Ammonia has long been one of the most essential chemicals for modern industry and agriculture. From being a key component in fertilizers that feed the global population to emerging as a potential clean fuel source, ammonia continues to hold a crucial place in the global economy. As nations transition toward sustainable energy and food systems, the demand for ammonia is projected to surge across multiple sectors.
The global ammonia market was valued at US$ 79.9 Bn in 2024. It is estimated to grow at a CAGR of 4.7% from 2025 to 2035, reaching approximately US$ 131.8 Bn by the end of 2035. This steady growth trajectory highlights ammonia’s evolving importance beyond traditional uses, extending into energy storage, hydrogen transport, and green energy generation.
Ammonia: The Backbone of Global Agriculture
Ammonia’s most dominant application remains in the agricultural sector, where it serves as a raw material for nitrogen-based fertilizers such as urea, ammonium nitrate, and ammonium sulfate. These fertilizers play an indispensable role in global food production, enabling farmers to achieve higher yields and meet the demands of a growing population.
According to the Food and Agriculture Organization (FAO), global food demand is expected to increase by nearly 50% by 2050. As arable land becomes scarcer, the use of efficient fertilizers will become even more crucial. Consequently, the ammonia industry will continue to benefit from this agricultural dependence.
Moreover, several countries are investing in modernizing their fertilizer manufacturing infrastructure to minimize environmental impact and optimize energy use, which is further stimulating ammonia market growth.
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Technological Innovations and Green Ammonia
One of the most significant transformations in the ammonia market is the shift toward green ammonia production. Traditional ammonia synthesis (Haber-Bosch process) relies heavily on natural gas, making it energy-intensive and carbon-emitting. In contrast, green ammonia is produced using renewable electricity, water electrolysis, and nitrogen from the air—eliminating carbon emissions entirely.
Green ammonia is now being viewed not only as a sustainable fertilizer feedstock but also as a carbon-free energy carrier. It can store and transport hydrogen efficiently and can be used directly as a fuel in gas turbines, internal combustion engines, or fuel cells.
Countries such as Japan, Australia, and Germany are investing heavily in pilot projects and infrastructure for green ammonia production. The combination of renewable energy with ammonia synthesis could revolutionize both the energy and chemical industries, reducing dependence on fossil fuels.
Expanding Role in the Energy Sector
As the world intensifies its efforts to achieve net-zero emissions, ammonia is emerging as a clean energy vector. It has the potential to play a vital role in hydrogen economies because it can carry hydrogen more efficiently and safely than gaseous or liquid hydrogen.
Ammonia can be decomposed back into nitrogen and hydrogen for fuel use, or directly used in combustion processes with minimal CO₂ emissions. Several global power companies are already testing ammonia co-firing technologies in coal and gas plants to reduce carbon footprints.
Additionally, ammonia is being explored as a marine fuel. The International Maritime Organization (IMO) has set strict emission reduction targets, encouraging shipping companies to explore ammonia-based fuel systems. Major engine manufacturers, including MAN Energy Solutions and Wärtsilä, are developing ammonia-compatible engines, signaling the beginning of a new era for sustainable maritime transport.
Regional Insights
Asia Pacific dominates the global ammonia market, accounting for the largest share of both production and consumption. Countries such as China and India lead in fertilizer demand due to their vast agricultural sectors. Rapid industrialization and urbanization also contribute to increased ammonia usage in chemicals, refrigeration, and wastewater treatment.
Europe is witnessing significant investment in green ammonia facilities, particularly in Norway, Germany, and the Netherlands, as part of broader decarbonization initiatives. North America, especially the United States, remains a major player owing to abundant natural gas resources and growing investments in sustainable ammonia projects.
The Middle East and Africa are also emerging as important ammonia producers, leveraging low-cost feedstock and strategic export locations to cater to global demand.
Key Players and Competitive Landscape
The ammonia market is characterized by the presence of major global players investing in sustainability and technology innovation. Some leading companies include:
- Yara International ASA
- CF Industries Holdings, Inc.
- Nutrien Ltd.
- OCI N.V.
- BASF SE
- SABIC
- Mitsui & Co., Ltd.
These companies are focusing on green ammonia projects, strategic partnerships, and capacity expansions to strengthen their market position and align with global environmental goals.
Future Outlook: Toward a Sustainable Ammonia Economy
The coming decade will mark a transformative phase for the ammonia market. With increasing government support for renewable energy, advancements in hydrogen technology, and the growing need for sustainable fertilizers, ammonia is poised to become a cornerstone of the global low-carbon economy.
The transition from conventional ammonia to green ammonia will not only help reduce global greenhouse gas emissions but also create new opportunities for investment, innovation, and employment in the energy and agriculture sectors.
By 2035, as the industry reaches US$ 131.8 Bn, ammonia will likely stand as one of the most versatile and sustainable commodities—linking the worlds of agriculture, energy, and environmental stewardship.
