Ammonia Market Size
| Study Period | 2019 - 2029 |
| Market Volume (2024) | 188.41 Million tons |
| Market Volume (2029) | 206.86 Million tons |
| CAGR (2024 - 2029) | 1.89 % |
| Fastest Growing Market | Middle-East and Africa |
| Largest Market | Asia Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Ammonia Market Analysis
The Ammonia Market size is estimated at 188.41 Million tons in 2024, and is expected to reach 206.86 Million tons by 2029, growing at a CAGR of 1.89% during the forecast period (2024-2029).
During the COVID-19 pandemic, there was a negative impact on the ammonia market globally as agriculture, textile, mining, and other end-user industries were significantly affected. However, growth in the pharmaceutical segment is improving in the industry, and this is expected to assist in market development. Currently, the ammonia market has recovered from the pandemic and is growing significantly.
- In the short term, abundant use in the fertilizer industry and ammonia's increasing usage for the production of explosives are projected to fuel the market's growth during the forecast period.
- However, the hazardous effects of ammonia in its concentrated form are likely to hinder the growth of the market.
- Nevertheless, the use of ammonia as a refrigerant and the growing adoption of green ammonia are likely to act as opportunities for the market between 2024 and 2029.
- Asia-Pacific is expected to dominate the market and is likely to witness the highest CAGR from 2024 to 2029.
Ammonia Market Trends
The Agriculture Industry is Expected to Dominate the Market
- According to the World Economic Forum, ammonia is vital in agriculture and the global food supply chain. Ammonia has also been recognized as a future energy source for clean hydrogen.
- Ammonia binds nitrogen from the atmosphere and produces the primary crop nutrients using the absorbed nitrogen, which is then used to produce nitrogen fertilizers. As an essential raw material for fertilizer production, ammonia improves crop health and, in the long run, maintains and even increases soil fertility.
- According to the United Nations, the world population continues to grow and will reach 9 billion by 2050. By then, on the same land area, the demand for food production is expected to increase by 60%. Achieving food security requires the availability of sufficient, nutritious food at affordable prices. This can be achieved through the use of optimized fertilizers.
- Additionally, the United States is among the top importers of the three major fertilizer ingredients. Major producers of the main fertilizer components include China, Russia, Canada, and Morocco. In March 2023, the US Department of Agriculture (USDA) announced the first two rounds of a new grant program to expand innovative production for domestic fertilizer production capacity in 47 states and two territories. The USDA further announced that it received USD 3 billion in applications from more than 350 independent companies, thus highlighting significant recovery in the country's fertilizer industry.
- Furthermore, the USDA also announced its first USD 29 million grant offering in the first round. The subsidy will help independent companies increase their production of American-made fertilizers and encourage healthy competition.
- In March 2023, CBH Group announced the opening of its new Kwinana Fertilizer Plant, which will benefit grain farmers in Western Australia significantly. The project marks the start of CBH's liquid fertilizer business, increasing its granular fertilizer production capacity by 15,000. The new facility has 32,000 tons of urea ammonium nitrate (UAN) storage capacity and 55,000 tons of granular bulk fertilizer.
- Therefore, all the aforementioned factors are expected to enhance the demand for ammonia from the agriculture industry between 2024 and 2029.
Asia-Pacific is Expected to Dominate the Market
- Asia-Pacific dominates the ammonia market owing to large consumption from countries such as China, India, and Japan.
- China is the largest producer and consumer of ammonia in the world. According to the US Geological Survey (USGS), the country produced 43 million metric tons of ammonia in 2023. The demand for ammonia in the country is rising due to increasing applications in the agriculture industry, such as fertilizers, textiles, pharmaceuticals, and mining.
- China accounts for approximately 7% of the overall agricultural acreage globally, thus feeding 22% of the world’s population. The country is the largest producer of various crops, including rice, cotton, potatoes, and others. Hence, the demand for ammonia, which is used as a fertilizer, is rapidly increasing owing to the country's large-scale agricultural activities.
