Ammonia Market Research Report By Application (Fertilizers, Industrial Chemicals, Refrigeration), By Manufacturing Process (Haber-Bosch Process, Electrochemical Process, Others), By End Use Industry (Agriculture, Chemical, Pharmaceutical, Food Beverage), By Form (Anhydrous Ammonia, Aqueous Ammonia, Ammonium Nitrate) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

Global Ammonia Market Overview

The Ammonia Market Size was estimated at 70.88 (USD Billion) in 2023. The Ammonia Industry is expected to grow from 72.38(USD Billion) in 2024 to 91 (USD Billion) by 2035. The Ammonia Market CAGR (growth rate) is expected to be around 2.11% during the forecast period (2025 - 2035).

Key Ammonia Market Trends Highlighted

The global ammonia market is witnessing significant trends influenced by various factors. One key market driver is the increasing demand for fertilizers, as ammonia is a primary component in nitrogen fertilizers crucial for enhancing agricultural productivity. This trend has been bolstered by the growing global population and the need for sustainable food production methods. Additionally, there is a rising emphasis on reducing greenhouse gas emissions, encouraging the development of green ammonia produced through renewable energy sources. This aligns with global initiatives to combat climate change and the push for sustainable agricultural practices.Opportunities in the market are emerging from innovations in ammonia production technology, such as the Haber-Bosch process improvements and alternative methods for ammonia synthesis, which could enhance production efficiency and reduce environmental impact. In recent times, there has been a notable trend towards ammonia's use as a hydrogen carrier, which presents an opportunity for its application in the growing hydrogen energy sector. This transition is being driven by the increasing investments in hydrogen infrastructure and the shift toward cleaner energy alternatives. The North America and Europe regions are particularly focused on ammonia's role in decarbonizing industries and transportation, as they aim to meet their climate goals.Furthermore, Asia-Pacific continues to be a major region for ammonia consumption, primarily for fertilizer production, indicating a booming market. Each of these trends showcases the evolving landscape of the global ammonia market, highlighting the importance of adapting to new demands and leveraging emerging technologies to drive growth.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Ammonia Market Drivers

Increasing Demand for Fertilizers

Rising global demand for fertilizers, particularly in developing regions, is a significant factor driving the Global Ammonia Market Industry. Global fertilizer consumption is anticipated to rise by approximately 12% between 2022 and 2030, which equates to more than 200 million tons, according to the Food and Agriculture Organization (FAO). This demand is primarily driven by the necessity to increase agricultural productivity in order to meet the demands of an expanding population, which is anticipated to reach nearly 9.7 billion by 2050. This trend is being driven by countries in Asia, particularly India and China, which account for over 50% of the total fertilizer consumption. Furthermore, the Global Ammonia Market is assured of a robust growth trajectory as organizations like the Indian Farmers Fertilizer Cooperative Limited expand their production capabilities to satisfy the increasing demand.

Industrial Applications Expansion

The versatility of ammonia in various industrial applications is a significant driver for the Global Ammonia Market Industry. Beyond fertilizers, ammonia is increasingly being used in the production of plastics, explosives, and refrigerants. For example, the International Institute of Refrigeration indicates that ammonia-based refrigeration systems are becoming more popular due to their environmental benefits compared to synthetic refrigerants. As industries seek to reduce their carbon footprint and adhere to stricter environmental regulations, the demand for ammonia in these applications is expected to rise.The United Nations Environment Programme has set guidelines advocating for sustainable industrial practices, which further supports the growth potential of ammonia in diverse markets.

Shift Towards Sustainable Practices

The Global Ammonia Market Industry is being positively influenced by the shift towards sustainable agricultural practices and the circular economy. Governments worldwide are setting targets to reduce greenhouse gas emissions and promote sustainable farming techniques. For instance, the European Union’s Farm to Fork Strategy aims to decrease the environmental impact of food production by 25% by 2030, which includes promoting the use of specialized fertilizers, including ammonia-based variants.This policy shift highlights an increased investment in Research and Development to innovate ammonia production processes, which are more environmentally friendly, such as the Haber-Bosch process using renewable energy sources. With more robust regulations in place, the market is likely to experience stronger growth driven by sustainable practices.

