Ammonia Market 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) : Global Opportunity

Ammonia Market 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) : Global Opportunity Analysis and Industry Forecast, 2024-2033

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.

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.

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
Key Market Players
CF Industries Holdings, Inc.
Nutrien Ltd.
Jinmei Group
Hubei Yihua Group
Qatar Fertilizer Company
PetroChina Group
TogliattiAzot
EuroChem Group
Acron Group Limited
Yangmei Group