Global Ammonia Market Size, Share, Outlook, Revenue, Forecast: By Type: Liquid, Gas; By End Use: Agriculture, Textile, Mining, Pharmaceutical, Refrigeration, Others; Regional Analysis; Market Dynamics: SWOT Analysis, Porter’s Five Forces Analysis; Value Chain Analysis; Competitive Landscape; Industry Events and Developments; 2024-2032

Global Ammonia Market Outlook

The global ammonia market size reached a volume of approximately 194.8 MMT in 2023. The market is assessed to grow at a CAGR of 1.90% in the forecast period of 2024-2032 to reach a volume of around 218.3 MMT by 2032.

Ammonia refers to a gas with the chemical formula of NH3, and it is a combination of nitrogen and hydrogen. The characteristics of ammonia include a colourless appearance, pungent smell, and dissolution in water to offer an alkaline solution. The gas is caustic and hazardous and, therefore is classified as a dangerous substance in some regions.

According to the ammonia market report, ammonia is a processing aid used in the biotechnology sector to provide several chemicals for fermentation and growth control systems. The ammonia production report outlines that when the gas form of ammonium is combined with water, ammonia is produced, which is widely used in various industries. Since it is believed to be a significant provider of nutrients, ammonia is frequently used as a fertiliser.

With the high rate of population growth worldwide, there is increased pressure on farmers everywhere to significantly increase agricultural output to keep up with the rising demand for various types of grain and other commodities. This necessitates a substantial amount of expensive fertiliser, which is produced using ammonia, thereby influencing the ammonia market price.

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News and Developments in the Market

In March 2023, Casale SA signed an agreement with Ferkensco Management Limited and Enter Engineering Pte, Uzbekistan-based companies, to construct a state-of-the-art ammonia-based fertiliser plant in Uzbekistan. The plant is expected to produce 495,000 tons per year of ammonia and will be completed by the first half of 2025, which is expected to add to global ammonia production.

In August 2021, the company HEGRA, owned by Yara, Aker Clean Hydrogen and Statkraft was launched at Herøya, Porsgrunn. The company intends to electrify and decarbonise the Herøya plant and allow green ammonia production.

In June 2021, Yara International ASA and Trafigura Pte Ltd, a leading independent commodity trading company, signed an MoU to produce and promote the use of ammonia as an eco-friendly fuel in the shipping sector to reduce emissions and curb climate change. The companies aim for joint research and development activities and develop new green ammonia assets. Such developments positively influence the market growth of ammonia.

In May 2021, Yara International ASA and JERA Co., Inc. signed a MoU for the production of green and blue ammonia in order to develop a zero-emission thermal power generation in Japan. The decarbonisation of JERA’s power production is part of its Green Growth Strategy that aims to reach carbon neutrality by 2050.

In November 2020, Koch Fertilizer LLC decided to invest around $140 million at its Iowa plant to restore the production processes and boost the annual ammonia production. Also, the investment was aimed at improving reliability and environmental performance. The restored production processes are expected to operate by 2023.

Key Market Trends

Growing usage of ammonia in multiple end-use sectors

The rising usage of ammonia in various end-use sectors, such as agriculture, textile, mining, pharmaceutical, and refrigeration, is one of the key ammonia market trends. In agriculture, ammonia is predominantly used as a nitrogenous fertiliser. Its high solubility allows rapid absorption by plants, making it more effective than organic fertilisers which take longer to release their nutrients.

In the textile sector, ammonia is utilised for dyeing cotton, wool, and silk. It also serves as a catalyst in the production of synthetic resins and fibres, such as acrylic fibres. The mining sector uses ammonia to extract minerals like copper, molybdenum, and nickel from their ores. The pharmaceutical sector leverages ammonia in drug production, particularly for drugs that prevent bacterial growth. It's also used in clinical settings as a stimulant to avoid fainting.

Favourable government schemes to boost green ammonia production

The government initiatives to boost the production of green ammonia and ensure the environmentally sustainable energy security of the countries are likely to aid the ammonia market growth. Governments are increasingly promoting sustainable practices in industrial sectors, including the production of ammonia. Green ammonia, produced using renewable energy sources like solar, wind, or hydroelectric power, significantly reduces carbon emissions compared to conventional ammonia production methods.

Governmental support, often in the form of grants or subsidies, is being provided for research and development in green ammonia production. This support helps in overcoming technological barriers and reducing the cost of green ammonia production, making it more competitive with traditional ammonia. With an increasing focus on reducing dependency on fossil fuels, green ammonia is seen as a key component in energy security strategies. It can be used as a way to store and transport energy, especially in regions with abundant renewable energy resources.

