Ammonia Market Trends

Growth Drivers

• Increasing Use of Ammonia in Maritime Shipping – Ammonia is colorless and does not produce carbon dioxide on combustion. Also, ammonia can be produced from renewable sources such as water, electricity, and air. All these major factors are estimated to boost the market growth in the coming years. Ammonia is projected to be one of the leading alternatives to traditional oil-based fuels by 2050, according to the International Maritime Organization.

• Increasing Refrigerator Purchases – The worldwide exported value of combined refrigerator-freezers in 2021 was USD 19,591,263.

• Rising Production of Explosives – The global imported value of explosives as of 2021 was worth USD 897,597.

• Less Cost of Renewable Ammonia – The cost of green ammonia is estimated to reach USD 310 per ton by 2050 from USD 720 to 1400 per ton in 2020.

• High Demand for Fertilizers – Increasing feed use, the impact of COVID-19, and the Ukraine war increased the demand for fertilizers. To combat this Russian Government rose fertilizer exports increasing nitrogen fertilizers by 231 thousand tons to reach 5.7 million tons as of 2022.

Challenges

• Harmful Nature of Concentrated Ammonia
• Producing Good Quality Ammonia is Difficult
• High Capital Investment for Green Ammonia

The global ammonia market is segmented and analyzed for demand and supply by end-user into pharmaceutical, fertilizer, pulp & paper, refrigerators, textile, mining, and others. Out of these, the fertilizer segment is anticipated to hold the largest market size by the end of 2033 on the account of rising utilization of biofertilizers, the increasing need for food crops, and the rising population. It is estimated that the world’s population reached about 8 billion by 2022 and is projected to reach 10 billion by the end of the century.