Ammonia Market Size, Share, and Forecast by 2028
The global ammonia market was valued at USD 67.01 billion in 2020 and is expected to expand from USD 71.98 billion in 2021 to USD 110.93 billion by 2028, reflecting a CAGR of 6.4% during the forecast period. Asia Pacific led the global market with a 40.9% share in 2020. The sharp rise in growth rate is mainly attributed to the recovery in demand following the pandemic’s disruptions. In the United States, the ammonia market is projected to reach USD 9.12 billion by 2028, fueled by strong consumption across the agricultural and industrial refrigeration sectors.
The COVID-19 pandemic had a notable negative impact on the ammonia industry, leading to a 16.8% decline in global demand in 2020 compared to the average growth observed between 2017 and 2019.
Approximately 80% of ammonia (NH₃) produced worldwide is utilized in agriculture, primarily as fertilizer, to sustain global food production. Beyond fertilizers, ammonia is used as a refrigerant gas and a raw material in the manufacturing of textiles, plastics, pharmaceuticals, dyes, and pesticides. It also plays a crucial role in wastewater treatment, rubber, pulp & paper, and food & beverage industries—serving as a neutralizer, stabilizer, and nitrogen source. The growing use of ammonia, particularly in fertilizer applications, continues to drive the overall market expansion.
Information Source: https://www.fortunebusinessinsights.com/industry-reports/ammonia-market-101716
Ammonia Market Trends Ammonia, a key input in fertilizer production, is primarily synthesized using nitrogen and hydrogen via the Haber-Bosch process. However, the conventional fossil-fuel-based production method accounts for roughly 1.8% of global CO₂ emissions. Researchers from the University of Illinois at Chicago and the University of Minnesota have been exploring an electrolysis-based process that requires a similar amount of energy as traditional methods but significantly reduces emissions—producing an estimated 2.8 tons of CO₂ per ton of NH₃.
When powered by renewable energy, this electrolysis process can achieve zero-carbon output. Additionally, efforts to source nitrogen directly from the air, rather than purified nitrogen gas, could further reduce greenhouse gas emissions by eliminating the purification and bottling stages.
The industry is also witnessing a surge in green ammonia initiatives. Companies are investing in low- and zero-carbon technologies to align with global sustainability targets. Green hydrogen and ammonia are expected to play a vital role in achieving net-zero carbon emissions by 2050, with experts projecting hydrogen to meet around 20% of global energy demand by that time.
For instance, in October 2020, CF Industries announced its commitment to producing low-carbon ammonia through a carbon-free process, partnering with Haldor Topsoe and ThyssenKrupp. The company is also engaging with international utility and maritime partners to promote ammonia as a sustainable fuel source.
Segmentation Analysis The global ammonia market is segmented by application into fertilizers, textiles, refrigerant gases, pharmaceuticals, household and industrial cleaning, and others. The fertilizer segment dominated the market in 2020 and is projected to retain its leading position, as ammonia is a key ingredient in ammonium nitrate fertilizers that provide nitrogen—an essential nutrient for crop and plant growth. In household and industrial cleaning, ammonium hydroxide, commonly referred to as household ammonia, is extensively used in cleaning agents and disinfectants. Additionally, ammonia is widely utilized as a cost-effective and efficient refrigerant in industrial applications due to its excellent thermodynamic properties.
Regional Insights The Asia Pacific region dominated the global ammonia market, valued at USD 27.41 billion in 2020, and is projected to maintain its leadership throughout the forecast period. China remains a key driver, being the world’s largest fertilizer producer and consumer, with government initiatives promoting phosphate fertilizer production to enhance agricultural yields. In India, agriculture continues to be a vital economic pillar, contributing about 17% to the Gross Value Added (GVA) and employing more than half of the population. The country ranks third globally in food grain production—after China and the U.S.—fueled by agricultural expansion despite modest crop productivity. In Europe, the ammonia market is anticipated to grow steadily, with production primarily dependent on natural gas feedstock and steam methane reforming (SMR) technology. North America, led by the U.S., witnessed rising ammonia demand in 2020, driven by the agriculture and industrial sectors. Meanwhile, the Middle East remains one of the leading nitrogen fertilizer producers, with Saudi Arabia, Iran, and Qatar dominating urea and ammonia production and exporting over 3 million tons annually to key markets such as China, South Korea, India, and Taiwan.
Key Companies Profiled Yara International ASA (Norway) BASF SE (Germany) CF Industries Holdings, Inc. (U.S.) Nutrien Ltd. (Canada) SABIC (Saudi Arabia) Qatar Petroleum (Qatar) EuroChem Group (Switzerland) Koch Fertilizer, LLC (U.S.) Praxair Technology, Inc. (U.S.) China National Petroleum Corporation (China) Rashtriya Chemicals and Fertilizers Limited (India) Other Key Players
Key Industry Developments May 2021: Mitsui O.S.K. Lines (Japan) announced its return to the ammonia shipping business after five years. The company also revealed its participation in a joint development study focused on establishing an ammonia fuel supply chain.
Report Coverage The global ammonia market report offers comprehensive qualitative and quantitative insights, focusing on leading companies, applications, and regional trends. It also provides an in-depth analysis of historical data, forecast growth, and emerging market dynamics. The report examines key drivers, challenges, industry opportunities, and recent strategic developments such as partnerships, mergers, and technological innovations contributing to market expansion.