Ammonia Market Research Report 2025
Ammonia Market Global Industry Analysis and Forecast (2025-2032) by Types (Anhydrous Ammonia (NH3), Aqueous Ammonia (Ammonium Hydroxide)), Forms (Liquid, Solid, Gaseous), Application (Fertilizers, Industrial Chemicals, Refrigeration, Household cleaning, Others), End User Industry (Textiles and Pharmaceuticals, Agriculture, Industrial Feedstock, Others), Distribution channel (Direct Sales, Online Retailers), Regional Insights
Ammonia Market Synopsis:
Ammonia Market Size Was Valued at USD 86 Billion in 2024, and is Projected to Reach USD 155.47 Billion by 2032, Growing at a CAGR of 6.8% from 2025-2032.
Ammonia (NH₃) is a colourless gas with a pungent odour commonly used in industrial applications as a raw material for the production of fertilizers, explosives, and cleaning agents. It is primarily produced through the Haber-Bosch process, where nitrogen and hydrogen are combined under high pressure and temperature.
Its primary use is in the production of nitrogen-based fertilizers, which are essential for enhancing soil fertility and improving agricultural productivity. Ammonia is beneficial because it plays a crucial role in food production, environmental control (such as refrigeration), and as a building block for many industrial products.The primary driving factors for ammonia production and usage include rising demand for fertilizers, the need for carbon-free fuel, and the growing demand for ammonia in various industrial applications which leads the growth of the market over the forecast period.
Top Active Players Involved Are:
“Borealis(France), Casale(France), Cepsa(Spain) CF Industries Holdings, Inc.(US) Ercros (Spain) EuroChem Group (Russia), Evonik Industries AG(Germany), Fertiberia (Spain), Grupa Azoty (Poland), Hengli Group (China), Hynfra (Poland), Koch Industries (US), LSB Industries (US), Maire Group(Italy), Neochim (Bulgaria), Nitrogénművek Zrt (Hungary), Nutrien(Canada) PETRONAS Chemicals Group(Malaysia), Plater Group (UK), Rashtriya Chemicals and Fertilizers Limited(India), San Corporation(China), TogliattiAzot(Russia), Yara International(Italy), Other Active Players”.
Ammonia Market Trend Analysis::
Growth Driver Rising agriculture demand for ammonia
- Ammonia is commonly used in agriculture since it encourages the growth of crops and consequently food security. Products like fertilizers have a high demand since the population of the world is always on the increase.
- The need to increase crop yields in the face of expanding global populations, declining arable land, and changing dietary tastes is what is driving this demand.
- Ammonia is also essential for a number of industrial processes, such as water treatment, medicines, refrigeration, and pollution control technologies including Selective Catalytic Reduction (SCR) systems that lower NOx emissions. Thus, these technologies lead to enhanced the agriculture demand for ammonia industry.
Limiting Factor Environmental Concerns
- One of the major restraining factors is health hazard that is associated with the use of ammonia. Ammonia is highly toxic gas even if inhaled in small quantities it can cause serious health issues.
- Besides this, the conventional processes used in the production of ammonia are not only very energy-intensive but also release high carbon footprints, which contribute to environmental pollution in addition to causing severe public health issues for society.
- Although these suggested processes are certainly more environment-friendly, production technology advancements are absolutely necessary to facilitate the long-term, sustainable development and sustainability of the ammonia industry under the growing environmental pressure. Making the switch to green ammonia and implementing energy-efficient technologies are necessary to address these environmental problems. Thus, these technologies can help to sustainable growth of ammonia industry.
Expansion Opportunities Green Ammonia and Sustainable Energy
- The world's primary source of ammonia demand is still the agricultural industry, which also offers strong development prospects as crop yield and food security.
- The production of nitrogen-based fertilizers like urea, ammonium nitrate, and ammonium sulphate uses between 70 and 80 percent of all ammonia produced.
- Green ammonia is capable of decarbonizing the power sector to a large extent, as green ammonia can replace fossil fuels as an input in thermal power plants to produce electricity.
- In place of the conventional fossil fuels used in thermal power plants, green ammonia can enable cleaner production of electricity and greatly reduce the emission of greenhouse gases. In addition, its double utility to enable food production and the production of clean energy solidifies its role in being a strategic resource in the overall global efforts and initiatives towards sustainability.
Challenge High production cost
- There are several obstacles to the development and growth of the international ammonia industry. One important challenge is the initial high capital required in the production of green ammonia, which is an important issue.
- High production expenses are a major impediment to the development of world green ammonia markets. The most prominent of these is high initial capital to establish green ammonia production facilities. This is even more significant where less money is available, making it even more challenging to establish such enterprises. Production involves an expensive combination of equipment, such as electrolysers, renewable energy systems, and sophisticated technologies, which are all required for efficiency and sustainability.