- Further, India is one of the economies that are largely dependent on agriculture. Agriculture is still the primary source of livelihood for more than 55% of the population. As per the Department of Fertilizers, in FY2023, about 28 million metric tons of urea were produced in India, which was 25.72 million metric tons in the previous year. Urea production in India presented an increasing trend.
- The textile industry also benefits from ammonia's capabilities. The use of liquid ammonia in tanning is widespread, as is the use of dyes in textile dyeing. Liquid ammonia plays an important role in the development of synthetic fabrics. The solution of ammonia enables fabric coloring to achieve almost any color.
- Japan has a long tradition in textile production and is one of the largest manufacturers of technical textiles. To remain competitive in the global market flooded with cheap textiles from China and other emerging countries, the Japanese textile industry is transforming into an industry that specializes in technological and smart textiles. Innovations such as synthetic spider silk and wearable health monitors are among the efforts to differentiate the Japanese textile industry.
- In addition, according to the Indian Brand Equity Foundation, India's textile and apparel exports (including handicrafts) from April 2023 to October 2023 stood at USD 21.15 billion. The industry is expected to reach USD 190 billion by 2025-26.
- Thus, all the above-mentioned factors are likely to provide the increasing demand for the ammonia market between 2024 and 2029.
Ammonia Industry Oveview
The ammonia market is highly fragmented in nature. The major players (not in any particular order) include CF Industries Holdings Inc., Yara, Nutrien Ltd, OCI, and Qatar Fertiliser Company (QAFCO).
Ammonia Market Leaders
CF Industries Holdings Inc.
Yara
Nutrien Ltd
OCI
Qatar Fertiliser Company (QAFCO)
*Disclaimer: Major Players sorted in no particular order
Ammonia Market News
- March 2024: Yara collaborated with GHC SAOC, a wholly-owned subsidiary of Acme Cleantech. Under this collaboration, ACME will provide YARA with ammonia with reduced CO2 emissions. This collaboration covers the supply of 100,000 tons per annum of renewable ammonia.
- December 2023: CF Industries Holdings Inc. completed the acquisition of Incitec Pivot Limited’s (IPL) Waggaman ammonia production facility for USD 1.675 billion. This acquisition added 880,000 tons of ammonia production annually to the company’s existing production capability.
Ammonia Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Drivers
4.1.1 Abundant Use in the Fertilizer Industry
4.1.2 Increasing Usage to Produce Explosives
4.2 Restraints
4.2.1 Hazardous Effects in its Concentrated Form
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Volume)
5.1 Type
5.1.1 Liquid
5.1.2 Gas
5.2 End-user Industry
5.2.1 Agriculture
5.2.2 Textiles
5.2.3 Mining
5.2.4 Pharmaceutical
5.2.5 Refrigeration
5.2.6 Other End-user Industries (Food and Beverage, Rubber, Water Treatment, Petroleum, and Pulp and Paper Industries)
5.3 Geography
5.3.1 Asia-Pacific
5.3.1.1 China
5.3.1.2 India
5.3.1.3 Japan
5.3.1.4 South Korea
5.3.1.5 Rest of Asia-Pacific
5.3.2 North America
5.3.2.1 United States
5.3.2.2 Canada
5.3.2.3 Mexico
5.3.3 Europe
5.3.3.1 Germany
5.3.3.2 United Kingdom
5.3.3.3 France
5.3.3.4 Italy
5.3.3.5 Rest of Europe
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle East and Africa
5.3.5.1 Saudi Arabia
5.3.5.2 South Africa
5.3.5.3 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share (%) Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 BASF SE
6.4.2 CF Industries Holdings Inc.
6.4.3 Chambal Fertilisers and Chemicals Limited
6.4.4 CSBP
6.4.5 Eurochem Group
6.4.6 Group DF (Ostchem)
6.4.7 IFFCO
6.4.8 Jsc Togliattiazot
6.4.9 Koch Fertilizer LLC
6.4.10 Nutrien Ltd
6.4.11 OCI
6.4.12 PT Pupuk Sriwidjaja Palembang (Pusri)
6.4.13 Qatar Fertiliser Company (QAFCO)
6.4.14 Rashtriya Chemicals And Fertilizers Limited
6.4.15 SABIC
6.4.16 Yara
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Use of Ammonia as a Refrigerant
7.2 Growing Adoption of Green Ammonia
Ammonia Industry Segmentation
Ammonia is an inorganic compound composed of a single nitrogen atom covalently bonded to three hydrogen atoms, an amidase inhibitor, and a neurotoxin. Furthermore, more than 80% of the ammonia produced by industry is used as fertilizer in agriculture. It is also used as a refrigerant gas, for water purification, and in producing plastics, explosives, textiles, pesticides, dyes, and other chemicals.
