Ammonia Market Report Scope & Overview:

The Ammonia Market size was USD 82.96 billion in 2024 and is expected to reach USD 121.50 billion by 2032 and grow at a CAGR of 4.88% over the forecast period of 2025-2032.

The economic growth in the ammonia market plays a significant role as the rising agricultural demand is a major factor for its growth due to the application of fertilizers to increase crop yield, for which ammonia is a major reactant in its preparation. As the world population continues to rise, we must boost food output. 

Ammonia can also serve as a combustion fuel for power generation or be converted to hydrogen for fuel cells, facilitating the emerging hydrogen economy. In 2021, South Korea's Green New Deal policy highlighted ammonia as a key component for achieving its carbon neutrality goal by 2050. The government has earmarked investments for ammonia production using renewable energy and is collaborating with global partners to establish ammonia-fueled power plants and ships.

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Key Ammonia Market Trends

• Rising adoption of green ammonia as a clean fuel alternative

• Growing demand in fertilizers to enhance agricultural productivity

• Expansion in industrial applications beyond fertilizers

• Investments in carbon capture and hydrogen integration

• Increasing role of ammonia as a hydrogen carrier and marine fuel

• Regional production shifts with Asia-Pacific emerging as a key hub

Ammonia Market Growth Drivers

• Rising consumption of ammonia in refrigerants drives the Ammonia market growth.

The rising consumption of ammonia in refrigerants is a significant driver of the ammonia market's growth, particularly in industrial refrigeration systems. Ammonia is considered a highly efficient refrigerant and has a much lower environmental impact than synthetic refrigerants, such as hydrofluorocarbons (HFCs), which are facing a global phase-out process because of their high global warming potential. Ammonia is gaining more prominence, in line with the push for natural refrigerants given tighter regulations against harmful refrigerants due to the likes of the Kigali Amendment to the Montreal Protocol. Ammonia refrigeration systems are most frequently used in sectors such as food processing, cold storage, and industrial cooling due to the excellent thermodynamic properties of ammonia, which are also low in cost. As an example, the European Union F-Gas Regulation targets the reduction of greenhouse gases which abled movement to natural refrigerants ammonia, thus increasing the demand for ammonia-based systems. Moreover, the industry is also undertaking global sustainability and reduced carbon emissions efforts; therefore, causing the industries to adopt environmentally friendly refrigerants which eventually drive the ammonia market. As one of the leading players in green refrigeration technologies, ammonia is expected to gain further demand from this market segment further driving the overall growth of the ammonia market.

The EU's F-Gas Regulation (EU No 517/2014), which aims to reduce the use of fluorinated greenhouse gases (F-gases), has accelerated the shift towards natural refrigerants like ammonia.

Ammonia Market Restraints

• Exposure to a concentrated amount of NH3 impacts humans and hinders market growth.

The potential health and safety hazards from exposure to higher concentrations of ammonia (NH3) can pose challenges to the growth of the ammonia market. Ammonia is a poisonous gas that can produce serious respiratory issues, eye and throat irritation, and, in high concentrations, permanent damage to the lungs or death. This makes it a very dangerous material to work with and move, causing the need for very strict safety procedures and regulations. Production, storage, or transportation leakages or spills can also be hazardous and harm human lives and the environment. This potential for perilous events gives rise to public anxiety and regulatory obstacles, and governments are responding by enforcing rigid safety norms, resulting in higher operating costs for ammonia producers and users. Moreover, sectors such as agriculture and refrigeration that depend substantially on ammonia will need tailored devices together with comprehensive safety-based systems to lessen these risks, thus potentially increasing the cost of ammonia-derived solutions. This is a huge restraint on the ammonia market as the entire value chain infrastructure needs to comply with this regulation and safety aspect before ammonia can be commonly used in the market.

Ammonia Market Opportunities

• Population rise, increasing need for food, and shrinking arable land are drivers of the demand for NH3.

• Rising fertilizer use and increased agricultural output drive market expansion

Ammonia Market Segment Analysis

By Product

Anhydrous held the largest market share around 61% in 2024. This is because it is extremely effective in some key applications (especially in fertilizers), anhydrous ammonia was the most widely-used ammonia form. And due to it being ammonia in, a concentrated form, anhydrous ammonia has a relatively high nitrogen content compared to most aqueous solutions making it an effective fertilizer. With that, it is injected directly into the soil, providing the nutrients that crops need, and ensuring high agricultural productivity. Anhydrous ammonia is predominantly used in the agriculture sector with remarkable demand and is thus positioned at the weekday end of the market. Also, anhydrous ammonia is cheaper compared to other forms for large agricultural use because of its higher concentration, hence lowering the cost of transporting the fertilizer and using on-site storage

By Application

The fertilizer segment held the largest market share around 48% in 2024. Ammonia is an important raw material for nitrogen fertilizer manufacturing, which is a vital element to improve crop production and food supply safety. In a world whose population is on the rise, there is no better place for food, therefore fertilizers that increase agricultural productivity are needed. Fertilizers that contain ammonia including ammonium nitrate, ammonium sulfate, and urea are effective sources of nitrogen that are important for growing plants. Because of their high efficacy and efficiency in increasing the productivity of crops, ammonia-based fertilizers are the most utilized in agriculture. Ammonia has a vital role to play in supporting food production requirements, and the growing adoption of modern farming practices dependent on fertilizer application makes ammonia indispensable in the fertilizer market, which underpins the dominance of ammonia in the ammonia industry.

