Ammonia Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Form (Liquid, Gas, Powder), By End User (Agriculture, Textiles, Mining, Pharmaceutical, Refrigeration, Others), By Region and Competition, 2020-2030F

Market Overview

Global Ammonia Market was valued at USD 68.25 Billion in 2024 and is expected to reach USD 93.47 Billion by 2030 with a CAGR of 5.58%. Ammonia is a colorless gas characterized by a strong, pungent odor, composed of three hydrogen atoms bonded to one nitrogen atom, with the chemical formula NH₃. It is highly soluble in water and readily forms ammonium ions (NH₄⁺) in aqueous solutions. Ammonia plays a critical role across numerous industries due to its versatile chemical properties. One of its most significant applications is in the fertilizer industry, where it serves as a vital source of nitrogen essential for promoting healthy plant growth. 

In addition, ammonia is widely used as a refrigerant, owing to its remarkable ability to absorb large quantities of heat during evaporation, making it highly efficient for cooling applications. The compound is also integral to the production of cleaning agents, explosives, and a variety of industrial chemicals. With the accelerating pace of urbanization and global infrastructure development, the demand for ammonia-based construction materials is growing rapidly. Ammonia is a key ingredient in the manufacture of adhesives, coatings, and resins used in construction. It is also crucial in producing materials such as particleboards, laminates, plywood, and other synthetic components commonly utilized in modern construction practices. This broad spectrum of applications continues to position ammonia as a vital industrial compound in both traditional and emerging markets.

Key Market Drivers

Growing Demand of Ammonia in Agriculture Industry

Global primary crop production reached 9.9 billion tonnes in 2023, reflecting a 3% increase compared to 2022 and a 27% rise since 2010. During the same period, global cereal production grew by 61 million tonnes, or 2%, primarily driven by higher maize yields. Ammonia, a compound of nitrogen and hydrogen, plays a pivotal role in the agriculture sector. It is primarily used in the production of fertilizers, which are essential for plant growth and yield improvement. The availability of nitrogen, a key component of ammonia, is crucial for photosynthesis, protein synthesis, and other physiological functions that contribute to plant growth and overall productivity. Ammonia is utilized in the production of various types of fertilizers, including urea, ammonium nitrate, and ammonium sulfate. These fertilizers are widely used in crop production to enhance soil fertility, promote healthy plant development, and increase crop yields. The use of ammonia-based fertilizers has become even more significant with advancements in technology and the adoption of precision agriculture techniques.

Advancements in technology have led to more efficient and sustainable use of fertilizers. Ammonia, a pungent gas, is extensively utilized in the production of agricultural fertilizers. Green ammonia refers to ammonia produced through entirely renewable and carbon-free processes. Minimizing carbon dioxide emissions during ammonia manufacturing is essential for meeting global net-zero targets by 2050. Precision agriculture techniques, for instance, enable farmers to apply fertilizers more accurately, reducing waste and environmental impact while maximizing crop yields. This promotes the use of ammonia-based fertilizers, further driving the global ammonia market. The growing demand for ammonia in the agriculture industry is a major driver of the global ammonia market. As the need for food continues to rise with the growing global population, and as advancements in agricultural practices promote more efficient use of fertilizers, the demand for ammonia is expected to continue its upward trajectory. By understanding the vital role of ammonia in agriculture and its impact on crop productivity, stakeholders can make informed decisions to support sustainable farming practices and ensure food security for future generations.

Growing Demand of Ammonia in Pharmaceutical Industry

The global pharmaceutical industry has witnessed substantial expansion over the past two decades, reaching approximately USD 1.6 trillion in revenue by 2023. This remarkable growth has elevated the industry's scale to a level comparable to the gross domestic products (GDPs) of major economies such as Spain, Mexico, or Australia. Ammonia, a compound consisting of nitrogen and hydrogen, possesses a wide array of applications within the pharmaceutical industry. It serves as a fundamental building block in the synthesis of various pharmaceutical products, including antibiotics, antimalarials, and vitamins. The significance of ammonia extends to its pivotal role in the production of active pharmaceutical ingredients (APIs). APIs are the crucial substances in drugs responsible for producing the intended effects. Many of these APIs are synthesized through the utilization of ammonia or its derivatives. Moreover, ammonia solutions find extensive usage in pharmaceutical manufacturing for pH regulation. The control of pH levels is of utmost importance in drug formulation to guarantee stability, shelf-life, and efficacy.

