Advanced Materials and Chemicals

Ammonia Market is Expected to Reach USD 108.19 billion by 2030

Feb 2024

Advanced Materials and Chemicals

As per the report published by Kings Research, the global Ammonia Market was valued at USD 79.63 billion in 2022 and is projected to reach USD 108.19 billion by 2030, growing at a CAGR of 4.07% from 2023 to 2030.

The global ammonia industry is expected to witness significant growth in the coming years. Ammonia, which consists of nitrogen and hydrogen, is widely used in various sectors such as agriculture, chemicals, and pharmaceuticals. It plays a vital role in the production of nitrogen-based fertilizers, particularly in the manufacturing of fertilizers. Additionally, ammonia is used in the production of explosives, refrigerants, and cleaning agents, thereby fueling market growth. Furthermore, the shift toward sustainable agriculture practices and the increasing focus on reducing greenhouse gas emissions have led to the development of ammonia as a potential renewable energy carrier. Moreover, researchers are currently investigating the possibility of utilizing ammonia as a fuel source that is free of carbon emissions. This groundbreaking development has the potential to bring about a revolutionary transformation in the energy industry and drive the further expansion of the ammonia market. With continuous progress in technology and significant investments in research and development, the ammonia market is poised to experience substantial growth in the coming years.

Key Insights

  • Based on product, the liquid segment held the largest market share of 43.61% in 2022
  • Based on end use, the agriculture segment accounted for 67.02% of the segment’s share in 2022
  • Based on region, Asia-Pacific registered the largest market share of 48.11% in 2022

Sabic Agri-Nutrients Completes First Commercial Shipment of Low-Carbon Ammonia to Taiwan Fertilizer Company.

June(2023): SABIC Agri-Nutrients Company sent 5,000 MT of the first commercial shipment of low-carbon ammonia to Taiwan Fertilizer Co. (TFC). This shipment of low-carbon ammonia reflects the commitment to delivering low-carbon solutions to its customers and helping them achieve their net-zero targets in various areas such as clean energy transitions and low-carbon chemicals/fertilizer solutions.

Increasing Application of Ammonia as a Fertilizer to Drive Market Growth

The increasing application of ammonia in fertilizer production has been a key driver for the growth of the ammonia market. Ammonia is a vital component in the production of nitrogen-based fertilizers, which are widely used in agriculture to enhance crop yield and improve soil fertility. This growing demand for ammonia-based fertilizers can be attributed to the rising global population and the need to feed a growing number of people. Additionally, ammonia offers several advantages as a fertilizer, such as its high nitrogen content and its ability to easily convert into various forms that can be readily absorbed by plants. Furthermore, ammonia-based fertilizers are known for their long-lasting effects, providing sustained nutrition to plants over an extended period of time. This makes them more efficient and cost-effective compared to other types of fertilizers. Additionally, ammonia is readily available and can be produced using various raw materials, which makes it a versatile option for fertilizer production. Overall, the ammonia market is expected to observe continual growth over the assessment period as the demand for efficient and sustainable agriculture practices continues to rise.

Expansion of Energy Sector to Boost the Growth of Ammonia Market

The expansion of the energy sector is playing a pivotal role in driving the growth of the ammonia market. As countries around the world strive to reduce their carbon emissions and transition towards cleaner energy sources, the demand for ammonia as a key component in green hydrogen production has surged. This growing need for ammonia as a feedstock in the production of clean energy has created a significant market opportunity for ammonia manufacturers and suppliers. Germany and Japan are two prime examples of countries that have recognized the potential in the market and have taken significant steps towards harnessing it. For instance, Germany has made substantial investments in renewable energy and has established ambitious goals to combat carbon emissions. Consequently, there has been a remarkable surge in the demand for ammonia as a primary ingredient in the production of eco-friendly hydrogen. Likewise, Japan has been progressively transitioning away from nuclear power and has been actively directing its investments towards the exploration of hydrogen as a viable alternative energy source. This has led to an increased demand for ammonia, further driving the growth of the ammonia market. In response to this growing demand, ammonia manufacturers and suppliers are expanding their production capacities and investing in research and development to meet the needs of the energy sector. By capitalizing on this market opportunity and catering to the demand for ammonia as a key component in clean energy production, these companies are positioning themselves for long-term growth and success in the evolving energy landscape. 

Europe Emerges as the Second-Largest Market with a Forecasted Value of USD 22.76 Billion by 2030

Europe is experiencing significant growth in the ammonia market driven by its strong agricultural sector, which heavily relies on ammonia-based fertilizers for crop production. The continent's vast agricultural lands require a significant amount of ammonia to maintain high yields and meet the growing demand for food. Additionally, Europe has implemented strict regulations and standards for environmental protection, prompting the adoption of ammonia as a cleaner alternative to other fertilizers. This commitment to sustainability has further fueled the demand for ammonia in the region. Furthermore, Europe boasts a well-established infrastructure for ammonia production and distribution, allowing for efficient supply chains and ensuring a steady availability of ammonia for various industries.

Market Players Focus on Launching New Products to Gain a Competitive Edge in the Market

The global ammonia market is consolidated with significant players such as Acron, Koch Fertilizer, LLC, Yara, CF Industries Holdings, Inc., Nutrien Ltd., Qatar Fertiliser Company, Togliattiazot, SABIC, Sumitomo Chemical Co., Ltd., and Orica Limited, among others. These major market participants are concentrating on expanding their business through collaboration and partnership strategies.

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