Ammonia Market Segment Insights

Ammonia Market Application Insights

The Global Ammonia Market is positioned to experience considerable growth primarily through its Applications, which are crucial in various sectors, most notably Fertilizers, Industrial Chemicals, and Refrigeration. By 2024, the entire market is projected to achieve a valuation of 72.38 USD Billion. The Fertilizers Application holds a dominant position within this market, valued at 40.0 USD Billion in 2024 and expected to rise to 50.0 USD Billion by 2035, indicating a strong reliance on ammonia in food production and agriculture. This substantial market share can be attributed to the rising global population and the consequent demand for enhanced agricultural productivity, identifying it as a key driver of the Global Ammonia Market revenue.The Industrial Chemicals segment, valued at 20.0 USD Billion in 2024 and expected to reach 25.0 USD Billion in 2035, plays a significant role as well, as ammonia is fundamental in the production of various chemicals that are foundational to numerous industries, highlighting its versatile applications. In contrast, the Refrigeration segment represents a smaller yet vital portion of the market, valued at 12.38 USD Billion in 2024 and projected to expand to 16.0 USD Billion by 2035. This Application is important due to ammonia's effectiveness as a refrigerant, essential for optimizing energy consumption and environmental impact efforts in cooling systems.The overall Global Ammonia Market statistics reveal a distinct segmentation pattern, where the Fertilizers Application holds majority holding, thereby shaping market dynamics, trends, and growth drivers. The increase in construction, transportation, and food processing sectors emphasizes opportunities for ammonia utilization across varied applications, depicting a lively market landscape as countries strive to meet the growing needs. However, challenges such as regulatory pressures and environmental concerns surrounding ammonia production and use could influence market growth and require innovative solutions.The overall Global Ammonia Market data reflects a landscape ripe for development while emphasizing the importance of specific segments in addressing global economic and environmental priorities.

 

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Ammonia Market Manufacturing Process Insights

The Global Ammonia Market, particularly in the Manufacturing Process segment, is experiencing notable advancements as it is a crucial industry in chemical production and agriculture. By 2024, this segment is projected to contribute significantly to a market valued at 72.38 USD Billion, reflecting ongoing investment and technological development. Among the various methods employed, the Haber-Bosch Process dominates the landscape due to its efficiency in producing ammonia from nitrogen and hydrogen, catering primarily to fertilizer production, which is essential for food security on a global scale.In contrast, the Electrochemical Process is gaining traction as a sustainable alternative, emphasizing lower emissions and energy consumption, aligning with rising environmental standards and consumer demand. Other methods also play a critical role in contributing to the versatility and adaptability of ammonia production. Furthermore, the demand for ammonia, driven by growth in agriculture and energy sectors, presents significant opportunities for innovation and diversification within the Global Ammonia Market. As industries shift towards greener technologies, the importance of these manufacturing processes will continue to evolve, providing a foundation for sustainable growth in the Global Ammonia Market revenue.

Ammonia Market End Use Industry Insights

The Global Ammonia Market revenue demonstrates significant valuation, expected to reach 72.38 USD Billion by 2024, driven by diverse applications across various end use industries. Agriculture is a major consumer of ammonia, utilizing it primarily as a fertilizer to enhance crop yield and soil health, which underscores its essential role in food production globally. The chemical industry also benefits substantially from ammonia, primarily as a building block for numerous chemicals, including explosives and plastics, thereby propelling market demand.In pharmaceuticals, ammonia is crucial in the production of various medicinal products, highlighting its importance in healthcare. The food and beverage sector leverages ammonia for refrigeration and processing, emphasizing its versatility. The continued growth in these sectors, alongside increasing global population and food demands, positions the Global Ammonia Market for steady expansion, even as it faces challenges like environmental regulations and the push for sustainable alternatives. Market statistics reveal that the industry's robust structure fosters opportunities for innovation and efficiency improvements, thus adapting to changing market dynamics while delivering essential products for everyday use.As these end use industries evolve, the Global Ammonia Market segmentation illustrates the interlinked nature of ammonia's applications and its pivotal role in supporting key sectors of the economy.