- Moreover, such financial challenges and logistical issues can impede or prevent the application of green ammonia, particularly in emerging economies. These issues can, however, be addressed through smart investments and positive policies, resulting in considerable long-term economic and environmental gains
Ammonia Market Segment Analysis:
Ammonia Market is segmented based on Type, Application, and Region
By Type, Anhydrous Ammonia (NH3) Segment is Expected to Dominate the Market During the Forecast Period
- The anhydrous segment of the market is expected to be the market leader for the entire forecast period. NH3-based nitrogenous fertilizers have been demonstrated to offer not only higher yields but also adequate crop protection and enhanced production cycles. According to Adani Enterprises, develop an integrated Green Hydrogen ecosystem to support up to 1 MMTPA (Million Metric Tonnes Per Annum) of Hydrogen Production by 2030 and 3 MMTPA over the next 10 years. This will include its derivatives like ammonia
- The anhydrous form of this very specialized fertilizer is widely used in agricultural applications because it has a very high weight content of nitrogen at 82 percent. However, it should be remembered that this form of fertilizer performs much better in hot weather where the temperature is high compared to use in low temperatures. Also, anhydrous ammonia is very odour-causing and needs a great deal of energy to vaporize, which also makes it very useful not only as a fertilizer but also as a refrigerant and solvent.
- Aside from its agricultural application, liquefied NH3 finds application in a very wide variety of industrial environments, including but not limited to production of synthetic fibers, production of pharmaceuticals, and recovery of metal from a variety of ores. It’s very good capability to dissolve a very wide variety of polymers makes the anhydrous or liquefied form very effective as a solvent in the spinning process of synthetic fibers like nylon and rayon. The growth is further supported by the rising investments in green ammonia production facilities and the expanding applications in the pharmaceutical and textile industries.
By Application, Agriculture Segment Held the Largest Share in 2024
- The agricultural segment leads the world ammonia market, according to, IEA International Energy Agency about 70% of ammonia is used for fertilisers, and also exhibits the highest growth trend with a growth rate of around 2% in 2024. The leading position is mainly due to the essential contribution of ammonia to fertilizer manufacturing.
- The pillars in agriculture formed by the replacement of nitrogen-deficient soil by the essential source of nitrogen supply to crops has increased the efficiency of ammonia-based fertilizers. The growth is backed by surging global demand for food with the United Nations estimating the necessity of 60% more production of food by 2050. Key policies such as the USD 500 million program under the US President to increase fertilizer production domestically and similar steps being called for at the European Union level are only adding strength to this segment's position. Thus, the demand for food is rising on a global scale, and farming heavily depends on ammonia to enhance the productivity of scarce agricultural lands.
Ammonia Market Regional Insights:
- Asia Pacific is expected to dominate the market over the forecast period. The region has the largest and most dynamic ammonia market in the globe, fueled by intensive agricultural activities, a mature industrial base, and emerging manufacturing industries. Growth is dominated by China and India, while contributions from Japan and South Korea emerge through high-order industrial applications. China possesses a vast agriculture industry in addition to its huge demand for ammonia products.
- In China, a country that reigns supreme as the biggest manufacturer and consumer, the Asia-Pacific ammonia market commands about 60% of its ammonia market in 2024. China's dominance of the market is also being compounded by its status as world leader in producing many crops, as well as its heavy investments in manufacturing fertilizer. Its focus on sustainable farming and industrialization, along with its robust manufacturing sector and extensive distribution network, continues to cement its market dominance.
- The demand of the region is largely driven by fertilizer manufacturing, textile production, and pharmaceuticals, with expanding use in refrigeration applications. The availability of huge manufacturing units and continuous investments into green ammonia ventures. Additionally, the country's strategic focus on sustainable agriculture and industrial development combined with its robust manufacturing capabilities and extensive distribution network, continues to strengthen its market position.
Ammonia Market Active Key Players:
- Borealis (France)
- Casale (France)
- Cepsa (Spain)
- CF Industries Holdings, Inc. (US)
- Ercros (Spain)
- EuroChem Group (Russia)
- Evonik Industries AG (Germany)
- Fertiberia (Spain)
- Grupa Azoty (Poland)
- Hengli Group (China)
- Hynfra (Poland)
- Koch Industries (US)
- LSB Industries (US)
- Maire Group (Italy)
- Neochim (Bulgaria)
- Nitrogénművek Zrt (Hungary)
- Nutrien (Canada)
- PETRONAS Chemicals Group (Malaysia)
- Plater Group (UK)
- Rashtriya Chemicals and Fertilizers Limited (India)
- San Corporation (China)
- TogliattiAzot (Russia)
- Yara International (Italy)
- Other Active Players
Key Industry Developments in the Ammonia Market:
- In October 2024: Evonik Industries AG (Germany) Evonik agreed to receive deliveries of biomass-balanced ammonia from BASF, which has a product carbon footprint at least 65% lower than standard ammonia. Evonik is advancing ammonia cracking technology by developing high-performance nickel and ruthenium catalysts, aiming to enhance the efficiency of ammonia utilization in various applications.