Strategic initiatives by market players to promote clean ammonia

The increasing production of clean ammonia owing to the escalating eco-consciousness and the emerging need to reduce the use of fossil fuel and imported crude oil is expected to boost the growth of the clean ammonia market. The production of clean ammonia aligns with global efforts to reduce dependency on fossil fuels. Traditional ammonia production is energy-intensive and largely depends on natural gas or coal, contributing significantly to greenhouse gas emissions. Clean ammonia production, on the other hand, can use electricity generated from renewable sources, thereby reducing the carbon footprint.

By shifting towards clean ammonia, countries can reduce their reliance on imported crude oil and natural gas, enhancing their energy security. This is particularly relevant for countries with limited fossil fuel resources but abundant renewable energy potential. Technological advancements in electrolysis (the process used to produce hydrogen from water using electricity) and renewable energy production have also made the production of clean ammonia more feasible and cost-effective.

The initiatives taken by chemical manufacturers, such as BASF SE in expanding the production capacity of ammonia to meet the growing demand are likely to stimulate the market over the forecast period. In May 2023, Nutrien Ltd. (NYSE: NTR) evaluated the Geismar, LA site to construct the world’s largest clean ammonia facility. The facility aims to produce clean ammonia using new technology to reduce CO2 emissions.

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Ammonia Market Segmentation

The market can be divided based on type into liquid and gas. Based on end use, the market is segmented into agriculture, textile, mining, pharmaceutical, and refrigeration, among others.

The major regional markets are North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa. The comprehensive EMR report provides a detailed assessment of the market on the basis of Porter's five forces model, along with giving a SWOT analysis.

The report gives an in-depth analysis of the following key players in the ammonia market, covering their competitive landscape and latest developments like mergers, acquisitions, investments and expansion plans.

• Yara International ASA

• CSBP Limited

• CF Industries Holdings, Inc.

• Koch Fertilizer, LLC

• GROUP DF

• CASCALE SA

• OCI N.V.

• Acron Group

• BASF SE

• SABIC

• Indian Farmers Fertiliser Cooperative (IFFCO)

• Nutrien Ltd

• Others

Ammonia Market Analysis

The market is substantial and growing, with a significant portion of its demand driven by the agriculture sector, particularly for the production of nitrogenous fertilisers. The market is also influenced by its applications in other industries such as textiles, mining, pharmaceuticals, and refrigeration.

There is an increasing emphasis on the production of green ammonia due to escalating environmental consciousness and the need to reduce reliance on fossil fuels. Green ammonia is produced using renewable energy sources, which significantly lowers its carbon footprint compared to conventional ammonia production methods. The market comprises major players who are investing in research and development to expand product lines and adopting various strategic activities to expand their market presence. These include collaborations, new product launches, and mergers and acquisitions.

Increasing Use of Nitrogen Fertilisers, Demand for Green Ammonia, Use as Refrigerant, and Environment-Friendly Nature of Ammonia Act as Key Market Drivers

Rising application of nitrogen fertilisers in the agricultural sector

There is an increasing demand for ammonia in the agricultural sector, owing to its use in nitrogen fertiliser production, which is supporting the market growth of ammonia. The growing population and the rising food demands are leading to the need for nitrogen fertilisers to improve crop yield and enhance soil fertility, thus increasing the ammonia market demand.

Emerging applications of green ammonia

There is a growing use of low-carbon hydrogen for decarbonising ammonia production, which contributes to the reduced amount of carbon dioxide released during the manufacturing process, thereby aiding the market. There is an increased adoption of ammonia as a zero-carbon fuel by the maritime sector to replace the use of fossil fuels in marine engines.

Increasing use as a refrigerant

Refrigeration grade ammonia possesses several desirable characteristics, such as purity, relatively free of water and other impurities, easy availability, and inexpensive. Also, ammonia can absorb heat when it evaporates. Additionally, the restriction on chlorine and fluorine-containing refrigerants is resulting in the rising utilisation of ammonia. Thus, its growing use as an efficient refrigerant in food preservation and air-conditioning processes is increasing the market growth.

Environment-friendly nature of ammonia

Ammonia does not contribute to ozone depletion, global warming or other environmental impacts when released into the atmosphere, therefore is considered an environmentally friendly refrigerant. It has a very limited atmospheric lifetime and so is biodegradable.

Adverse Impacts on Humans and Limitations of Liquid Ammonia to Pose as Challenges in the Market

Increased exposure to ammonia can cause adverse impacts on humans

Ammonia is considered a hazardous gas at high concentration levels. Ammonia is lighter than air and can rise in the atmosphere when leakage occurs. The inhalation of ammonia can cause burning sensations in human parts, like the nose, throat, and respiratory tract. Additionally, it can result in respiratory diseases or failure.