Ammonia Market Form Insights

The Global Ammonia Market, specifically focusing on the Form segment, is set to thrive with an expected valuation of 72.38 USD Billion in 2024, growing steadily through to 2035. This segment of the market primarily includes Anhydrous Ammonia, Aqueous Ammonia, and Ammonium Nitrate, each playing a vital role in various applications. Anhydrous Ammonia is a key player due to its widespread use in fertilizers and as a refrigerant, contributing to the agricultural sector with enhanced productivity. Aqueous Ammonia offers significant advantages in cleaning solutions and as a precursor in several industrial applications, hence holding importance in manufacturing and sanitation processes.Meanwhile, Ammonium Nitrate is notable for its pivotal use in the explosives industry and for crop production, making it a dominant form in the fertilizer segment. The Global Ammonia Market is bolstered by growing agricultural needs, increased demand for fertilizers, and environmental regulations promoting more efficient ammonia use. The broader market growth is anticipated to continue benefiting from advancements in production technologies and an emphasis on sustainable practices in the industry.

Ammonia Market Regional Insights

The Global Ammonia Market is witnessing noteworthy growth across its regional segmentation, with significant contributions from various areas. In 2024, North America is valued at 15.0 USD Billion, while Europe follows closely at 20.0 USD Billion, showcasing their importance in the ammonia industry. However, the Asia-Pacific (APAC) region leads with a dominant valuation of 25.0 USD Billion, emerging as a significant growth driver due to rapid industrialization and agricultural expansion. South America and the Middle East and Africa (MEA) hold more modest valuations at 6.0 USD Billion and 6.38 USD Billion, respectively, indicating slower growth but essential opportunities in local markets.The growth trends in these regions are influenced by rising demand for ammonia in fertilizers and industrial applications, along with the ongoing push for sustainable practices. The statistics reveal how APAC's majority holding is attributed to its vast agricultural sector, which consistently seeks nitrogen-based fertilizers for crop production, making it a focal point in the Global Ammonia Market. Overall, these regional dynamics serve as vital indicators of market performance and highlight the diverse opportunities and challenges influencing ammonia usage worldwide.

 

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Ammonia Market Key Players and Competitive Insights

The Global Ammonia Market is characterized by strong competition driven by various factors including demand fluctuations, pricing strategies, and technological advancements. Companies in this sector are continually innovating to enhance efficiency and sustainability in ammonia production. Considering the critical role ammonia plays in fertilizers, industrial chemicals, and other applications, the market has attracted several players who are vying for a larger market share. The competition is not solely based on price; it also includes factors like production capacity, sustainability practices, and supply chain efficiencies. As environmental regulations become stricter, the pressure is on companies to develop cleaner production methods while maintaining cost-effectiveness. This ongoing evolution underscores the dynamic nature of the Global Ammonia Market, where the agility to adapt and respond to market demands is crucial for maintaining competitive advantage.Agrium is recognized as a key player in the Global Ammonia Market and has built a robust presence through strategic investments and operational efficiencies. The company is known for its strong focus on agricultural nutrients and its commitment to delivering high-quality ammonia products to the market. Through its extensive network of production facilities and distribution channels, Agrium leverages its operational strengths to cater to various customer needs in different regions. The company’s well-established relationships with farmers and agricultural businesses allow it to maintain a competitive edge by ensuring consistent supply and reliability. Furthermore, Agrium continues to focus on research and development initiatives aimed at improving product offerings and boosting production efficiency, thus solidifying its reputation in the ammonia sector.SABIC is another significant contender in the Global Ammonia Market, where it has developed a strong portfolio of ammonia-related products and services. Known for its innovative approach, SABIC integrates state-of-the-art technologies into its production processes, enabling higher yields and reduced environmental impact. The company continually seeks strategic partnerships and engagement in mergers and acquisitions to broaden its market reach and enhance operational capabilities. By doing so, SABIC not only expands its production capacity but also diversifies its product offerings to cater to changing market demands. This encompasses a range of key products from fertilizers to industrial applications that utilize ammonia as a crucial component. Additionally, SABIC's global presence allows it to capitalize on emerging markets, offering a competitive advantage that positions it favorably against other players in the ammonia industry. Through continuous improvements in its manufacturing processes and strong customer relations, SABIC is poised to maintain a significant role in the Global Ammonia Market.

