Ammonia Market Research Report By Application (Fertilizers, Industrial Chemicals, Refrigeration), By Manufacturing Process (Haber-Bosch Process, Electrochemical Process, Others), By End-use Industry (Agriculture, Chemical, Pharmaceutical, Food Beverage), By Form (Anhydrous Ammonia, Aqueous Ammonia, Ammonium Nitrate), and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa)-Forecast to 2035

Global Ammonia Market Overview

As per MRFR analysis, the Ammonia Market Size was estimated at 70.88 (USD Billion) in 2023. The Ammonia Market is expected to grow from 72.38 (USD Billion) in 2024 to 91 (USD Billion) by 2035. The Ammonia Market CAGR (growth rate) is expected to be around 2.1% during the forecast period (2025 - 2035).

Key Ammonia Market Trends Highlighted

Numerous factors are driving notable developments in the Ammonia Market at the moment. Since ammonia is a fundamental component of many agricultural goods, the growing need for fertilizers is one important market driver.

Ammonia use is rising as a result of farmers using nitrogen-based fertilizers to increase food production due to the world's expanding population. Ammonia is also becoming more well-known for its possible application in renewable energy, especially as a hydrogen carrier in fuel cells, which supports international efforts to lower carbon emissions and switch to greener energy sources.

There are more and more opportunities in the Ammonia Market, particularly in the field of green ammonia technology. The creation of sustainable manufacturing techniques, such the synthesis of ammonia using renewable energy, offers a special chance to appeal to environmentally concerned customers and sustainability-minded businesses.

Global governments are starting to provide funding for these technologies' research and development, which suggests that the ammonia industry is moving toward more ecologically friendly methods. Automation and digitization of ammonia manufacturing processes have been increasingly popular in recent years with the goal of increasing productivity and safety while reducing environmental effect.

Furthermore, global ammonia supply chains are being impacted by geopolitical issues including trade agreements and changes in energy regulations.

Localized manufacturing facilities and varied supply sources are becoming more and more important as nations work toward chemical resilience and energy independence. As the sector adjusts to the shifting environment, this tendency not only promotes market stability but also creates opportunities for innovation and expansion.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Ammonia Market Drivers

Increased Demand for Fertilizers in Global Agriculture

The Ammonia Market is significantly driven by the rising demand for fertilizers in the agricultural sector. According to the Food and Agriculture Organization, global cereal production is projected to increase by 30% by 2050, necessitating higher fertilizer application to optimize crop yields.

This correlates directly to the demand for ammonia, which is pivotal in producing nitrogen-based fertilizers. Notably, organizations like the International Fertilizer Association highlight that the total fertilizer consumption has grown approximately 3.2% annually over the last decade.

With the global population expected to reach around 9.7 billion by 2050, this surge in food production requirements will escalate the demand for ammonia as a key ingredient in fertilizers, indicating a robust growth trajectory for the Ammonia Market.

Growth in Industrial Applications

The Ammonia Market is also experiencing growth due to its increasing use in industrial applications. Ammonia serves as a crucial precursor in various chemical processes, including the production of plastics, explosives, and cleaning agents.

The global chemical production is projected to grow at about 3.3% annually, according to the United Nations Industrial Development Organization. Major chemical manufacturing companies, such as BASF and Yara International, are expanding their production capacities to meet this growing industrial demand.

The versatility and broad applicability of ammonia in various sectors are propelling this market forward, ensuring a steady expansion in its usage globally.

Focus on Sustainable Energy Sources

Another significant driver for the Ammonia Market is the global shift towards sustainable energy sources. Ammonia is being explored as a potential hydrogen carrier, enabling energy storage and transportation in the burgeoning hydrogen economy.

According to the International Energy Agency, the global hydrogen demand is expected to grow by as much as 25% between 2030 and 2040. Organizations like the Hydrogen Council are advocating for ammonia's role in clean energy systems, considering it can be produced using renewable energy sources.

This transition to green ammonia production processes is projected to contribute to approximately 7% of the total ammonia production by 2030, further augmenting the market's growth prospects.

Ammonia Market Segment Insights

Ammonia Market Application Insights

The Ammonia Market currently demonstrated significant valuation in various applications. Within this sector, fertilizers emerged as the largest segment, accounting for a considerable share with a valuation of 46.1 USD Billion.

This indicated that fertilizers dominate the market significantly, as they were essential for agricultural productivity and food security, reflecting the essential role ammonia plays in the production of nitrogen-based fertilizers, which are crucial to enhance crop yields and sustain a growing global population.

The industrial chemicals segment, valued at 19.0 USD Billion, was critical as well, serving as a key ingredient in the manufacture of various chemicals, plastics, and explosives, thereby underpinning many industrial processes and applications. Its importance lies in facilitating various manufacturing sectors, which rely heavily on ammonia-derived products.