As global health concerns continue to escalate, the demand for pharmaceutical products is experiencing a substantial upsurge. This surge in demand is consequently driving the need for more APIs, further bolstering the demand for ammonia. The emergence of health threats, such as the ongoing COVID-19 pandemic, has underscored the criticality of a robust pharmaceutical industry, thereby fueling the growth of the ammonia market. The escalating demand for ammonia within the pharmaceutical industry serves as a significant driving force behind the global ammonia market. As health concerns continue to rise on a global scale, and as the pharmaceutical industry actively responds to these challenges, the demand for ammonia is expected to keep pace. The crucial role of ammonia in drug synthesis and pH regulation, coupled with the escalating need for APIs, further emphasizes its indispensable nature within this critical industry.

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Key Market Challenges

Lack in Availability of Raw Materials

The production of ammonia heavily relies on fossil fuels, particularly natural gas. Approximately 40% of the energy input in ammonia production is consumed as feedstock. Natural gas is the preferred raw material in newer ammonia plants due to its lower carbon footprint and cost-effectiveness. However, the availability and cost of these resources can significantly impact the ammonia market. In recent times, the ammonia industry has experienced supply chain disruptions, leading to shortages. This has triggered a ripple effect across various sectors, particularly in agriculture, where ammonia-based fertilizers are crucial. The lack of raw materials for fertilizer production has led to an increase in prices.

Raw material prices have a direct impact on the cost of producing ammonia. While there have been instances of declining prices, the general trend shows an increase. This fluctuation adds a layer of uncertainty to the market and poses a challenge for manufacturers. Furthermore, variations in geopolitical factors and trade policies can further affect the availability and pricing of raw materials, adding complexity to the situation. The lack of availability of raw materials and their fluctuating prices poses significant challenges for the global ammonia market. These factors contribute to increased production costs, which can lead to higher prices for end-users. They also add uncertainty to the market, making it difficult for manufacturers to plan and make strategic decisions.

Key Market Trends

Growing Interest in Green Ammonia

One of the primary factors fueling the growing interest in green ammonia is its significant potential to support the decarbonization of the power generation and maritime shipping industries. As these sectors face mounting pressure to reduce greenhouse gas emissions, green ammonia is emerging as a highly viable, carbon-free fuel alternative. Its use in power generation offers a cleaner energy source, while its application as a clean-burning fuel in shipping can substantially mitigate the environmental footprint of global maritime operations. Beyond power and shipping, green ammonia also presents considerable potential within the agriculture sector. Traditional ammonia production predominantly used for fertilizer has historically been a major source of CO₂ emissions.

However, as the industry pivots toward more sustainable practices, green ammonia is gaining traction as an environmentally responsible substitute. Its adoption can play a pivotal role in lowering the carbon intensity of fertilizer manufacturing, contributing to the broader goal of sustainable agriculture. The growing momentum behind green ammonia reflects a broader shift toward environmental sustainability across the global economy. In May 2025, Elcogen signed a non-exclusive Memorandum of Understanding (MoU) with Casale, a global provider of technologies and integrated engineering solutions for the production of ammonia and other basic chemicals. The agreement aims to facilitate collaboration between the two parties on green ammonia initiatives and other Power-to-X (P2X) projects. As industries increasingly prioritize climate-conscious solutions, demand for green ammonia is expected to rise sharply. This trend not only creates substantial opportunities within the global ammonia market but also marks an essential step toward achieving a more sustainable and low-carbon future.

Segmental Insights

Form Insights

Based on Form, Liquid have emerged as the dominant segment in the Global Ammonia Market in 2024. Throughout the projected timeframe, the ammonia market is anticipated to experience significant growth. This can be attributed to the increasing demand for ammonia in various end-use applications. Ammonia, in its purest form known as dehydrated ammonia, is completely free from any water molecules. It exists as a noxious gas that emits choke-inducing vapors and is primarily used as a fertilizer. However, when used as a food ingredient, it is transformed into a colorless, clear liquid. The process of making ammonia involves combining three sections of hydrogen with a component of nitrogen. In addition to its role as a fertilizer, ammonia also finds extensive use in commercial cleaning tasks and the production of specific compounds. In its diluted state, it is easily utilized for various cleaning purposes in commercial settings. 

