Ammonia Market Size (2024 - 2029)

The ammonia market is projected to experience growth over the forecast period, driven by its extensive application in the fertilizer industry and increasing use in explosives production. Despite challenges posed by the hazardous nature of concentrated ammonia, opportunities such as its use as a refrigerant and the rising adoption of green ammonia are expected to support market expansion. The market has shown recovery post-pandemic, with the Asia-Pacific region anticipated to lead in terms of market size and growth rate.

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Market Size of Ammonia Industry

Ammonia Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR (2024 - 2029) 1.89 %
Fastest Growing Market Middle-East and Africa
Largest Market Asia Pacific
Market Concentration Low

Major Players

Ammonia Market Major Players

*Disclaimer: Major Players sorted in no particular order

Ammonia Market Analysis

The Ammonia Market size is estimated at 188.41 Million tons in 2024, and is expected to reach 206.86 Million tons by 2029, growing at a CAGR of 1.89% during the forecast period (2024-2029).

During the COVID-19 pandemic, there was a negative impact on the ammonia market globally as agriculture, textile, mining, and other end-user industries were significantly affected. However, growth in the pharmaceutical segment is improving in the industry, and this is expected to assist in market development. Currently, the ammonia market has recovered from the pandemic and is growing significantly.

  • In the short term, abundant use in the fertilizer industry and ammonia's increasing usage for the production of explosives are projected to fuel the market's growth during the forecast period.
  • However, the hazardous effects of ammonia in its concentrated form are likely to hinder the growth of the market.
  • Nevertheless, the use of ammonia as a refrigerant and the growing adoption of green ammonia are likely to act as opportunities for the market between 2024 and 2029.
  • Asia-Pacific is expected to dominate the market and is likely to witness the highest CAGR from 2024 to 2029.

Ammonia Industry Segmentation

Ammonia is an inorganic compound composed of a single nitrogen atom covalently bonded to three hydrogen atoms, an amidase inhibitor, and a neurotoxin. Furthermore, more than 80% of the ammonia produced by industry is used as fertilizer in agriculture. It is also used as a refrigerant gas, for water purification, and in producing plastics, explosives, textiles, pesticides, dyes, and other chemicals.​

The ammonia market is segmented by type, end-user industry, and geography. By type, the market is segmented into liquid and gas. By end-user industry, the market is segmented into agriculture, textiles, mining, pharmaceutical, refrigeration, and other end-user industries. The report also covers the market size and forecasts for the ammonia market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (tons).

Type
Liquid
Gas
End-user Industry
Agriculture
Textiles
Mining
Pharmaceutical
Refrigeration
Other End-user Industries (Food and Beverage, Rubber, Water Treatment, Petroleum, and Pulp and Paper Industries)
Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
France
Italy
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle East and Africa
Saudi Arabia
South Africa
Rest of Middle East and Africa
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Ammonia Market Size Summary

The ammonia market is poised for steady growth over the forecast period, driven by its critical role in agriculture and emerging applications in various industries. The market has shown resilience in recovering from the disruptions caused by the COVID-19 pandemic, with the pharmaceutical sector contributing to its resurgence. The fertilizer industry remains a significant consumer of ammonia, leveraging its properties to enhance crop health and soil fertility. Additionally, ammonia's increasing use in the production of explosives and its potential as a refrigerant and green ammonia present further growth opportunities. However, the market faces challenges due to the hazardous nature of concentrated ammonia, which could impede its expansion.

Asia-Pacific is expected to lead the ammonia market, with China, India, and Japan being key players. China's dominance in ammonia production and consumption is fueled by its vast agricultural activities and the need for fertilizers to support its large population. India, with its substantial agricultural workforce, also shows a rising demand for ammonia, particularly in urea production. The textile industry in Japan benefits from ammonia's applications in fabric dyeing and synthetic fabric development, contributing to the market's growth. The fragmented nature of the market sees major players like CF Industries Holdings Inc., Yara, Nutrien Ltd, OCI, and Qatar Fertiliser Company actively engaging in strategic collaborations and acquisitions to enhance their production capabilities and reduce environmental impact.

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Ammonia Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Drivers

      1. 1.1.1 Abundant Use in the Fertilizer Industry

      2. 1.1.2 Increasing Usage to Produce Explosives

    2. 1.2 Restraints

      1. 1.2.1 Hazardous Effects in its Concentrated Form

    3. 1.3 Industry Value Chain Analysis

    4. 1.4 Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Suppliers

      2. 1.4.2 Bargaining Power of Buyers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitute Products and Services

      5. 1.4.5 Degree of Competition

  2. 2. MARKET SEGMENTATION (Market Size in Volume)

    1. 2.1 Type

      1. 2.1.1 Liquid

      2. 2.1.2 Gas

    2. 2.2 End-user Industry

      1. 2.2.1 Agriculture

      2. 2.2.2 Textiles

      3. 2.2.3 Mining

      4. 2.2.4 Pharmaceutical

      5. 2.2.5 Refrigeration

      6. 2.2.6 Other End-user Industries (Food and Beverage, Rubber, Water Treatment, Petroleum, and Pulp and Paper Industries)

    3. 2.3 Geography

      1. 2.3.1 Asia-Pacific

        1. 2.3.1.1 China

        2. 2.3.1.2 India

        3. 2.3.1.3 Japan

        4. 2.3.1.4 South Korea

        5. 2.3.1.5 Rest of Asia-Pacific

      2. 2.3.2 North America

        1. 2.3.2.1 United States

        2. 2.3.2.2 Canada

        3. 2.3.2.3 Mexico

      3. 2.3.3 Europe

        1. 2.3.3.1 Germany

        2. 2.3.3.2 United Kingdom

        3. 2.3.3.3 France

        4. 2.3.3.4 Italy

        5. 2.3.3.5 Rest of Europe

      4. 2.3.4 South America

        1. 2.3.4.1 Brazil

        2. 2.3.4.2 Argentina

        3. 2.3.4.3 Rest of South America

      5. 2.3.5 Middle East and Africa

        1. 2.3.5.1 Saudi Arabia

        2. 2.3.5.2 South Africa

        3. 2.3.5.3 Rest of Middle East and Africa

Ammonia Market Size FAQs

The Ammonia Market size is expected to reach 188.41 million tons in 2024 and grow at a CAGR of 1.89% to reach 206.86 million tons by 2029.

In 2024, the Ammonia Market size is expected to reach 188.41 million tons.

Ammonia Market Report Snapshots

Ammonia Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)