- In May 2024: EuroChem Group started MAP production in Brazil EuroChem’s new plant in Brazil will produce one million tonnes of phosphate fertilizers a year.
- In March 2024: Yara partnered with GHC SAOC, a subsidiary of Acme Cleantech. Acme will supply Yara with ammonia produced with reduced CO2 emissions through this partnership. The agreement covers the delivery of 100,000 tons of renewable ammonia per year.
- In December 2023: CF Industries Holdings, Inc. (USA) acquired the Waggaman Ammonia production facility in Louisiana for USD 1.68 billion from Incitec Pivot, enhancing its production capacity by 880,000 tons annually.
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Ammonia Market |
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Base Year: |
2024 |
Forecast Period: |
2025-2032 |
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Historical Data: |
2018 to 2024 |
Market Size in 2024: |
USD 86 Bn. |
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Forecast Period 2025-32 CAGR: |
6.8 % |
Market Size in 2032: |
USD 155.47 Bn. |
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Segments Covered: |
By Type |
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By Application |
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By Forms |
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By Region |
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Growth Driver: |
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Limiting Factor |
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Expansion Opportunity |
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Challenge Barrier |
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Companies Covered in the Report: |
Hengli Group (China), Borealis (France), CF Industries Holdings, Inc. (US), EuroChem Group (Russia), PETRONAS Chemicals Group (Malaysia), Other Active Players |
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Chapter 1: Introduction
1.1 Scope and Coverage
Chapter 2:Executive Summary
Chapter 3: Market Landscape
3.1 Market Dynamics and Opportunity Analysis
3.1.1 Growth Drivers
3.1.2 Limiting Factors
3.1.3 Growth Opportunities
3.1.4 Challenges and Risks
3.2 Market Trend Analysis
3.3 Industry Ecosystem
3.4 Industry Value Chain Mapping
3.5 Strategic PESTLE Overview
3.6 Porter's Five Forces Framework
3.7 Regulatory Framework
3.8 Pricing Trend Analysis
3.9 Intellectual Property Review
3.10 Technology Evolution
3.11 Import-Export Analysis
3.12 Consumer Behavior Analysis
3.13 Investment Pocket Analysis
3.14 Go-To Market Strategy
Chapter 4: Ammonia Market by Types (2018-2032)
4.1 Ammonia Market Snapshot and Growth Engine
4.2 Market Overview
Frequently Asked Questions
What is the market size of the Ammonia Market?
Ammonia Market Size Was Valued at USD 86 Billion in 2024, and is Projected to Reach USD 155.47 Billion by 2032, Growing at a CAGR of 6.8% from 2025-2032.
What defines the Ammonia Market?
Ammonia (NH₃) is a colourless gas with a pungent odour commonly used in industrial applications as a raw material for the production of fertilizers, explosives, and cleaning agents. It is primarily produced through the Haber-Bosch process, where nitrogen and hydrogen are combined under high pressure and temperature.
How is the Ammonia Market segmented?
The Ammonia Market is segmented into Type, Nature, Application, and Region. By Type, the market is categorized into anhydrous ammonia (NH3), aqueous ammonia (ammonium hydroxide. By Form, the market is categorized into Liquid, Solid, Gaseous. By Application, the market is categorized into Fertilizers, Industrial Chemicals, Refrigeration, Household cleaning. By Region, it is analyzed across North America (U.S.; Canada; Mexico), Eastern Europe (Russia; Bulgaria; The Czech Republic; Hungary; Poland; Romania; Rest of Eastern Europe), Western Europe (Germany; UK; France; The Netherlands; Italy; ; Spain; Rest of Western Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Thailand, Vietnam, The Philippines, Australia, New Zealand, Rest of APAC), Middle East & Africa (Türkiye, Bahrain, Kuwait, Saudi Arabia, Qatar, UAE, Israel, South Africa), South America (Brazil; Argentina, etc.).
Who are the Key Players in the Ammonia Market?
Borealis(France), Casale(France), Cepsa(Spain) CF Industries Holdings, Inc.(US) Ercros (Spain) EuroChem Group (Russia), Evonik Industries AG(Germany), Fertiberia(Spain), Grupa Azoty (Poland), Hengli Group (China), Hynfra (Poland), Koch Industries (US), LSB Industries (US), Maire Group(Italy), Neochim(Bulgaria), Nitrogénművek Zrt (Hungary), Nutrien(Canada) PETRONAS Chemicals Group(Malaysia), Plater Group (UK), Rashtriya Chemicals and Fertilizers Limited(India), San Corporation(China), TogliattiAzot(Russia), Yara International(Italy), Other Active Players.
What is the Forecast Period Covered in the Ammonia Market Research Report?
The projected forecast period for the Ammonia Market Research Report is 2025-2032.
