Ammonia Market

Ammonia Market Size, Share & Outlook 2025-2033:

The global ammonia market size reached USD 83.3 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 127.1 Billion by 2033, exhibiting a growth rate (CAGR) of 4.3% during 2025-2033. The market is driven by increasing demand for fertilizers in agriculture, growing industrial applications, rising production of chemicals and explosives, advancements in refrigeration technologies, and expanding usage in wastewater treatment. Additionally, the shift towards sustainable and eco-friendly agricultural practices further fuels market growth.

Ammonia Market Analysis:

• Major Market Drivers: Some of the major market drivers include extensive applications in refrigeration and chemicals, escalating agricultural demand for fertilizer to elevate crop yields, and magnifying interest in sustainable energy alternatives like green ammonia. Increasing global population and concerns pertaining to food security boost fertilizer utilization, while industrial expansion bolsters ammonia applications in numerous sectors. In addition, technological innovations in ammonia synthesis and strict environmental protocols are boosting investments in environmentally friendly ammonia solutions, further aiding in global ammonia market expansion.
• Key Market Trends: The market provides a comprehensive analysis of the current trends in the ammonia market, including proliferating fertilizer production to address the rapidly growing food demand, elevated inclination towards sustainability and stringent regulations, and advancements in ammonia production that enhance the cost-efficiency and effectiveness of ammonia. Such trends are bolstered by heavy investments in renewable energy ventures, notable developments in agricultural segments, and advanced production techniques, collectively fueling market expansion and fortifying ammonia’s crucial role in numerous industrial applications.
• Geographical Trends: According to ammonia market analysis, the Asia Pacific region dominates due to substantial investments in production facilities, increasing industrialization, and robust agricultural requirements. Major economies like India and China are the dominant regions that extensively leverages fertilizers to promote large-scale agriculture. In addition, Asia Pacific’s growing chemical manufacturing industry further fuels ammonia demand. Strategic infrastructure developments and technological advancements improve production capacity, strengthening region’s leading position in the global ammonia market share.
• Competitive Landscape: Some of the major market players in the ammonia industry include Achema AB, BASF SE, CF Industries Holdings Inc., Koch Industries Inc., Linde plc, Nutrien Ltd, OCI N.V., Orica Limited, PJSC Togliattiazot, Saudi Basic Industries Corporation, Yara International ASA, among many others.
• Challenges and Opportunities: The ammonia market overview highlights several challenges, including strict environmental laws, fluctuating raw material prices, and high energy consumption in ammonia production, and elevated carbon emission. However, such challenges offer opportunities to ammonia companies to grow and innovate. Technological advancements in green ammonia and enhanced synthesis techniques present potential for sustainable ammonia production. Heightening demand in agriculture sector and the intensifying emphasis on clean energy sources further facilitate market opportunities.
   

Ammonia Market Trends:

Increasing Demand for Green Ammonia

The global ammonia market is undergoing a notable inclination towards green ammonia, fueled by heightening environmental concerns and strict regulations on carbon emissions. According to a research article published in May 2024, the European ammonia sector is responsible for 36 million tons of carbon dioxide emission annually. Green ammonia is an eco-friendly alternative to traditionally produced ammonia as it is generated using renewable energy sources. As a result, major companies are rapidly investing in green ammonia production to reduce their carbon footprints. For instance, in July 2024, Aslan Energy Capital signed MoU to acquire 35,000 hectors of land in Mexico for developing solar-based green ammonia production facility. The first phase is projected to produce around 600,000 tons of green ammonia per year. The capacity is planned to double in phase two in 2030.

Rising Product Demand for Fertilizer Production

Ammonia’s crucial role as a source of nitrogen in fertilizer production primarily drives the market growth. With the increase in global population, the food demand is propelling, necessitating elevation of agricultural production. Consequently, this drives the demand for ammonia-based fertilizers. According to the data provided by The Mosaic Company, a producer of potash and phosphate for agricultural applications, more than 80% of the ammonia produced is leveraged as fertilizer. Major agricultural economies, including Brazil and India, are heavily investing to expand the production capacity for fertilizer. This trend reinforces a stable demand for ammonia, highlighting its critical role in aiding global agricultural sustainability and food security.

