Ammonia Market to Reach USD 308.71 Billion by 2033 – Surge in Green Technologies and Agricultural Demand Drives Growth
The global ammonia market size was valued at USD 160.14 billion in 2024 and is projected to grow from USD 171.66 billion in 2025 to USD 308.71 billion by 2033, exhibiting a CAGR of 7.6% during the forecast period (2025-2033).

According to a recent report by Straits Research, the global ammonia market is witnessing a substantial uptrend. Valued at USD 160.14 billion in 2024, it is projected to reach a staggering USD 308.71 billion by 2033, growing at a CAGR of 7.6% during the forecast period. The expansion is driven by the compound’s versatile applications across agriculture, clean energy, and industrial uses, along with a mounting emphasis on sustainable production methods.

Download proprietary data onammonia smellmitigation,NH3 chemical namederivatives, and fertilizer segment forecasts

What is Ammonia and Why is It Important?

Ammonia (NH₃)—scientifically known by its chemical name NH3—is a colorless gas with a distinct ammonia smell, often described as pungent. It is widely recognized for its role in producing nitrogen-rich fertilizers, especially sulphate of ammonia fertilizer, which is critical for increasing agricultural yield.

Ammonia exists in several forms such as ammonia water (a solution of NH₃ in water) and ammonia gas, each with diverse industrial applications ranging from cleaning solutions to refrigeration and chemical synthesis. Due to its widespread use, accidental incidents such as an ammonia spill can pose serious safety and environmental hazards, making regulated handling vital.

Market Scope and Research Methodology

This report combines qualitative insights and quantitative data drawn from both primary interviews and secondary research, including verified sources like the Ammonia Energy AssociationInternational Fertilizer Association, and open-access platforms such as SciHub. It also evaluates government policies, technological trends, and regional developments influencing market behavior.

Key Market Drivers

1. Agricultural Dependence on Ammonia-Based Fertilizers

Gordon Foods and other major agribusinesses increasingly rely on sulphate of ammonia fertilizer due to its high nitrogen content, which enhances soil fertility and crop growth. In countries like India, over 75% of fertilizers produced rely on ammonia-based compounds. This critical usage makes ammonia an irreplaceable part of the food production ecosystem.

2. Rise of Green Ammonia & Energy Applications

As climate concerns grow, a significant shift is underway toward producing green ammonia, which is synthesized using renewable energy instead of fossil fuels. Moreover, ammonia is being researched as a potential hydrogen carrier, thanks to its ease of storage and lower cost—nearly 32% cheaper than hydrogen—making it ideal for net-zero shipping fuel by 2050.

Download Full Report | Speak to Analyst | Explore Custom Segmentation : https://straitsresearch.com/report/ammonia-market/request-sample

Ammonia Market Segmentation

By Type:

  • Liquid ammonia, widely used in refrigeration, dominates the market due to its ease of storage and heat absorption properties.

By End Use:

  • Agriculture remains the largest consumer segment. Ammonia's role in nitrogen-based fertilizers makes it indispensable for ensuring high crop productivity and food security.

By Sales Channel:

  • Direct sales lead the market, as manufacturers provide technical expertise and better pricing control without intermediaries.

Regional Insights

Asia Pacific remains the undisputed leader with over 60% market share, fueled by rising food demand and fertilizer production, especially in China and India. Notably, China accounts for almost one-third of the global ammonia demand, although its coal-based production methods are carbon-intensive.

North America, led by the U.S., is the fastest-growing region. Companies are transitioning to natural gas-based, lower-emission production methods. Additionally, U.S. initiatives, such as the Inflation Reduction Act, provide incentives for blue ammonia and carbon capture technologies.

Leading Market Players

  • CF Industries Holdings Inc
  • Yara International
  • SABIC
  • OCI Global
  • Mitsui Chemicals, Inc
  • J.R. Simplot Company – which recently earned ENERGY STAR recognition for energy efficiency at its fertilizer plants.
  • IFFCO
  • Sumitomo Chemical

Download Full Report | Speak to Analyst | Explore Custom Segmentation : https://straitsresearch.com/report/ammonia-market/request-sample

Frequently Asked Questions (FAQs)

Q1: What is ammonia used for?

  • Ammonia is used in fertilizers, refrigerants, explosives, textiles, and increasingly as a hydrogen carrier.

Q2: What is the chemical formula of ammonia?

  • The chemical formula of ammonia is NH₃.

Q3: What does ammonia smell like?

  • Ammonia has a strong, pungent smell that is easily recognizable.

Q4: How is ammonia produced sustainably?

  • Through green ammonia production, using renewable energy to split water into hydrogen, which is then reacted with nitrogen.

About Straits Research

We deliver actionable market intelligence through validated methodologies, empowering businesses navigating energy and agricultural transitions.

Top Trending Reports: 

https://www.linkedin.com/pulse/ammonia-market-reach-usd-30871-billion-2033-wbjaf/

https://www.linkedin.com/pulse/construction-market-surpass-usd-308997-billion-kr0jf/

https://www.linkedin.com/pulse/flat-glass-market-set-reach-usd-47469-billion-tuxxf/

https://www.linkedin.com/pulse/food-colors-market-soar-usd-1040-billion-2033-1p3mf/

https://www.linkedin.com/pulse/industrial-hemp-market-surpass-usd-1641-billion-0agcf/


disclaimer

Comments

https://themediumblog.com/assets/images/user-avatar-s.jpg

0 comment

Write the first comment for this!