Global Ammonia Cracking Catalysts Market

Overview

Global Ammonia Cracking Catalysts Market reached US$ 6.8 million in 2022 and is expected to reach US$ 136.6 million by 2030, growing with a CAGR of 45.5% during the forecast period 2023-2030.

The growing demand for commercial and industrial cooling solutions, especially in rapidly industrializing countries, will propel the demand for ammonia cracking catalysts during the forecast period. Ammonia is one of the most used refrigerants for modern industrial refrigeration systems.

The long term growth potential for the global ammonia cracking catalysts market is hobbled by the declining commercial profitability of most ammonia production plants. Given the unviability of most new planned projects, very few new ammonia production capacity has come online. Without resolving the profitability crisis within the industry, the market is unlikely to have stable long term growth.

Dynamics

Increasing Adoption of Hydrogen as a Fuel Source

Although there has been a global trend towards decarbonization over the past few years, fossil fuels still remain the primary energy sources. However, along with developing completely green energy sources such as solar and wind power as well moving towards electrification of transportation, there has arisen a need for an intermediate fuel source. Therefore, governments are increasingly moving towards the utilization of hydrogen as a fuel source for vehicles and for energy production.

The international energy agency (IEA) estimated that global hydrogen demand increased to 94 million tonnes in 2022 and to keep pace with increasing demand nearly US$ 1.2 trillion of investment is required in new production and storage systems by 2050. Although green hydrogen has been making advances, ammonia remains the only commercially viable method for mass production of hydrogen.

Increasing Emphasis on Food Security

A rapid growth in the global population has sharply put into focus the need for improved food security, especially in developing and underdeveloped nations, where the population growth is the highest. The United Nations (UN) has estimated the global population at around 8.0 billion in 2o22, representing an increase of nearly 1 billion since 2010. The global agricultural sector is also experiencing challenges such as the rise of extreme weather events and desertification.

More than 70% of global ammonia production is used for making chemical fertilizers in the form of solutions or salts. Despite trends placing greater emphasis on organic farming, chemical fertilizers remain the most economical method of vastly improving agricultural production without the need for capital intensive methods.

High Cost of Commercial Catalyst Production

Despite growing demand for hydrogen, the market growth is likely to be constrained by the high cost of commercial production of various special catalysts. Nickel (Ni)-based catalysts are gradually being abandoned, mainly due to their high costs and susceptibility to carbon fouling. Iron (Fe)-based catalysts are being increasingly preferred due to their longevity.

However, the mass adoption of Iron (Fe)-based catalysts is still constrained by limited production. Until new production capacity comes online, Fe-based catalysts will continue to remain the preferred choice for commercial production of hydrogen and nitrogen from ammonia.

Segment Analysis

The global ammonia cracking catalysts market is segmented based on type, application and region.

Nickel (Ni)-based Catalysts Continue to Account for a Significant Market Share

Although precious metal catalysts such as those derived from ruthenium and cobalt are more effective in cracking ammonia between 350 °C and 500 °C, nickel-based catalysts are mostly preferred since they are more economical, thus making commercial production more feasible. However, research is gradually moving towards developing and commercializing new catalysts.

For instance, a new series of imide-based catalysts are currently under study, which can 400 °C to 550 °C. Imide-based catalysts also behave atypically as compared to other traditional catalysts and scientists hope to utilize it for mass producing hydrogen for fuel cell-based transportation solutions. Over the forecast period, nickel-based catalysts are likely to lose their market share.

Geographical Penetration

With Numerous New Hydrogen Projects, North America Gains Highest Share

North America is forecasted to have the highest share within the global ammonia cracking catalysts market since it has the some of the largest commercial hydrogen production projects currently under construction. It is part of an overarching aim of the U.S. government to ensure long term energy independence. According to the U.S. government's energy information administration (EIA), the country produces more than 10 million tonnes of hydrogen annually.

The U.S. government has increased capital investments in to spur hydrogen production. For instance, in October 2023, the government allocated US$ 7 billion for the development of seven new hydrogen production and storage hubs across the country. The government hopes that capital spending will eventually lead to an increase in private sector investment, thus propelling the growth of hydrogen production.

COVID-19 Impact Analysis

An unexpected challenge for the global ammonia cracking catalysts market emerged during the early stage of the COVID-19 pandemic with a crash in global crude oil prices. As demand from aviation and road transportation sector fell dramatically, it led to a collapse in global crude oil prices. Such a crash temporarily rendered hydrogen uncompetitive, thereby reducing demand for ammonia cracking catalysts.

The economic uncertainty during the course of the pandemic also created many problems for companies looking to enter into hydrogen production. It led to the delay or outright cancellation of various projects. The overall situation has markedly improved in the post-pandemic period and the industry is witnessing a growth in new investments.

Russia-Ukraine War Impact Analysis

The Russia-Ukraine war has led to near irreversible changes to the energy landscape of Europe. Although the short-term volatility in global energy markets caused by the war has eased, it created major disruptions in natural gas supplies to Europe. European nations have used the crisis to sever their dependence on Russian energy imports.

Such a policy will have major future implications for the ammonia cracking catalyst market. Many countries in the European Union (EU) are racing to build new hydrogen production and storage infrastructure. In Russia, western sanctions have led to an exodus of capital and technology in the sector, drastically reducing demand for ammonia cracking catalysts.

By Type

• Nickel (Ni)-based Catalysts
• Platinum Metal Group (PGM)-based Catalysts
• Others

By Application

• Hydrogen Production
• Metal Treatment
• Transportation
• Others
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In March 2023, Saudi Aramco, Saudi Arabia's large energy conglomerate signed an agreement with Linde engineering, a major European manufacturer of industrial gases, to develop new ammonia cracking technologies.
• In July 2023, scientists from the Sunchon National University of South Korea published a research paper detailing the development of green hydrogen from ammonia by using liquid plasma-based solid acid catalysts.
• In October 2023, DNV, an internationally recognized energy classification and registration society announced that demand for ammonia cracking solutions will increase over the next 5-10 years as hydrogen energy economy undergoes maturation.

Competitive Landscape

The major global players in the market include Johnson Matthey, Clariant, Heraeus Group, Dorf Ketal, Acta S.p.A, Topsoe, Casale SA, UNICAT Catalyst Technologies, Granus LLC and Shandong Avant New Material Technology Co., Ltd.

Why Purchase the Report?

• To visualize the global ammonia cracking catalysts market segmentation based on type, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of ammonia cracking catalysts market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global ammonia cracking catalysts market report would provide approximately 50 tables, 43 figures and 181 Pages.

Target Audience 2023

• Energy Companies
• Hydrogen Manufacturers
• Industry Investors/Investment Bankers
• Research Professionals