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, which would assist the market development. Currently, the ammonia market has recovered from the pandemic and is growing significantly.
- Over the short term, abundant use in the fertilizer industry and ammonia's increasing usage for the production of explosives are projected to fuel market growth throughout 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 is likely to act as an opportunity for the market during the forecast period.
- Asia-Pacific dominated the market across the world, with the largest consumption from countries such as China and India.
Ammonia Market Trends
Agriculture Segment to Dominate the Market
- According to the World Economic Forum, ammonia plays a vital role 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.
- 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 to give 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.
- All the aforementioned factors are expected to drive the agricultural segment, enhancing the ammonia demand during the forecast period.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific region domionates the ammonia market owing to large consumption from the countries such as China, India, japan, and others.
- China is the largest producer and consumer of ammonia in the world. According to US Geological Survey (USGS), the country produced 42 million metric tons in 2022. 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 leads the world in nitrogen (N) fertilizer consumption. Although using nitrogen fertilizers has contributed significantly to food production in China, the country continues to focus on securing fertilizer supplies and stabilizing prices once the spring farming season of 2023 begins. As a result, the National Development and Reform Commission (NDRC) and 13 other national ministries have issued notices to secure fertilizer supplies and stabilize prices.
- The textile industry also benefits from the capabilities of ammonia. The use of liquid ammonia in tanning is widespread, as well as 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. In order to remain competitive in a global market flooded with cheap textiles from China and other emerging countries, Japan's 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 Japan's textile industry.
- According to the Ministry of Finance, the imports of textile yarn and fabric were valued at JPY 1,261,222 million (USD 8859.64 million) in January-December 2022, which was 25.7% higher than the same period of last year.
- 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 during the forecast period.
Ammonia Industry Overview
The ammonia market is fragmented, with the inclusion of many international and local players in different regions. The major manufacturers in the market (not in any particular order) include CF Industries Holdings Inc., Yara, Nutrien Ltd, OCI, and Qatar Fertilizer Company, amongst others.
Ammonia Market Leaders
CF Industries Holdings Inc.
Yara
Nutrien Ltd
OCI
QATAR FERTILISER COMPANY
*Disclaimer: Major Players sorted in no particular order
Ammonia Market News
- Jun 2023: BASF SE and Yara Clean Ammonia announced their collaboration for a joint study in order to develop and construct a world-scale low-carbon blue ammonia production facility with a total capacity of 1.2 to 1.4 million tons per annum with carbon capture in the US Gulf Coast region. Through this collaboration, the companies will serve the growing global demand for low-carbon ammonia.
- May 2023: SABIC Agri-Nutrients Company and IFFCO announced their collaboration to bring 5,000 metric tons of certified low-carbon ammonia from Saudi Arabia to IFFCO for fertilizer production. This collaboration will enhance the company's business in the studied market.
- Mar 2023: CF Industries Holdings Inc. signed a definitive purchase agreement for the purchase of the Waggaman ammonia production facility from Incitec Pivot Limited, which has an annual capacity of 880,000 tons annually. Under this agreement, CF Industries will be able to provide 200,000 tons of ammonia annually for up to 25 years to its Dyno Nobel subsidiary.
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
4.2.2 Other Restraints
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
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 Italy
5.3.3.4 France
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, Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share (%)**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 BASF SE
6.4.2 Casale SA
6.4.3 CF Industries Holdings, Inc.
6.4.4 Chambal Fertilisers and Chemicals Ltd
6.4.5 CSBP
6.4.6 EuroChem Group
6.4.7 Group DF (OSTCHEM)
6.4.8 IFFCO
6.4.9 Koch Fertilizer, LLC.
6.4.10 Nutrien Ltd
6.4.11 OCI
6.4.12 PJSC Togliattiazot
6.4.13 PT Pupuk Sriwidjaja Palembang (Pusri)
6.4.14 QATAR fertilizer COMPANY
6.4.15 Rashtriya Chemicals and Fertilizers Limited
6.4.16 SABIC
6.4.17 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 (Liquid and Gas), End-user Industry (Agriculture, Textiles, Mining, Pharmaceutical, Refrigeration, and Other End-user Industries), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa). The report offers the market sizes and forecasts for ammonia in volume (tons) for all the above segments.
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| Agriculture | |
| Textiles | |
| Mining | |
| Pharmaceutical | |
| Refrigeration | |
| Other End-user Industries |
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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 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
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 Intelligenceā¢ 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.