Advancements in Ammonia Synthesis Technology

The ammonia market outlook indicates expanding opportunities due to advancements in ammonia synthesis technology. The development of more effective and cost-efficient production techniques, including catalytic and electrochemical processes, is improving ammonia synthesis capabilities. Such advancements aid in carbon emission and energy consumption reduction. For instance, in March 2024, Jupiter Ionics raised USD 9 million to scale-up its electrochemical green ammonia technology that leverages electrolysis method to produce ammonia with zero carbon emissions. With major companies rapidly adopting such advanced technologies, the market witnesses enhanced sustainability and productivity. This trend reflects the industry’s obligation to efficiency and innovation, bolstering competitiveness and growth in the ammonia market share.

Ammonia Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on physical form, application, and end use industry.

Breakup by Physical Form:

• Liquid
• Powder
• Gas
   

Liquid accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the physical form. This includes liquid, powder, and gas. According to the report, liquid represented the largest segment.

The ammonia industry report provides comprehensive insights into liquid ammonia that represents the largest segment of the market share due to its widespread utilization in chemical manufacturing, agriculture sector, and industrial refrigeration. Liquid ammonia is comparatively easier to store and transport than its gaseous form, which further enhances its preferences across various industries. Moreover, liquid form has high efficiency and energy density in numerous applications that aids in its dominance in the market dynamics. The growth of this leading segment is further propelled by the development of production facilities and technological improvements in distribution and handling, underpinning its dominance in the ammonia market. For instance, in January 2024, INOX Air signed MoU with Government of Maharashtra, India, for setting up a liquid ammonia production facility of 500,00 million tons p.a. capacity with a proposed outlay of USD 3 billion.

Breakup by Application:

• MAP and DAP
• Urea
• Nitric Acid
• Ammonium Sulfate
• Ammonium Nitrate
• Others
   

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes MAP and DAP, urea, nitric acid, ammonium sulfate, ammonium nitrate, and others.

Monoammonium phosphate (MAP) and diammonium phosphate (DAP) are critical applications of ammonia that are extensively used as fertilizers and provide vital nutrients like phosphorus and nitrogen to crops. MAP and DAP have high nutrient profile that aids in enhancement of agricultural productivity and soil fertility. These chemicals aid in addressing the increasing global food demand and facilitating sustainable agricultural practices, consequently expanding the ammonia market size. For instance, in December 2023, Phophosolutions Inc. leveraged its groundbreaking RhizoSorb technology to foster sustainable agricultural practices by comparing traditionally produced MAP and analyzing life cycle of annual corn production.

Urea is a crucial ammonia derivative that plays a critical role in the fertilizer market. Its production is significantly influenced by ammonia market growth factors, driving its demand and applications in both agriculture and industry. It is the most commonly utilized nitrogen fertilizer and provides a cost-efficient and effective nitrogen source to crops and plants, consequently increasing crop yields. According to research article published in 2023 edition of Sustainable Plant Nutrition journal, utilization of urea as a fertilizer is more than 50% of the global nitrogen fertilizer applications. Furthermore, urea is leveraged in numerous industrial applications, such as adhesives, resins feedstock, and in automotive sector for diesel exhaust fluid.

Nitric acid is produced from ammonia and is a chief chemical in numerous industrial processes. It is principally leveraged in the manufacturing of fertilizers, especially ammonium nitrate, and in the synthesis of dyes, explosives and plastics. The industrial significance and versatility of nitric acid highlight pivotal role of ammonia in supporting a broad range of chemical manufacturing industries worldwide.

Ammonium sulfate is a derivative of ammonia and is widely utilized in agricultural sector as a nitrogen fertilizer. It offers essential sulfur and nitrogen nutrients to crops, enhancing yields and soil quality. Ammonium sulfate is also leveraged in industrial processes, including flame retardant and water treatment, reflecting its diverse role in both industrial and agricultural markets.

