Ammonia Market Size To Hit USD 131.8 Billion By 2035, Fueled By Agriculture And Green Energy

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Ammonia Market

The ammonia industry is expected to grow at a CAGR of 4.7% from 2025 to 2035” - By Transparency Market ResearchWILMINGTON, DE, UNITED STATES, September 3, 2025 /EINPresswire / -- The global Ammonia Market is experiencing a period of rapid evolution, fueled by increasing demand in agriculture, chemical manufacturing, refrigeration, and emerging applications in clean energy. With ammonia being a critical raw material in the production of fertilizers, its role in ensuring food security and supporting global agricultural output remains paramount. In addition, the growing focus on green ammonia as a sustainable fuel alternative is set to transform the industry landscape in the coming years.

Ammonia Market was valued at USD 79.9 billion in 2024 and is projected to reach approximately USD 131.8 billion by 2035, expanding at a CAGR of 4.7 % from 2025 to 2035. Growth is primarily driven by the agriculture sector, which accounts for nearly 70% of total demand due to the extensive use of ammonia-based fertilizers. In addition, increasing investment in green ammonia projects for renewable energy applications and the growing use of ammonia as a hydrogen carrier are expected to significantly reshape the market landscape over the forecast period.

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Key Players:

.BASF SE
.CF Industries Holdings, Inc.
.Orica Limited
.Nutrien Ltd.
.MITSUBISHI GAS CHEMICAL COMPANY, INC.
.Praxair Technology, Inc.
.Achema
.PT Pertamina Gas
.Linde plc
.CNPC
.Jiangsu Huachang Chemical Co., Ltd.
.SABIC

Global population growth and food demand rising, fertilizer consumption is expected to remain the backbone of ammonia demand. Moreover, the development of green ammonia – produced using renewable energy sources – is positioning the market as a vital contributor to the decarbonization of shipping, power generation, and other hard-to-abate industries.

Key Market Drivers

Agriculture Sector Growth

Fertilizers derived from ammonia remain essential for boosting crop yield and ensuring global food security. Emerging economies with growing populations, particularly in Asia and Africa, are witnessing increased fertilizer usage, thereby driving ammonia demand.

Energy Transition and Green Ammonia

With industries shifting toward decarbonization, ammonia is being explored as a hydrogen carrier and alternative fuel. Green ammonia, produced through electrolysis powered by renewable energy, offers a zero-carbon pathway for shipping and power generation.

Industrial Applications

Beyond agriculture, ammonia is increasingly used in the production of industrial chemicals such as nitric acid, as well as in textiles, mining, and water treatment.

Cold Chain and Refrigeration

Ammonia is an efficient and eco-friendly refrigerant, making it a preferred choice in industrial refrigeration systems, particularly in food processing and storage industries.

Market Challenges

Despite strong growth prospects, the ammonia industry faces several challenges:

Environmental and Safety Concerns: Conventional ammonia production is highly energy-intensive, relying heavily on fossil fuels, and accounts for around 1–2% of global CO2 emissions. Handling and storage also pose safety risks.

High Capital Costs of Green Ammonia: The transition to renewable-based ammonia production requires significant investment in electrolyzers, renewable infrastructure, and transportation networks.

Volatile Raw Material Prices: Natural gas is the primary feedstock for ammonia production, and fluctuations in natural gas prices directly impact production costs.

Regional Insights

.Asia Pacific dominates the global ammonia market, accounting for the largest share due to its agricultural base, rapid population growth, and fertilizer demand. China and India lead production and consumption in the region.
.North America benefits from abundant natural gas reserves, supporting cost-efficient ammonia production and export potential.
.Europe is witnessing strong investment in green ammonia projects, driven by strict carbon reduction policies and energy transition goals.
.Latin America and Africa present growth opportunities due to expanding agricultural activities and increasing adoption of ammonia-based fertilizers.

Market Trends

.Rise of Green Ammonia Projects: Governments and companies are investing heavily in renewable ammonia production to meet net-zero targets.
.Integration with Hydrogen Economy: Ammonia is increasingly recognized as a safe and efficient hydrogen carrier.
.Digitalization and Smart Manufacturing: Adoption of Industry 4.0 in ammonia production to improve efficiency and reduce carbon footprint.
.Expanding Role in Energy: Growing trials of ammonia as a marine fuel and co-firing fuel in power plants.

Future Outlook

The global ammonia market is on the cusp of significant transformation. While fertilizers will remain the primary demand driver, the emergence of ammonia as a clean fuel alternative and hydrogen carrier is expected to reshape the industry. Countries investing in renewable energy infrastructure are likely to lead the green ammonia transition, while traditional ammonia producers will face mounting pressure to decarbonize.
By 2035, the market is expected to witness not only volume growth but also a shift in production dynamics, with green ammonia gradually gaining a larger share of the market. Companies that embrace sustainability, invest in innovative technologies, and form strategic alliances will emerge as leaders in this evolving landscape.

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