Ammonia Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Global Ammonia Market Trends and Insights

Surge in Low-Carbon Fertiliser Demand across Asia

Asia’s agricultural pivot toward sustainability is accelerating low-carbon fertilizer uptake. China is upgrading coal-based assets with renewable electricity and carbon-capture systems, lifting demand for renewable ammonia blends. Indonesia’s GAIA project introduces the first hybrid plant that co-feeds natural gas and electrolytic hydrogen, providing a scalable template for transition facilities. Policy incentives, such as preferential loan programs for sustainable inputs and tighter emission limits on conventional urea plants, are nudging farmers to premium products. The ripple effect is already evident in equipment orders for modular electrolysers and in long-term offtake contracts between fertilizer distributors and renewable electricity developers.

Adoption as Hydrogen Carrier for Maritime Bunkering

The maritime sector’s decarbonization pledge is positioning ammonia as a practical hydrogen vector. Japan and South Korea completed the world’s first truck-to-ship bunkering operation in 2024, demonstrating end-to-end handling safety and reinforcing confidence among port authorities^{[1]Offshore Energy, “JERA and NYK Complete World’s First Truck-to-Ship Ammonia Bunkering,” offshore-energy.biz} . The International Maritime Organization's target to halve shipping emissions by 2050 has motivated carriers to lock in green ammonia supply agreements. Class-society approvals for ammonia-ready engines and the rollout of coastal carrier designs are lowering technical risk, while carbon-price forecasts improve project economics. 

Coal-to-Gas Conversion of Chinese Urea Plants

Substituting coal with natural gas in Chinese urea complexes offers immediate carbon-intensity relief. Projects such as Ningxia Coal Industry’s USD 1.8 billion revamp cut CO₂ emissions by 2.20 million tons annually and free up incremental ammonia volumes for merchant sales^{[2]Ningxia Coal Industry Company, “MTP Revamp Project Enters Field Construction Stage,” asiachem.org} . The efficiency improvement, applied across assets representing nearly one-third of global capacity, equates to a potential 3-4 million ton supply boost. The transition is financially incentivized by regional CO₂-trading schemes that monetize avoided emissions.

Increasing Usage to Produce Explosives

Ammonium nitrate demand is rising alongside elevated mining activity in Australia, South America, and Africa. As miners expand iron ore and battery-metal projects, consumption of blasting agents built on ammonia feedstock follows suit. Because explosives demand moves counter-cyclically to fertilizer cycles, producers are diversifying revenues and reducing seasonal throughput swings^{[3]CAS, “Ammonium Nitrate: Making It Safer Today,” cas.org} . 

Volatile Natural-Gas Prices Inflating European Production Costs

European producers face chronic cost inflation as natural-gas spot prices remain above pre-2022 levels. Several plants operated by CF Industries and BASF have curtailed output, removing up to 7 million tons of effective capacity. Imports of Russian urea are back-filling the gap, complicating regional policy goals. Unless energy-sourcing contracts lock in competitive prices or blue-ammonia retrofits proceed swiftly, European supply is expected to lag global demand.

Safety & Toxicity Concerns

Ammonia’s toxicity requires rigorous containment. Studies warn that large-scale fuel combustion could increase fine-particulate exposure, potentially causing substantial health impacts in densely populated port cities. Industrial leaks, such as the 47 releases at US food-processing plants during 2012-2021, keep regulators attentive. Additional investment in double-walled tanks, scrubbers, and crew training elevates project capex and may delay facility commissioning.

Segment Analysis

By Type: Liquid Dominates with Versatility Advantage

Liquid product accounted for 95% of the ammonia market tonnage in 2024. This form benefits from higher volumetric energy density than compressed hydrogen, facilitating cost-effective storage for maritime bunker suppliers and long-distance pipeline blends. The segment is forecast to grow at 1.94% annually, slightly faster than the overall ammonia market, as new port bunkering hubs, on-site refrigeration systems, and specialized coastal carriers come online. Technological advances, including Japan’s large-coastal-carrier prototypes, support larger parcel sizes that reduce delivered cost per ton. Investments in cryogenic insulation and detection systems mitigate boil-off losses, further reinforcing liquidity advantages.