End User Insights

Based on End User, Agriculture have emerged as the fastest growing segment in the Global Ammonia Market during the forecast period. Ammonia is widely recognized not only as a key source of nitrogen an essential nutrient for plant growth but also as a critical component in the formulation of various liquid fertilizer blends. These blends commonly incorporate substances such as urea, aqueous ammonia, and ammonium salts to enhance agricultural productivity. Ammonia's high reactivity with elements in the soil, including moisture, free hydrogen ions, organic matter, and silty clay, makes it particularly effective for agricultural use. Its application in the sector is further supported by factors such as soil infiltration rate, land composition and structure, and the specific methods used for its deployment. Collectively, these attributes underscore ammonia’s indispensable role in modern farming practices and its continued relevance in sustainable crop production.

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Regional Insights

Based on Region, Asia Pacific have emerged as the dominating region in the Global Ammonia Market in 2024.  The presence of numerous multinational companies has significantly contributed to industry expansion, while rising demand for agricultural products across the region continues to bolster market growth. Major economies such as India and China are playing a pivotal role in advancing the sector, with their robust agricultural and industrial activities. However, the market has also faced certain headwinds. Declines in food and crop prices, subdued economic forecasts, volatile energy costs, and intensifying competitive pressures have collectively tempered demand for ammonia. Despite these challenges, China continues to lead as the world's largest consumer and producer of ammonia, underscoring its central position in the global market.

Recent Developments 

• In May 2025, BASF expanded its sustainable product portfolio with the introduction of two new renewable ammonia grades: renewable ammonia and renewable ammonia solution 24.5%. These products are manufactured at BASF’s Verbund site in Ludwigshafen, where hydrogen is utilized in the ammonia production process, thereby reducing the plant’s reliance on natural gas. This portfolio expansion represents another milestone in the Monomers division’s sustainability strategy, which aims to offer either circular or low product carbon footprint (PCF) alternatives across all major product lines by 2025.
• In January 2025, Addis Energy unveiled its innovative technology platform designed to leverage the Earth's chemical and thermal energy for the cost-effective production of clean ammonia through a net energy-positive process. By integrating next-generation chemical technologies with established expertise from the oil and gas sector, the platform aims to deliver both energy abundance and affordability. This breakthrough approach is expected to open new economic opportunities for zero-emission domestic energy production. The process utilizes proven oil and gas drilling techniques to access subsurface heat and pressure, providing a low-carbon alternative to traditional ammonia synthesis while maintaining cost competitiveness.
• In February 2024, the Indian government launched the next phase of its Strategic Interventions for Green Hydrogen Transition Programme (SIGHT), introducing an incentive scheme aimed at promoting renewable ammonia production. The Solar Energy Corporation of India will administer a competitive bidding process, awarding subsidies to producers based on the lowest bid prices. A total annual demand of 550,000 tonnes has been allocated for this subsidy round, which will span three years starting in 2027. To qualify, producers must comply with the national “green hydrogen standard” for carbon intensity, established in August 2023. The incentive rates have been predefined at USD 106 per tonne of ammonia for the first year, and USD 85 per tonne for both the second and third years.
• In March 2024, partners of the Ammogen consortium convened at Tyseley Energy Park (TEP) to inaugurate the world’s largest and most efficient ammonia-to-hydrogen conversion project. This landmark initiative significantly enhances the efficiency, reliability, and economic viability of ammonia cracking. Designed to produce 200 kilograms per day of transport-grade hydrogen, the project leverages ammonia as a carrier for global hydrogen transport. It features the development of an innovative ammonia cracker and purification technology to enable the efficient conversion of ammonia into hydrogen. Additionally, the project aims to integrate ammonia cracking into UK policy discussions and catalyze future opportunities to establish trade corridors between the UK and the expanding global hydrogen market.

Key Market Players

• BASF SE
• Casale SA
• CF Industries Holdings, Inc.
• Chambal Fertilisers and Chemicals Ltd
• Csbp Ltd.
• EuroChem Group AG
• Koch Fertilizer, LLC.
• Nutrien Ltd
• Rashtriya Chemicals and Fertilizers Limited
• SABIC

Report Scope:

In this report, the Global Ammonia Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Ammonia Market, By Form:

o   Liquid

o   Gas

o   Powder

• Ammonia Market, By End User:

o   Agriculture

o   Textiles

o   Mining

o   Pharmaceutical

o   Refrigeration

o   Others

• Ammonia Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Ammonia Market.

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Global Ammonia Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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