Ammonia Market to See CAGR of 9.9% by 2029, Led by Green Production and Clean Energy Transition

21 Jan, 2025

What Was The Key Growth Driver in The Historic Period of The Ammonia Market?

The Ammonia Market has experienced robust growth in recent years.
• The market size has risen from $79.13 billion in 2024 to $85.57 billion in 2025, reflecting a compound annual growth rate (CAGR) of 8.1%.
This growth can primarily be ascribed to expanding agricultural demand complemented by a burgeoning population and an upturn in the energy and power generation sector, alongside chemical manufacturing.

What Are The Predictions For The Ammonia Market Size in the Forecast Period?

The ammonia market is anticipated to witness significant growth in the coming years.
• The market size is expected to skyrocket to $124.86 billion by 2029, expounding a CAGR of 9.9%.
The forecasted market expansion can be attributed to factors such as the evolving hydrogen economy, the advent of renewable energy, the advancement of carbon capture and storage (ccs), and the clean energy transition. Trends that will shape the market include green ammonia production, ammonia as a hydrogen carrier, ammonia for energy storage, hydrogen fuel cell vehicles, sustainable fertilizer production, and more.

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What Are The Primary Drivers Propelling The Growth of The Ammonia Market?

Rapid growth in the fertilizer industry is leading to increased utilization of ammonia, therefore encouraging market growth. Ammonia, used in the production of ammonium nitrate fertilizer, releases nitrogen, a vital nutrient for plant growth. The Agricultural Industries Confederation reported that nitrogen usage in England & Wales was up from 692 thousand tonnes in 2023 to 687 thousand tonnes in 2022, exemplifying the growth of the fertilizer industry and consequently, the ammonia market.

What Are The Primary Segments of The Ammonia Market?

The ammonia market report covers the following segments:
1) By Product Type: Anhydrous Ammonia, Aqueous Ammonia
2) By Form Type: Liquid, Powder
3) By Application Type: Fertilizers, Chemicals, Refrigeration, Pharmaceutical, Fibers and Plastics, Pulp and Papers, Other Application Types

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What Are The Trends Shaping The Ammonia Market?

Companies in the ammonia market are focusing on developing sophisticated biomass-balanced products to meet rising demand for eco-friendly agricultural solutions. For instance, in May 2024, BASF SE launched a series of biomass-balanced products such as Ammonia Anhydrous BMBcert and Urea Solutions (40% and 45%). These products mitigate emissions and bolster sustainability efforts.

Who Are The Key Players in The Ammonia Market?

The key players in the ammonia market include:
• Yara International ASA
• BASF SE
• CF Industries Holdings Inc.
• Nutrien Ltd.
• OCI Nitrogen
These companies are spearheading innovations and contributing significantly to the competitive landscape in the market.

What Is The Regional Overview of The Ammonia Market?

Asia-pacific was the largest player in the ammonia market in 2024 and is also projected to be the fastest-growing region in the forecast period. The covered regions in the report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.