The refrigeration segment, smaller in scale at 7.28 USD Billion, still held significance; ammonia was utilized as a refrigerant due to its efficiency and low environmental impact compared to many alternatives, making it a preferred choice in food preservation and industrial cooling systems.

The anticipated growth in these sectors showcases the evolving dynamics within the Ammonia Market. The market growth is driven by increasing agricultural demand, industrial production, and an expanding focus on energy-efficient refrigeration solutions.

However, challenges such as environmental regulations and safety concerns regarding ammonia use could impact its growth trajectory. Overall, the Ammonia Market segmentation vividly illustrates the diverse applications of ammonia in contemporary industries and the pivotal role these segments play in economic development and sustainability on a global scale.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Ammonia Market Manufacturing Process Insights

The Manufacturing Process segment of the Ammonia Market holds considerable significance as it outlines the methods through which ammonia is produced and refined. The Haber-Bosch Process continues to dominate this segment, as it is the most conventional and widely adopted method for ammonia synthesis due to its efficiency and scalability.

Meanwhile, the Electrochemical Process is gaining attention for its potential to offer a more sustainable and environmentally friendly alternative, aligning with global trends towards greener technologies. Additionally, other methodologies also contribute to the diversity of production techniques available in the market.

The Ammonia Market segmentation reflects these dynamics, with each process playing a pivotal role in meeting the growing ammonia demand. Challenges such as energy consumption and emissions associated with the Haber-Bosch method present opportunities for innovation in the sector.

Overall, advancements in manufacturing processes are vital to enhancing efficiency and sustainability within the Ammonia Market, making it a key area for ongoing development and investment.

Ammonia Market End-use Industry Insights

The Ammonia Market is witnessing robust growth, particularly when examining the End-use Industry segment. This segment is critical, as ammonia is a fundamental component in various industries. Agriculture stands out, where ammonia is predominantly used as a fertilizer, enhancing crop yield and food production globally.

The Chemical industry also plays a significant role, utilizing ammonia as a precursor for numerous chemical products, including plastics and textiles. In the Pharmaceutical sector, ammonia serves essential functions within drug manufacturing processes, highlighting its versatility.

Additionally, in the Food and Beverage industry, ammonia is crucial for refrigeration and food processing applications, ensuring safety and quality.

Overall, the Ammonia Market segmentation reflects a diverse array of applications, highlighting the importance of ammonia across these vital sectors, underpinning its contribution to market growth as well as the economic stability of food supply chains and various industrial practices.

Ammonia Market Form Insights

The segment encompasses various forms of ammonia, including Anhydrous Ammonia, Aqueous Ammonia, and Ammonium Nitrate, each playing a critical role in the market. Anhydrous Ammonia is notably significant in agriculture as a fertilizer, providing essential nitrogen for crop production, thus driving the demand in the farming sector.

Meanwhile, Aqueous Ammonia finds extensive applications in industrial cleaning and the production of various chemicals, making it indispensable in diverse industries. Ammonium Nitrate, on the other hand, is primarily utilized in fertilizers as well and holds substantial importance in the explosive industry for mining and construction.

With the rise in global agricultural outputs and industrial production, the Ammonia Market revenue is expected to grow, bolstered by these specific forms. Market trends reflect an increasing emphasis on sustainable agricultural practices and the efficient use of fertilizers, further influencing the dynamics of this segment.

Additionally, challenges such as environmental regulations and competition from alternative fertilizers might impact growth paths, yet the substantial application of nitrogen-based products is likely to continue driving opportunities in this segment.

Ammonia Market Regional Insights

The Ammonia Market witnessed a significant increase in regional demand, with key areas demonstrating robust growth. In 2024, North America contributed a valuation of 15.25 USD Billion, while Europe held a larger share at 20.5 USD Billion, making it a major market player.

The Asia Pacific region stood out with the highest valuation at 25.63 USD Billion, reflecting its dominance in the market due to its large-scale agricultural and industrial applications. South America and the Middle East and Africa followed with respective valuations of 5.0 USD Billion and 6.0 USD Billion in 2024, marking their roles as emerging markets in the ammonia sector.

The overall Ammonia Market data suggested that these regions are driven by increasing fertilizer demand, vital for agricultural productivity, while challenges such as regulatory issues and environmental concerns remain prevalent.

Each regional segment presented unique opportunities, with Asia Pacific leading the charge due to rapid urbanization and industrial growth, showcasing a lucrative market growth potential. The majority holding in Europe, combined with the growth trajectory in North America, reflects a well-balanced distribution of opportunities across these regions.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Ammonia Market Key Players and Competitive Insights

The Ammonia Market displays a dynamic competitive landscape characterized by a blend of established players and emerging enterprises, each vying for market share and innovation in production processes. The market is heavily influenced by the rising demand for ammonia in various sectors, such as fertilizers, industrial chemicals, and cleaning agents.

The need for sustainable production methods further intensifies competition, driving firms to invest in cutting-edge technologies that minimize environmental impact while enhancing efficiency. Diverse geographical influences also shape competitive strategies, as companies navigate regulatory landscapes, resource availability, and regional demand variances.