The gaseous segment remains essential for processes requiring immediate gasification, such as certain polymer or caprolactam syntheses, yet its share is constrained by higher handling costs. Safety regulations limit transport pressures and demand thicker-walled cylinders, which inflates logistics expenses relative to refrigerated-liquid shipping. Although incremental growth is expected in niche petrochemical processes, liquid product will continue to dominate the ammonia market through 2030.

By Application: Refrigerants Outpace Traditional Uses

Ammonia refrigeration captured a smaller share than fertilizer intermediates in 2024, yet it is growing fastest at 3.10% CAGR. Environmental policies phasing out hydrofluorocarbons drive the switch to natural refrigerants. Industrial systems using ammonia deliver up to 20% higher full-load efficiency and benefit from feedstock that can cost one-tenth of synthetic alternatives. Cold-chain operators, food processors, and petrochemical storage terminals are commissioning large ammonia cascade systems, spurring compressor and heat-exchanger upgrades.

Nitrogen-fertilizer intermediates retained 78% of the ammonia market size in 2024 because agriculture remains an essential demand pillar. Pharmaceutical synthesis, explosives, and emerging bunker-fuel blends diversify the use portfolio, buffering producers against agricultural price swings. Development of small-scale ammonia turbines and internal-combustion retrofits can broaden the downstream mix beyond 2030, yet refrigerant demand will remain the most dynamic application sub-segment.

By End-Use Industry: Agriculture Maintains Dominance Despite Diversification

Agriculture held an 82% share of total offtake in 2024 and is projected to expand at 1.99% CAGR through 2030 as population growth and diet shifts sustain fertilizer use. Precision-application tools, improved urea coatings, and regenerative-agriculture practices may optimize nitrogen efficiency, but acreage expansion in Africa and Southeast Asia underpins absolute tonnage growth. Renewable-ammonia adoption enables producers to align with low-carbon food-supply pledges, keeping the sector structurally important.

Non-agricultural demand continues to broaden, with refrigeration installations accounting for the quickest unit growth and mining explosives providing an anticorrelated revenue stream. Pharmaceutical and textile uses maintain stable baselines. Small yet promising demand pockets are forming in water-treatment additives and distributed energy-storage systems that leverage ammonia’s energy density. These trends collectively support a more balanced ammonia market portfolio over time.

Note: Segment Share of all individual segments available upon report purchase

Geography Analysis

Asia-Pacific dominated the ammonia market with 51.40% share in 2024. China’s coal-to-gas revamps and India’s 750-ton-per-day Hygenco project expand low-carbon capacity, while Japanese and South Korean ports pioneer bunkering pilots. Regional policy packages offering renewable-power wheeling and tax rebates further lower delivered costs. Indonesia’s hybrid plant in Aceh showcases transition pathways suited to resource-rich, power-constrained locations.

The Middle East and Africa region is the fastest-growing geography with a 2.67% CAGR projected for 2025-2030. Egypt’s USD 33 billion deal pipeline, Morocco’s billion-dollar Dakhla project, and Qatar’s USD 1.2 billion brownfield expansion illustrate sovereign ambitions to monetize solar and wind resources through green or blue ammonia exports. Gulf Coast engineering firms and shipyard alliances provide technical expertise, accelerating construction timelines.

North America leverages abundant shale gas and carbon-capture hubs to keep marginal production costs low. CF Industries’ 10.4 million-ton capacity and 37 US project proposals could raise regional output from 21 million to 79 million tons annually if sanctioned. Federal clean-hydrogen tax credits improve economics for blue facilities, and Gulf Coast ports offer deep-water access to European and Asian markets.

Europe wrestles with high gas prices and uncertain carbon-border tariffs. Production curtailments continue as spot prices remain volatile, though technology providers are accelerating blue-ammonia retrofits with up to 99% CO₂ capture rates. Import dependence is rising, highlighted by increasing Russian urea inflows. Although the European Union seeks to promote domestic energy security, capital allocation favors downstream clean-fuel offtake agreements more than new indigenous capacity.

Latin America and Oceania add incremental growth through mining and bunker-fuel demand. Brazil’s Port of Açu reserves land for a 1 million-ton green-ammonia facility, while Australia’s iron-ore expansion drives explosives consumption.