Ammonium nitrate is extensively deployed in agriculture and numerous other industries. It is efficiently used a fertilizer that supplies essential nitrogen to crops, improving productivity and growth of plantations. Furthermore, it is a key chemical in industrial sector to manufacture explosives for construction and mining. Its dual-use profile positions it as a pivotal product in the global ammonia market share.

Breakup by End Use Industry:

• Agrochemical
• Industrial Chemical
• Mining
• Pharmaceutical
• Textiles
• Others
   

 Agrochemical represents the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the end use industry. This includes agrochemical, industrial chemical, mining, pharmaceutical, textiles, and others. According to the report, agrochemical represented the largest segment.

Agrochemical segment holds the largest share of the ammonia market, principally due to its integral demand in fertilizer production. According to Jaysons Chemical Industries, an ammonia manufacturer, approximately 90% of ammonia produced is leveraged in agricultural sector as a fertilizer. Moreover, approximately 50% of agricultural production globally is dependent on mineral fertilization. This dominance is ascribed to the elevated demand for effective agricultural practices to improve crop yields and meet the rapidly increasing food requirements of a proliferating global population. Ammonia’s efficiency in offering vital nutrients to crops reinforces its extensive utilization in fertilizers. Resultantly, the agrochemical sector remains a crucial end-user, upholding strong ammonia demand globally.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific leads the market, accounting for the largest ammonia market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific represents the largest regional market for ammonia.

Asia Pacific is dominating the ammonia market primarily due to rapid urbanization, industrialization, and escalated agricultural demand. Major markets, such as Japan, South Korea, India and China, demonstrate significant growth because of widespread use of ammonia in fertilizers, aiding the propulsion of vast agricultural sectors. According to International Energy Agency, China is the leading producer of ammonia, with 30% of total production. In addition, the proliferating chemical manufacturing sector of Asia Pacific further fuels ammonia utilization. Tactical investments, partnerships, and technological innovations in the production capacity of ammonia synthesis improve the region’s competitive landscape, fortifying its dominant position in the global market share. For instance, in December 2023, Mitsubishi Corporation, SK Innovation, and Amogy announced a strategic partnership to improve the ammonia supply chain in East Asia, particularly South Korea, and Japan. This partnership aims to focus on ammonia cracking technology for extensive hydrogen carrier applications, and cost analysis across the value chain to probe opportunities for market expansion across the ammonia supply chain.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the ammonia industry include Achema AB, BASF SE, CF Industries Holdings Inc., Koch Industries Inc., Linde plc, Nutrien Ltd, OCI N.V., Orica Limited, PJSC Togliattiazot, Saudi Basic Industries Corporation, and Yara International ASA.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• The ammonia market competitive landscape is represented by the presence of major companies that are dominating the market through large-scale production capacities and strategic partnerships. For instance, in May 2024, Johnson Matthey (JM) and thyssenkrupp Uhde signed MoU to develop a fully integrated blue ammonia solution. As per the agreement, the duo will merge thyssenkrupp Uhde’s ammonia process and JM’s LCH technology to produce blue ammonia with up to 99% of carbon dioxide capture. Heightening demand for the product in industrial and agricultural applications further accelerates competition and expands business opportunities in the ammonia market. Moreover, market participants are actively investing in superior technologies and sustainable processing practices to improve effectiveness and lower adverse impacts on environment. In addition, strategic mergers are common, targeting to strengthen market position and amplify geographic reach.

Ammonia Market News:

• In May 2024, Yara Clean Ammonia and Greenko ZeroC, part of India’s AM Green, signed a deal to supply renewable ammonia from AM Green’s Kakinada facility in India. The offtake agreement and term sheet secure up to 50% of renewable ammonia supply from Phase 1 of AM Green's production site, set to produce and export ammonia by 2027. This ammonia will be leveraged in production of low-emission fertilizer and for decarbonizing power, shipping, and other energy intensive sectors.
• In May 2024, North Ammonia AS, a green ammonia production firm, secured 171 MW of grid capacity through Glitre Nett, an energy company, for a large-scale green ammonia production plant in Norway.

Ammonia Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the ammonia market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global ammonia market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the ammonia industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.