Ammonia Market Size, Share, Growth, and Industry Analysis, By Type (Anhydrous Ammonia, Aqua Ammonia, Liquid Ammonia, Gas Ammonia), By Application (Agriculture, Chemicals, Refrigeration, Textiles), Regional Insights and Forecast to 2033

Ammonia Market Overview

Ammonia Market size was valued at USD 1.54 billion in 2025 and is expected to reach USD 1.9 billion by 2033, growing at a CAGR of 2.67% from 2025 to 2033.

The ammonia market remains a backbone of the global agricultural and chemical sectors, with over 70% of global ammonia production used for fertilizer manufacturing. In 2024, the global production of ammonia surpassed 180 million metric tons, driven by rising food demand and the push for higher crop yields. Countries like China, India, and the US are among the largest producers and consumers, sustaining robust supply and trade flows worldwide.

Ammonia is also seeing renewed interest as an emerging clean fuel carrier and hydrogen storage medium. Several countries, including Japan and Australia, are actively investing in blue and green ammonia production projects to reduce carbon emissions in shipping and energy storage. In 2024, Japan’s first trial shipment of green ammonia for power generation marked a milestone toward large-scale adoption. Meanwhile, Europe has strengthened its ammonia production footprint with upgraded plants and partnerships to secure low-carbon ammonia supplies for future energy needs.

Despite its critical role in agriculture, the market faces challenges from volatile natural gas prices, which directly impact ammonia production costs. Producers are increasingly diversifying energy sources, integrating renewable electricity and carbon capture technologies to curb emissions. In North America alone, over five major projects are under development to produce green ammonia using electrolysis-based hydrogen. These developments, combined with technological innovations in storage and transport, position ammonia as a crucial link in the transition toward a low-carbon economy through 2033.

Key Findings

DRIVER: Surging food demand keeps fertilizer production strong, with over 70% of global ammonia output dedicated to nitrogen-based fertilizers.

COUNTRY/REGION: Japan recorded its first green ammonia trial shipment in 2024, signaling early adoption in energy applications.

SEGMENT: Anhydrous ammonia remained the dominant type in 2024, accounting for nearly 85% of total ammonia used in global fertilizer production.

Ammonia Market Trends

The ammonia market is undergoing a significant transformation driven by both conventional demand for fertilizers and its emerging role in the global clean energy transition. In 2024, global fertilizer demand continued to expand as developing countries prioritized food security, with India alone consuming over 18 million metric tons of ammonia-derived urea fertilizers last year. While agriculture holds its dominance, industrial ammonia applications are gaining momentum. For example, industries are using ammonia in NOx emission control and as a feedstock for chemicals like nitric acid. Meanwhile, low-carbon ammonia is attracting attention as a shipping fuel. In 2024, multiple pilot projects in Europe and Asia tested ammonia-powered marine engines, aiming to decarbonize the maritime sector, which accounts for 3% of global CO₂ emissions. Green ammonia plants using renewable hydrogen and blue ammonia plants with carbon capture started scaling up globally, supported by policy incentives in Europe and North America. Producers are modernizing plants to boost energy efficiency, as natural gas costs, which make up nearly 70% of conventional ammonia production costs, fluctuate with global energy markets. Another trend is the regional shift in ammonia supply chains. Middle Eastern countries are expanding exports to Asia to meet rising demand for low-carbon fuel and fertilizers. Innovation in storage and transport, such as using ammonia bunkering hubs for shipping, is also reshaping trade routes. These developments show how ammonia is no longer just a fertilizer input but an evolving part of future energy systems worldwide.

Ammonia Market Dynamics

The ammonia market is shaped by interlinked dynamics of global food security, decarbonization, raw material costs, and regulatory shifts. A large portion of ammonia demand still comes from its essential role in producing urea, ammonium nitrate, and other fertilizers, which remain vital for feeding a global population expected to reach 9 billion by 2030. In 2024, agricultural ammonia applications accounted for more than 70% of total production volumes. Volatile natural gas prices continue to pose a challenge for ammonia producers, as feedstock costs directly impact profit margins. This is driving investments in blue and green ammonia projects, aiming to decouple ammonia output from fossil fuels. Countries like Australia and Saudi Arabia announced new large-scale plants in 2024 to supply carbon-neutral ammonia for export. Environmental regulations are tightening across Europe and North America, compelling producers to adopt cleaner technologies and carbon capture systems. Meanwhile, shipping and heavy industries are exploring ammonia as a zero-carbon fuel. In 2024, Europe’s largest ammonia-powered cargo ship project moved into construction, showing real commitment to alternative fuels. However, challenges remain, such as the need for specialized storage and handling infrastructure due to ammonia’s toxicity and corrosiveness. Opportunities lie in technological innovations like advanced electrolyzers, more efficient catalysts, and digital monitoring for safe handling. By bridging its historic role in agriculture with its new role in the clean energy supply chain, ammonia continues to be a strategic commodity in the global market’s shift toward sustainability.

