has been mounting against manufacturers of ammonia. Such regulations, as reported in media, require heavy investments on costly modifications to production facilities, plus serious investments in carbon capture technologies and limits put on nitrogen oxides and other pollutants.
• Potential environmental risk from ammonia exists beyond its production. Its utilization in agricultural-based fertilizers increases the possibility of water pollution from runoff, as it can promote nutrient loading of water bodies with harmful algal blooms. In response to such risks, tight regulatory controls were placed on the use and methods of fertilizer disposal. These rising environmental standards impose a financial cost on producers and can hinder the market growth, especially of smaller producers that cannot afford investing in greener technologies.

Segmentation Analysis

The market scope is segmented because of by Product, by Application.

• By Product

Based on the Product of the market is segmented into Aqueous, Anhydrous.

Two major product segments of ammonia are aqueous ammonia and anhydrous ammonia. Among these, anhydrous ammonia holds the global market share. Anhydrous ammonia, which simply refers to pure ammonia devoid of water content, takes on the largest share in the ammonia market, especially because of its wide usage in agriculture. It can be applied straight to the ground for enhancing crops through nitrogen as a fertilizer form. It proves highly efficient when directly used, and henceforth, an important input for current agriculture due to the supply of nitrogenous nutrient essentials for plant life. Such ammonia is relatively concentrated with increased percentages of its content as against aqueous ammonia; thus, increasing its usage efficiency and reducing production costs.

In contrast, aqueous ammonia comprises ammonia dissolved in water, used predominantly in industrial applications such as water treatment, refrigeration, and as a precursor to other chemicals, like ammonium hydroxide. Aqueous ammonia is important in several chemical processes, but its application is far more specialized compared to that of anhydrous ammonia, which has a wider range of applications. In the case of anhydrous ammonia, its market dominance has considerably been boosted by agricultural demand, given its need for increased food production to meet the demands of the rising global population.

• By Application

Based on the Application of the market is segmented into Fertilizers, Refrigerants, Pharmaceuticals, Textile, Others.

The fertilizer segment dominates the global ammonia market, and it is a leading application area of ammonia. Fertilizers consume the highest amount of ammonia in the market mainly because ammonia is an essential source of nitrogen for plant growth. Nitrogenous fertilizers-urea, ammonium nitrate, and ammonium sulphate- play a crucial role in improving fertility in soils, thereby increasing farm productivity, with the latter, in turn being critical to addressing the food demands of an increasing global population. The demand for ammonia in the fertilizer industry to ensure high yields has increased consistently over the past few decades; hence, the segment is now dominated by the former.

The reason ammonia has been widely applied in agriculture is that it helps improve crop growth, quality, and resistance to diseases. In the process of conventional farming developing into more intensive and large-scale operations, ammonia-based fertilizers are integral to modern farming. Moreover, its efficiency in providing nitrogen to the plants at a lower application rate compared to other fertilizers is another reason why ammonia dominates the market.

• Regional Snapshots

By region, Insights into the markets in North America, Europe, Asia-Pacific, Latin America and MEA are provided by the study. Asia-Pacific is the global ammonia market leader. In this region, there are the main reasons due to its gigantic agricultural demand and industrial growth; it is where large-scale production of ammonia exists. The large producers and users of ammonia include some of the world's most significant ammonia consuming countries like China, India, and Japan. The agricultural sector remains the largest source of ammonia consumption in Asia-Pacific, as it is a requirement for fertilizers to increase crop yields to produce food for this region's very fast-growing population. Manufacturing and industrial activities remain strong in this region, especially in chemical, textile, and pharmaceutical production.

China is the largest consumer and producer of ammonia, owing to its huge arable land area and strong demand for fertilizers. Its agriculture depends largely on ammonia-based fertilizers for optimal crop production. India also needs ammonia to be used in large quantities due to its burgeoning agriculture sector. Industrial growth, petrochemicals, textiles, and chemicals industries are the others that also raise the consumption level of ammonia.

