Global Ammonia Market Size, Share, Growth Analysis, By Application(Agriculture, refrigeration), By Grade(Commercial grade, electronic grade), By Form(Solid, liquid) - Industry Forecast 2024-2031

Global ammonia market size was valued at USD 76.66 billion in 2022 and is poised to grow from USD 81.57 billion in 2023 to USD 134.09 billion by 2031, at a CAGR of 6.41% during the forecast period (2024-2031).

Ammonia is gaining popularity due to its versatility and wide range of applications. It offers several advantages, including cost-effectiveness, high energy density, and strong global demand. One of the key benefits of ammonia is its ability to be produced from renewable sources, such as biomass and renewable energy. This innovative production method presents a sustainable and eco-friendly alternative to traditional methods that rely on finite resources like natural gas. By utilizing renewable resources like agricultural waste or solar and wind energy, ammonia synthesis becomes more environmentally friendly, reducing carbon emissions and mitigating environmental impacts. Ammonia is widely known for its efficiency and affordability as a nitrogen fertilizer, essential for plant growth. Its low cost has made it a preferred choice among farmers worldwide. Beyond agriculture, ammonia finds extensive use in various industrial sectors. Its affordability stems from its abundant availability and cost-effective production methods, such as the Haber-Bosch process, which combines nitrogen and hydrogen gases under high pressure and temperature. In addition to its role in agriculture, ammonia serves diverse industrial purposes, including refrigeration, plastics manufacturing, and pharmaceutical production. Its low cost and versatility make it particularly attractive for industrial applications, especially in regions with burgeoning demand for affordable raw materials, such as developing countries.

Top-down and bottom-up approaches were used to estimate and validate the size of the global ammonia market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Ammonia Market Segmental Analysis

Global ammonia market is segmented based on application, grade, form, and region. By application, the market is segmented into agriculture, refrigeration, chemicals, pharmaceuticals, and others. By grade, the market is segmented into commercial grade, electronic grade, high purity grade, and others. By form, the market is segmented into liquid, gas, and powder. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Drivers of the Global Ammonia Market

The increasing interest in using ammonia as an energy carrier is notable due to its high energy density and convenient transportation and storage capabilities. With the growing prominence of renewable energy sources, there is a notable push towards developing energy production technologies centered around ammonia. This surge in demand for ammonia, both for industrial applications and energy purposes, is expected to propel market growth significantly.

Restraints in the Global Ammonia Market

Safety concerns surrounding the hazardous and corrosive nature of ammonia may impede the growth of the market. Special precautions are required for its handling and storage due to safety risks associated with transportation and storage. This necessitates adherence to strict regulations, leading to elevated production costs. Consequently, these safety concerns could act as a deterrent to the growth of the ammonia market.

Market Trends of the Global Ammonia Market

A notable trend in the ammonia market is the escalating demand for ammonia as a fertilizer. Given its role as a primary source of nitrogen for plants, ammonia's high nitrogen content is indispensable for facilitating plant growth. With the global demand for food on the rise, there is an increasing requirement for efficient and potent fertilizers such as ammonia to enhance crop yield and quality. Consequently, the ammonia market is poised to experience significant growth in the foreseeable future.