The ammonia market is segmented by type, end-user industry, and geography. By type, the market is segmented into liquid and gas. By end-user industry, the market is segmented into agriculture, textiles, mining, pharmaceutical, refrigeration, and other end-user industries. The report also covers the market size and forecasts for the ammonia market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (tons).
| Type | |
| Liquid | |
| Gas |
| End-user Industry | |
| Agriculture | |
| Textiles | |
| Mining | |
| Pharmaceutical | |
| Refrigeration | |
| Other End-user Industries (Food and Beverage, Rubber, Water Treatment, Petroleum, and Pulp and Paper Industries) |
| Geography | |||||||
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Ammonia Market Research FAQs
How big is the Ammonia Market?
The Ammonia Market size is expected to reach 188.41 million tons in 2024 and grow at a CAGR of 1.89% to reach 206.86 million tons by 2029.
What is the current Ammonia Market size?
In 2024, the Ammonia Market size is expected to reach 188.41 million tons.
Who are the key players in Ammonia Market?
CF Industries Holdings Inc., Yara, Nutrien Ltd, OCI and Qatar Fertiliser Company (QAFCO) are the major companies operating in the Ammonia Market.
Which is the fastest growing region in Ammonia Market?
Middle-East and Africa is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Ammonia Market?
In 2024, the Asia Pacific accounts for the largest market share in Ammonia Market.
What years does this Ammonia Market cover, and what was the market size in 2023?
In 2023, the Ammonia Market size was estimated at 184.85 million tons. The report covers the Ammonia Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Ammonia Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key sustainability challenges in the Ammonia Industry?
The key sustainability challenges in the Ammonia Industry are a) Ammonia production facilities can have negative impacts on surrounding communities, such as air and noise pollution b) Improper waste management and spills from ammonia storage and transportation can lead to soil and water contamination
What are the key sustainability challenges in the Ammonia Industry?
The key sustainability challenges in the Ammonia Industry are a) Ammonia production facilities can have negative impacts on surrounding communities, such as air and noise pollution b) Improper waste management and spills from ammonia storage and transportation can lead to soil and water contamination
What are the key sustainability challenges in the Ammonia Industry?
The key sustainability challenges in the Ammonia Industry are a) Ammonia production facilities can have negative impacts on surrounding communities, such as air and noise pollution b) Improper waste management and spills from ammonia storage and transportation can lead to soil and water contamination
Ammonia Industry Report
The global ammonia market is projected to experience significant growth due to its increasing demand across various industries such as agriculture, food production, textiles, life sciences, pharmaceuticals, plastics, dyes, pesticides, rubber, and pulp and paper. The fertilizer industry, especially, is a key driver of this market growth, fueled by the rising global population and food demand. Ammonia is also crucial in the production of various liquid fertilizer solutions. The market's growth is further propelled by the increasing emphasis on green and low-carbon production methods, with ammonia and green hydrogen expected to play a significant role in achieving net-zero carbon emissions by 2050. The market is categorized based on ammonia type, including liquid, powder, and gas, with the liquid form being predominantly used in residential and commercial cleaning, as well as fertilizers. The market is also divided by end-users into direct and distribution, with the direct segment anticipated to register steady growth. The Asia-Pacific region is expected to witness the fastest growth due to the escalating demand from the fertilizer industry in countries like India and China. Mordor Intelligence™ Industry Reports provide statistics for the Ammonia market share, size, and revenue growth rate, along with an analysis that includes a market forecast outlook and a historical overview. A sample of this industry analysis is available as a PDF download.
