Green Ammonia Market Size

Green Ammonia Market size was valued at USD 166.82 million in 2023 and is likely to cross USD 126.07 billion by 2036, registering more than 66.5% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of green ammonia is estimated at USD 255.57 million.

The growth of the market can be attributed primarily to the rapidly increasing need to reduce greenhouse gas emissions worldwide, along with the increasing adoption of energy-efficient technology across countries globally.

Green ammonia is used across various industries as a building block such as fabrics, pesticides, fertilizer, plastics, explosives, and dyes in residential and commercials applications and it is the 2nd most-produced chemical globally. However, the traditional procedure of producing ammonia consumes fossil fuels such as coal, natural gas, and others, on account of which it is responsible for global greenhouse gases emission. The conventional process of ammonia production results in the production of high amount of carbon dioxide, on account of which there is an increasing demand for renewable energy sources for the production of green ammonia. According to the statistics by Climate Watch, total greenhouse gas emissions around the world increased from 32645.91 MtCO₂e in 1990 to 48939.71 MtCO₂e in 2018. To reduce the level of greenhouse gas emission, many market players are shifting their focus towards ecological process, which is further anticipated to drive the market growth.

On the other hand, energy efficiency programs, which use smart technologies for achieving decarbonization goals is a significant trend in the market.  The adoption of the energy-as-a-service model is among a key method for capturing value associated with the energy efficiency improvements. Nevertheless, service models have significantly improved the energy efficiency gap via aligning the incentives between consumers and energy service companies in order to reduce the overall energy consumption, which is also anticipated to create numerous opportunities for market growth. Furthermore, the increasing use of alkaline water technology, proton exchange membrane technology, solid oxide electrolysis and others for the production of green ammonia, is also anticipated to drive the market growth during the forecast period.