This complexity creates opportunities for strategic partnerships, mergers, and collaborations among market players to bolster their position within the industry.

Petrobras stands out in the Ammonia Market due to its extensive vertical integration and strong operational framework. The company has established a significant market presence through efficient production capacities and access to ample natural resources, which allows it to maintain a competitive edge.

Petrobras leverages advanced research and development to optimize its ammonia production processes, resulting in lower operational costs and improved product quality. Its geographical footprint, particularly in Latin America, enables it to cater to regional demands effectively while fostering strategic alliances with local distributors to enhance market penetration.

The strengths of Petrobras lie in its robust supply chain management, a comprehensive understanding of market dynamics, and a committed focus on sustainable practices, aligning its operations with emerging global environmental standards.

OCI Nitrogen is another key player in the Ammonia Market, recognized for its high-quality ammonia production that supports the agricultural and industrial sectors. The company has positioned itself as a reliable supplier with an expansive network that reaches key markets across the globe, ensuring a steady supply of its core product offerings.

OCI Nitrogen focuses on innovation and efficiency, utilizing state-of-the-art technologies and sustainable practices in its ammonia production processes. The company's strong market presence is further bolstered by strategic mergers and acquisitions that enhance its operational capabilities and geographic reach.

Through its commitment to quality and sustainability, OCI Nitrogen not only meets current market demands but also anticipates future trends in ammonia usage, allowing it to stay ahead in the competitive landscape within the Ammonia Market.

Key Companies in the Ammonia Market Include

• Petrobras


• OCI Nitrogen


• CF Industries


• Yara International


• JM Huber


• K+S Aktiengesellschaft


• Nutrien


• Koch Industries


• Indian Farmers Fertiliser Cooperative


• Agrium


• BASF


• Mitsubishi Gas Chemical


• Orica


• EuroChem


• SABIC

Ammonia Market Developments

CF Industries stated in April 2025 that it will create a joint venture with JERA and Mitsui to construct a low-carbon ammonia manufacturing facility in Louisiana, USA, using carbon capture technology and autothermal reforming. The project is anticipated to become the largest low-carbon ammonia factory in the world when it begins operations in 2029.

With the goal of producing up to one million tons of green ammonia yearly by 2029, Juno Joule Green Energy and Germany's Select Energy inked a deal in May 2025 to build a green hydrogen and ammonia complex close to Mulapeta port in India.

When operational, the NEOM Green Hydrogen project in Saudi Arabia is expected to generate 1.2 million tonnes of renewable ammonia annually, having reached 80% completion in June 2025. Furthermore, ReNew Energy and JERA decided in April 2024 to work together to assess a 100,000 tpa green ammonia plant in Odisha, India, that would be fueled by 500 MW of renewable energy and be operational by 2030.

Ammonia Market Segmentation Insights

• Ammonia Market Application Outlook
  
  
  
  • Fertilizers
  
  
  • Industrial Chemicals
  
  
  • Refrigeration
  
  
  
  

• Ammonia Market Manufacturing Process Outlook
  
  
  
  • Haber-Bosch Process
  
  
  • Electrochemical Process
  
  
  • Others
  
  
  
  

• Ammonia Market End-use Industry Outlook
  
  
  
  • Agriculture
  
  
  • Chemical
  
  
  • Pharmaceutical
  
  
  • Food Beverage
  
  
  
  

• Ammonia Market Form Outlook
  
  
  
  • Anhydrous Ammonia
  
  
  • Aqueous Ammonia
  
  
  • Ammonium Nitrate
  
  
  
  

• Ammonia Market Regional Outlook
  
  
  
  • North America
  
  
  • Europe
  
  
  • South America
  
  
  • Asia Pacific
  
  
  • Middle East and Africa
  
  
  
  

Report Attribute/Metric	Details
Market Size 2023	70.88(USD Billion)
Market Size 2024	72.38(USD Billion)
Market Size 2035	91.0(USD Billion)
Compound Annual Growth Rate (CAGR)	2.1% (2025 - 2035)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Base Year	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Billion
Key Companies Profiled	Petrobras, OCI Nitrogen, CF Industries, Yara International, JM Huber, K+S Aktiengesellschaft, Nutrien, Koch Industries, Indian Farmers Fertiliser Cooperative, Agrium, BASF, Mitsubishi Gas Chemical, Orica, EuroChem, SABIC
Segments Covered	Application, Manufacturing Process, End-use Industry, Form, Regional
Key Market Opportunities	Sustainable ammonia production methods, Fertilizer demand growth, Hydrogen fuel development, Anhydrous ammonia applications, Emerging markets expansion.
Key Market Dynamics	increasing fertilizer demand, environmental regulations impact, volatile raw material prices, technological advancements, global supply chain challenges
Countries Covered	North America, Europe, APAC, South America, MEA