Key Companies in the Ammonia Market Include

Agrium

SABIC

Shandong Yuhuang Chemical

Yara International

Nutrien

Narra Industries

Orascom Construction

Qatar Fertilizer Company

Indian Farmers Fertiliser Cooperative

Mangalore Chemicals and Fertilizers

OCI Nitrogen

BASF

Koch Industries

Jiangsu Zhongjin Lingnan Nonfemet Company

CF Industries

Ammonia Market Industry Developments

Recent developments in the Global Ammonia Market have shown significant activity, with organizations such as Yara International and OCI Nitrogen pushing towards greener ammonia production methods. In July 2023, Agrium announced plans to increase its production capacity, aligning with the growing demand for sustainable fertilizers globally. The financial valuation of companies in the market has seen an increase, driven by the heightened demand for ammonia in agriculture and some industries focusing on decarbonization strategies. Current affairs indicate that SABIC and Qatar Fertilizer Company are partnering to develop advanced ammonia technologies aimed at reducing carbon emissions. Additionally, in September 2023, CF Industries acquired a minority stake in Shandong Yuhuang Chemical as part of a strategic move to enhance supply chains. Over the last few years, major happenings include Nutrien's expansions in ammonia production technologies reported in March 2022 and Narra Industries' entry into renewable ammonia markets in early 2023. The focus on sustainable practices and rising investments in production capacity are reshaping the competitive landscape, fostering innovation and shifting product offerings within the Global Ammonia Market.

Ammonia Market Segmentation Insights

Ammonia Market Application Outlook

• Fertilizers
• Industrial Chemicals
• Refrigeration

Ammonia Market Manufacturing Process Outlook

• Haber-Bosch Process
• Electrochemical Process
• Others

Ammonia Market End Use Industry Outlook

• Agriculture
• Chemical
• Pharmaceutical
• Food Beverage

Ammonia Market Form Outlook

• Anhydrous Ammonia
• Aqueous Ammonia
• Ammonium Nitrate

Ammonia Market Regional Outlook

• North America
• Europe
• South America
• Asia Pacific
• Middle East and Africa

Report Scope:,,,,,,,,,,,,,

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	70.88(USD Billion)
MARKET SIZE 2024	72.38(USD Billion)
MARKET SIZE 2035	91.0(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	2.11% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Agrium, SABIC, Shandong Yuhuang Chemical, Yara International, Nutrien, Narra Industries, Orascom Construction, Qatar Fertilizer Company, Indian Farmers Fertiliser Cooperative, Mangalore Chemicals and Fertilizers, OCI Nitrogen, BASF, Koch Industries, Jiangsu Zhongjin Lingnan Nonfemet Company, CF Industries
SEGMENTS COVERED	Application, Manufacturing Process, End Use Industry, Form, Regional
KEY MARKET OPPORTUNITIES	Green ammonia production technologies, Rising demand in agriculture sector, Investment in clean energy solutions, Innovations in ammonia storage, Ammonia as hydrogen carrier
KEY MARKET DYNAMICS	Supply-demand fluctuations, Environmental regulations, Technological advancements, Increased fertilizer usage, Rising industrial applications
COUNTRIES COVERED	North America, Europe, APAC, South America, MEA