What Is The Current and Historic Market Size Analysis Of The Blue Ammonia Market?
The blue ammonia market has seen considerable growth due to a variety of factors.
• The market size for blue ammonia has seen significant expansion in past years. It is projected to increase from $13.95 billion in 2024 to $14.93 billion in 2025, growing at a compound annual growth rate (CAGR) of 7.0%.
The historical growth is due to the growing usage of low-emission fuel, escalated funding and incentives, prospects for a sustainable energy future, the shift towards a hydrogen economy, and its capacity to reduce greenhouse gas emissions.
What Are The Predictions for The Blue Ammonia Market in the Coming Years?
The blue ammonia market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the blue ammonia market is anticipated to experience robust growth. The market size is predicted to rise to $18.55 billion by 2029, with a compound annual growth rate (CAGR) of 5.6%.
This growth within the projected period can be credited to the escalating global focus on hydrogen as an eco-friendly fuel alternative, rising demand for blue ammonia for power production, increasing worries regarding climate change, and the call to cut down greenhouse gas emissions. The growth is also buoyed by initiatives to reinforce the hydrogen-based economy. Trends forecasted for this period incorporate the advancement of steam methane reforming (SMR) technology, the greater use of cutting-edge technologies, the establishment of technological novelties, broadened accessibility of carbon capture technology, and quick technological progressions.
Which Drivers Are Accelerating Growth In The Blue Ammonia Market?
The blue ammonia market's expansion is anticipated to be driven by rising interest in low-carbon fuels. These energy sources generate significantly less carbon dioxide emissions than conventional fossil fuels, making a smaller contribution to global warming and climate change. The growing demand for these fuels revolves around the urgency to lower greenhouse gas emissions and address the impacts of climate change. Blue ammonia, created by turning natural gas into hydrogen while capturing the released carbon dioxide, serves as a low-carbon fuel. For example, the France-based international organization, the International Energy Agency, stated in January 2024 that biofuel demand is predicted to surge by 38 billion liters from 2023 to 2028. This signifies almost a 30% rise compared to the past five years. Overall biofuel demand is estimated to increase by 23%, amounting to 200 billion liters by 2028. As a result, the escalating demand for low-carbon fuels is propelling the growth of the blue ammonia market.
What Are The Core Segments Of The Global Blue Ammonia Market?
The blue ammonia market covered in this report is segmented –
1) By Technology: Steam Methane Reforming, Autothermal Reforming, Gas Partial Oxidation, Other Technologies
2) By Distribution Channel: Distribution Or Wholesalers, E-Commerce, Direct Sale
3) By Application: Power Generation, Industrial Feedstock, Agriculture, Pharmaceuticals, Transportation, Chemical And Petrochemicals, Other Applications
Subsegments:
1) By Steam Methane Reforming: Conventional SMR, SMR With Carbon Capture And Storage (CCS)
2) By Autothermal Reforming: ATR With Carbon Capture And Storage (CCS), ATR Without CCS
3) By Gas Partial Oxidation: GPO With Carbon Capture And Storage (CCS), GPO Without CCS
4) By Other Technologies: Biomass Gasification, Electrolysis
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How Are Emerging Trends Reshaping The Dynamics Of The Blue Ammonia Market?
Leading businesses in the blue ammonia market are spearheading novel solutions, including blue and green ammonia projects, in order to maintain their market dominance. These projects are set to revolutionize ammonia production through increased capacity, enhanced efficiency, and bolstered environmental sustainability. For example, in October 2022, KBR Inc., an American engineering firm, rolled out an impressive 10,000 MTPD blue and green ammonia solution. This advanced solution leverages cutting-edge digital technologies and delivers reliable, flexible, and scalable options for the mounting demands for clean ammonia and hydrogen in the energy transition phase. This innovative solution underscores the growing interest in utilizing ammonia as an energy source and the incorporation of state-of-the-art digital technologies to augment energy efficiency and sustainability.
Who Are the Key Players In The Blue Ammonia Market?
Major companies operating in the blue ammonia market are:
• Saudi Arabian Oil Group
• ExxonMobil Corporation
• Shell PLC
• Uniper SE
• Koch Industries Inc.
• ITOCHU Corporation
• BASF SE
• Siemens Energy AG
• Saudi Basic Industries Corporation
• Thyssenkrupp AG
• Nutrien Ltd.
• Linde PLC
• Mitsubishi Heavy Industries Ltd.
• Air Liquide S.A.
• Yara International ASA
• Ma’aden
• CF Industries Holdings Inc.
• TechnipFMC PLC
• EuroChem Group AG
• Sumitomo Mitsui Construction Co. Ltd.
• Haldor Topsoe A/S
• Engie S.A.
• Qatar Fertiliser Company (P.S.C.)
• ADNOC Group
• Casale S.A.
What Are The Regional Insights Into The Blue Ammonia Market?
North America was the largest region in the blue ammonia market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the blue ammonia market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
