Ammonia Market
Ammonia Market Study by Anhydrous and Aqueous Ammonia for Industrial Chemicals, Agrochemicals, Explosives, and Electronics from 2024 to 2034
Analysis of Ammonia Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Ammonia Market Outlook (2024 to 2034)
Expanding steadily at a CAGR of 4.6%, the global ammonia market size is projected to increase from a valuation of US$ 129.7 billion in 2024 to US$ 203.36 billion by 2034-end.
Ammonia is an inorganic compound consisting of nitrogen and hydrogen. It is a stable binary hydride with no color but with a distinctive strong smell. This colorless gas is used in the agriculture industry as a fertilizer for killing bacteria and other harmful insects in the farming process. This has led to a tremendous increase in the production of ammonia in the farming industry, thus contributing to ammonia market growth.
Ammonia biologically is a nitrogenous waste that contributes to the nutritious needs of terrestrial organisms by serving as a precursor to fertilizers. The mass amount of the ammonia produced is employed for the fertilizer process in various forms and compositions, including urea and diammonium phosphate. Ammonia is also applied to soil in its pure form. An increase in agricultural activities is driving sales of ammonia.
The pharmaceutical industry also uses ammonia in a variety of products as a synthesizer. In recent years, the pharmaceutical industry has shown substantial growth, providing ammonia suppliers with profitable opportunities. Majorly ammonia suppliers produce three types of ammonia: gaseous, liquid, and liquor ammonia fortis. Each type has its features, classifications, and uses in several industries. Liquid ammonia is predominantly used in wastewater treatment as well as leather, rubber, and paper production. It is used in the food and beverages industry in cold storage and refrigeration. Ammonia finds uses in the cosmetic industry.
Ammonia suppliers are also investing in research and development to understand this compound and find new areas where they could use this and expand their customer base. This is contributing to the expansion of the ammonia market size.
| Report Attributes | Details |
|---|---|
| Ammonia Market Size (2024E) | US$ 129.7 Billion |
| Forecasted Market Value (2034F) | US$ 203.36 Billion |
| Global Market Growth Rate (2024 to 2034) | 4.6% CAGR |
| Canada Market Growth Rate (2024 to 2034) | 5.6% CAGR |
| China Market Value (2034F) | US$ 44.75 Billion |
| North America Market Share (2024E) | 28.6% |
| East Asia Market Share (2034F) | 38.4% |
| Key Companies Profiled |
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Which Ammonia Market Trends Should Suppliers Leverage?
“Increasing Need for Fossil Fuels”
Ammonia, being liquid at ambient temperature, has emerged as a popular alternative to both fossil fuels and hydrogen, owing to its unique properties. Its ability to exist under ambient conditions due to vapor pressure, coupled with high volumetric and gravimetric energy, makes it a suitable carrier for hydrogen. Compared to hydrogen fuels, ammonia offers easier storage and boasts higher energy efficiency.
Lower cost of ammonia, in contrast to the requirements of hydrogen for compression or cryogenic storage, adds to its appeal. With a raw energy density comparable to one-third of diesel, liquid ammonia finds favor in the fuel industry. Ammonia consists of hydrogen and nitrogen and thus allows for conversion back to hydrogen. This facilitates its dual use as both a hydrogen carrier and a fuel.
“Extensive Use of Ammonia as Cleaning Agent”
Cleanliness has always been a requisite for living and working conditions. Household ammonia accomplishes this purpose by cleaning diverse surfaces. Use of ammonia effectively cleans surfaces such as glass, porcelain, and stainless steel.
Ammonia is also utilized for cleaning ovens after dilution to ensure surfaces are effectively cleaned without becoming toxic. These cleaning attributes have boosted the utilization of ammonia and made it a sought-after choice among customers.
Which Properties of Ammonia are Impeding Market Growth?
“Corrosive Nature and Toxicity of Ammonia an Issue”
Ammonia corrosion is caused by the interaction of ammonia and the surface of contact when liquid ammonia containing impurities or contaminants comes in contact with mild steel. Ammonia is corrosive to other materials such as paints even when they do not contain any contaminants. This challenge has severely impacted market growth.
Another challenge that ammonia suppliers face is its severe toxicity, which increases the risks of accidents and health issues due to exposure. Suppliers have implemented stringent safety protocols and cautious working conditions to mitigate these risks.
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Country-wise Analysis
A recently unveiled report by Fact.MR predicts a commercially appreciable market for South Korea. The market in South Korea is projected to expand at a 6.9% CAGR through 2034, providing an amazing platform for ammonia manufacturers to establish their enterprises.
How is the Aviation Industry Driving Ammonia Sales in the United States?
