Ammonia Market

Market Overview:

The global ammonia market size reached US$ 79.6 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 120.1 Billion by 2032, exhibiting a growth rate (CAGR) of 4.54% during 2024-2032. The growing demand for ammonia-based construction materials from the rapidly expanding construction sector, especially in developing regions, the widespread product adoption in water treatment processes and wastewater management, and the rising infrastructural development are some of the major factors propelling the market.

Ammonia is a colorless gas with a strong, pungent odor. It is composed of three hydrogen atoms bonded to a single nitrogen atom, giving it the chemical formula NH3. It is highly soluble in water, and it readily forms ammonium ions (NH4+) when dissolved in aqueous solutions. It is a vital chemical compound used in various industries and applications. One of its primary uses is in the production of fertilizers, where it serves as a key source of nitrogen necessary for plant growth. Additionally, it is also employed as a refrigerant due to its ability to absorb large amounts of heat when evaporating, making it an effective coolant. Moreover, it finds utility in the manufacturing of cleaning agents, explosives, and various chemicals.

With rapid urbanization, infrastructural development, and increasing construction activities across the globe, the demand for ammonia-based construction materials is escalating. For instance, it is widely used in the manufacturing of construction materials, such as adhesives, coatings, and resins. It is an essential component in the production of particleboards, plywood, laminates, and various synthetic materials used in construction applications. Along with this, ammonia finds extensive application in water treatment processes and wastewater management. It is commonly used in both industrial and municipal wastewater treatment plants to remove contaminants and pollutants through processes, including biological nutrient removal (BNR). In addition, its versatility as a cleaning agent extends to industrial cleaning, where it is used in equipment maintenance, degreasing, and stain removal. The expanding cleaning industry, driven by rising cleanliness standards, is contributing to the growth of the market. Moreover, the expanding cosmetics and personal care industry, driven by changing consumer preferences and a focus on self-care, is fueling the product demand in this sector.

Ammonia Market Trends/Drivers:

Fertilizer Demand and Agriculture Industry Growth

One significant market driver is the escalating demand for fertilizers in the agriculture industry. Ammonia serves as a crucial ingredient in the production of nitrogen-based fertilizers, such as ammonium nitrate and urea. As the global population continues to grow, there is a rising need to enhance agricultural productivity to meet food demand. Farmers are increasingly adopting modern farming techniques and using fertilizers to improve soil fertility and crop yields. This trend is driving the product demand as a key source of nitrogen, a vital nutrient for plant growth. Additionally, emerging economies are experiencing rapid urbanization, leading to a shift in dietary preferences towards high-value crops, further stimulating the fertilizer market.

Environmental Regulations and Sustainable Solutions

In recent years, there has been a growing emphasis on environmental sustainability and the reduction of greenhouse gas emissions. Ammonia has gained attention as a potential alternative to fossil fuels in various applications. It is a promising candidate for zero-emission power generation and transportation, as it can be utilized as a carbon-free fuel or converted into hydrogen for fuel cell technology. Its potential as a clean energy carrier has led to increased research and development efforts to commercialize its use, thus driving the product demand. In addition, stricter environmental regulations across the globe are encouraging industries to adopt cleaner technologies and reduce harmful emissions. This has led to the development of ammonia-based technologies for selective catalytic reduction (SCR) systems in power plants and vehicles, further driving the product demand as an environmental solution.

Rising Product Adoption as Energy Storage Solution

Ammonia's role in energy storage aligns with the increasing focus on renewable energy integration and the need to balance supply and demand fluctuations. It allows for the decoupling of energy production from energy consumption, enabling the utilization of renewable energy at times of high demand or when the energy source is not readily available. Its suitability as an energy carrier lies in its energy density. It has a significantly higher energy density than hydrogen gas, which means that more energy can be stored per unit volume or weight. This makes ammonia an attractive option for large-scale energy storage applications, thus influencing its demand on the global level.

Ammonia Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global ammonia market report, along with forecasts at the global, regional and country levels from 2024-2032. Our report has categorized the market based on physical form, application, and end use industry.

Breakup by Physical Form:

• Liquid
• Powder
• Gas

Liquid dominates the market

The report has provided a detailed breakup and analysis of the market based on the physical form. This includes liquid, powder, and gas. According to the report, liquid represented the largest segment.

The growth of this segment is driven by the transportation and storage advantages of liquid ammonia, making it highly desirable. It has a higher density compared to its gaseous form, allowing for more efficient shipping and storage. This is particularly important for long-distance transportation and bulk storage facilities. Additionally, the product demand as a raw material in various industries, such as agriculture, chemical manufacturing, and refrigeration, fuels the market growth. In addition to this, numerous industrial processes require ammonia in liquid form to ensure accurate dosing and precise application, thereby acting as a growth-inducing factor. Moreover, it is easier to handle and mix with other substances during production processes is significantly supporting the demand on the global level.