Ammonia Market Regional Outlook

Asia Pacific Ammonia Market Insights

Asia Pacific held the largest market share around 48% in 2024.  Due to the high agricultural activity and the region accounting for the over one-third of the global fertilizer consumption, Asia-Pacific remains the leading market for ammonia, which is used in fertilizers. Ammonia is also produced and consumed in large volumes in China, India, and Japan to support the enormous agricultural industries there as feeds to nitrogen-based fertilizers. With more than 60% of the population globally living in the Asia-Pacific region, the high demand for food has led to the widespread utilization of ammonia in fertilizers to ensure food security and increase agricultural production. It also has extensive industrial capacity that utilizes ammonia for refrigeration, chemicals, and textiles. China, being a major contributor to the volume fraction of the ammonia production and consumption market, contributes greatly to the regional market characteristic. Moreover, the increasing industrialization coupled with the urbanization of developing nations like India and countries in Southeast Asia is also boosting the demand for ammonia specifically from the agricultural and industrial perspective. Asia-Pacific is likely to retain the largest share in the ammonia market driven by government policies favoring growth in agriculture, food security, and industrial activities.

Europe Ammonia Market Insights

In 2024, Europe will still be an important ammonia market, based on fertilizers, chemicals, and industrial applications. Meanwhile, the region's intense focus on decarbonization and green ammonia production is helping to reshape the industry, and countries such as Germany, the Netherlands, and Norway are plowing large sums of money into low-carbon technologies. Growth in the market for sustainable fertilizers, along with government policies aimed at slashing carbon emissions, is driving producers toward renewable energy sources of ammonia, and that’s giving Europe the upper hand in the global paradigm shift to clean energy.

North America Ammonia Market Insights

North America is expected to grow at a steady pace in 2024, spurred on by significant fertilizer consumption teemed with robust industrial demand, while the ascent of ammonia as an alternative hydrogen carrier for clean energy continues. The U.S. dominates the regional market due to an abundance of natural gas and technological developments in production. Canada Blue & green ammonia projects are on the rise, with investments at north of $5bn as the country seeks to fill abundant domestic and export opportunities, cementing North America’s emergence as a global leader.

Latin America (LATAM) Ammonia Market Insights

The Latin America ammonia market size is projected to show robust growth by 2024, due to the region’s heavy dependence on nitrogen-based fertilizers in the agriculture industry, to improve crop production. Brazil and Mexico constitute the top markets as the farming industry uses ammonia on a large scale to ensure food supply. Although the region relies on imports to meet its ammonia demand, increasing investment in regional production units and state-sponsored agricultural initiatives will ensure LATAM’s market presence.

Middle East & Africa (MEA) Ammonia Market Insights

MEA remains an important growth market for ammonia through to 2024, with a large natural gas supply available and government encouragement of diversification into chemicals and fertilizers. Countries like Saudi Arabia, Qatar, and the United Arab Emirates are developing large-scale ammonia projects that include green ammonia projects to serve domestic and international markets. And with an increasing demand for food, fast urbanization, and the region’s move toward exporting renewables, MEA will likely be among the fastest-growing players in the global ammonia market.

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Competitive Landscape for Ammonia Market

CF Industries

CF Industries is a leading global manufacturer of hydrogen and nitrogen products, supplying ammonia and other nitrogen-based fertilizers to industrial and agricultural markets.

• In 2023, CF Industries signed a formal acquisition agreement with Incitec Pivot Ltd to acquire its ammonia manufacturing complex in Waggaman, Louisiana. The plant has a nameplate capacity of 880,000 tons of ammonia annually, significantly enhancing CF’s production capacity in North America.

• In 2023, CF Industries partnered with LOTTE CHEMICAL Corporation to explore a U.S.-based clean ammonia project. The collaboration also involves a long-term clean ammonia offtake agreement for supply to South Korea, reinforcing CF’s commitment to low-carbon ammonia solutions.

Nutrien Ltd.
Nutrien is one of the world’s largest providers of crop inputs and services, including nitrogen, potash, and phosphate-based fertilizers.

• In 2022, Nutrien announced that its nitrogen plant in Geismar, Louisiana, is under consideration to host the world’s largest clean ammonia facility. The company selected ThyssenKrupp Uhde as its technology provider and partner for this new project, marking a significant milestone in the global transition toward sustainable ammonia production.

Ammonia Market Companies are:

• Koch Fertilizer LLC

• Qatar Fertilizer Company

• Togliattiazot

• SABIC

• Acron

• CF Industries Holdings Inc.

• Nutrien Ltd

• Sumitomo Chemical Co Ltd

• Yara

• BASF SE

• Agrium Inc.

• OCI Nitrogen

• EuroChem Group

• Group DF

• ICL Group

• Reliance Industries Limited

• PotashCorp

• Bunge Limited

• Mitsubishi Corporation RtM Japan Ltd

• Hanwa Co., Ltd.