“Historic Usage of Ammonia as Fuel in Aircraft Engines”
| Attribute | United States |
|---|---|
| Market Value (2024E) | US$ 26.6 Billion |
| Growth Rate (2024 to 2034) | 5% CAGR |
| Projected Value (2034F) | US$ 43.5 Billion |
Ammonia has been used as a fuel and solar energy conversion tool. Its potential use in rocket engines was discovered in June 1959 with the introduction of the X15, the world's fastest aircraft at the time. Powered by the XLR99 engine, which utilized anhydrous ammonia and liquid oxygen as propellant, the X15 achieved remarkably high speeds. This led to further exploration of ammonia as a fuel for setting new speed records.
Beyond aircraft, the aviation industry is exploring ammonia's potential as a hydrogen carrier. Both hydrogen and ammonia offer CO2-free properties, promising reduced carbon dioxide emissions and proving advantageous for both the aviation industry and the environment. The involvement of prominent space agencies like NASA in utilizing ammonia as a fuel is further driving demand for this versatile gas.
Which Factors are Contributing to Increasing Use of Ammonia in China?
“Extensive Use of Ammonia in Fertilizer and Pesticide Production”
| Attribute | China |
|---|---|
| Market Value (2024E) | US$ 26.94 Billion |
| Growth Rate (2024 to 2034) | 5.2% CAGR |
| Projected Value (2034F) | US$ 44.75 Billion |
China has established its image as a manufacturing hub, with its products getting exported to various parts of the world. The government has always supported manufacturers and suppliers by relaxing regulations and implementing favorable taxes and policies. This has encouraged manufacturers across industries to set up their production units in the country.
Fertilizer and pesticide manufacturers in the country extensively use ammonia in their products, which has substantially attracted other ammonia suppliers to set up their industries close to fertilizer suppliers.
Category-wise Evaluation
Ammonia has been proven beneficial for a variety of purposes, resulting in its widespread application across different industries. A few of the major applications include nitric acid and mono-ammonium phosphate production. Demand for mono-ammonium phosphate is projected to rise at a CAGR of 4.3% through 2034.
Which Application of Ammonia is Significantly Contributing to Market Growth?
“Vital Role of Ammonia in Nitric Acid Production for Precious Metal Purification”
| Attribute | Nitric Acid |
|---|---|
| Segment Value (2024E) | US$ 30.22 Billion |
| Growth Rate (2024 to 2034) | 5.4% CAGR |
| Projected Value (2034F) | US$ 48.6 Billion |
Nitric acid occupies 23.3% of the ammonia market share in 2024. Nitric acid is produced through the oxidation of ammonia. In this process, liquid ammonia is evaporated, superheated, and combined with compressed air in a converter. The resulting acid is then utilized in the production of ammonium nitrate and calcium ammonium nitrate, extensively employed in fertilizer or urea ammonium nitrate production.
Nitric acid finds application in purifying precious metals such as platinum, gold, and silver, making it valuable in the precious metal industry. These diverse applications are opening avenues for suppliers to achieve profits.
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Competitive landscape highlights only certain players
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Competitive Landscape
Key players in the ammonia market such as Yara, Shandong Everlast AC Chemical, CF Industries Holding, and Nutrient Ltd. are focusing on expanding their manufacturing capabilities to meet the rising demand from end users.
Instead of producing brown ammonia, several firms are choosing to produce green ammonia and are changing their equipment accordingly.
- In May 2022, Mitsui, one of the key manufacturers of ammonia, and CF Industries Holdings announced a collaboration for the development of a greenfield ammonia plant in the United States.
- In May 2022, Nutrien Ltd. announced that it is considering Geismar, Louisiana, as a potential location for the world's largest clean ammonia facility.
- In May 2022, Air Products, OQ, and ACWA Power signed a joint development agreement to set up a green hydrogen-based ammonia production facility.
Key Segments of Ammonia Market Research
-
By Product Type :
- Anhydrous Ammonia
- Aqueous Ammonia
-
By Application :
- MAP (Mono-ammonium Phosphate)
- DAP (Di-ammonium Phosphate)
- Urea
- Nitric Acid
- Ammonium Phosphate
- Ammonium Nitrate
-
By End Use :
- Industrial Chemicals
- Agrochemicals
- Explosives
- Medical
-
By Region :
- North America
- Latin America
- Europe
- East Asia
- South Asia & Oceania
- Middle East & Africa
- FAQs -
How big is the ammonia market size in 2024?
The global market for ammonia stands at US$ 129.7 billion in 2024.
What is the projected revenue from ammonia sales for 2034?
By 2034, worldwide revenue from ammonia sales is projected to reach US$ 203.36 billion.
How fast are ammonia sales projected to increase?
Ammonia sales are forecasted to increase at 4.6% CAGR through 2034.
What is the sales forecast for ammonia in North America?
Ammonia sales in North America are forecasted to increase at 4.7% CAGR from 2024 to 2034.
At what rate is the market projected to expand in East Asia?
The market in East Asia is projected to expand at a CAGR of 5.1% from 2024 to 2034.
At what rate are ammonia sales forecasted to rise in Japan?
Sales in Japan are forecasted to rise at a CAGR of 4.3% from 2024 to 2034.
Ammonia Market