Breakup by Application:

• MAP and DAP
• Urea
• Nitric Acid
• Ammonium Sulfate
• Ammonium Nitrate
• Others

A detailed breakup and analysis of the market based on the application has also been provided in the report. This includes MAP and DAP, urea, nitric acid, ammonium sulfate, ammonium nitrate, and others.

The application of monoammonium phosphate (MAP) and diammonium phosphate (DAP) in the industry is driven by the growing demand for fertilizers in the agriculture sector. As the global population continues to rise, there is a growing has been an increasing need to enhance agricultural productivity and optimize crop yields. Farmers are increasingly adopting modern farming practices and utilizing fertilizers to improve soil fertility and meet food demands. This drives the demand for MAP and DAP, which contain significant levels of nitrogen and phosphorus.

Along with this, urea is another widely used nitrogen fertilizer worldwide due to its high nitrogen content and easy-handling properties. It provides a concentrated source of nitrogen, which is an essential nutrient for plant growth. Additionally, urea's versatility extends beyond traditional agriculture applications. It is also used in industrial processes such as the production of resins, plastics, and adhesives.

Breakup by End Use Industry:

• Agrochemical
• Industrial Chemical
• Mining
• Pharmaceutical
• Textiles
• Others

Agrochemical dominate the market

The report has provided a detailed breakup and analysis of the market based on the end use industry. This includes agrochemical, industrial chemical, mining, pharmaceutical, textiles, and others. According to the report, agrochemical represented the largest segment.

The agrochemical end user in the industry is primarily driven by the growing global population which is leading to increased demand for food, necessitating more efficient and productive agricultural practices, and hence, increased use of fertilizers. Additionally, continual advancements in agrochemical technologies and a rising focus on precision farming are promoting the adoption of ammonia-based products to improve yield and combat pest issues, which is supporting the market. Also, the escalating environmental concerns are driving the market towards the adoption of greener and more sustainable farming practices, which can be partially achieved through the judicious use of agrochemicals. Moreover, government policies and subsidies aimed at improving agricultural production and ensuring food security also act as catalysts for demand.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa

Asia Pacific exhibits a clear dominance, accounting for the largest the ammonia market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa.

The significant growth in the population and increasing demand for food in the Asia Pacific region, particularly in countries, such as India and China is majorly driving the market. This demand leads to a rising need for fertilizers, where ammonia, as a key ingredient in nitrogenous fertilizers, plays a crucial role. Industrial growth across several sectors, including pharmaceuticals, textiles, and refrigeration, which utilize ammonia as a raw material, is another significant factor. Rapid urbanization and infrastructural development, especially in emerging economies, are contributing to a growing demand for construction materials, thereby augmenting the use of ammonia in adhesives and resins. Furthermore, government initiatives and subsidies aimed at enhancing food productivity and technological advancement in the production of ammonia are also important drivers, further impacting the market favorably.

Competitive Landscape:

The market is experiencing significant growth due to escalating investments in enhancing production capabilities to meet the increasing product demand, particularly for use in fertilizers. In confluence with this, the rising environmental concerns are encouraging companies to invest in research and development to create more sustainable methods of ammonia production. This includes efforts to develop and commercialize green ammonia, which is produced using renewable energy sources, reducing the carbon footprint of the production process. Along with this, manufacturers are also engaging in strategic partnerships, mergers, and acquisitions to strengthen their position in the market. Moreover, continual technological innovation to improve efficiency and reduce costs, such as the adoption of digital technologies and AI for predictive maintenance and process optimization, and advances in catalysts and process technology are contributing to the market.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Achema AB
• BASF SE
• CF Industries Holdings Inc.
• Koch Industries Inc.
• Linde plc
• Nutrien Ltd
• OCI N.V.
• Orica Limited
• PJSC Togliattiazot
• Saudi Basic Industries Corporation
• Yara International ASA

Recent Developments:

• In February 2023, OCI N.V. and Linde plc announced a long-term collaboration where Linde will provide clean hydrogen and nitrogen to OCI's new blue ammonia factory being built in Beaumont, Texas.
• In April 2021, CF Industries Holdings Inc. stated that the Company's green ammonia project at its Donaldsonville, Louisiana, production facility has signed an engineering and procurement contract with Thyssenkrupp.
• In May 2021, Yara International ASA and ENGIE announced the development of hydrogen production facility to create a renewable ammonia. The project, which expands on Yara's potential for renewable energy, entails the design, construction, and operation of a renewable hydrogen plant inside the current Yara Pilbara ammonia plant in order to provide customers with green ammonia for reducing emissions from shipping, fertiliser production, power generation, or mining explosives.

Ammonia Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the ammonia market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global ammonia market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the ammonia industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.