ID: MRFR/CnM/1775-CR | 282 Pages | Author: Chitranshi Jaiswal | February 2021
Ammonia Market Size was valued at USD 68.5 billion in 2021. The ammonia market industry is projected to grow from USD 73.04 Billion in 2022 to USD 114.5 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 6.64% during the forecast period (2022 - 2030). Increasing demand for all forms of ammonia across agricultural and food production industriesare the key market drivers enhancing the market growth. Furthermore, ammonia as a chemical has higher demand from textiles, life sciences and biologics, pharmaceuticals, plastic, dyes, pesticides, rubber, and pulp & paper, amongst others.
The growing population and the increasing demand for food are likely to generate revenue in the fertilizer industry. The fertilizer industry plays a pivotal role in agricultural productivity and crop yield. In 2021/2021, the total demand for fertilizers is expected to reach some 200 million metric tons. Fertilizers provide the major nutrients including nitrogen, phosphorus, and potassium (NPK) that plants need to grow. The growing popularity of commercial agriculture ly is likely to drive the adoption of nitrogenous fertilizers. The market for these fertilizers is dependent upon the demand for oilseeds and grains crops that drives the overall ammonia production. Thus, the continual use of fertilizers has enhanced the ammonia market CAGR across the globe in the recent years.
Ammonia is required to make fertilizers and is usually produced from nitrogen and hydrogen through the Haber-Bosch procedure. Its production using conventional fossil fuel-based processes is responsible for about 1.8% of the CO2 emissions. Green hydrogen and NH3 are expected to be critical contributors to the world reaching net-zero carbon emissions by 2050. Various industry experts foresee that hydrogen will meet approximately 20% of the world’s energy needs by 2050. For instance, in October 2020, CF Industries announced that it would focus on green and low-carbon production, where NH3 is produced through a carbon-free process. Therefore, the aim of reducing greenhouse gases is another factor driving the growth of the ammonia market revenue.
The ammonia market segmentation, based on fusion type, includes liquid, powder and gas. The liquid form of ammonia is most frequently employed. Major applications include residential and commercial cleaning as well as fertilizers. It is condensed into a fluid and combined with various plant stimulants for use in fertilizer. It reacts with moisture content within the gas phase to produce fertilizer soil that is abundant in ammonia.The ammonia gas is also use often. Ammonia is also used as a refrigerant gas, for purification of water supplies, and in the manufacture of plastics, explosives, textiles, pesticides, dyes and other chemicals. Hence, rising applications of ammonia in gaseous state positively impacts the market growth.
The ammonia market data has been bifurcated by surgery into fertilizers, chemicals, refrigeration, fibers and plastics, pharmaceutical, pulp and paper and others. The fertilizer application segment dominated the market. It is also used in the manufacturing of various liquid fertilizer solutions that consist of ammonium nitrate, aqua ammonia, and urea.
June 2021: Yara International, a Scandinavian fertilizer company collaborated with Trafigura, a commodities trading firm on the promotion and development of ammonia usage as a clean fuel in shipping and to explore possible opportunities on certain blue and green ammonia to fuel infrastructure and create new market opportunities. This collabration has further broadened the growth opportunity for the ammonia industry.
The second fastest growing segment in the ammonia industry is the refrigeration sector. With an increasing focus on energy consumption systems, ammonia refrigeration systems are a sustainable and safe option. It belongs to the group of natural refrigerants and is considered as the most environmentally-friendly refrigerant. It has zero Ozone Depletion Potential (ODP) and Warming Potential (GWP).
Based on End Users, the ammonia industry has been segmented into direct and distribution. The direct segment is expected to register a steady revenue growth rate in respect to the ammonia market revenue. This domination is owing to its ability to adapt to changes, innovate, and offer services, transparently, and effectively. In addition, B2B buyers are increasingly willing to purchase products directly. An online platform facilitates and rationalizes the trading and distribution of many chemical products and links up with supply chain and logistics platforms.
By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. North America Ammonia market accounted for USD 29.5 billion in 2021 and is expected to exhibit a significant CAGR of 43.2 percent growth during the study period. The U.S. held the highest share in the North America market in 2020 due to growth in the agriculture industry. In the most recent survey, there were 2.01 million U.S. farms in 2021. The rise in government initiatives for the implementation of modern agriculture methods and advanced infrastructure has added to the high revenue of the North America market.
Europe ammonia market accounts for the second-largest market share. In Europe, NH3 production is mainly based on natural gas production, as a key raw material and steam methane reforming (SMR) as the major technology. Companies are investing in the present technology, which is likely to improve energy efficiency and have the lowest CO2 emissions. For instance, in February 2021, A.P. Møller-Maersk signed a project to build Europe’s largest production facility of carbon dioxide-free green NH3, in Esbjerg on the west coast of Denmark. Further, the Germany ammonia market held the largest market share, and the UK ammonia market was the fastest growing market in the European region
The Asia-Pacific Ammonia Market is expected to grow at the fastest CAGR from 2022 to 2030. This is attributed to the increasing demand from the fertilizer industry in India and China. Agriculture plays an important role in the economic development of agrarian India, with approximately 17% of the gross value added (GVA) and over 50% of the population depending on agricultural supply. Moreover, China ammonia market held the largest market share, and the India ammonia market was the fastest growing market in the Asia-Pacific region
Major market players are spending a lot of money on R&D to increase their product lines, which will help the ammonia market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the ammonia industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies adopted by manufacturers in the ammonia industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, ammonia industry has provided medicine with some of the most significant benefits. The ammonia market major player such as Uralchem JSC (Russia), SABIC (Saudi Arabia), Yara (Norway), CF Industries Holdings Inc. (US)., and others are working to expand the market demand by investing in research and development activities.
ACME Solar Holdings Limited operates as a holding company. The Company, through its subsidiaries, provides innovative green energy and energy management solutions for telecom passive Infrastructure. ACME Solar Holdings serves customers in India. It's authorized share capital is INR 1,000.00 cr and the total paid-up capital is INR 104.44 cr. In July 2021, ACME Solar Holding Private Limited, an Indian based solar developer company having 5.5 GW renewable energy, is set to launch its first renewable ammonia and hydrogen "semi-commercial" plant in Rajasthan state by July-August.
Also, the Abu Dhabi National Oil Company or ADNOC is the State-owned oil company of the United Arab Emirates (UAE). It is the world's 12th largest oil company by production. As of 2021, the company has an oil production capacity exceeding 4 million b/d with plans to increase to 5 million bpd by 2030. It is the United Arab Emirate's largest oil company. In June 2021, Abu Dhabi National Oil Co. (ADBOC) collaborated with Fertiglobe, an Abu Dhabi-based chemical company to develop its first blue ammonia facility with a capacity of 1 million metric tons per year, as the energy producer seeks to attract investments in low-carbon products.
CF Industries Holdings Inc. (US)
Nutrien Ltd. (Canada)
Group DF (Ukraine)
OCI NV (Netherlands)
EuroChem Group AG (Switzerland)
SABIC (Saudi Arabia)
Orica Limited (Australia)
Uralchem JSC (Russia)
AB ”Achema” (Lithuania)
Indian Farmers Fertiliser Cooperative Limited (India)
Qatar Fertiliser Company (Qatar)
May 2022: Thyssen Krupp Uhde USA as well as Bloom Energy will produce about 30,000 tonnes of greener ammonia annually at LSB Industries' facilities in Pryor, Oklahoma. LSB Businesses is a US fertilizer manufacturer. The engineering plan to transform a small percentage of Pryor's current conventional ammonium production into greener ammonia will be created by Thyssen Krupp Uhde.
September 2022: OCI Nitrogen announced Blue Ammonia Hydrogen Project in United State Gulf Vf. OCI started construction of a 1.1 million tons per annum (mtpa) blue ammonia facility with infrastructure to double capacity to 2.2 mtpa.
Fibers and Plastics
Pulp and Paper
Rest of Europe
Rest of Asia-Pacific
Rest of the World
|Market Size 2021||USD 68.5 billion|
|Market Size 2022||USD 73.04 billion|
|Market Size 2030||USD 114.5 billion|
|Compound Annual Growth Rate (CAGR)||6.64% (2022-2030)|
|Market Forecast Period||2022-2030|
|Historical Data||2018 & 2020|
|Market Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Form, Application, and Sales Channel|
|Geographies Covered||North America, Europe, Asia Pacific, and Rest of the World|
|Countries Covered||The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil|
|Key Companies Profiled||Uralchem JSC (Russia), SABIC (Saudi Arabia), Yara (Norway), and CF Industries Holdings Inc. (US).|
|Key Market Opportunities||Increasing the use of ammonia as a biofuel|
|Key Market Dynamics||Growth of the agricultural industry Increasing applications in the refrigeration systems and mining industry|
The ammonia market size was valued at USD 68.5 Billion in 2021.
The market is projected to grow at a CAGR of 6.64% during the forecast period, 2022-2030.
North America had the largest share in the market
The key players in the market are Uralchem JSC (Russia), SABIC (Saudi Arabia), Yara (Norway), and CF Industries Holdings Inc. (US).
The liquid form dominated the market in 2021.
The fertilizer application had the largest share in the market.
Key Questions Answered
Why Choose Market Research Future?