List of Companies Profiled

• Acron
• Koch Fertilizers, LLC
• Yara International
• CF Industries Holdings, Inc.
• Nutrien Ltd.
• Qatar Fertiliser Company
• Togliattiazot
• SABIC
• Sumitomo Chemical Co., Ltd.
• Mitsui Chemicals, Inc.
• BASF SE
• Asahi Kasei Corp

Key Industry Developments

The two companies, JERA and CF Industries, plan to ink a joint venture agreement to develop a low-carbon ammonia plant with a capacity of about 1.4 million metric tons by April 2024. With this intention, JERA would like to secure over 500,000 metric tons of low-carbon ammonia per annum to meet the requirement in Japan and is thinking of buying 48% interest in the project.

In March 2024, Yara signed an agreement with GHC SAOC; this company is owned by Acme Cleantech. Through this agreement, Acme is to provide Yara ammonia with a lower level of CO2 emission. The partnership entails an annual provision of 100,000 tons of renewable ammonia.

Report Coverage

The report will cover the qualitative and quantitative data on the Global Ammonia Market. The qualitative data includes latest trends, market players analysis, market drivers, market opportunity, and many others. Also, the report quantitative data includes market size for every region, country, and segments according to your requirements. We can also provide customize report in every industry vertical.

Report Scope and Segmentations

Global Ammonia Market Regional Analysis

North America accounted for the highest xx% market share in terms of revenue in the Ammonia market and is expected to expand at a CAGR of xx% during the forecast period. This growth can be attributed to the growing adoption of Ammonia. The market in APAC is expected to witness significant growth and is expected to register a CAGR of xx% over upcoming years, because of the presence of key Ammonia companies in economies such as Japan and China.

The objective of the report is to present comprehensive analysis of Global Ammonia Market including all the stakeholders of the industry. The past and current status of the industry with forecasted market size and trends are presented in the report with the analysis of complicated data in simple language.

Ammonia Market Report is also available for below Regions and Country Please Ask for that

North America

• U.S.
• Canada

Europe

• Switzerland
• Belgium
• Germany
• France
• U.K.
• Italy
• Spain
• Sweden
• Netherland
• Turkey
• Rest of Europe

Asia-Pacific

• India
• Australia
• Philippines
• Singapore
• South Korea
• Japan
• China
• Malaysia
• Thailand
• Indonesia
• Rest Of APAC

Latin America

• Mexico
• Argentina
• Peru
• Colombia
• Brazil
• Rest of South America

Middle East and Africa

• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest Of MEA

Points Covered in the Report

• The points that are discussed within the report are the major market players that are involved in the market such as market players, raw material suppliers, equipment suppliers, end users, traders, distributors and etc.
• The complete profile of the companies is mentioned. And the capacity, production, price, revenue, cost, gross, gross margin, sales volume, sales revenue, consumption, growth rate, import, export, supply, future strategies, and the technological developments that they are making are also included within the report. This report analysed 12 years data history and forecast.
• The growth factors of the market are discussed in detail wherein the different end users of the market are explained in detail.
• Data and information by market player, by region, by type, by application and etc., and custom research can be added according to specific requirements.
• The report contains the SWOT analysis of the market. Finally, the report contains the conclusion part where the opinions of the industrial experts are included.

Key Reasons to Purchase

• To gain insightful analyses of the Ammonia market and have comprehensive understanding of the global market and its commercial landscape.
• Assess the production processes, major issues, and solutions to mitigate the development risk.
• To understand the most affecting driving and restraining forces in the market and its impact in the global market.
• Learn about the Ammonia market strategies that are being adopted by leading respective organizations.
• To understand the future outlook and prospects for the Ammonia market. Besides the standard structure reports, we also provide custom research according to specific requirements.

Research Scope of Ammonia Market

• Historic year: 2019- 2022
• Base year: 2023
• Forecast: 2024 to 2032
• Representation of Market revenue in USD Billion

Ammonia Market Trends: Market key trends which include Increased Competition and Continuous Innovations Trends: