According to Straits Research, the Ammonia Market to Expand from USD 171.66 Billion in 2025 to USD 308.71 Billion by 2033

The global Ammonia Market, valued at USD 160.14 billion in 2024, is projected to grow at a compound annual growth rate (CAGR) of 7.6% from 2025 to 2033, reaching USD 308.71 billion by the end of the forecast period. This growth is fueled by the increasing demand for nitrogen-based fertilizers in agriculture, the rising adoption of ammonia as a hydrogen carrier, and the shift toward sustainable production methods such as green and blue ammonia.

Ammonia, a critical component in modern agriculture, is widely used in the production of nitrogen-based fertilizers, which are essential for enhancing crop yields and supporting global food security. Beyond agriculture, ammonia finds applications in industries such as pharmaceuticals, textiles, explosives, and vehicle emissions control through AdBlue. However, the traditional production of ammonia is energy-intensive and contributes significantly to greenhouse gas emissions, prompting a global push toward decarbonization and renewable energy-based production methods.

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Market Scope and Research Methodology

The comprehensive report by Straits Research provides an in-depth analysis of the global ammonia market, covering historical data from 2021 to 2023 and forecasts from 2025 to 2033. The study employs a robust research methodology, combining primary and secondary research to ensure accuracy and reliability. Data is gathered from industry experts, market participants, and reliable sources such as the International Fertilizer Association, Ammonia Energy Association, and the U.S. Department of Energy.

The report segments the market by type (liquid and gas), end-use (agriculture, textile, mining, pharmaceuticals, refrigeration, and others), and sales channel (direct and distribution). It also provides regional insights, highlighting the dominance of Asia Pacific and the rapid growth of North America.

Key Growth Drivers

1. Rising Demand for Nitrogen-Based Fertilizers: Ammonia is indispensable in agriculture, where it is used to produce fertilizers like urea, diammonium phosphate (DAP), and other complex fertilizers. With the global population projected to exceed 9 billion by 2050, the demand for food is expected to surge, driving the need for higher agricultural productivity.
2. Ammonia as a Hydrogen Carrier: Ammonia is emerging as a key player in the hydrogen economy. Its ability to store and transport hydrogen efficiently makes it a promising solution for long-range energy transport. The maritime sector, in particular, is expected to drive demand, with projections indicating that ammonia could become the most widely used zero-emission fuel by 2050.
3. Decarbonization Initiatives: Governments worldwide are implementing policies to reduce carbon emissions, incentivizing the production of green and blue ammonia. For instance, the U.S. Inflation Reduction Act and the EU’s Carbon Border Adjustment Mechanism are encouraging manufacturers to adopt low-carbon production methods.

Market Segmentation

The global ammonia market is segmented as follows:

• By Type: The liquid ammonia segment dominates the market due to its versatility and ease of storage and transportation. Liquid ammonia is widely used in industrial refrigeration and as a raw material in various chemical processes.
• By End-Use: Agriculture holds the largest market share, driven by the critical role of ammonia in fertilizer production. Other significant end-use sectors include textiles, mining, pharmaceuticals, and refrigeration.
• By Sales Channel: Direct sales lead the market, offering manufacturers greater control over pricing, branding, and customer support.

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Regional Insights

• Asia Pacific: The region accounts for 60.49% of the global market share, driven by the high demand for fertilizers in countries like China and India. China, the world’s largest ammonia producer, contributes nearly 32% of global demand.
• North America: The fastest-growing region, North America benefits from abundant natural gas reserves, which serve as the primary feedstock for ammonia production. The U.S. is a major producer and importer of ammonia, with significant production capacity concentrated in Louisiana, Oklahoma, and Texas.
• Europe: The region is focusing on decarbonization, with policies like the EU’s Carbon Border Adjustment Mechanism pushing the industry toward sustainable production methods.
• Middle East & Africa (MEA): The MEA region is investing in renewable energy projects to produce green ammonia, with Saudi Arabia leading the way with a USD 8.4 billion project aimed at producing 1.2 million tons of renewable ammonia annually by 2026.

Key Players

1. CF Industries Holdings Inc
2. Togliattiazot
3. QAFCO
4. SABIC
5. BASF SE
6. CSBP Limited
7. Asahi Kasei Corp
8. EuroChem
9. IFFCO
10. Group DF

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Recent Developments

• In January 2025, Copenhagen Infrastructure Partners announced plans to develop a renewable hydrogen and ammonia plant with a capacity of 900,000 tons per year.
• In November 2024, China’s Huading New Energy Co. Ltd signed an MoU with Jordan’s Ministry of Energy to study a green hydrogen project aimed at producing 400,000 tons of green ammonia annually.
• In September 2024, Woodside completed the acquisition of OCI Clean Ammonia Holding B.V., expanding its presence in the lower-carbon ammonia market.

FAQs

1. What is the current size of the global ammonia market?
The global ammonia market was valued at USD 160.14 billion in 2024.

2. What is the projected market size by 2033?
The market is expected to reach USD 308.71 billion by 2033, growing at a CAGR of 7.6%.

3. Which region dominates the ammonia market?
Asia Pacific holds the largest market share, accounting for 60.49% of global demand.

4. What are the key applications of ammonia?
Ammonia is primarily used in agriculture for fertilizer production, as well as in industries such as textiles, pharmaceuticals, and refrigeration.

5. What is green ammonia?
Green ammonia is produced using renewable energy sources, such as wind or solar power, to generate hydrogen through water electrolysis, making it a sustainable alternative to traditional ammonia production methods.

About Straits Research

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