Revolutionizing Agriculture and Energy: The Rising Impact of Ammonia in Global Markets

Mordor Intelligence has published a new report on the Ammonia Market, offering a comprehensive analysis of trends, growth drivers, and future projections.   

The global ammonia market is poised for steady growth, with volumes expected to increase from 188.41 million tons in 2024 to 206.86 million tons by 2029, reflecting a compound annual growth rate (CAGR) of 1.89%. This expansion is primarily attributed to the escalating demand for fertilizers in the agriculture sector and the rising adoption of green ammonia technologies.

Key Trends

1. Dominance of the Agriculture Industry

   Ammonia plays a pivotal role in agriculture, serving as a key component in nitrogen fertilizers that enhance crop yields and soil fertility. With the global population projected to reach 9 billion by 2050, the demand for food production is expected to surge by 60%, thereby intensifying the need for ammonia-based fertilizers. Additionally, ammonia is being recognized as a potential energy source for clean hydrogen, further expanding its applications in sustainable agriculture.

2. Emergence of Green Ammonia

   The shift towards sustainable energy solutions has spotlighted green ammonia, produced using renewable energy sources, as a viable alternative to conventional ammonia. This transition aims to reduce carbon emissions associated with ammonia production, aligning with global environmental goals. The green ammonia market is expected to grow significantly, with projections indicating an increase from 3.13 million tons in 2024 to 42.18 million tons by 2029, at a remarkable CAGR of 68.23%.

3. Geographical Market Dynamics

   The Asia-Pacific region dominates the ammonia market, driven by substantial consumption in countries like China, India, and Japan. China stands as the largest producer and consumer of ammonia globally, owing to its extensive agricultural activities and demand for fertilizers. India’s agriculture sector, employing over 55% of the population, also significantly contributes to the regional market. Conversely, the Middle East and Africa are anticipated to witness the highest CAGR from 2024 to 2029, propelled by expanding agricultural practices and industrial developments.

Market Segmentation

The ammonia market is segmented based on type, end-user industry, and geography:

• By Type:
  • Liquid Ammonia: Utilized in refrigeration systems, water purification, and as a precursor in chemical synthesis.
  • Gaseous Ammonia: Employed in industrial applications, including fertilizers and explosives manufacturing.
• By End-User Industry:
  • Agriculture: Major consumer of ammonia for nitrogen-based fertilizers to enhance crop productivity.
  • Textiles: Uses ammonia in fabric treatment processes to improve texture and dye absorption.
  • Mining: Applies ammonia in the extraction and processing of minerals.
  • Pharmaceutical: Incorporates ammonia in the synthesis of various medications.
  • Refrigeration: Utilizes ammonia as a refrigerant in industrial cooling systems.
  • Other Industries: Includes water treatment, pulp and paper, and rubber industries.
• By Geography:
  • Asia-Pacific: Leading market with significant consumption in agriculture and textiles.
  • North America: Stable demand driven by agriculture and industrial applications.
  • Europe: Focus on sustainable practices influencing ammonia usage.
  • South America: Growing market with expanding agricultural activities.
  • Middle East and Africa: Emerging market with increasing industrialization and agricultural development.

Key Players

The ammonia market is characterized by a low concentration, with several major players contributing to its dynamics. Notable companies include:

• CF Industries Holdings Inc.
• Yara International
• Nutrien Ltd.
• OCI N.V.
• Qatar Fertiliser Company (QAFCO)

These companies are actively engaging in strategic initiatives to enhance their market presence. For instance, in December 2023, CF Industries Holdings Inc. completed the acquisition of Incitec Pivot Limited’s Waggaman ammonia production facility for USD 1.675 billion, adding 880,000 tons of ammonia production capacity annually.

Conclusion

The global ammonia market is on a trajectory of steady growth, driven by its indispensable role in agriculture and the burgeoning interest in green ammonia as a sustainable energy source. While challenges such as the hazardous nature of concentrated ammonia persist, advancements in production technologies and strategic expansions by key industry players are poised to mitigate these concerns. As the world gravitates towards sustainable practices, ammonia’s versatility and potential in various industries underscore its significance in the global market landscape.

Industry Related Reports