DRIVER

Growing global food demand fuels ammonia production.

More than 70% of ammonia produced globally in 2024 went directly into nitrogen fertilizers like urea and ammonium nitrate, crucial for feeding the expanding global population and ensuring food security.

RESTRAINT

Volatile natural gas prices pose a significant restraint.

As natural gas accounts for nearly 70% of conventional ammonia production costs, price spikes in 2024 pushed producers to absorb higher operational expenses, affecting profitability and supply stability.

OPPORTUNITY

Green and blue ammonia projects create significant growth opportunities.

In 2024, over five major green ammonia projects launched in North America, tapping into renewable hydrogen and carbon capture to produce low-emission ammonia for energy storage and clean fuel exports.

CHALLENGE

Complex storage and transport infrastructure remains a challenge.

Ammonia’s toxicity and corrosiveness require specialized tanks, pipelines, and handling systems. In 2024, this limited the speed of scaling ammonia as a marine fuel despite successful engine trials.

Ammonia Market Segmentation

The ammonia market segmentation highlights the balance between traditional fertilizer demand and the expanding role in energy and chemicals. By type, anhydrous ammonia remains the dominant segment due to its high nitrogen content and cost-effectiveness in large-scale agriculture. In 2024, anhydrous ammonia accounted for about 85% of global ammonia consumption, widely used to produce urea and ammonium nitrate. Aqua ammonia, or ammonium hydroxide, makes up a smaller share but is significant in niche applications like water treatment, textiles, and as a household cleaner. Its ease of handling compared to anhydrous ammonia makes it a practical choice for industrial and commercial cleaning in urban areas. By application, agriculture remains the largest consumer, using ammonia to sustain food crops and boost soil nitrogen levels. In 2024, global ammonia fertilizer production hit over 140 million metric tons, with Asia-Pacific leading consumption. In contrast, the chemicals segment is steadily growing, with ammonia used to produce nitric acid, explosives, and refrigerants. The push for low-carbon fuels is giving rise to ammonia’s new role as an energy carrier. Shipping companies, especially in Japan and Europe, are testing ammonia-fueled engines and bunkering solutions to comply with IMO emissions targets. The chemical sector is also innovating around using ammonia as a hydrogen carrier due to its high energy density and established global trade infrastructure. Across all segments, producers are balancing efficiency, sustainability, and regulatory demands to secure long-term market relevance in both legacy and emerging applications.

By Type

• Anhydrous Ammonia: In 2024, anhydrous ammonia made up around 85% of all global ammonia consumption, mainly for fertilizer production. Its direct soil application and use in large-scale urea plants make it the backbone of modern agriculture.
• Aqua Ammonia: Aqua ammonia is mainly used in industrial water treatment, household cleaners, and textiles. In 2024, over 2 million metric tons were consumed globally, favored for its safer handling and transport compared to pure anhydrous forms.

By Application

• Agriculture: The agriculture sector uses over 70% of global ammonia output. In 2024, India and China together accounted for more than 40% of global ammonia-based fertilizer consumption, driven by crop production targets and soil nutrition programs.
• Chemicals: Chemical applications consumed nearly 20% of ammonia output in 2024, with nitric acid and explosives manufacturing leading demand. The chemical sector’s interest in ammonia as a hydrogen carrier for clean energy continues to expand.

Regional Outlook of the Ammonia Market

The ammonia market’s regional outlook shows strong demand in Asia-Pacific, steady innovation in Europe, and large-scale investments in North America and the Middle East. North America remains a major producer, with the US producing over 13 million metric tons in 2024, mainly for domestic fertilizer use and emerging green ammonia exports. Canada is ramping up green ammonia production to meet export contracts with Japan and South Korea. Europe focuses on reducing its carbon footprint, with over 10 low-carbon ammonia plants announced in 2024 as part of the EU’s Green Deal. Germany and the Netherlands are developing bunkering hubs for ammonia-fueled ships, aiming to lead the maritime energy transition. Asia-Pacific dominates consumption, with China alone producing over 45 million metric tons in 2024, supplying both fertilizers and chemicals. India remains the second-largest consumer and continues to subsidize domestic production to stabilize food prices. Japan’s investments in green ammonia imports for power generation and shipping fuel trials are reshaping trade flows across Asia. The Middle East & Africa are key growth regions due to abundant natural gas and solar resources supporting blue and green ammonia exports. Saudi Arabia and the UAE announced joint ventures in 2024 targeting large shipments of clean ammonia to Europe and Asia. African countries like Nigeria are upgrading older plants to boost fertilizer supply for domestic agriculture and reduce imports. Together, these trends highlight how ammonia will remain vital for global food production while playing an increasing role in decarbonization pathways through 2033.

• North America

The US produced over 13 million metric tons of ammonia in 2024, with green ammonia projects expanding to meet energy export goals to Japan and South Korea.

