Ammonia Market size is projected to cross USD 120 Billion by the end of 2033, witnessing around 7% CAGR during the forecast period, i.e., 2023-2033. In the year 2022, the industry size of ammonia was USD 75 Billion. The increasing population worldwide rises the need for more crop yield leading to positive market growth. The world population was about 7,926,081,300 as of 2022, as per estimations of the U.S Census Bureau.
Rapid expansion and modernization of the agricultural industry across the world are expected to drive the growth of the ammonia market trend during the forecast period. According to the U.S Department of Agriculture, the net farm income is projected to rise by USD 7.3 billion i.e., a 5.2% increase from 2021 to USD 147.7 billion in 2022.
Growth Drivers
Increasing Use of Ammonia in Maritime Shipping – Ammonia is colorless and does not produce carbon dioxide on combustion. Also, ammonia can be produced from renewable sources such as water, electricity, and air. All these major factors are estimated to boost the market growth in the coming years. Ammonia is projected to be one of the leading alternatives to traditional oil-based fuels by 2050, according to the International Maritime Organization.
Increasing Refrigerator Purchases – The worldwide exported value of combined refrigerator-freezers in 2021 was USD 19,591,263.
Rising Production of Explosives – The global imported value of explosives as of 2021 was worth USD 897,597.
Less Cost of Renewable Ammonia – The cost of green ammonia is estimated to reach USD 310 per ton by 2050 from USD 720 to 1400 per ton in 2020.
High Demand for Fertilizers – Increasing feed use, the impact of COVID-19, and the Ukraine war increased the demand for fertilizers. To combat this Russian Government rose fertilizer exports increasing nitrogen fertilizers by 231 thousand tons to reach 5.7 million tons as of 2022.
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~7% |
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Base Year Market Size (2022) |
~ USD 75 Billion |
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Forecast Year Market Size (2033) |
~ USD 120 Billion |
End-user (Pharmaceutical, Fertilizer, Pulp & Paper, Refrigerators, Textile, Mining)
The global ammonia market is segmented and analyzed for demand and supply by end-user into pharmaceutical, fertilizer, pulp & paper, refrigerators, textile, mining, and others. Out of these, the fertilizer segment is anticipated to hold the largest market size by the end of 2033 on the account of rising utilization of biofertilizers, the increasing need for food crops, and the rising population. It is estimated that the world’s population reached about 8 billion by 2022 and is projected to reach 10 billion by the end of the century.
Our in-depth analysis of the global market includes the following segments:
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By Form |
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By End User |
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By Sales Channel |
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Major Macro-Economic Indicators Impacting the Market Growth
Chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, the Chemical industry in the U.S. accounted for 16.43% of manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in the future. According to UNEP (United Nations Environment Programme), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, which accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favorable government policies have boosted investment in China’s chemical industry. The easy availability of low-cost raw materials & labor, as well as government subsidies and relaxed environmental norms, have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for investment in businesses in Asia Pacific countries in the upcoming years.
Regionally, the global ammonia market is studied into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Amongst these markets, the market in the Asia Pacific region is projected to hold the largest market share by the end of 2033 on the back of increasing agricultural activities, growing crop production, and high production rates of ammonia in the region. China is estimated to be the largest ammonia producer in the Asia Pacific, and it produced about 40 million metric tons of contained nitrogen in 2021.
CF Industries Holdings, Inc’s subsidiary CF Fertilizers UK declared its plan to cease ammonia production for a short span at Billingham Complex on account of market situations. As the price of ammonia in market is half the spending cost of production the company stopped the plant.
Yara International ASA associated with JERA Co., Inc to produce green and blue ammonia with the aim of decarbonization and enabling zero carbon emission in Japan.
Author Credits: Smruti Ranjan, Rajrani Baghel
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