Limitations of liquid ammonia

The liquid ammonia has a low freezing point and melting point of -77 to -33 C, respectively. Thus, it is unsuitable for high temperatures and can pose experimental problems. Moreover, it tends to absorb moisture from the air and so requires seal tubes during experimentations.

Agriculture, Textile, Mining, Pharmaceutical, and Refrigeration are the Major End Uses in the Market

The agriculture sector occupies a significant portion of the ammonia market share. There is a rising injection of ammonia directly into the soil using tractor-drawn knives and shanks to place it below the soil surface and avoid its release in vapour form. It binds the air-borne nitrogen, which is an essential crop nutrient. Thus, ammonia gas plays a critical role in crop production. Also, it is used to produce urea, a protein source in livestock feeds. Moreover, it is used as an antifungal agent on certain fruits, pre-harvest cotton defoliant, and as a preservative for storing high-moisture corn.

Ammonia is widely used in the dyeing of cotton, wool, and silk textiles. It is also employed to manufacture synthetic fibres, such as acrylic fibres as it serves as a catalyst in the production of synthetic resins. In the mining sector, ammonia is utilised to extract minerals, such as copper, molybdenum, and nickel from their ores.

Ammonia is used in the pharmaceutical sector to produce drugs which prevent the growth of bacteria and is also used in the clinical setting as a stimulant to avoid fainting. The gas can absorb a large amount of heat from the surroundings and so is used as a refrigerant gas in cold storage and other industrial applications, which is a key factor in increasing the ammonia market revenue.

The expanding awareness about the importance of hygiene and cleanliness is leading to the increasing use of ammonia in many households or other cleaning products. It can also remove stains from vegetable oils and is utilised in glass cleaning solutions owing to its quick evaporation.

Liquid and Gas are the Different Ammonia Types in the Market

Liquid ammonia is a nonaqueous ionising solvent that is obtained by compressing gaseous ammonia. It has a low melting point and acts as a better solvent for organic compounds. It is safe to handle and avoids the hazards that are associated with the use of gaseous ammonia.

Gaseous ammonia is a non-flammable gas that is commonly used as a refrigerant in various applications owing to its energy efficiency and low cost.

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Regional Insights

The Asia Pacific is one of the leading markets, owing to the increasing agricultural activities and the adoption of ammonia-based fertilisers in the region. Additionally, the government initiatives to ensure green ammonia for the environmentally sustainable energy security of the countries are likely to aid the ammonia global market. For instance, in February 2023, the Government of India notified the Green Ammonia Policy, which is a major policy enabler for producing green ammonia using renewable sources of energy to offer clean fuel.

Meanwhile, the initiatives taken by the market players in decarbonising ammonia production facilities by 2030 are expected to aid the market expansion in Europe. In February 2021, Copenhagen Infrastructure Partners, along with A.P. Moller-Maersk, announced plans to establish the Power-to-X facility, Europe’s largest production facility of green ammonia. The green ammonia produced by the facility can be used as a green fertiliser by the agricultural sector and as a sustainable fuel by the shipping sector.

Competitive Landscape

Yara International ASA is a chemical company based in Norway, which is one of the leading crop nutrition companies globally. It produces and distributes nitrogen-based mineral fertilisers and other industrial products.

CSBP Limited is an Australia-based chemical company with its head office in Kwinana. The company offers products, such as fertilisers and industrial chemicals for the agricultural and industrial sectors. CSFB has two subsidiaries, namely Australian Vinyls and ModWood Technologies.

CF Industries Holdings, Inc. is an American-based company founded in 1946 as the Central Farmers Fertilizer Company. The company produces and distributes agricultural fertilisers, such as ammonia, urea, and others.

Koch Fertilizer, LLC is a key player in the market. The United States-based company is a manufacturer, marketer, and distributor of fertiliser products. The company provides anhydrous ammonia to fertiliser retailers and has five North American plants to meet customer demands.

GROUP DF is a global chemical company that functions across Europe and Asia. The company primarily deals with fertiliser and titanium businesses.

CASALE SA is a Switzerland-based company owned by Casale Holding. The company uses efficient solutions and services to produce ammonia, urea, nitrate, and phosphate fertilisers.

Other ammonia market players include OCI N.V., Acron Group, BASF SE, SABIC, Indian Farmers Fertiliser Cooperative (IFFCO), and Nutrien Ltd, among others.

Key Highlights of the Report

*At Expert Market Research, we strive to always give you current and accurate information. The numbers depicted in the description are indicative and may differ from the actual numbers in the final EMR report.