• Europe

Europe announced over 10 new low-carbon ammonia plants in 2024. Germany and the Netherlands are investing in bunkering hubs for ammonia-powered ships as part of the EU’s climate strategy.

• Asia-Pacific

Asia-Pacific consumed the largest share of ammonia in 2024, with China producing over 45 million metric tons. Japan’s first green ammonia imports for power generation were recorded in 2024.

• Middle East & Africa

Saudi Arabia and the UAE signed major export deals in 2024 for blue and green ammonia. Nigeria upgraded existing plants to boost domestic fertilizer supply and cut dependency on imports.

List of Top Ammonia Companies

• Yara International ASA (Norway)
• CF Industries Holdings, Inc. (USA)
• Nutrien Ltd. (Canada)
• OCI N.V. (South Korea)
• Uralchem (Russia)
• Mosaic Company (USA)
• Eurochem Group AG (Switzerland)
• Indorama Corporation (Thailand)
• Helm AG (Germany)
• Linde plc (Ireland)

Yara International ASA (Norway): Yara is the world’s largest ammonia producer and a leader in sustainable fertilizer production. In 2024, Yara expanded its green ammonia initiatives in Norway and Australia to supply low-carbon ammonia to global agriculture and energy markets.

CF Industries Holdings, Inc. (USA): CF Industries is a major North American producer of anhydrous ammonia and nitrogen fertilizers. In 2024, the company invested in carbon capture projects at its Louisiana plants to deliver blue ammonia for export and domestic agricultural use.

Investment Analysis and Opportunities

The ammonia market is attracting new investments as it transitions from conventional fertilizer supply to playing a key role in clean energy and industrial decarbonization. In 2024, over five large-scale green ammonia projects were launched in North America alone, with Canada’s coastal provinces emerging as export hubs to Asia. Government incentives are boosting the viability of low-carbon ammonia through subsidies, carbon credits, and research grants. Europe remains at the forefront of policy-driven investment, with the EU’s Fit for 55 plan encouraging industries to switch to low-emission feedstocks. This is pushing major players to retrofit older ammonia plants with carbon capture units and electrolysis-based hydrogen supply chains. Japan and South Korea are forming long-term contracts with Middle Eastern producers for green ammonia imports to meet shipping and power decarbonization goals. Meanwhile, companies like CF Industries and Yara are diversifying portfolios with blue ammonia production using carbon capture and storage. In Africa, Nigeria’s state-backed fertilizer plants are expanding output to reduce dependency on imports and stabilize food prices.

New Product Development

Innovation in ammonia production and applications is shaping the market’s future, with producers and tech firms focusing on green technologies and safer handling solutions. In 2024, Yara began pilot operations of its Norway-based green ammonia plant using renewable hydroelectric power for hydrogen production. CF Industries implemented advanced carbon capture at its US plants, delivering its first batches of blue ammonia for export. Japan initiated partnerships with shipbuilders to develop engines capable of using ammonia as a zero-carbon fuel, with successful test runs conducted in 2024. Startups are working on compact, modular electrolyzers designed to produce ammonia at distributed sites closer to farms, reducing transportation costs. New catalysts are being developed to enable ammonia cracking into hydrogen at destination points, helping expand its role as a clean hydrogen carrier. These innovations indicate that the ammonia market is actively bridging its legacy role in agriculture with new growth in clean fuels and hydrogen transport. By 2033, new product pipelines will likely focus on integrated low-emission production, safe storage solutions, and scalable supply chains for global clean energy trade.

Five Recent Developments

• Yara launched pilot production at its green ammonia plant in Norway in 2024.
• CF Industries shipped its first blue ammonia batch with carbon capture in 2024.
• Japan completed its first test of an ammonia-powered cargo vessel in 2024.
• Germany and the Netherlands began building ammonia bunkering hubs for shipping in 2024.
• Nigeria upgraded two state-owned fertilizer plants to boost ammonia output in 2024.

Report Coverage of Ammonia Market

The Ammonia Market report offers in-depth analysis of key drivers, restraints, new opportunities, and technological shifts transforming this vital sector. It highlights how global ammonia production surpassed 180 million metric tons in 2024, with more than 70% used for fertilizers that remain essential for food security. It details how green and blue ammonia are gaining momentum, with North America alone launching over five new low-emission projects in 2024. The report covers policy updates like the EU’s Fit for 55 plan, which is pushing producers to retrofit existing plants with carbon capture and renewable hydrogen inputs.

The report analyzes how emerging economies like Nigeria and India are boosting domestic production to reduce fertilizer import dependency. It also explores the challenges of handling and transporting ammonia safely, with 2024 seeing new investments in specialized storage and port facilities. By covering global trends, regional policies, major producers like Yara and CF Industries, and new technology developments from 2024 to 2033, the report equips stakeholders with clear insights for navigating the shifting market. With robust data on type, application, and emerging energy pathways, the report demonstrates how ammonia is transitioning from a traditional fertilizer commodity to a key player in global clean energy trade and hydrogen supply chains.

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